BW Offshore: Q2 2017 - Condensed interim consolidated financial information

  • EBITDA of USD 118.6 million in the second quarter and EBITDA of USD 180.6 million in the first half- year 2017
  • Payment of outstanding day rates received from Addax 
  • BW Catcher in transit to the field in the UK North Sea
  • Closing of the acquisitions of the ownership in the Dussafu field
  • Termination notice for the contract on Sendje Berge

EBITDA for the second quarter was USD 118.6 million, an increase of USD 56.6 million (USD 62.0 million).  The increase in EBITDA was mainly as a result of reversal of loss provisions related to overdues being paid from Addax during second quarter. The underlying EBITDA excluding the one-off adjustment of loss provision was USD 73.1 million (USD 75.7 million).  EBITDA decreased by USD 1.4 million to USD 180.6 million (USD 182.0 million) in the first-half year of 2017.

On 5 May, Sendje Berge Limited received termination notice for the FPSO Sendje Berge operating under a contract with Addax Petroleum Exploration Nigeria Limited (Addax) on the Okwori field offshore Nigeria.  The termination will have effect from 6 November 2017 and Addax has requested BW Offshore to provide a demobilisation plan for the FPSO.  The Company has during the second quarter received payment for all outstanding day rates.

BW Energy Gabon Pte. Ltd ("BWEG"), a subsidiary of BW Offshore, completed in April the acquisition of a 66.667% interest in the Dussafu production sharing contract offshore Gabon from Harvest Energia B.V., a subsidiary of Harvest Natural Resources, Inc.  Later in April, BWEG also completed the acquisition of 25% working interest in the Dussafu field from Pan-Petroleum Gabon B.V., a subsidiary of Panoro Energy ASA.  The FPSO Azurite fits well with the approved field development plan specifications for the Dussafu field in Gabon.  The FPSO has been moved to the Keppel yard where the necessary upgrades can be undertaken.

BW Catcher left Singapore 26 August and is now in transit to the field in the UK.  The FPSO will be connected to the already pre-installed mooring system upon arrival at the field.  The Catcher project continue to perform within budget with first oil expected in the fourth quarter of 2017.

“The Catcher yard-completion within time and budget, and the subsequent sail-away, were important milestones for us and a reflection of good execution on a complex and challenging project.  Catcher remains on track for first oil later this year,” said Carl K. Arnet, the CEO of BW Offshore.  “We successfully addressed overdues on Sendje Berge, and maintained good operational performance across the fleet and organisation.”

Please see attachments for the full quarterly report and presentation.

BW Offshore will host a presentation of the financial results 09:00 (CET) today at Hotel Continental in Oslo, Norway.  The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre.

The presentation will be broadcasted via webcast, and will also be available for replay. Please visit www.bwoffshore.com for login-details.

For further information, please contact:

Knut R. Sæthre, CFO, +47 9111 7876

About BW Offshore:

BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore is the world's second largest contractor with a fleet of 14 FPSOs represented in all major oil regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on www.bwoffshore.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.