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- Q4 EBITDA USD 72 million and 2024 EBITDA USD 318 million in line with
guidance
- Strong commercial performance with Q4 operating cashflow of USD 79 million
and 2024 operating cashflow of USD 363 million
- Robust balance sheet with an equity ratio 30.8% and USD 540 million in
available liquidity
- Q4 cash dividend raised to USD 0.14 per share
- Increased cash flow in sight with Barossa FPSO on track for April sail-away
- Full-year 2025 EBITDA guidance in the range of USD 220-250 million
BW Offshore continues to progress the Barossa project according to schedule and
well within the updated budget. As of end January 2025, construction and
integration was 99% complete and commissioning at 85% completion. The vessel is
currently being prepared for sail-away in late April. The FPSO is on track for
first gas in mid-2025.
For 2025, BW Offshore expects to report EBITDA in the range of USD 220 to 250
million. The EBITDA outlook reflects the firm backlog for BW Adolo and BW
Catcher and the expected start of IFRS revenue recognition from BW Opal at full
practical completion during the fourth quarter. Dayrate received for the BW Opal
during the start-up and early production phase from mid-2025 will be amortised
over the 15-year contract period. Contract negotiations for BW Pioneer are
progressing well, however no guidance on EBITDA has been included beyond firm
contract.
The Board of Directors has declared a quarterly cash dividend of USD 0.14 per
share. The shares will trade ex-dividend from 3 March 2025. Shareholders
recorded in VPS following the close of trading on Oslo Børs on 4 March 2025,
will be entitled to the distribution payable on or around 11 March 2025. The
total dividend for 2024 amounts to USD 59.2 million, equal to 50% of net Income
for the year.
âWe continue to maintain a strong balance sheet supported by consistent high
commercial uptime and robust cash generation from the fleet with 2024 EBITDA
above initial guidance. Our commitment to returning value to shareholders stands
firm as reflected in the increased fourth-quarter dividend, and a total
distribution for 2024 reflecting 50% of net profit for a second consecutive
year,â said Marco Beenen, CEO of BW Offshore. âAs BW Opal progresses to schedule
and soon departs the yard in Singapore for the Barossa field, we are moving
ahead with potential new FPSO projects that meet our selection criteria in a
market with high tendering and FEED activity.â
FINANCIALS
EBITDA for the fourth quarter of 2024 was USD 71.9 million (USD 83.2 million in
Q3). The EBITDA reflects solid operational performance across the FPSO fleet.
Third quarter EBITDA was higher due to the final contribution from engineering
and design work on the Sakarya project.
EBIT for the fourth quarter was USD 30.8 million (USD 37.6 million).
Net financial items were positive at USD 19.4 million (negative USD 16.4
million), of which net interest expense amounted to USD 3.0 million (USD 4.3
million). Fourth quarter was impacted by the recognition of a valuation gain on
the finance liability related to the Barossa project, due to changes in timing
of future expected cash flows and a positive mark-to-market adjustment on
interest rate hedges resulting from an increase in swap rates.
The share of loss from equity-accounted investments was USD 9.5 million,
including a valuation adjustment on the Barossa finance receivable related to
changes in timing of future expected cash flows (loss of USD 5.7 million).
Net profit for the fourth quarter increased significantly to USD 40.8 million
(USD 13.0 million).
Total equity as of 31 December 2024 was USD 1 246.6 million (USD 1 208.6
million). The equity ratio was 30.8% at the end of the quarter (29.6%).
As a result of strong cash generation from the fleet and the sale of BW Energy
shares in 2024, the Company was net cash positive by USD 74.4 million as of 31
December 2024 (USD 38.4 million net cash positive at the end of September).
Available liquidity was USD 540 million, excluding consolidated cash from BW
Ideol and including USD 233.8 million available under the corporate loan
facility.
FPSO OPERATIONS
The FPSO fleet continued to deliver stable uptime in the quarter with a weighted
average fleet uptime of 99.2% (98.9% in the third quarter).
BW Adolo delivered strong commercial performance as fourth quarter production
increased to 37,150 barrels per day (bbls/day), resulting in strong cash flow
stemming from the tariff under the contract that generate USD 1.5/bbl for the
first 20,000 bbls/day of production and USD 3/bbl for production beyond 20,000
bbls/day.
Performance from BW Catcher and BW Pioneer was stable and consistent with high
commercial uptime.
FPSO PROJECTS
In January, BW Offshore was selected to perform the pre-FEED study for the Bay
du Nord FPSO project by Equinor. The project reflects BW Offshoreâs expertise in
floating production solutions for harsh environment conditions, and commitment
to delivering sustainable and innovative solutions. The pre-FEED study will play
an important role in supporting Equinorâs strategic goals for the Bay du Nord
development.
LOW CARBON ENERGY SOLUTIONS
BW Offshore is committed to contribute to the energy transition by developing
low-carbon offshore energy production solutions, by leveraging FPSO expertise to
deliver low-carbon energy and expand into new sectors, focusing on low-emission
oil and gas, CO2 transport, gas-to-power and floating ammonia to meet evolving
energy demands. The Company maintains a disciplined approach with selective and
diligent allocation of capital and a commitment to creating shareholder value.
BW Offshore also owns 64% of BW Ideol. BW Ideol is a leader in offshore floating
wind technology and co-development, with over 14 years of experience in the
development of floating wind projects.
In December, BW Ideolâs project partners, EDF Renewables and Maple Power, were
awarded the Mediterranean Tender (AO6) floating offshore wind project in France.
The 250-megawatt (MW) development will leverage BW Ideolâs proprietary Damping
PoolÂŽ technology, a proven solution that optimises the stability and performance
of floating wind turbines in challenging marine environments. A total of 12
floating foundations and turbines are planned to be installed at the site.
OUTLOOK
Growing energy demand continues to drive interest in developing new
infrastructure-type FPSO projects with long production profiles, low break-even
costs and focus on lower emissions. Increased project complexity, combined with
higher construction costs, necessitates financial structures with significant
day rate prepayments during the construction period for new lease and operate
projects.
Alternatively, oil and gas majors may finance and own FPSOs, relying on FPSO
specialists for the design, construction and installation scope, combined with
operation and maintenance services. BW Offshore is well positioned to offer both
solutions.
In recent years, the number of sanctioned FPSO projects have lagged market
expectations. Consequently, there is a growing number of projects at various
stages of maturity, reflecting a pent-up demand for FPSOs. Increased FEED and
tendering activity is a function of this, and BW Offshore expects that a number
of the FPSO projects the Company is engaging with will reach a final investment
decision over the next 12 to 36 months. The market dynamics, combined with the
high competence levels required for project execution, should enable better
risk-reward and improved margins for FPSO companies going forward.
BW Offshore continues to selectively evaluate new projects that meet required
return targets, offer contracts with no residual value risk after firm period,
and provide a financeable structure with strong national or investment-grade
counterparties.
BW Offshore expects that the fleet will continue to generate significant cash
flows in the time ahead, supported by the USD 5.3 billion firm contract backlog
at the end of December 2024.
Please see attached the Q4 Presentation. The earnings tables are available at:
Investors | BW Offshore
BW Offshore will host a webcast of the financial results 09:00 (CET) today. The
presentation will be given by CEO Marco Beenen and CFO StĂĽle Andreassen.
Webcast information:
You can follow the presentation via webcast with supporting slides and a Q&A
module, available on:
BW Offshore Limited - Q4 Presentation Webcast
(Viewer Registration ⢠Q4 2024)
Please note, that if you follow the webcast via the above URL, you will
experience a 30 second delay compared to the main conference call. The web page
works best in an updated browser - Chrome is recommended.
For further information, please contact:
StĂĽle Andreassen, CFO, +47 91 71 86 55
IR@bwoffshore.com or www.bwoffshore.com
About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has
a fleet of 3 FPSOs with potential and ambition to grow. By leveraging four
decades of offshore operations and project execution, the Company creates
tailored offshore energy solutions for evolving markets world-wide. BW Offshore
has around 1,100 employees and is publicly listed on the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Kilde
