BW Offshore: Third quarter results 2021

Third quarter results 2021

HIGHLIGHTS

• EBITDA of USD 97.1 million and working cashflow of USD 157.2 million
• Completed Barossa FPSO debt financing and fairness three way partnership partnership
• Barossa FPSO venture progressing as deliberate
• USD 67 million in gross proceeds from block sale of shares in BW Energy in October
• Quarterly money dividend of USD 0.035 per share
• Equity ratio of 39.0% and USD 305.7 million in obtainable liquidity
• One-year contract extension for FPSO Sendje Berge signed in November

In the third quarter, BW Offshore continued to progress the Barossa FPSO venture based on plan, together with finishing the debt financing and the fairness three way partnership partnership for the venture. First metal lower for the FPSO hull was achieved in September forward of unique schedule. Due to cost inflation for supplies, the venture is experiencing some price will increase that are coated by the venture contingency. The Company is concentrated on locking in suppliers and gear packages to handle prices and preserve schedule amid rising stress on world provide chains.

The Board of Directors has declared a money dividend of USD 0.035 per share. Shares will commerce ex-dividend from and together with 26 November 2021. Shareholders recorded in VPS following the shut of buying and selling on Oslo Børs on 29 November 2021 shall be entitled to the distribution payable on or round 7 December 2021.

“The Barossa venture is on monitor and debt and fairness financing have been accomplished. We have full deal with protected and environment friendly execution of the FPSO development and we’re additionally delivering steady efficiency from our core working property,” mentioned Marco Beenen, the CEO of BW Offshore. “The latest will increase in vitality costs emphasises the necessity for continued growth of latest oil and fuel fields in tandem with a fast scale-up of renewable vitality manufacturing corresponding to floating wind. We are nicely positioned to seize long-term progress and worth creation alternatives throughout these markets with our widening providing of offshore vitality manufacturing options.”

FINANCIALS
EBITDA for the quarter was USD 97.1 million (USD 91.1 million in Q2 2021). The improve is principally associated to larger income from BW Catcher attributable to settlement on industrial uptime for the primary three quarters within the 12 months, closing milestone cost for demobilisation of Umuroa, partly offset by results coming from deliberate manufacturing shutdown on Espoir Ivoirien and no contribution from FPSO Polvo because the contract has ended.

EBIT for the third quarter was USD 28.3 million (USD 23.2 million in Q2 2021). Net monetary expense was USD 14.0 million (USD 16.2 million in Q2 2021). Tax expense within the quarter was USD 5.3 million (USD 6.4 million in Q2 2021).

Total fairness at 30 September 2021 was USD 1,089.5 million (USD 1,103.7 million in Q2 2021). The fairness ratio was 39.0% on the finish of the quarter (39.9% in Q2 2021).

Net interest-bearing debt was USD 807.1 million (USD 854.4 million in Q2 2021).

Available liquidity was USD 305.7 million when together with USD 106.9 million obtainable to attract beneath the company mortgage facility (excluding any liquidity in BW Ideol).

The Barossa FPSO is financed by a 14-year mixed development and long-term debt facility of USD 1,150 billion with a syndicate of 9 worldwide banks and by USD 240 million from the fairness three way partnership, consisting of BW Offshore (51%) and ICMK Offshore Investment Pte Ltd (a 50:50 JV of ITOCHU Corporation and a subsidiary of Meiji Shipping Co Ltd) (25%) and Macquarie Bank Limited (24%).

In addition, roughly USD 1 billion in pre-payments shall be paid by the Barossa Upstream Joint Venture Partners in the course of the development interval. These pre-payments are linked to progress and milestones on the venture. By finish September a complete of USD 133 million has been obtained as per plan.

In October, BW Offshore offered 20 million shares in BW Energy elevating USD 67 million in gross proceeds. The Company determined to divest a part of its shareholding to speed up progress alternatives inside vitality infrastructure. Following the sale, BW Offshore holds roughly 27.5% of the shares excellent in BW Energy.

OPERATIONS
The common industrial uptime for the fleet in the course of the quarter was 91.6% (98.7% in Q2 2021). The industrial uptime was primarily affected by the deliberate upkeep shutdown on Espoir Ivoirien.

FPSO Polvo reached finish of contract in July 2021. Decommissioning has been accomplished within the quarter and preparations for demobilisation are ongoing. The unit will subsequently be in lay-up awaiting closing funding choice on BW Energy’s Maromba discipline growth.

Umuroa and Cidade de São Vicente have reached their lay-up places, in Indonesia and Oman, and the Company is presently evaluating recycling choices.

In November, BW Offshore signed an settlement with Addax Petroleum Exploration (Nigeria) Ltd, for a one-year extension for the lease and operation of the FPSO Sendje Berge. The agency interval has been prolonged to This fall 2022.

OFFSHORE FLOATING WIND
BW Offshore is actively engaged within the vitality transition by creating clear vitality manufacturing options, making use of its offshore engineering and operations capabilities to drive future worth creation via its 53.2% possession in BW Ideol, a worldwide pure participant in floating offshore wind. BW Ideol has a dual-track technique as a co-developer of offshore floating wind initiatives and as an EPCI (engineering, procurement, development and set up) contractor of floating offshore wind know-how.

In the third quarter, BW Ideol introduced its partnership with EDF Renewables and Maple Power for France’s first commercial-scale floating offshore wind tender in South Brittany. The firm additionally secured unique long-term entry to the Ardersier Port in Scotland for native manufacturing of concrete floating wind substructures for the ScotWind venture based mostly on BW Ideol’s confirmed Damping Pool® know-how.

Separately, BW Offshore can be taking part within the ScotWind tender in partnership with the U.S. renewable vitality and utility firm Invenergy.

OUTLOOK
The Company expects that core items within the present fleet will proceed to generate vital money circulate within the time forward. The agency FPSO contract backlog at finish of September 2021 amounted to USD 6.6 billion when together with the Barossa contract. With possible choices, the backlog was USD 8.0 billion on the finish of the third quarter.

The Covid-19 pandemic continues to have an effect on operations and the market setting. Higher vitality costs in 2021 are an indication of improved market fundamentals as distribution of vaccines accelerates and extra nations normalise exercise ranges.

The oil and fuel trade is anticipated to proceed to deal with progressing long-term giant discipline growth initiatives with low break-even prices. This expectation is supported by the rise in oil and fuel costs to this point in 2021. BW Offshore maintains a selective strategy to such alternatives, progressing discussions on just a few high-end initiatives which could be developed in partnership with world infrastructure buyers.

The Company is searching for to optimise the present asset portfolio contemplating the general price base. This consists of potential divestment or recycling of items if FPSO redeployment alternatives don’t materialise.

BW Ideol is BW Offshore’s car for funding in floating offshore wind. The firm is progressing a number of initiatives supported by the funding from the personal placement earlier this 12 months.

BW Offshore has a strong monetary place. With the latest divestment of a part of the shareholding in BW Energy, the Company has additional strengthened the stability sheet, to place for accelerated progress into future accretive offshore vitality initiatives and long-term worth creation. The Company stays dedicated to supply rising returns to shareholders and a quarterly money dividend.

Please see hooked up the Q3 Presentation. The earnings tables can be found at:

www.bwoffshore.com/ir/

BW Offshore will host a presentation of its monetary results 09:00 (CET) at the moment at Hotel Continental in Oslo, Norway. The presentation shall be given by CEO Marco Beenen and CFO Ståle Andreassen.

You may also comply with the presentation through webcast, obtainable on:

https://www.bwoffshore.com/ir/bwo-q3-2021

Please notice that in case you comply with the webcast through the above URL, you’ll expertise a delay in comparison with the dwell presentation. The net web page works greatest in an up to date browser.

For additional info, please contact:
Ståle Andreassen, CFO, +65 97 27 86 47
Anders S. Platou, Head of Corporate Finance & Strategy, +47 99 50 47 40

About BW Offshore:
BW Offshore engineers progressive floating manufacturing options. The Company has a fleet of 14 FPSOs with potential and ambition to develop. By leveraging 4 a long time of offshore operations and venture execution, the Company creates tailor-made offshore vitality options for evolving markets world-wide. BW Offshore has round 2,000 staff and is publicly listed on the Oslo inventory change.

This info is topic to disclosure necessities pursuant to Section 5-12 of the Norwegian Securities Trading Act.