(Adds details from call, analysts' comments)
By Juliette Portala and Sarah Morland
Aug 5 (Reuters) - SBM Offshore announced a share
buyback programme on Thursday as the oil and gas services
company reported better than expected first-half core earnings,
sending its shares up more than 6%.
The group posted first-half earnings before interest, tax,
depreciation and amortisation (EBITDA) down 4% at $501 million,
slightly beating the $477 million forecasts by analysts.
ING analyst Quirijn Mulder pointed to "a good set of results
with the share buyback as the icing on the cake."
The Dutch supplier of floating oil and gas production
vessels, which is also seeking to develop floating offshore wind
projects, launched a buyback for around $180 million euros, set
to be completed by the end of the year.
Company analysts welcomed the buyback as a positive surprise
at a strategic time, with shares significantly underperforming
both the market and the sector.
The stock, which has dropped close to 17% in the year to
date, was up more than 6% in early afternoon trading, setting it
on track for its biggest daily gain since April last year.
"Today we are not in fashion," Chief Executive Bruno Chabas
told analysts on a call. "What we're doing is returning cash to
our shareholders."
Major oil and gas firms such as Royal Dutch Shell
and BP have launched buybacks and boosted their dividends
on the back of strong second-quarter profits from surging oil
and gas prices.
SBM also detailed its commitments to Floventis Energy, a
newly established joint venture with Cierco, which is seeking
seabed rights and permits to develop technologies for floating
offshore wind power activities.
The group said opportunities in this market would
conservatively amount to at least six gigawatts (GW) for the
next decade.
SBM expects to spend $150 million to $200 million over the
next seven to eight years on associated developments with
Cierco.
($1 = 0.8452 euros)
(Reporting by Juliette Portala and Sarah Morland
Editing by David Goodman and David Evans)