SBM Offshore Raises Net Income Expectations

SBM Offshore N.V. announced that it has raised its 2006 net income expectations from the $165m originally forecast in January of this year to $185m. This increase results from several developments during recent months: • recently announced major contract awards and execution of contracts in hand have enhanced expected returns from turnkey systems projects in 2006; • good performance of F(P)SO fleet generates bonus revenues in excess of originally budgeted amounts; • confirmation from Total of a one year extension to the lease and operate contract for the LPG FSO Nkossa II currently operating offshore Congo; • net interest expense will be lower than expected, mainly due to accelerated cashflow compared to budget, prepayment of certain project loans and negotiation of reduced margins on other facilities. The Company will provide a more detailed update of full year expectations at the time of publication of its half-year results.