SBM Offshore N.V — Earnings Release 2016

May 11, 2016

Press Release

SBM OFFSHORE FIRST QUARTER TRADING UPDATE

May 11, 2016

REVENUE ON TRACK; PROJECT DELIVERY FOCUS

Highlights

• Year-to-date 2016 Directional¹ revenue in line with Management expectations at US\$442 million
• Cidade de Maricá first oil achieved and on hire
• FPSOs Cidade de Saguarema and Turritella on target for mid-year delivery
• Reiterating 2016 Directional¹ revenue and EBITDA guidance of at least US\$2.0 billion and around US\$750 million, respectively

Bruno Chabas, CEO of SBM Offshore commented:

"I'm pleased to see Lease and Operate cash flows continuing to grow with the delivery of Cidade de Maricá in the first quarter and the expected delivery of FPSOs Cidade de Saquarema and Turritella around mid-year, all contributing to our strong liquidity position. Delivery of these vessels combined with fleet operational reliability and focused cost management remain areas of attention while new business in the offshore deepwater segment is not expected to return to pre-downturn levels."

Financial Highlights

	YTD Directional1			YTD IFRS
in US\$ million	1Q 2016	1Q 2015	% Change	1Q 2016	1Q 2015	% Change
Revenue	442	601	$-26%$	507	742	$-32%$
Turnkey	148	326	$-55%$	225	499	$-55%$
Lease and Operate	293	274	7%	282	243	16%
in US\$ billion	Mar-31-16	Dec-31-15	% Change	Mar-31-16	Dec-31-15	% Change
Backlog	18.5	18.9	$-2%$	$\blacksquare$	$\blacksquare$	ΝM
Net Debt	3.1	3.1	$-1%$	5.3	5.2	1%

Year-to-date 2016 Directional¹ revenue came in at US\$442 million versus US\$601 million in the year-ago period. This decrease was entirely driven by lower Turnkey activity levels on remaining projects under construction and low order intake in 2015 and 2016. Directional¹ Turnkey segment revenue was down 55% year-on-year at US\$148 million, while Lease and Operate segment revenue increased 7% from the year-ago period to US\$293 million. The growth in Lease and Operate revenue is mostly attributable to the first quarter 2016 start-up of FPSO Cidade de Maricá and the fourth quarter 2015 new field start-up under the Thunder Hawk DeepDraft™ Semi Production Handling Agreement in the U.S. Gulf of Mexico.

Directional¹ Backlog as of March 31, 2016 stood at US\$18.5 billion. The Company added US\$55 million in new orders related to FEED and offshore installation contracts. Although SBM Offshore is actively involved in several tenders for FEED studies and final awards, it remains cautious on order intake in view of the continuing downturn in the oil and gas industry.

^<sup>1 Directional view is a non-IFRS disclosure, which assumes all lease contracts are classified as operating leases and all vessel joint ventures are proportionally consolidated.

Proportional n 2015 as inve received from net debt as of estments in n m joint venture f March 31, 2 ew projects a partners for th 2016 amounte are offset by he Turritella p ed to US\$3.1 cash genera roject. billion, uncha tion from the nged compar Lease and O ed to the end Operate portf d of Decembe folio and cash er

Gross Directi deduction of Company's m share in SBM level, excludin onal¹ capital roughly US\$7 main projects n M Inc. (the Co ng changes in expenditure t 78 million of u nearing comp ompany's con net working c through the fi upfront client p pletion in the f struction subs capital. irst three mon payments. Th first half of 20 sidiary) costs nths of 2016 his reflects th 016. These a as well as co amounted to e advanced c mounts corres osts directly in o US\$63 millio construction p spond to the ncurred at the on, before the progress of the SBM Offshore e joint venture heeeet,

Post period, t of which US\$7 the Cidade de 78 million is b e Maricá joint v ooked agains venture receiv t SBM Offsho ved the US\$14 re's Directiona 40 million con al 1 capital exp ntractual startpenditure on th -up payment f he project. from the client

Project Revie ew

FPSO Cidade e de Maricá (B Brazil)

On February achieving first 16, 2016 SBM t oil and the co M Offshore an ompletion of th nounced that he 72-hour co Cidade de M ontinuous prod Maricá was form duction test lea mally on hire a ading to final a as of February acceptance. y 7, 2016 afte er

FPSO Cidade e de Saquarem ma (Brazil)

Construction commissionin initial period o is ongoing f ng at the joint of 20 years. D for the financ venture Brasa Delivery is sche ce leased ve a yard outside eduled for mid essel. Cidad e of Rio de Ja d-2016. de de Saquar aneiro. The c rema is near harter contrac ring completio ct for the vess on of topside sel includes an enct

FPSO Turritel lla (US Gulf of f Mexico)

The vessel is includes an in on location in nitial period of n the U.S. Gul 10 years with lf of Mexico. S extension op Start-up of the tions up to a t e facility is exp total of 20 yea pected in midars. -2016. The ch harter contrac

Browse FLNG G FEED

On March 23 proceed with , 2016, partic the developm ipants in the B ent. As a res Browse Floati ult, SBM Offsh ng Liquified N hore's FEED a Natural Gas (F activites relate FLNG) project ed to the proje t in Australia d ect have cease decided not to ed.

Deep Panuke e (Canada)

The Company facility is shut time there are y's Deep Pan tdown for rep e no conseque uke productio airs which are ences to dayra on facility expe e expected to ate income. erienced a ma o be complete alfunctioning o d within a 120 of its flarestac 0 day shutdow ck on March 2 wn allowance 20, 2016. The , during which oehd5n

Compliance

Discussions w size of any p accounts. with the Brazi potential settle lian authoritie ement remain s and Petrobr to be confirm ras regarding med. The Co a settlement ompany took agreement ar a US\$245 m re progressing million provisio g. Timing and on in the 2015

The Compan January 2016 y is cooperat 6. ing with the U US Departme nt of Justice in its enquirie es following th he reopening of its case in

Sea Lion FPSO FEED

On January 13, 2016 SBM Offshore announced that Premier Oil plc awarded the Company the Front-End Engineering and Design (FEED) contract for an FPSO for Phase 1 of its Sea Lion development in the North Falkland Basin.

Revolving Credit Facility

SBM Offshore, together with its core relationship banks, have agreed to an amendment of its Revolving Credit Facility (RCF), providing headroom improvements to the leverage and interest coverage ratios.

The interest coverage ratio threshold has been lowered from 5.0x to 4.0x from December 31, 2016 through to maturity of the RCF at the end of 2019. The leverage covenant is temporarily being adjusted upwards to 4.25x in December 2016, 4.50x in June 2017 and 4.25x in December 2017 before reverting back to the originally agreed upon level of 3.75x through to maturity of the facility.

The agreed upon amendments, combined with a strong cash position, provide the Company will a larger degree of flexibility given the current industry downturn.

Post-Period Events

Dividend

On April 6, 2016, the Annual General Meeting of Shareholders voted in favor of the proposed US\$0.21 per ordinary share dividend distribution. Dividends were paid in Euros using an exchange rate of 1.1368, which equates to €0.1847 per ordinary share. The cash dividend was paid on May 3, 2016 to all shareholders of record as of April 11, 2016.

FPSO Marlim Sul (Brazil)

Decommissioning activities were completed in April 2016. The vessel received a decommissioning dayrate through the end of the first quarter of 2016. The vessel will be marketed for future conversion opportunities.

Outlook and Guidance

As the downturn persists and client investment decisions continue to be postponed, Management expects immaterial order intake in 2016 and 2017 while maintaining its positive medium to long-term outlook. The Company considers offshore development to be a crucial component of the overall energy mix to meet future demand.

The Company is reiterating its 2016 Directional¹ revenue quidance of at least US\$2.0 billion, of which US\$0.6-0.7 billion is expected in the Turnkey segment and US\$1.3-1.4 billion in the Lease and Operate segment. The Company also reconfirms the 2016 Directional¹ EBITDA guidance of around US\$750 million.

Directional¹ capital expenditure quidance for the remaining three finance lease vessels under construction is expected to be approximately US\$90 million. Directional capital expenditure excludes changes in net working capital and is presented net of SBM Offshore's share of upfront client payments for FPSOs Cidade de Maricá and Cidade de Saguarema.

Directional view is a non-IFRS disclosure, which assumes all lease contracts are classified as operating leases and all vessel joint ventures are proportionally consolidated.

Conference Call

SBM Offshore has scheduled a conference call followed by a Q&A session at 09:00 Central European Summer Time on Wednesday, May 11, 2016.

The call will be hosted by Bruno Chabas (CEO), Peter van Rossum (CFO), Philippe Barril (COO) and Erik Lagendijk (CGCO). Interested parties are invited to listen to the call by dialing +31 (0) 800 26 58 619 in the Netherlands, +44 (0) 80 82 37 00 30 in the UK or +1 866 928 7517 in the US and using access ID 44586863#.

A replay will be available shortly after the end of the conference call. Interested parties can listen to the replay by dialing +31 (0) 20 716 84 20 and using access code 671939# until June 11, 2016.

Corporate Profile

SBM Offshore N.V. is a listed holding company that is headquartered in Amsterdam. It holds direct and indirect interests in other companies that collectively with SBM Offshore N.V. form the SBM Offshore group ("the Company").

SBM Offshore provides floating production solutions to the offshore energy industry, over the full product life-cycle. The Company is market leading in leased floating production systems with multiple units currently in operation and has unrivalled operational experience in this field. The Company's main activities are the design, supply, installation, operation and the life extension of Floating Production, Storage and Offloading (FPSO) vessels. These are either owned and operated by SBM Offshore and leased to its clients or supplied on a turnkey sale basis.

Group companies employ approximately 7,000 people worldwide. Full time company employees totaling 4,900 are spread over five regional centres, eleven operational shore bases and the offshore fleet of vessels. A further 2,100 are working for the joint ventures with several construction yards. Please visit our website at www.sbmoffshore.com.

The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate entities. In this communication "SBM Offshore" is sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general, or where no useful purpose is served by identifying the particular company or companies.

The Management Board Amsterdam, the Netherlands, May 11, 2016

Financial Calendar	Date	Year
Half-Year 2016 Earnings - Press Release	August 10	2016
Trading Update 3Q 2016 - Press Release	November 9	2016
Full-Year 2016 Earnings - Press Release	February 8	2017
Annual General Meeting of Shareholders April 13		2017
Trading Update 1Q 2017 - Press Release	May 10	2017

For further information, please contact:

Investor Relations

Nicolas D. Robert Head of Investor Relations

Telephone:	+31 (0) 20 2363 126
Mobile:	+31 (0) 6 5461 2410
E-mail:	nicolas.robert@sbmoffshore.com
Website:	www.sbmoffshore.com

Media Relations

Vincent Kempkes Head of Communications

Telephone:	+31 (0) 20 2363 170
Mobile:	+31 (0) 6 25 68 71 67
E-mail:	vincent.kempkes@sbmoffshore.com
Website:	www.sbmoffshore.com

Disclaimer

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forwardlooking statements based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company's business to differ materially and adversely from the forward-looking statements. Certain such forward-looking statements can be identified by the use of forwardlooking terminology such as "believes", "may", "will", "should", "would be", "expects" or "anticipates" or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans, or intentions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those
described in this release as anticipated, believed, or expected. SBM Offshore NV doe update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.