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UPDATE 2-SBM Offshore revenues hit by weak turnkey business


(Adds analyst, shares, details)
May 12 (Reuters) - SBM Offshore reported a 15% drop in first-quarter revenues as its turnkey business continued to suffer from tough energy markets, sending it shares as much as 4.6% lower on Wednesday.
The Dutch-based company’s turnkey division builds and sells floating production and storage vessels to oil and gas firms and so is highly sensitive to their investment plans.
These customers slashed spending last year as oil demand plunged in the pandemic, but a recovery in energy prices has since buoyed their earnings.
“We believe SBM’s trading update was reasonable, albeit revenues ended (.) lower than we could expect based on its 2021 guidance of $2.6 billion,” ING analyst Quirijn Mulder said in a note to clients. ....

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