4.1.5Outlook and Guidance

The outlook for the market segment in which the Company operates continues to improve in line with expectation: the demand for complex, large capacity FPSOs remains strong. Major offshore developments which are sanctioned are characterized by attractive economics and low break-even oil prices, provided that production systems are delivered reliably and on time. Projects awarded in 2019 have significantly reduced available capacity in the Company’s market segment. Therefore, the Company reiterates the fact that it will remain selective regarding the market opportunities it will focus on.

The Company’s 2020 Directional revenue guidance is above US$2.3 billion, of which around US$1.6 billion is expected from the cash generating Lease and Operate segment and around US$700 million from the Turnkey segment. Directional EBITDA guidance is around US$900 million for the Company.