November 15, 2012 / 7:04 AM / 6 years ago

UPDATE 1-SBM Offshore gives 2012 sales warning

AMSTERDAM, Nov 15 (Reuters) - Dutch maritime engineering group SBM Offshore warned on Thursday it will not reach its target of $4 billion in revenue this year due to a lower-than-expected order intake.

“In the short term, the challenges of complexity and scale, together with associated costs and risks for project developers are slowing certain contract awards or attenuating the start-up phase of major projects,” the company said in statement.

SBM Offshore missed third-quarter sales expectations, reporting sales of $816.5 million.

Five analysts polled by Reuters expected revenue of $1.052 billion. Estimates ranged between $935 million and $1.11 billion.

SBM has been engaged in a long-running dispute with Canada’s Talisman over Norway’s Yme oil platform, which was evacuated in July over concerns it could collapse.

The problems at Yme led SBM Offshore and Talisman to take hundreds of millions of euros in impairment charges, driving down profit and prompting management shake-ups.

SBM also said it was facing delays in commissioning the Deep Panuke platform in Canada.

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