BW Offshore

First quarter results 2024

First quarter results 2024

HIGHLIGHTS

• 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.

“BW 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,” said Marco Beenen, CEO of BW Offshore. “We 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.”

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 Petróleo 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 Petróleo 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.