Ladies and gentlemen, thank you for holding and welcome to the SBM Offshore Half-Year 2025 Earnings Conference Call. At this moment, all participants are in 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 now like to hand the conference over to Mr. Øivind Tangen. Go ahead, please.
Thank you, operator. Good morning, everyone. I'm Øivind Tangen, CEO of SBM Offshore, and joining me on the call is our Chief Financial Officer, Douglas Wood. We appreciate you being with us today and thank you for your continued interest in SBM Offshore's journey and progress. SBM Offshore's strategy is focused on advancing our core business, setting new benchmarks for efficiency, sustainability, and returns, and capturing a greater share in a growing market. We aim to provide reliable, affordable, and sustainable energy for the long term, and our core business linked to deepwater remains one of the most resilient and future-fit segments of the energy mix, presenting low break-even costs and low emissions. At the same time, we're preparing with discipline to expand our product offering. We envision a broader role for ocean infrastructure across sectors and markets.
This includes developing new offshore technology and new business models to support society sustainably. The first half of 2025 has been marked by solid project execution and operations, delivering on our stakeholder commitments with stability and consistency. Our financial performance has been strong over the first months of 2025. A 26% increase in revenue to $2.3 billion and a 10% increase in EBITDA to $682 million by disciplined project execution, delivery, and operations. Our net cash backlog of $9 billion provides long-term visibility and resilience. Based on this performance and with two startups in Brazil and FPSO ONE GUYANA on charter, we raised our EBITDA guidance from around $1.55 billion to above $1.6 billion. During the first half of the year, we brought online two large FPSOs in Brazil, FPSO Alexandre de Gusmão and FPSO Almirante Tamandaré , the largest oil-producing unit in Brazil.
Their combined capacity adds 405,000 bbl of oil per day. FPSO ONE GUYANA is on charter as of August 4th and will be the largest producing unit in Guyana with an initial nameplate capacity of 250,000 bbl of oil per day. These three vessels, delivered as promised in 2025, bring the size of our fleet to 17 FPSOs with a total installed production capacity of 2.7 million bbl of oil per day. In June, we signed an agreement with TotalEnergies to provide the operations and maintenance service for a minimum of two years of FPSO GranMorgu, becoming the first offshore operator in Suriname. In Guyana, we've reached record production levels with combined output from our units at 665,000 bbl of oil per day.
ONE GUYANA will take this to over 900,000 bbl per day, and we are proud to have played a role in helping our client in the remarkable achievement of reaching this level in only six years. Our strong growth forecast underscores our commitment to advancing our core and pioneering more. The deepwater market remains resilient with 46 potential contract awards in the next three years. We have Two Fast4Ward MPF hulls under construction, enabling rapid response to upcoming tenders. Our near-zero FPSO, now with ABS approval in principle, is market-ready. Our ability to deliver consistently and responsibly positions SBM Offshore at the forefront of the industry. We are set up to achieve excellence in execution, delivery, and operation. The deepwater sector continues to demonstrate exceptional double resilience, with break-even costs ranging from just $20- $35 per bbl and emission intensity about 45% lower than the industry average.
By 2030, more than 30% of new global oil production is expected to come from deepwater, reinforcing its critical role in the energy mix. We are firmly positioned at the forefront of this market, with around one-third of the potential award in our strategic sweet spot. Furthermore, our ability to anticipate has prompted the expansion of our operational footprint in high-growth regions such as Suriname, Namibia, and Mexico. With three new FPSO startups this year, our share of global deepwater production is more material than ever. To support future demand, we've ordered two additional hulls and are extending our capacity pipeline in collaboration with Berhad , with slot options in the coming years. Our disciplined and selective approach, anchored by the proven Fast4Ward program, continues to deliver market share gains and efficiency improvements, ensuring we remain the partner of choice in the deepwater market.
For us, excellence is more than a principle. It sits at the heart of realizing a new industry standard of performance. This approach drives our relentless pursuit of optimization across the asset's lifecycle to deliver competitive and high-performance solutions for our clients. By incorporating learnings from all phases of the lifecycle, we standardize design, accelerate delivery, and de-risk execution, ensuring outcomes that are on time, on budget, and built for long-term performance. Our Fast4Ward execution model is the embodiment of this mindset: smarter, faster, and more reliable. With in-house installation capabilities enhancing agility and control, we are setting new standards for delivery assurance. FPSOs Alexandre de Gusmão and Almirante Tamandaré achieved flare-out in an industry-leading average below 45 days. Our uptime average across the fleet reached 99.4% for the first six months of the year.
In Guyana, de-bottlenecking of processing facilities on our initial three FPSOs has increased production capacity by 125,000 bbl of oil per day. This experience brings learnings and data which allow us to continuously refine our value proposition, reinforcing our ability to execute complex projects at pace and at scale. Through a proven execution model, a culture of continuous improvement, and a lifecycle business model built to capture the right demand, SBM Offshore is converting opportunity at higher margin and generating recurring value, delivering growth through performance. Our project execution model is designed to assure value by leveraging the gains of Fast4Ward. Following the successful delivery of FPSO ONE GUYANA, we now have three major projects under construction: FPSO Jaguar for ExxonMobil, FPSO Trion for Woodside, and FPSO Gran Morgu for TotalEnergies. All three are progressing well and remain on schedule, with overall portfolio progress at approximately 30% completion.
This current project portfolio enjoys the full benefit of learnings of our earlier Fast4Ward projects, which stand at six deliveries in just three and a half years. We have also begun construction of our two additional MPF hulls, extending our capacity pipeline in partnership with Berhad . This targeted approach actively supports tender activities in a robust market. Our Sale and Operate model for FPSOs Jaguar and GranMorgu begins to generate profit after just 25% completion, accelerating cash flow at an early stage of construction while maintaining our lifecycle value proposition through operations and maintenance contracts that commence upon completion of construction. Meanwhile, the Lease and Operate model for FPSO Trion contributes to long-term cash flow visibility. With the hulls under construction, we are responding to a clear market demand.
This, together with our overall Fast4Ward approach, which encompasses not only our product but also how we work with our clients, partners, and suppliers, enables us to de-risk project delivery and ensure operational reliability, generating value for our clients. As global challenges intensify with the continuously growing energy demand and the energy trilemma: grid congestion, limited coastal space, offshore infrastructure is emerging as a strategic opportunity. It unlocks access to untapped environments, enabling delivery of energy or other industrial processes where land-based systems are constrained or infeasible. Ocean infrastructure is flexible and scalable. Its modular, standardized execution model supports rapid global deployment with consistency and efficiency. This approach delivers compelling economics and flexible application across a spectrum of proven technologies. For example, low carbon power, ammonia and hydrogen production, carbon capture, carbon capture and storage, and freshwater generation. Offshore floating platforms can be critical enablers of resilient, future-ready infrastructure systems.
This is where we can apply our experience and capabilities to offer a unique value proposition for ocean infrastructure. With over 60 years of offshore experience, during which we've delivered more than 500 floating solutions and built up more than 400 cumulative years of operating experience, we combine a heritage of industry firsts, deep lifecycle expertise, and our Fast4Ward approach to deliver infrastructure that is reliable, cost-efficient, and built for performance. Together, this positions us not only to meet today's infrastructure demands, but those of tomorrow. Already, our teams are working on all the concepts that you can see here at the bottom of the page to enable us, to enable, as we like to say, a better blue tomorrow. Now, over to Douglas for a deep dive on our financials.
Thank you, Øivind, and good morning, everybody. As you've heard, our strong first-half performance and the delivery of the three new units has driven an increase in revenue guidance to above $5 billion and EBITDA guidance to above $1.6 billion, anticipating strong underlying growth year-on-year from the materialization of our backlog. This is very much supported by the growth of the half-on-half numbers. All of this speaks to the ability and the great efforts of our teams to execute our lifecycle model and materialize cash from our backlog, where, as we'll see in a bit, we remain on track to generate an expected average of $470 million a year available free cash flow up to 2030. Notwithstanding the recent rise in our share price, that still represents a very respectable 10% yield. That's even more so when you consider the quality and resilience of our business model.
This has consistently demonstrated its robustness versus macroeconomic and geopolitical challenges. The contracts in our backlog are backed by take-home pay contracts from premium clients, supporting developments with very low break-even costs and having significant inflation protection in both the construction and operating phases. As we deliver the cash flow from our backlog, we're paying down existing project debt. Given that the FPSO projects we have in execution and all of those in our near-term tendering pipeline are based on the Sale and Operate model, we continue to anticipate further deleveraging of our balance sheet, simplifying our financial storyline. The resulting available free cash flow from the backlog supports our ability to deliver very competitive returns. We've already paid our EUR 150 million dividend in May and have our $150 million equivalent share buyback program ongoing.
We're on track to deliver our promised $280 million cash return for 2025 and a minimum of $1.7 billion from 2025- 2030 inclusive. Turning to the key metrics for the first half-year 2025 on a directional basis, starting with the backlog, this was just above $33 billion, lower than year-end as a function of the revenue materialized over the first six months. 2025 is a year of delivery, with the prospects we target estimated to be due for awards starting from around the end of the year. Moving to net debt, this remains stable versus year-end 2024, with a slight decrease of just under $100 million, resulting in a net debt level just above $5.6 billion.
The impact of scheduled repayments during the first half was partially offset by final drawdowns under the facilities for existing projects and the previously announced sale and leaseback transaction for FPSO Cidade de Paraty, which is accounted for as debt. As we'll see in a minute, the deleveraging trend towards the end of this decade remains in line with what we've previously shared. Next, the P&L metrics. Total revenue was just over $2.3 billion in the first half, compared with over $1.8 billion for the first half 2023. This 26% increase was driven by the Turnkey segment, where revenue was more than $1.3 billion, compared with $662 million in the prior year period. The main driver here was the Jaguar and GranMorgu projects, which follow the Sale and Operate model.
On the Lease and Operate side, revenue was around $1 billion, a decrease of 16% compared with the prior period. This mainly reflects a reduced contribution from FPSOs Prosperity and Destiny, as these moved to an operation and maintenance-only basis following the sales at the end of last year. Its impact was only partially mitigated by the contributions from FPSOs Almirante Tamandaré and Alexandre de Gusmão, as these just started up during the first half. Turning to EBITDA, this was just over $680 million, which is 10% higher compared with the same period in 2024. Similar to revenue, we saw an increased contribution from Turnkey at $225 million, compared with a - $12 million in the prior year period.
The main driver of this was the margin for the period of Jaguar, with a smaller impact from GranMorgu, as this only reached the milestone for booking margin towards the end of the current period. Speaking of margin, the Turnkey directional gross margin was 21%, so that's starting to converge with the IFRS gross margin of 26% as a result of the Sale and Operate model. While we very much expect to deliver healthy margins in Turnkey, consistent with what we've seen over the recent years, with Sale and Operate, you can expect a bit of volatility depending on the timing of new awards and relative phasing and stage of completion of the portfolio. To round off the EBITDA story, Lease and Operate EBITDA was around $500 million, compared with $679 million in the year-ago period, the drivers being the same as for revenue.
Other revenue was $41 million negative, which is an improvement versus $47 million negative last year as a result of lower G&A costs. Next, looking at our view of the pipeline of opportunities for the coming three years, our expectation remains that the majority, if not all, of these will follow the Sale and Operate model, where we either have only short-term construction financing, as with the case of Jaguar, or no debt, as with GranMorgu. Our lifecycle model will require a structurally lower level of debt. Of course, while our existing debt is well structured, correlated to individual project contracts and non-recalls from the operating phase, it's clear that at least the optics of this in the financials create a challenge for some potential investors.
With the shift towards the Sale and Operate model, as our existing debt pays down, we expect to see the trend of deleveraging continuing, simplifying an aspect of our financial storyline and more readily clearing key screening hurdles for some investors. Assuming no Lease and Operate awards in the period, our current expectation is that net debt should decrease by around $4 billion up to 2030. It's very important to note we could see some fluctuations, particularly in leverage ratios, where, for example, the 12 months to end 2024 and the rolling 12 months to the first half of this year benefit from the EBITDA impact of the Prosperity and Destiny sales. There's also the point I just mentioned about the potential for variability driven by the Turnkey margin. However, we're confident about the overall trend.
Turning to the net cash backlog, this stood at $9 billion at the end of the first half. The delta with the year-end level of $9.5 billion reflects a successful materialization of more than $300 million in the first half across Turnkey and Lease and Operate, with the further circa $200 million difference mainly coming from the impact of the sale and leaseback transaction for Paraty. Through this transaction, as well as demonstrating our ability to access diverse sources of financing, we accelerated more than $200 million at a competitive rate. At this time, we've made the Turnkey backlog a bit more prominent, as you can see on the chart, where we show the aggregate amount we expect until completion of all projects in the portfolio currently 2028.
When it comes to the discounted analysis of the net cash value at various discount rates, there's a circa EUR 1 impact from the change in the backlog, with a much bigger circa EUR 3 impact driven by dollar depreciation versus the euro. The discounted analysis includes about EUR 2.5 per share for the existing Turnkey backlog, but no upside from anticipated growth. If you wanted to value the Turnkey upside, applying a four- six times multiple range, every $250 million of Turnkey EBITDA, which is pretty much what we've delivered so far in the first six months, would be worth EUR 5- EUR 7 a share. 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.
We remain very much on track with this, here reconfirming the picture for the six years from this year, 2025- 2030, at the minimum $1.7 billion return. As I mentioned, we've already paid the dividend component of our cash return for this year, and we're on track for the share buyback, which will take the overall cash return to $280 million for the year. You might ask how the Paraty sale and leaseback plays in this equation. This was anticipated at the start of the year, and we're using the proceeds as planned to manage and optimize our liquidity, mainly to reduce the short-term net equity investment. It is net neutral on this picture overall.
As a result, upside remains from the additional $1.1 billion we effectively have in the tank from the existing backlog, plus potential new Sale and Operate awards, which, with the accelerated cash flow these bring, would impact this period. To conclude, if you want to succinctly summarize the future financial perspective we have for SBM Offshore, it's more returns, lower leverage, simpler story. That's it from me. Now back to Øivind to conclude.
Thank you, Douglas. Concluding, we've successfully delivered three major FPSOs in just seven months, a benchmark unmatched in the industry. The upgraded guidance reflects both this operational momentum and the strong financial performance of our organization. We are on track to deliver a minimum of $1.7 billion from 2025- 2030 inclusive, with upside potential from the existing backlog and prospective new awards. Our robust business model allows us to navigate a complex macroeconomic and geopolitical landscape and deliver reliable performance, results, and shareholder returns. There is a strong market for new build, large, and complex FPSOs today and in the years ahead. Beyond that, given the flexibility and versatility of ocean infrastructure, we've focused on applying our unique experience and capabilities to develop solutions that can help address many of today's global challenges.
From the foundation of consistent and strong delivery of what we do today, we're set for growth, not only in the near term, but also for the long term. I'd like to finish by thanking our teams worldwide for their dedication and to our stakeholders for their continued support. Thank you all for listening. We're now looking forward to your questions.
Ladies and gentlemen, we will start the question and answer session now. If you would like to ask a question, please press star one one on your telephone keypad and wait for your name to be announced. To withdraw a question, please press star one one again. Listening now, we will compile the Q&A roster, which will take a few moments. Now we're going to take our first question. The question comes from the line of Guilherme Levy from Morgan Stanley. Your line is open. Please ask your question.
Hi, good morning everyone. Thank you for taking my questions. I have two, please. Firstly, could you say a few words on the competitive environment for new awards from Petrobras in Brazil recently? We know, of course, that there has been a big push from them to drive costs lower, but at the same time, I understand that many of the yards that want to work there recently are very full of work. How can I conciliate the two things? How can I conciliate Petrobras' ambition to drive down costs with the ability of peer EPC players to compete there? The second question, it might be a bit more technical, but looking at your cash flow statement, could you perhaps say a few words on the cash flows from investment activities on this half and in the coming one?
How should we think about CapEx in the second half of the year? Also, in the first half, what's inside the $180 million figure of other investing activities? Thank you.
Thank you, Guilherme. Let me address the first one, and then Douglas will take your cash technical question. The competitive environment on Petrobras contracts is pretty classic. Those that are technically qualified to bid on those jobs, it's a limited number of players, and there is a healthy prospect pipeline in what we know as being the 50% of the market outlook for FPSOs. We are a partner of Petrobras, and we want to remain a partner of Petrobras. We are obviously leaning in on some of these prospects that fit into the sweet spot of SBM . We do see some more activities with the type of BOT contracts that Berhad may be entering this space, but we are confident that the lifecycle value proposition also plays to our competitive positioning. It's pretty, as per historical trends on the competitive landscape in Brazil.
Okay. On the cash flows and investment, it's really the repayment of the residual net equity investment that we have. That's how we see the cash flow on the investing side going for this year, remembering that the picture we show you is a directional one. We had about EUR 300 million left at the end of last year. We're making good progress with that. We'll probably have a bit left at the end of the year, but we'll repay most of that over this year. As I mentioned, effectively, we're applying the proceeds from the Paraty sale and leaseback on that. The $180 million number you mentioned, that's the IFRS side of things. It doesn't quite go round with the whole cash storyline that we showed on the slide that I concluded with.
Thank you.
Thank you. Now we're going to take our next question. The question comes to the line of Thijs Beekhuis from ABN ODDO. Your line is open. Please ask your question.
Yeah, good morning, gentlemen. Congrats with strong results. Question on your guidance, Douglas. You already hinted a bit in your presentation, but Turnkey margins in H1 were up to 21%, thanks to a recognition of Jaguar now being included. IFRS 26% and GranMorgu also contributing in the second half. Does it mean that in the second half, we should see then Turnkey margin more towards the 26%? The second question is, you report two hulls in the construction. Can you maybe elaborate a bit on the options on more hulls and hulls availability? The third question is, I see that in directional, you have $1.8 billion left as assets in the construction. Is that ONE GUYANA and Trion, or what is it still about?
Okay. Let me start on the guidance. Yeah, you know with Sale and Operate, a strong year for Turnkey. As I mentioned, Jaguar was driving the EBITDA in the first half. GranMorgu is only just starting to contribute. We'll see a growing contribution from that. I'm not going to give like percentage guidance on the Turnkey gross margin, but it's fair to say that as everything kind of normalizes, if you like, and we get the Lease and Operate or the BOT project out of Turnkey, there'll be more convergence with IFRS?
Do you want to do this? It's the last question.
Can you do this?
Yeah, I'll do the hulls first. Yeah. Thys, thank you for your question. We got two hulls under construction. That lines up nicely with the prospects we currently are pursuing. As we've been doing over the last decade, we do have good insights into the next couple of years with a dialogue with our partnership yards to sort of line up their availabilities and our pristine needs. The pipeline is something that we keep on renewing, looking, let's call it 18- 24 months ahead at the time. It's not the definite number. It's just a continuous journey with our partnership yards.
In terms of what the assets under construction are, it's ONE GUYANA, GranMorgu, B58, and Jaguar.
Thank you, Douglas.
Okay.
Thank you. Now we're going to take our next question. It comes to the line of Jeremy Kincaid from Van Lanschot Kempen. Your line is open. Please ask your question.
Good morning, everyone. Thanks for taking my questions. I've got four. The first one is just on the guidance. You've obviously lifted the EBITDA by EUR 50 million, and you talked to a strong execution of the three Turnkey projects you delivered. Could you just provide a little bit more color around the assumptions or what's changed there? Are you collecting more revenue or are the costs lower? The second question, just on the net debt you published, it's a bit different to what consensus had. I was just wondering if you had any thoughts around that. You did talk to the fact that Turnkey margins can vary half on half. I was just wondering if you could provide some color as well as to when those margins might be higher or lower, at what stage of the S&O Sale and Operate model would lead to higher margins or lower margins?
The third question is just on slide 12. You talked to the net cash backlog. In the second half, you show there's another $ 300 million to come through. Are you able to share what the first half number was? Finally, just on the timing of potentially new awards, I know you can't share anything around what you're potentially bidding on or anything like that, but are you able to share when new awards are usually tendered or what the pipeline could look like for the second half of the year? Thank you.
All right. Morning, Jeremy. I counted five questions, actually, by the way, but no, no problem. Let's work through them. The EBITDA and the three startups, yeah, when we give our guidance for the year, we do it based on the risks and opportunities that we see. With three project startups, yeah, there is definitely an element of the risk there, some of which you control, others which you don't control because startups are sometimes dependent on other parties doing various things. I would say at the beginning of the year, we took a kind of a balanced approach in that regard. We're very pleased that things have pretty much gone to plan with the three startups, and thanks to the efforts of our team.
With those behind us, I would say there's less risk now in terms of the forecast for six months into the year, and that's driving the increase there. On net debt, hard for me to comment on the consensus and the variance. I'd be honest, I haven't really done an analysis on that. There are a few, obviously, there's the sale and leaseback that we did that added some debt. Margin-wise, I don't expect like a big volatility for the rest of the year. Basically, there, I was just like laying down a bit of a marker, if you like, that things can vary. It very much depends. You've got a lot of factors in this. It's obviously the number of awards you win. If you had no awards and you won a lot of awards because of the gate percentage of completion, it could take a while to book.
It depends on the whole timing, the maturity. All I'm saying is it can go up and down in the future. Nonetheless, you know when you look at the average, this is really how I would judge our performance. You can expect performance very much in line with the very good performance that we've been delivering for the past years. On net cash, as I mentioned, we consumed during the first half $500 million from the net cash backlog, and $300 million was like consumption during the period. The $200 million was the sale and leaseback. Øivind, you want to take the last?
All right. Timing on new awards, there's obviously a lot of factors coming into play to that. We are pursuing, as we've said, competitive baseball in Namibia and in Brazil. Our efforts have gone to meet all the specs and the deadlines that our clients have set. How fast they will choose, whether they will choose us, and when the FID comes, that depends a lot on parameters outside of our control. We have made real significant investment into providing our best competitive offers. Hopefully, that will be turned around in a timeline that gives us a good top-up of our portfolio in the period ahead. We can't really say anything on dates. That's way outside our control.
Great. Thank you very much. I think you're right. There were five questions. Thanks.
Thank you. Now we're going to take our next question. It comes to the line of Mick Pickup from Barclays. Your line is open. Please ask your question.
Good morning, everyone. Can I just ask about the ocean infrastructure, which you seem to emphasize a bit more this time? Just exactly where you are on some of the projects, I'm thinking floating power. One of the concepts is freshwater. I think that's the first time that's popped up if I've been observant. Why would you need an FPSO for freshwater rather than a pipe from shore?
Very good, interesting question, Mick. We need to think ahead beyond oil, and we need to think ahead beyond FPSOs. When we do that thinking, we really want to stay close to what is the SBM value proposition and our capabilities and the learnings we've harvested through standardization and fast-forward thinking. When we look across the specter of opportunities, there are, in the blue economy, as we relate it to emerging plays that call for those types of capabilities. What you see there are examples of this. Freshwater is linking to a projected shortage of freshwater in certain areas of the world where desalination comes into play. You will know that we do a lot of desalination with selected partners as part of our FPSO process plan.
Typically, both in terms of power needs and clean power needs, partly driven maybe by the AI and that boom that is happening in the world, that is also part of the FPSO offering as part of our power plans on the FPSO, modularized power barges with carbon capture. That is also something we got technology ready. It's to try and configure products that lend themselves to these emerging markets and frame that under an ocean infrastructure umbrella that we pursue, again, with discipline and through partnerships and playing to SBM's strength. This is to give a flavor of what the world may look like in some years ahead of us, keeping in mind that the FPSO pipeline is really strong in the years that we still have good visibility up to the end of this decade.
We're hurrying ourselves slowly and in a disciplined way into the SBM of tomorrow.
Okay. You just mentioned the modular. We're seeing increasingly modular solutions in other parts of the energy spectrum. I'm thinking LNG plants for the U.S. modular this week. What's yard availability like on those slot?
Yeah, I think looking at capacity. Modular capabilities, that's part of the expertise to develop when you do floating solutions, right? Maybe as a contrast to building on land, stick building on land, which is maybe less efficient from a space and economic equation. When we look at capacity constraints, typically for our classic projects, modular build is not really where the constraints are. It's more on hulls and dry docking and these things. We're pretty confident if we unlock value propositions in terms of modular designs, that's something we can find capacity for in typically the yards that we're using today and have been using for a long time.
Thank you.
Thank you. Now we're going to take our next question. The next question comes to the line of Quirijn Mulder from ING. Your line is open. Please ask your question.
Good morning, everyone. Congratulations with your numbers and also the organization with the efforts. Let me say the successful efforts to place three FPSOs on the water. First of all, I have two questions, in fact. One is about the discussion in the industry about the sizes of the FPSOs and that it has to be reduced, that you get something like a lighter version. At the same time, we see some CO2, let me say, taking off as an important part of the vessels, electrification, etc. How, what is the development with regard to these large FPSOs you think into the future? My second question is about the outlook and the first half year. EBITDA was $682 million. In that number, there is a balance of gains. I think it's about $67 million against the $30 million last year.
Is that correct, that $35 million about, or that is related to one-off? To what extent does it play a role in the outlook for the full year, taking also into account the impact of the wind-down of Equatorial Guinea plus the divestment of ASEAN? That were my questions.
Okay. I think I counted more than two as well, but that's okay. Good. Thank you for the recognition on the deliveries. Sometimes, and this is an honor to our teams, they make it look easy, but this is nothing trivial. As we said, it's a historical delivery in the history of deepwater oil and gas. We're really proud of that. Now, when it comes to the size of the FPSOs, you will, we've seen, and maybe also looking at history in sort of expansive times, that cost base and size and everything goes a bit out of proportion.
There is a recalibration happening a bit that we see in terms of the size of the FPSOs, as some of them are creeping really high up in top-side weight and maybe be challenging then also like our own business model with the MPF hulls and what they can deliver in terms of the future market. What we're seeing now is a reset on that. If you look at our FPSOs like Prosperity, Unity, AT, and ONE GUYANA, they are all sort of 250,000+ delivering throughput at top size, well within the historical sort of just above 40,000 and also down to 25,000 tons. We believe there is a lot of dialogue around it, keeping the size of the FPSOs at the current size is important to continue to be economical and meet those break-even costs that we know are underpinning the deepwater development.
We feel then, again, that the lifecycle knowledge is instrumental in being able to harness that top-side weight growth because it's through operational experience that you're able to provide efficient top sides that are reliable and functional at the cost level of the CapEx that is optimized. Therefore, we expect top-side weights to sort of flatten out right now, also to facilitate potential integration of extra top sides associated with your question then on carbon. As we said, we have an emission zero design approval in principle by ABS that includes a carbon capture module and carbon injection, CO2 injection facilities on the top side that is at the size of a normal MPF hull. Right now, in the pipeline, though, there isn't a call for carbon capture, but we do see studies emerging where we are participating in studies to qualify our carbon capture solution in offshore application.
That's the work we've been doing with Mitsubishi Heavy Industries. For now, we see a slow shift, but it's not materializing in our core prospect pipeline. Douglas, on EBITDA?
Yeah. Quirijn, you're exactly right. There is a $67 million impact in the first half relative to just slightly less, actually, than $30 million last year. There's a kind of a relative impact just below $40 million in there. As implied by the guidance, we're expecting a strong finish to the year. We'll see the contribution from GranMorgu and, of course, a big boost in Lease and Operate from the two units we started up in Brazil and also impact from ONE GUYANA as well. Lease and operate are really going to get going in the second half off the back of these successful startups.
Does Aseng play a role or not?
It's factored in. It's not a big impact relative to all those other things.
No, exactly. Okay, it's very small.
Okay. Relatively small, yeah.
Thank you.
Thank you. Ladies and gentlemen, if you have any additional questions or remarks, please press star one one on your telephone keypad. Now we're going to take the question from Lucian Cawthron from CapeView Capital. Your line is open. Please ask your question.
Good morning. Just two questions from me. Just in terms of debt drawdowns in H2, if you can kind of give us any guidance on that. Douglas, you mentioned about the kind of FX impact on the backlog. Just any comments in terms of what steps are in place to mitigate the kind of FX impact, and are those measures included within the backlog guide, or do they only get shown as and when they kind of get realized? Thanks.
If I start with the last one, just to be clear, to avoid any confusion whatsoever, what I was referring to is the, you know, we just mechanically do the math for you on the net cash backlog at a variety of discount rates. The net cash backlog is dollar-based. Obviously, our share price is in euros.
Just mechanically applying a different exchange rate compared with what we used at the year-end versus what it is now, that drives a decrease in the number. That's that one. When it comes to the fundamentals of exchange rates and everything, we get paid in dollars or with sometimes a small amount in local currencies. We're pretty well hedged in terms of the operating side. For new contracts where we have procurement in currencies other than dollars, we're hedged, and that is all factored in, if you like, and covered in our office. There's no exposure there. I think that's one of the things about SBM inflation exchange rates. We have a very resilient business model to all of the macroeconomic factors that impact that. On the debt side, I think we do have the construction financing for Jaguar.
I think it's not going to be a linear decline to 2030. We're still in a phase where we've got some project debts. I would see the reduction coming more in the, not necessarily this year, but in the years to come. Again, which is why I mentioned there could be some ups or downs. Again, overall, we are confident that we are going to see a significant deleveraging through to the end of this decade in line with the slide that we showed.
Got it. If I could just add two follow-ups, one to each. On the debt side, I mean, there was about $1.35 billion for kind of Jaguar, GranMorgu. For H2, what can you guide in terms of relative size or size relative to that amount that we might expect? Is it higher, lower, similar?
There's no debt on GranMorgu. There is debt on Jaguar.
Off the top of my head, I'm afraid I don't know the exact profile of the drawdown, but probably in line with what it was for the first half.
Okay. Just on the FX side, if we look at, obviously, the cash profile you've given, let's take 2042, random year, like $400 million on the profile. When you're thinking there's our cash coming in 2042, are you taking in measures when that's signed, let's say, a year or two ago to lock in an implied FX rate, or are you exposed to?
No. We're going to get that's the money we're going to be paid in dollars in the, you know, whatever, 2040 or whichever year you pick. When we get into the charter phase, basically, we're getting paid in dollars with sometimes, but it's going to be a small amount for local OpEx commensurate with what that spend.
It goes up. It's inflation linked, etc. Basically, that's the money we're going to get. Where there is exposure you need to manage is when you start building something because you have all sorts of contracts in different currencies. There we do the hedging upfront.
Got it. Thank you.
Yeah.
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