BW Offshore: Fourth quarter and full year results 2024
Fourth quarter and full year results
2024
HIGHLIGHTS
- 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.
“We 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,” said Marco Beenen, CEO of BW Offshore. “As 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.”
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 Offshore’s 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 Equinor’s 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 Ideol’s 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 Ideol’s proprietary Damping Pool®
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:
https://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 Ståle 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
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:
Ståle 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.
- BW Offshore 2024 Annual Report and Sustainability
Statement
- bwoffshoreltd-2024-12-31-en
- 2024 Q4 Presentation
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