Ladies and gentlemen, thank you for holding, and welcome to the SBM Offshore full-year 2024 earnings. At this moment, all participants are in a listen-only mode. After the presentation, there will be an opportunity to ask questions. Just to remind you, this conference is being recorded. I would like to hand over the conference to Mr. Øivind Tangen. Please go ahead.
Welcome, everyone, to the SBM Offshore full-year 2024 earnings call, and thank you for joining us. I am Øivind Tangen, CEO of SBM Offshore, and I'm joined today by Douglas Wood, our CFO. I will start with our main achievements for this year, after which Douglas will go through our financials before I conclude. As always, we welcome your questions after the prepared section of this call. Please note the disclaimer. SBM Offshore has been at the forefront of delivering innovative ocean infrastructure solutions for the offshore energy sector for over 65 years. Our strategic focus on building a resilient backlog and diversifying our portfolio ensures that we are well-positioned to achieve sustainable growth and deliver consistent shareholder returns, all while transitioning our business within the Blue Economy. We are driving progress through our True Blue Transition promise.
Our strategy is to achieve greater progress both in our core operations and in new markets by broadening our offering of energy-related solutions and then our horizons into other sectors. To achieve this, we focus on two key areas to create long-term value for our stakeholders. Advancing our core. This is about enhancing our core operations, aiming for a net-zero future and a just transition. By developing ocean infrastructure solutions that promote decarbonization and increase the efficiency of traditional oil and gas production, we ensure sustainable growth and long-term value. Pioneering more. Here we seek to secure new business and explore new markets within the blue economy, crucial for addressing energy security, environmental, and climate challenges. By partnering with progressive organizations, we unlock opportunities and drive sustainable economic growth, positioning ourselves at the forefront of innovation and profitability.
We consistently provide solutions that generate value, meet specific performance targets, and offer high delivery assurance. Our comprehensive approach ensures that not only do we deliver projects but also long-term partnerships built on trust and excellence. The 2024 results illustrate this well. Our SBM teams delivered across all segments of activity, and we upheld our absolute priority to protect our colleagues and worksite personnel. I am pleased to share the details of that performance and what's driving SBM's growth, including exceptional financial performance, shareholder returns, execution excellence, new awards, and progress on diversifying our offering for the future. In short, a strategy that pays. First, we achieved record-level results in both revenue and EBITDA, reflecting three new awards and the purchases of FPSOs Prosperity and Liza Destiny by ExxonMobil Guyana, increasing our backlog once again to a record level.
From this outstanding performance, we proposed a circa 30% increase in shareholder returns to around $1.59 per share. At this level, we would see a minimum aggregate of $1.7 billion over the next six years to 2030, with upside potential from future growth. Douglas will give you further details in a moment. The operational achievements from the ocean infrastructure and Win & Grow value platforms reflect our continued focus on excellence across our business model. Major milestones include three Fast4Ward FPSOs coming on stream this year with a combined capacity of 655,000 barrels of oil per day. Cumulatively, this will increase our installed capacity to 2.7 million barrels of oil per day in 2025. With these achievements, we are further de-risking our construction portfolio. In addition, the global fleet delivered high uptime for 16 units in operation, including an excellent first year for Prosperity, exceeding industry standards.
Along with high activity levels in both EPC and asset management scopes, we maintained safety as our top priority and concluded the year with no significant injuries to personnel, meeting our targets in both leading and lagging safety performance indicators. This performance is driven by a robust HSSE and continuous improvement culture. Regarding our commercial activities, our excellent performance positions us favorably for growth, especially in a strong FPSO market. We secured two FPSO awards following the Sale and Operate Accelerated Cash Flow model, FPSO GranMorgu for TotalEnergies in Suriname in joint venture with Technip Energies, and FPSO Jaguar for ExxonMobil Guyana. We also secured a 20-year lease contract from Woodside, providing an FSO with a disconnectable turret mooring system for the Trion project in the Gulf of Mexico.
This diversification of our portfolio with new clients and basins in new countries has been achieved while remaining disciplined, with the divestment of FPSO Kikeh in Malaysia, which closed earlier this year, and the rationalization of the fleet in Angola. Given the robust market outlook, we ordered our ninth and tenth MPF hulls in 2024, which means we now have two hulls available to optimize our tendering activities. As ever, we will remain selective in pursuing high-quality projects and initiatives that align with our goals, maximize returns, and minimize risks, and we continue to develop strategic partnerships to decarbonize and diversify our offering by collaborating with companies like Mitsubishi Heavy Industries, with whom we've developed an integrated carbon capture solution for FPSOs.
We finalized the joint venture with Technip Energies on floating offshore wind, and most recently, we signed an investment agreement with Ocean Power to jointly develop a low-emission offshore floating power generation concept. The demand for FPSOs is set to increase, driven by sustained oil demand. With declining existing supply, new developments will be required. Quality deepwater projects are economically competitive with comparatively lower emissions, and as such, deepwater production is expected to grow this decade. Our FPSOs are therefore the go-to solution to bridge the demand-supply gap. We see 40 prospects in the next three years, with 16 in our core market of large and complex FPSOs. Among the promising regions emerging in deepwater are key markets including the Atlantic Basin around Brazil, Guyana, Suriname, and West Africa, including Namibia. Our unique Fast4Ward offering is optimized for the Atlantic Basin, where we will have six units operating this year.
This unique offering is deeply rooted in our extensive experience in ocean infrastructure. We place a high premium on reliability and capitalize on the full lifecycle of learnings that we've accumulated. With the startup of three new vessels representing 655,000 barrels of oil per day installed capacity, our total fleet installed capacity will reach 2.7 million barrels of oil per day this year. This growth is possible because continuous improvement is systemically embedded at every stage in our business model, driving a culture of excellence across the full product life. Through our Fast4Ward concept of standardized MPF hulls, we have a consistent approach to accelerating time to market, which de-risks field developments and sets industry-leading performance standards, as demonstrated by FPSO Prosperity in early 2024. High levels of uptime and an excellent track record in asset management is evident, with the 96% uptime for 16 units in 2024.
With over 400 years of cumulative operating experience, the quality of our services is on par with the high quality of our products. Equally important to being a reliable partner throughout the entire project lifecycle is adhering to responsible recycling and waste disposal policies in line with EU and international standards. Our most recent decommissioning project of the Deep Panuke platform in Canada stands at 97% for materials recycled, repurposed, or sold. Our Fast4Ward program is setting the pace for deepwater developments. The first Fast4Ward FPSO went on hire in February 2022. In 2025, we are set to bring three major projects on stream, increasing our total number of operating Fast4Ward FPSOs to six. Almirante Tamandaré achieved first oil on February 15, 2025, becoming the largest FPSO to operate in Brazil with a capacity of 225,000 barrels of oil per day in the Mero field.
It is the first to receive Sustainability I notation in Brazil, recognizing the fruits of our emission reduction efforts. Alexandre de Guzmão will add 180,000 barrels per day production capacity in the Búzios field. The unit sailed away in December 2024 and will be the eighth unit operating in Brazil on track for first oil around mid-2025. One Guyana will add 250,000 barrels of oil per day production capacity to the Stabroek field, making it the largest vessel in Guyana and bringing the total production in country to around 900,000 barrels per day. In just four years, SBM's six Fast4Ward FPSOs will be responsible for 12% of the overall deepwater production. With that, I'll leave it over to Douglas for more details on the financial results.
Thank you, Øivind, and good morning, everybody.
Our strong financial performance in 2024, with record levels of revenue and EBITDA at $6.1 billion and $1.9 billion respectively, reflects the great efforts of our teams in materializing our committed contract backlog. Despite the fact we materialized more than $6 billion from this backlog during the year, thanks to the addition of the three new awards in 2024, not only did we manage to replace this, but to add to it, ending the year around $5 billion higher at a record $35.1 billion. The P&L results speak to our ability to execute and operate our business, and then the backlog to our ability to maintain and grow our business. On a forward-looking basis, we expect to generate $9.5 billion net cash from our backlog, and that's the equivalent of nearly €52 a share.
As a result, we're increasing our cash return to $1.59 per share, a 30% increase via a proposed $155 million dividend and a $150 million share buyback program. This increased return level represents a cash yield of 9% per share and would result in a minimum aggregate return of $1.7 billion over the next six years to end 2030. As we'll see in a minute, there's upside for returns from, one, the existing net cash backlog, and then, two, new awards, where we anticipate that the majority of these in the next few years will follow a sale-and-operate model with an accelerated cash flow profile and no equity investment requirement. But first, to review the key metrics for 2024 on a directional basis, starting with the backlog, the foundation and generator of our substantial long-term cash flow. This increased to $35.1 billion.
The main drivers, again, being the awards of FPSO Jaguar, the Trion FSO, and FPSO GranMorgu. Then, on net debt, this decreased by almost $1 billion to around $5.7 billion. This resulted from the repayment of the Prosperity and Liza Destiny financings following the sale of the vessels and was partly offset by drawings on project financing facilities to fund the construction portfolio. Next, the P&L metrics. Total revenue was $6.1 billion compared with $4.5 billion for 2023. This 35% increase was driven by the turnkey segment, where revenue was more than $3.7 billion compared with around $2.6 billion in 2023.
We saw a positive impact from the new Jaguar and GranMorgu awards under the Sale and Operate model, the sales of Prosperity and Liza Destiny, and the finalization of the sale of a 13.5% share in Sepetiba to China Merchants Financial Leasing, plus finally a good performance from Brownfield and Project Services, then on a comparative basis, there was an offset from the fact we sold Liza Unity in 2023, the move of Prosperity and Sepetiba to the operating phase, and lower revenue from FPSOs Almirante Tamandaré and Alexandre de Guzmão as those projects neared completion. On the lease-and-operate side, revenue was around $2.4 billion. That's an increase of more than $400 million compared with last year, and this mainly reflects the startups of Prosperity and Sepetiba and the acquisition of additional interests in FPSOs N'Goma, Saxi Batuque, and Mondo from Sonagol in June 2024.
On a comparative basis, we saw reduced revenue from Liza Unity, which moved to an operating contract following the sale of the unit in quarter four 2023. Then, to EBITDA. So this was around $1.9 billion. It's just over 44% higher compared with 2023. Just like with revenue, Turnkey drove this increase, increasing by nearly $430 million to just over $720 million, and the main drivers being the FPSO sales and brownfield and Project Services. Noting that, being at relatively early stages of completion, Jaguar only contributed marginally to EBITDA and GranMorgu not at all. Then, Lease and Operate EBITDA increased by almost $140 million to $1.26 billion, and the main elements here were the same as for revenue. Finally, other EBITDA was -$89 million.
It's an improvement versus the $101 million negative last year, where 2023 was impacted by costs associated with the establishment of our corporate business solution center in Porto. Now, there are different ways of structuring the delivery of our unique lifecycle model, and we're confident that where necessary, we can still secure financing to support all models, as evidenced by the $1.5 billion construction financing for Jaguar, which closed in the fourth quarter. However, based on our view of the pipeline of opportunities for the next three years, our expectation is that the majority, if not all of these, will follow the sale-and-operate model. So this model results in the majority of the cash flow and P&L being generated upfront in the construction phase, noting that we only book margin and EBITDA after 25% completion.
So then, depending on the relative progress of different projects in the portfolio, this could lead to some volatility in turnkey margin and EBITDA. For example, I just mentioned that last year, Jaguar and GranMorgu had a sizable impact on revenue, but not EBITDA. So this diluted the portfolio IFRS-based turnkey margin for the year. However, this was 18% on average for the last three years. Then, on leverage here at the bottom, while our debt is well-structured, linked to individual projects and contracts and non-recourse in the operating phase, we know that the optics, at least, of the headline multiples can raise questions for some. So from a leverage ratio perspective, the shift towards the sale and operate model results in a significant deleveraging.
This is visible already today following the record EBITDA and circa $1 billion net debt decrease, which results in a net leverage ratio of three times EBITDA. This represents a reduction of almost 50% compared with two years ago. Going forward, earlier accelerated cash generation from sale-and-operate awards will result in a structurally lower level of financial leverage in our business, with debt, if any, being short-term and only during construction, so assuming no lease-and-operate awards in the next three years, if we add up scheduled project finance debt drawdowns and repayments up to 2028, which will include the full repayment of the debt related to FPSO Jaguar and FPSO One Guyana, as you can see on the bottom right of the chart here, we would expect a further circa 50% reduction of total debt by around $3 billion by 2028. Moving on to the net cash backlog.
Again, despite the materialization of the backlog during the year, thanks to the new awards, we ended higher versus last year-end 2024 at $9.5 billion. This is a pretty good outcome considering the FPSO divestments, and it's also worth noting that while sale-and-operate awards deliver a similar NPV to lease-and-operate, because the cash comes sooner, the relative aggregate amount of cash is lower. The other thing you can see here is that the front-end loading of the net cash, with around 40% of the backlog set to be delivered in the next six years. Now, we started including the net cash component of the turnkey backlog from the first half last year. So again, just a reminder on how we do this. First, we include in-hand turnkey projects on a gross margin basis net of contingency.
Second, for the period where we have vessels under construction, now to end 2028, we include the turnkey overhead and taxes net of the margin we typically generate from our services business. And this is a net circa $50 million per annum investment. An important thing to note about this investment in turnkey overhead is that it's also supporting the acquisition of new awards for which we don't count ourselves rich in the backlog. Just like last time, then, we've included this turnkey net cash backlog in our discounted analysis of the net cash value at various discount rates. And even given the recent share price appreciation, this still points to further upside, especially given that it reflects only the contracts we have in hand with no further growth. Now, if you wanted to value this upside, you could take a multiple approach for turnkey.
So even, for example, if you halve this year's Turnkey EBITDA, applying a four to six times multiple range, you'd get around $1.4-$2.1 billion, or around $7-$11 a share versus the circa $3 a share for Turnkey currently included in the discounted analysis. So the backlog, with the visibility and predictability that it gives us on future cash flow, underpins our ability to offer stable returns with growth potential. So next, to update on shareholder returns. Now, last year, we updated our shareholder returns policy, introducing an annual cash return commitment, which provides flexibility to pay a portion of our annual cash return as a share repurchase in combination with a dividend. Under the policy, we aim to pay a stable cash return which grows over time, linked to growth in the backlog.
We maintain the option to apply surplus capital for incremental returns on top of this. So this cash return was $1.22 a share in 2024, which we're proposing to increase by 30% to $1.59 a share, which would give a 9% cash yield. This will be delivered via a proposed $155 million dividend and the $150 million or EUR 141 million equivalent share buyback announced this morning. A portion of the buyback, up to $25 million, will be applied to employee share programs such that the aggregate cash return for 2025 is $280 million, a 27% increase versus last year's $220 million, noting that the increase on a per-share basis is higher due to the positive impact of the buyback program launched last year.
Now, in line with previous guidance, we've prioritized the buyback component of this year's increase in the cash return, and we currently see this remaining the case going forward. The increase in the dividend component is purely driven by Dutch fiscal rules, which, in order to allow a tax-free buyback, require an aggregate dividend equivalent to the average of the last seven-year dividends after excluding the highest and lowest years. So this is an aggregate EUR 150 million, where, just to be clear, the $155 million proposed dividend will be the minimum floor level. With the increased returns announced today, we're therefore maintaining our track record of increasing returns with further upside to continue to grow this.
And you can see the visibility on cash and returns and the further upside that our backlog gives us when we zoom in on the net cash expected to be generated from this up to the end of 2030, the next six years. This is $3.5 billion, on top of which, thanks to the investment in turnkey overhead that's now included, we should be able to generate incremental net cash in the period based on our expectation that the majority of awards in the next few years will follow the sale-and-operate model. So from this $3.5 billion, as we've been guiding, we need to cover the remaining net equity for the projects we're currently finalizing, where we have around $250 million to go. Then we have six years of corporate overheads, around $500 million.
So subtracting these two items from the net cash backlog effectively gives available free cash of $2.8 billion for the period, or $470 million on average per year. From this, our existing cash return is now more than $1.7 billion for the period, more than 50% of our current market cap, where, by the way, we've returned around $1.5 billion over the last six years. This then leaves $1.1 billion for incremental returns and to fund any future growth requirements, which, as we've previously communicated, we'd expect to be lower than in recent years. So there's therefore material upside for additional returns, and this is before further potential linked to growth, where more sale-and-operate awards should generate accelerated cash in the period. Timing-wise, as I just mentioned, we're still working through the remaining net equity investment, which consumes cash and liquidity in the initial part of the period.
Finally, to update you on our guidance for 2025, 2025 directional revenue guidance is above $4.9 billion, of which above $2.2 billion is expected from the Lease and Operate segment and around $2.7 billion from the Turnkey segment. 2025 directional EBITDA guidance is around $1.55 billion. That's it from me. Now, back to Øivind.
Thank you very much, Douglas. Very clear. With our financial stability, we are able to focus our business model on our strategic growth drivers. Through our Ocean Infrastructure platform, we are advancing our core business by focusing on excellence and execution of our existing backlog. By 2030, the key objective is to decarbonize our fleet by reducing emissions by 50% for downstream lease assets compared to 2016 levels, as we work towards our 2050 Net Zero commitment. Through Win & Grow, we aim to expand our backlog. We are also developing new solutions and products, including a near-zero emission FPSO, where our work is nearing completion. This project integrates features from our emissionZERO program, including combined cycle, closed flare, and carbon capture technologies, underscoring our dedication to reducing emissions. Leveraging our unique expertise in deepwater projects, we are pioneering more, working towards growing new markets by developing profitable new ocean infrastructure solutions. We are confident in our ability to develop new solutions based on 65 years of innovative progress and industry-first in ocean infrastructure. We delivered the first CALM buoy in 1959, and even as our terminals and services business thrived, we continued to innovate, and we designed new floating solutions, increased production capacity, and moved into deeper waters. 57 years after the first terminal, FPSO Turritella became the deepest moored unit at nearly 3 kilometers.
Since then, we've piloted our solution for floating offshore wind at commercial scale, developed digital agents and digital platform service to leverage the immense data from our global operations. We've materialized the Fast4ward programs. We have materialized the Fast4ward programs' competitive advantage and delivered massive FPSOs of incredible complexity such that the world has never seen. We are pioneers through and through, driving progress by building on our rich heritage and deep understanding of the market and its challenges, strategically positioning the company through the energy transition and beyond for long-term success within the Blue Economy. We are enhancing our positioning in floating offshore wind and larger-scale projects through the joint venture EkWiL, signed with Technip Energies, and we are exploring new solutions with purposeful investments and partnerships to explore new ocean infrastructure solutions in promising and profitable markets.
These include ammonia transfer terminals, a blue ammonia FPSO that is designed to unlock a new revenue stream for our clients by valorizing the associated gas while meeting the growing demand for low-carbon ammonia. We have worked with technology providers such as Casale and others to conduct design and integration studies on this front. We've also progressed on power barge solutions, CO2 injection, and terminals, complementing the opportunities already under development. To conclude, our strategy pays. In 2024, we secured three awards, confirming industry confidence in our capability and further growing our backlog. This proactive approach ensures we are ready to seize new opportunities and protect our future cash flows. We have a robust financial foundation based on our backlog of committed contracts from premium clients, which is expected to generate $9.5 billion net cash over the next 25 years, around 40% to come before the end of this decade.
And that's excluding the clear growth potential. In 2025, we have three significant startups in the pipeline. This increase in production capacity not only boosts our financials but also de-risks our portfolio. We are committed to delivering value to our shareholders with a circa $155 million dividend combined with a $150 million share buyback for 2024 and a payout of $1.7 billion until 2030, with significant upside potential from future growth. The near-term market outlook is strong, offering significant growth potential for our backlog and returns. Our proven Fast4Ward offering differentiates us in the market, positioning us well to secure high-potential and complex projects. In 2024, we added two new clients in two new countries, demonstrating our ability to expand into new markets. Looking further into the future, our track record and expertise in ocean infrastructure positions us to pioneer solutions that leverage our unique, recognized capabilities.
This, plus our ability to partner with other progressive companies, means we are confident in our capacity to decarbonize and diversify our product offering and transition our business within the Blue Economy to deliver on our promise of True Blue Transition. We invite you to stay engaged with us on our journey. Thank you for listening, and we'd now like to open up the floor for questions.
Thank you. Ladies and gentlemen, we will start the question-and-answer session now. To be registered for the question-and-answer queue, please press star 11 and wait for your name to be announced. Please stand by while we compile a Q&A roster. Our first question comes from the line of Quirijn Mulder. Please go ahead.
Yeah. Good morning, everyone. I hope you can hear me.
Fairly.
Yeah. If you speak up a little bit, it's very low.
Yeah. I understand. I'm picking it up somewhat better. My first question is about the order intake. Can you give me an idea about this 11 billion order intake in 2020-24 to some sort of split? And my second question is with regard to TotalEnergies. I read the text as that there's a turnkey and to be delivered to TotalEnergies when finished. Is there anything like a sale-and-operate there? Those were my questions.
Okay, so additions to the backlog, I think, as we explained through the narrative, essentially Jaguar, FID, TotalEnergies, so the GranMorgu FPSO, and the lease-and-operate FSO Trion for Woodside. When it comes to the GranMorgu, so it's a sale. That's correct. And we're currently in the process of discussing the operating model and potential contracts around that.
Okay. But you cannot give me a feeling on the split between the three names for this?
For the breakdown, no, no. We don't go into the specific economics of any of the awards. No.
Okay. Thank you.
Thank you. We'll now take our next question. Please stand by. Our next question comes from the line of Thijs Berkelder. Please go ahead. Your line is open.
Yeah. Good morning. It's Thijs Berkelder,ABN AMRO ODDO BHF . The first question is on your outlook for 2025. Can you maybe give a bit more insight into what you expect for EBITDA lease-and-operate versus turnkey and what is included there? Does it include, let's say, finalization payments for Almirante Tamandaré and Alexandre de Guzmão?
Good morning, Thijs. So yeah, as ever, we give the consolidated outlook for EBITDA. So as I mentioned, it's $1.55 billion. We don't give a breakdown between the segments. However, what you can think about is, particularly, I mentioned the fact that GranMorgu and Jaguar didn't really contribute in 2024 because they were just getting close to the 25%. They'll be over that in 2025. So there's quite a material contribution from those and less of an impact from the awards, which we've substantively now finalized and are awaiting hookup and commissioning this year.
Okay, then can you maybe for, let's say, listening investors, shareholders, maybe again shortly explain the tax-free dividend system in the Netherlands? What keeps you restricted from further lifting the dividend?
Yeah. So what you do is you take the dividends over the last seven years, and then you take away the highest and lowest. So that then leaves you five numbers. You divide the aggregate of those by five. That gives you an average. That is a €150 million. And then what I said is that the $155 million that's based on the €150, that's going to be a floor, if you like. So there could be some upside based on the current euro/dollar exchange rate, but 155 is going to be the base number we use.
That means that the longer you are paying dividends, the higher the tax-free dividends can become?
Yeah. I mean, you can kind of effectively already do the math for the next year. So that averaging formula would mean that the base dividend amount would have to go up a bit in incoming years.
Yeah. Clear. Thanks.
Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Daniel Thomson. Please go ahead.
Hi. Good morning. And congrats on a good set of results. Just two questions, please. I mean, given the shift we have in the mix of commercial models, I was wondering if you could just give us some sort of indication on the bridge from EBITDA to cash flow items. So just if you could comment on maybe CapEx expectations and working capital expectations in 2025 as we kind of less of the build costs go through the CapEx line and how it might impact working capital. And then the second one is just on the 16 sweet spot sort of opportunities you've highlighted, can you give us any sense of weighting by year? I mean, you've got one, you've ordered an additional MPF Hull. So maybe that suggests you have a good idea of where the first one's going.
But yeah, is this back-end weighted, kind of equally weighted, or front-end weighted? Thank you.
Yeah. Again, let me talk to the prospects a little bit, so I mean, as you will know, deepwater development is something that comes to the market on the back of very significant exploration work, so we have quite good visibility of those that are in the 2025, 2026 space, and you will find them on Petrobras pages for what's in Brazil. You will see with Total for what is emerging in Namibia, and you, Exxon, and partners are quite explicit on the development pace in Guyana. And when we look at prospects in the 2025, 2026 space, there are quite discrete opportunities that we're pursuing in those three markets as key markets, and then there are 2027 and beyond. We obviously have close dialogue with most of the IOCs, and we are monitoring that.
But for the prospects of our additional MPF hulls, it's also to keep the pace and the partnerships with IOCs going. So we find that there's a good match between the commitment to two and the discrete prospect we see in the 2025, 2026 space.
Then, on the sort of EBITDA, the cash flow elements, so we still, as I mentioned, have some of the investment to make in the projects that we're finalizing. So that was the 250 I mentioned, most of which we would expect to roll off through this year. But there could be some that moves a bit into the next year. Then with the sale and operate projects, overall, those are cash neutral or positive on average. But sometimes you can actually get temporary swings depending on timing of invoicing milestone payments. So that can create a bit of volatility. And then the other element, obviously, we have is we're growing the fleet. We've got three FPSOs joining this year. So as expected, as we take into account that soon requires a bit of working capital.
All right. That's clear. Thank you.
Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Mick Pickup. Please go ahead.
Good morning, everybody. A couple of questions, if I may. Obviously, very active FPSO market. Can you just talk about yard availability? Are we seeing any pressures on that for projects going forward? And then second question, and excuse me if I'm just being ignorant and my math is not good enough, but the bit that surprised me was your turnkey revenues for 2025 being a lot higher than I'd expected, given where last year's half-year number was, projects coming in, things going forward. Is there something about early recognition of revenues on the MPF hulls? I know you're not booking profits, but do we get an early recognition of revenues because you transfer the hull over?
All right.
Yeah. Mick, good morning. Thank you for your question. So when it comes to yard availability, and there is a high pace of building activities, both from the offshore sector and utility sector. So that's something we're monitoring constantly. Typically, from a yard constraint, the bottleneck goes through the dry docks, and that means it goes through the hull, which is also why we continue to invest and believe in the MPF solution as the key competitive advantage and also to deliver on schedule certainty. So when it comes to topside modules and integration capabilities, that's an easier equation. And we find that that's not so much of a capacity constraint. It's more as an economic factor to consider in terms of finding the best cost base. So yard availability, it is a factor, and MPF is the mitigator. Douglas?
Yeah. Good morning, Mick, so the revenue, really, again, it's really all about Jaguar and Búzios. We were ramping up last year. Now we're getting into really the thick of the construction, and so those are really the big drivers of the revenue. That's the story there.
Thank you, Douglas.
Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Thijs Berkelder. Please go ahead. Your line is open.
Yeah. Good morning again. Follow-up question. On your slide 13, you show an overview of your uses of cash. The combination of available free cash is EUR 2.8 billion. It's slightly lower than six months ago. Can you explain why it's lower? And the growth potential part looks like something like EUR 1.5 billion. Can you explain why you want to use the growth part for?
Okay. So again, Thijs, so first up on that growth part, don't get your pixel measurers out. That is purely kind of notional. So I thought we'd achieve that with the heavy shading, but it's just to give an indication there's upside. But it's not proportionate just for the record. So obviously, what drives the available free cash is the overheads, the net equity investment. They've been fairly consistent around that. But at least up until 2030, which is the period that we're measuring, clearly, we've had a lot of materialization of the net cash backlog, especially following the purchases of Destiny and Prosperity last year. Plus, I think the previous version of this chart actually was six and a half years. So those are the elements here. But still a very strong net cash backlog. We've increased the returns. Clearly, there's upside there.
The current return level is 60% of that 2.8, which I think is pretty reasonable. And then again, yes, it's not proportionate, but as new awards likely follow Sale and Operate, that gives us a good chance to add some extra cash during the window that we've zoomed in on this slide.
Yeah. And the slide also writes $470 million available free cash on average per year.
Yeah.
You return or you plan to return this year something like to 80 or so?
Yeah.
At what moment in time can we expect then you to reach the 470?
So one thing to bear in mind this year, as I mentioned, is the additional net equity investment we have to go that's on this chart there. So that's sort of an impact in the thinking. We want to be able to deliver growing stable returns. And so as time progresses, we win new awards, we're confident that we'll be able to unlock the 1.1 and beyond. But it always pays, of course, to have a bit of reserve in the tank in terms of prudently managing the finances of the company.
Clear. Thanks.
Thank you. Ladies and gentlemen, if there are any additional questions or remarks, please press star 11. There are no further questions. Mr. Tangen, please go ahead.
Thank you very much. I really appreciate your interest in the company and following our journey. So look forward to our next update. And in the meantime, stay tuned. Thank you. Have a nice day.
Thank you for attending. This concludes the SBM Offshore Event Call. You may now disconnect your line. Have a nice day.