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- Q1 EBITDA USD of 91 million and operating cashflow of USD 57 million
- Sale of BW Pioneer for USD 125 million
- Received USD 36 million arbitration settlement in April, USD 21 million
recognised in EBITDA
- Robust balance sheet with an equity ratio of 30.9% and USD 542 million in
available liquidity
- Q1 cash dividend of USD 0.063 per share
- BW Opal departed the shipyard in Singapore 28 May
- Full-year 2025 EBITDA guidance maintained in the range of USD 220-250
million
BW Offshore is nearing completion of the Barossa project well within the updated
budget. On 28 May, the FPSO BW Opal departed the shipyard in Singapore and is
currently enroute to the field where hook-up and connection will be undertaken.
The FPSO is on track for first gas within the third quarter.
The Board of Directors has declared a quarterly cash dividend of USD 0.063 per
share. The shares will trade ex-dividend from 4 June 2025. Shareholders recorded
in VPS following the close of trading on Oslo Børs on 3 June 2025, will be
entitled to the distribution payable on or around 12 June 2025.
âThe BW Opal is on its way to the Barossa field to start producing gas under the
15-year contract, providing material earnings and cash flow to BW Offshore from
later this year,â said Marco Beenen, CEO of BW Offshore. âAt the same time, we
continue to mature selected potential FPSO projects that meet our criteria, with
solid counterparties and long-term investment horizons. Our growth strategy is
supported by a strong balance sheet, high commercial uptime and robust cash
generation from the existing fleet.â
In late March, the Company completed the sale of FPSO BW Pioneer to Murphy Oil
for USD 125 million and received an initial USD 100 million of the proceeds. The
remaining USD 25 million was received in the second quarter upon meeting all
conditions precedent. The two parties signed a five-year O&M contract, under
which BW Offshore will continue to provide operations and maintenance services.
In early April, BW Offshore received approximately USD 36 million including
interest, after settling the arbitration with PRIO (formerly Petrorio) related
to the FPSO Polvo lease dispute. This led to the recognition of USD 21 million
of additional revenue and EBITDA in the first quarter accounts.
FINANCIALS
EBITDA for the first quarter of 2025 was USD 91.3 million (USD 71.9 million in
Q4 2024), reflecting good operational performance and the arbitration settlement
with PRIO.
EBIT for the first quarter was USD 73.7 million (USD 30.8 million).
Gain from sale of fixed assets was USD 14.8 million and relates to the sale of
BW Pioneer.
Net financial items were positive at USD 10.4 million (USD 19.4 million in Q4
2024). This included a net interest income of USD 1.1 million, which reflects
USD 4.1 million of interest earned on the arbitration settlement with PRIO (net
interest expense of USD 3.0 million). Both first quarter 2025 and fourth quarter
2024 were positively impacted by a valuation gain on the financial liability
related to the Barossa project. This was driven by changes in the timing of
expected future cash flows due to a later planned start-up of the facility, as
well as a favourable mark-to-market adjustment on interest rate hedges.
The share of loss from equity-accounted investments was USD 4.6 million,
including a valuation adjustment on the Barossa finance receivable related to
changes in timing of future expected cash flows (loss of USD 9.5 million).
Tax expense was USD 17.3 million (tax income USD 0.1 million). The increase in
tax expenses is mainly due to tax on the sale of BW Pioneer.
Net profit for the first quarter increased to USD 62.2 million (USD 40.8
million).
Total equity at 31 March 2025 was USD 1 271.7 million (USD 1 246.6 million) and
the equity ratio was 30.9% at (30.8%).
As a result of strong cash generation from the fleet and asset sales, the
Company was net cash positive by USD 184.3 million at 31 March 2025 (USD 74.4
million net cash positive at the end of 2024).
Available liquidity was USD 542 million, excluding consolidated cash from BW
Ideol and including USD 100 million available under the corporate loan facility.
FPSO OPERATIONS
The FPSO fleet continued to deliver stable operations in the quarter with a
weighted average fleet uptime of 100.0% (99.2% in the fourth quarter), including
BW Pioneer.
BW Adolo contributed positively through the volume-based tariff as production
increased to approximately 39,000 barrels per day in the quarter and BW Catcher
continued to maintain high commercial uptime.
On 20 May 2025, BW Energy Gabon took over operations of the FPSO BW Adolo. BW
Offshore continues to lease the unit under the same terms, excluding O&M
services. A USD 100 million put-and-call option remains in place for 2028. The
transition is ongoing and will be supported by both parties through 30 June
2025.
FPSO PROJECT OPPORTUNITIES
In January, BW Offshore was selected to perform the pre-FEED study for the Bay
du Nord FPSO project by Equinor.
The Company also progressed the FEED for Repsolâs Block 29 development in
Mexico.
Due to the current high activity related to FPSO-based development projects, BW
Offshore recently acquired the FPSO Nganhurra. The vessel has a high-quality
hull, well suited for installation of a new topside. Reusing existing energy
production infrastructure reduces environmental impact, is cost efficient and
enables shorter lead time from project sanction to first oil. The acquisition
involves a limited upfront payment, with additional consideration linked to
redeployment by June 2027. The unit enhances BW Offshoreâs ability to respond to
emerging project opportunities and strengthens its position in a supply-
constrained market.
FLOATING ENERGY TRANSITION SOLUTIONS
BW Offshore is committed to contribute to the energy transition 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 owns 64% of BW Ideol, a leader in offshore floating wind technology
and co-development with over 14 years of experience in the development of
floating wind projects. A shareholder loan of EUR 6.7 million has been provided
to support the companyâs operations over the next 12 months.
The 1 GW Buchan offshore wind project in Scotland recently held its third and
final public consulting round as part of the preparation for the final consent
application later this year. In France, work continued on the three floating
substructures for the Eolmed floating wind pilot with installation of the
transition pieces which will hold the wind turbines. Commissioning of the three
floating turbines is expected by end of 2025.
OUTLOOK
Growing energy demand continues to drive interest in developing new
infrastructure-type FPSO projects with long production profiles, low break-even
costs, and a 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 are 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 36 months. These market dynamics, combined with the high
level of expertise required for project execution, are expected to 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 5.4 billion firm contract backlog
at the end of March 2025.
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
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.webcas
t.no%2Fviewer-
registration%2FubcIIjsW%2Fregister&data=05%7C02%7Cerland.ostensen%40bwoffshore.c
om%7Cf49926b378e54aea52c908dd98a7e4d6%7Cd7f771bb43b44406b6cde22a0d40ab77%7C0%7C0
%7C638834569068602330%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLj
AuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=lB
XEDwuhPbygZc4CmciTDGuIHgtobOiPvupM1SdJldI%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
IR@bwoffshore.com or www.bwoffshore.com
About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has
a fleet of 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.
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