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- Q4 EBITDA USD 91.1 million and operating cashflow of USD 230.0 million
- 2023 EBITDA 305.5 million and operating cashflow of USD 558.6 million
- Equity ratio 30.2% and USD 605.7 million in available liquidity at end-2023
- Q4 cash dividend USD 0.088 per share equivalent to USD 15.9 million
- Total dividend based on 2023 results of USD 48.6 million as a combination of
cash and BW Energy shares in-kind to shareholders
- Barossa FPSO project 80% complete at end-January 2024
- Successful mobilisation of the BW Opal hull to Singapore, 22 months after
first steel cut in South Korea
- Concluded the legacy fleet divestment programme, selling assets for USD 331
million
- Raised USD 595 million of commercial debt and high yield bond
- Delisted BW Ideol from Euronext Growth to access private growth capital,
retaining 64% ownership
- Sale of all BW Energy shares for USD 176 million in January
- Repurchased Senior Unsecured Bonds in 2023 with a principal amount of USD
44.2 million
BW Offshore continues to progress the Barossa FPSO project, having achieved
overall completion of 80% by the end of January, in line with the project
schedule. In November, a significant milestone was reached as the BW Opal hull
arrived in Singapore, 22 months after first steel cut at the construction yard
in South Korea, marking the start of topside construction activities.
Integration activities in Singapore are well underway, with 11 out of 16 topside
modules successfully installed at the end of February.
In January 2024, all shares in BW Energy were sold to BW Group Limited, for USD
176 million. Following the transaction, the Board of Directors has declared a
cash dividend of USD 0.088 per share, amounting to USD 15.9 million in total,
for the fourth quarter of 2023.
âWe have a strong balance sheet after completing our fleet divestment programme
and the sale of BW Energy shares, supported by strong cash generation from our
FPSO fleet. This is reflected in our fourth quarter dividend which brings the
total distribution based on 2023 results to USD 48.6 million, being the maximum
allowed under our debt covenants, and shows our continuous commitment to
returning value to shareholders,â said Marco Beenen, CEO of BW Offshore. âIn
Singapore, the BW Opal integration phase is still on track for first gas in the
first half of 2025. The market for new FPSO projects remains strong with high
FEED activity, and we continue to selectively progress growth opportunities that
meet our selection criteria.â
The shares of BW Offshore will trade ex-dividend from 4 March 2024. Shareholders
recorded in VPS following the close of trading on Oslo Børs on 5 March 2024 will
be entitled to the distribution payable on or about 12 March 2024. For 2024, the
Company plans to continue to provide a stable, predictable quarterly cash
dividend based on an annual total distribution of 0.25 cents per share, with a
potential adjustment for the fourth quarter subject to, inter alia, net income
for the full year and debt covenants.
FINANCIALS
EBITDA for the fourth quarter of 2023 was USD 91.1 million (USD 74.5 million in
Q3). The EBITDA reflects solid operational performance across the FPSO fleet,
further enhanced by the conclusion of the PetrĂłleo Nautipa contract.
EBIT for the fourth quarter was USD 44.3 million (USD 38.2 million). Gain from
sale of fixed assets in the third quarter of USD 9.6 million relates to the sale
of Abo FPSO.
Net financial expense was USD 19.4 million (expense USD 2.5 million) of which
net interest expense amounted to USD 9.0 million (USD 10.1 million). FX and
other financial items were negative, mainly due to the mark-to-market on
interest hedges as swap rates decreased.
Share of profit from equity accounted investments was USD 17.5 million (USD 0.4
million) and relates to BW Offshoreâs ownership in BW Energy.
Tax expense was USD 2.4 million (USD 7.2 million). The higher tax expense in the
third quarter is mainly due to tax on the sale of Abo FPSO.
Net profit for the fourth quarter was USD 40.0 million (USD 28.9 million).
Total equity on 31 December 2023 was USD 1 195.3 million (USD 1 179.8 million).
The equity ratio was 30.2% at the end of the quarter (31.0%).
Net interest-bearing debt was USD 172.2 million (USD 294.7 million).
Available liquidity was USD 605.7 million, excluding consolidated cash from BW
Ideol and including USD 245 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 97.3% (99.2% in Q3 2023). Fleet uptime was impacted by a
planned shutdown on the BW Catcher FPSO.
In December, PetrĂłleo Nautipa was decommissioned from the field in Gabon and is
expected to be sold for recycling in 2024.
In October, BW Energy paid the first instalment of USD 30 million for the FPSO
Polvo. The second and last instalment will be paid on 30 April 2024.
On 6 January 2024, the BW Catcher contract was extended beyond the initial fixed
term. The contract is subject to a rolling 12-month termination right. The
contract automatically extends on a day-to-day basis beyond 6 January 2025 into
the option period.
BW ENERGY
BW Energy had an average daily production of ~32,900 bbls/day in the fourth
quarter from the Tortue and Hibiscus fields in the Dussafu licence and Golfinho
field in Brazil.
At the end of the fourth quarter, BW Offshore held 22.52% of the shares in BW
Energy. The entire shareholding was divested to BW Group on 25 January 2024. The
Company expects to record loss of USD 6.0 million on the book value of the BW
Energy shares from the transaction in first quarter 2024 accounts.
OFFSHORE FLOATING WIND
BW Offshore is actively engaged in the energy transition by developing clean
energy production solutions, applying its offshore engineering and operations
capabilities to drive future value creation through its ownership in BW Ideol.
BW Ideol is a global leader in offshore floating wind technology and co-
development with more than 12 years of experience from design, execution and
development of floating wind projects based on proprietary and patented Damping
PoolÂŽ technology and engineering capabilities.
In October, BW Ideol AS and ADEME Investissement completed an initial financial
closing investing EUR 17.8 million into BW Ideol Projects Company SAS, with BW
Ideol initially holding 75.8% and ADEME Investissement set to gradually increase
its share under the EUR 40 million funding agreement. BW Ideol manages the
development company through a service agreement. In November, BW Ideol signed a
Memorandum of Understanding (MOU) to investigate the feasibility of serialised
production of floating concrete substructures based on own design at APBâS Port
Talbot to position for the upcoming UK Celtic Sea leasing round with a multi-GW
development potential. The operational period for the Floatgen pilot in France
was recently extended by five years. The unit has generated over 30 GWh of
electricity since start of operations in 2018, underscoring the robustness of BW
Ideolâs design.
On 20 December, the shares of BW Ideol were delisted from Euronext Growth Oslo
following the completion of a compulsory offer for all shares outstanding by a
consortium consisting of existing shareholders following an earlier voluntary
tender offer. The delisting positions BW Ideol to raise capital more efficiently
from investors that invest in privately held growth companies. Furthermore, the
management at BW Ideol would benefit from freed-up management time to focus on
core activities to develop the company. The delisting of BW Ideol is expected to
facilitate funding and execution of the companyâs dual-leg growth strategy as
EPCI provider and project co-developer.
OUTLOOK
BW Offshore expects that the fleet will continue to generate significant cash
flows in the time ahead. Based on the contract backlog, BW Offshore maintains
the guidance of reporting an EBITDA in the range USD 290-310 million for 2024.
Growing energy demand, underinvestment in production capacity and geopolitical
conflicts continue to support high oil and gas prices and drive interest for
developing new infrastructure-type FPSO projects. These projects typically have
long production profiles, low break-even costs and focus on lower emissions.
Increased project complexity, combined with inflationary pressures and higher
construction costs, necessitates financial structures with significant dayrate
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 will continue to selectively evaluate new projects that meet
required return targets, offer a firm contract with no residual value risk, and
provide a financeable structure with strong national or investment-grade
counterparties.
BW Offshore is also actively applying its offshore engineering and operational
capabilities to drive future value creation within the energy transition by
developing low-carbon and clean energy production solutions. This includes
exploring new ventures that target significant market opportunities emerging
within gas-to-power, ammonia and carbon capture, as well as combining FPSO and
floating offshore wind capabilities to grow in new, adjacent areas. BW Offshore
maintains a disciplined approach with selective and diligent allocation of
capital.
Please see attached the Annual Report and Q4 Presentation. The earnings tables
are available at:
www.bwoffshore.com/ir
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
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.webcas
t.no%2Fviewer-
registration%2Fh5SIgXPn%2Fregister&data=05%7C02%7Cerland.ostensen%40bwoffshore.c
om%7C8a309037b4fe4561f09b08dc2d41e81c%7Cd7f771bb43b44406b6cde22a0d40ab77%7C0%7C0
%7C638435008302842302%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMz
IiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=pjSiz6ASetBU2aHSHBpiNRVG0VVQ
IJY3QOsVn4hX2vk%3D&reserved=0)
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
About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has
a fleet of 5 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 1,400 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
