The Financial Supervisory Authority of Norway (FSA) has reviewed certain aspects of the 2014 financial statements of BW Offshore Limited.
The review focuses primarily on the company's method for depreciating vessels classified as conversion candidates. In 2014, BW Offshore revised the depreciation method used for conversion candidates, arguing that the consumption of future economic benefits embodied in these assets during the redeployment period is negligible, and therefore temporarily stopped depreciating such assets.
The FSA has made an assessment that the revised depreciation based on the usage method is not considered suitable for FPSOs with redeployment risk. BW Offshore will adjust depreciations going forward to reflect this.
Link to notice from the FSA:
For further information, please contact:
Knut R. Sæthre, CFO, +47 9111 7876
Kristian Flaten, Vice President IR and Corporate Finance, +47 9509 2322
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. The company also operates additional 2 FPSOs. BW Offshore has a long track record on project execution and operations, as well as a robust balance sheet and strong financial capabilities. 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