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- Q1 EBITDA USD 86 million and operating cashflow of USD 91 million
- Equity ratio 31.1% and USD 682 million in available liquidity
- Q1 cash dividend USD 0.06 per share equivalent to USD 11 million
- Full-year 2024 EBITDA outlook maintained
- Barossa FPSO project 82% complete at end-April 2024
- Completed sale of the FPSO Polvo to BW Energy in early May
- Repurchased USD 36 million of Senior Unsecured Convertible bond
BW Offshore continues to progress the Barossa FPSO project, having achieved
overall completion of 82% by the end of April, in line with the project
schedule. In Singapore, integration activities are well underway with 13 out of
16 topside modules successfully lifted onboard and integrated at the end of
April. Offshore Australia, the turret mooring system components have been
delivered and installed on the Barossa field.
âBW Offshore delivers a quarter with strong operational performance across our
FPSO fleet and good progress on the BW Opal topside integration in accordance
with plan,â said Marco Beenen, CEO of BW Offshore. âWe have further strengthened
our financial position with the sale of shares in BW Energy and the remaining
legacy assets. This provides a strong foundation for an attractive and stable
quarterly cash dividend and selectively progressing growth opportunities that
meet our selection criteria in a strong FPSO market.â
The shares of BW Offshore will trade ex-dividend from 28 May 2024. Shareholders
recorded in VPS following the close of trading on Oslo Børs on 29 May 2024 will
be entitled to the distribution payable on or about 5 June 2024.
FINANCIALS
EBITDA for the first quarter of 2024 was USD 85.5 million (USD 91.1 million in
Q4). The EBITDA reflects solid operational performance across the FPSO fleet and
USD 8.6 million net contribution mostly related to early works as part of
securing new contracts. Fourth quarter EBITDA was positively impacted by the
conclusion of the PetrĂłleo Nautipa contract.
EBIT for the first quarter was USD 40.9 million (USD 44.3 million). A reversal
of impairment of USD 1.1 million in the quarter relates to the sale of PetrĂłleo
Nautipa, which was classified as held for sale on 31 March 2024.
Net financial items were positive by USD 0.8 million (expense USD 19.4 million)
of which net interest expense amounted to USD 8.7 million (USD 9.0 million).
Other financial items were positive, mainly due to settlement of swap contracts
in the quarter.
Share of loss from equity accounted investments was USD 2.2 million (profit of
USD 17.5 million Q4) and relates to BW Offshoreâs ownership in BW Energy. In
January 2024, the Group sold all of its shares in BW Energy Limited at a price
of NOK 32 per share, resulting in total proceeds to BW Offshore of NOK 1 860
million or USD 176.4 million. Due to currency fluctuations, a loss related to
the sale was recognised in the first quarter of 2024.
Net profit for the first quarter was USD 36.8 million (USD 40.0 million).
Total equity on 31 March 2024 was USD 1 218.4 million (USD 1 195.3 million). The
equity ratio was 31.1% at the end of the quarter (30.2%). Net interest-bearing
debt was USD 28.2 million (USD 172.2 million).
Available liquidity was USD 681.1 million, excluding consolidated cash from BW
Ideol and including USD 267.8 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 100.0% (97.3% in Q4 2023).
In April, BW Offshore signed an agreement to recycle the FPSO PetrĂłleo Nautipa
in compliance with the Hong Kong International Convention at Baijnath Melaram
ship recycling facility (the âFacilityâ) in India. The sale will free up
approximately USD 9 million of liquidity to the Company.
In May, BW Offshore received the remaining USD 20 million plus interest for the
sale of FPSO Polvo to BW Energy, thereby completing the transaction.
OFFSHORE FLOATING WIND
BW Offshore is 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 April, BW Ideol introduced a standardised floating foundation for mass
production based on the Damping PoolÂŽ patent. The design is optimised for all
metocean conditions found in the main floating wind markets and compatible with
all 15 MW+ wind turbines currently available and easily scalable for 20+ MW
units. The approach centres on a flexible manufacturing line capable of
delivering one floating foundation per week. It is designed for scalability and
replication, with minimal harbour requirements, to facilitate adaptation and
growth in key markets.
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 Q1 Presentation. The earnings tables are available at:
Investors | BW Offshore
BW Offshore will host a webcast of the financial results 09:00 (CEST) 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 - Q1 Presentation Webcast (WN Event
registration/ueRinmXc/register)
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 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 1,200 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
