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Third quarter results 2019

Third quarter results 2019


  • EBITDA of USD 162.1 million and Operating Cashflow USD 151.9 million for the quarter
  • Year to Date EBITDA USD 540.5 million
  • Extension signed for FPSO Petróleo Nautipa
  • FPSO Umuroa contract not extended
  • Gross production from Tortue of 1.07 million bbls
  • Significant oil discovery at Hibiscus
  • Ruche phase 1 development plan revised to accelerate production growth
  • Successfully raised USD 297.4 million through issue of 5-year convertible bond
  • New NOK 900 million 4-year Nordic HY bond issue successfully completed in November


EBITDA for the third quarter of 2019 was USD 162.1 million, compared to USD 191.6 million in the second quarter 2019. The result reflected continued and stable high commercial uptime from the FPSO fleet, offset by the impact of the USD 10 million provision for outstanding payments for Umuroa and lower realised oil price from the lifting compared to second quarter.

Gross production from Tortue averaged 11,600 bbls per day in the third quarter. The total gross production from the Tortue field was 1.07 million bbls of oil. One lifting was completed by the licence partners in the third quarter, yielding approximately net 591,000 bbls to BW Energy at a realised price of USD 61.3 per barrel. Production cost (excluding royalty) was USD 21 per barrel in the quarter.

Drilling operations at Hibiscus in the Dussafu license proved a significant oil reservoir in the structure. In October, BW Offshore announced a revised Ruche development plan including the Hibiscus discovery which will accelerate production growth from Ruche phase 1 from an estimated 15,000 bbls/day to 30,000 bbls/day. These volumes will come in addition to the production from the Tortue field.

The Company also received a reserve report from independent auditor Netherland, Sewell & Associates Inc. (NSAI) which assesses 2P gross Hibiscus reserves at 45.4 million barrels of oil, confirming management estimates. After adding the Hibiscus discovery, the 2P gross reserves at Dussafu have increased to 112.4 million barrels, a 68% increase compared to those reported at mid-year 2019. This increase is mainly related to the Hibiscus discovery, as well as better than expected production and recovery at Tortue.

In November, BW Offshore successfully issued a USD 297.4 million senior unsecured convertible bond due 2024 as well as a NOK 900 million Nordic HY bond with maturity in 2023. These bond issues were done with the intent to refinance existing Nordic HY bonds, which addresses maturity on bonds and will add flexibility with regard to the company's dividend policy.

"We deliver on our strategic priorities with consistent high uptime on our FPSOs, steady production from the Tortue field and through value enhancing exploration and development activities in the Dussafu license. The Hibiscus discovery and revised development plan for Ruche phase 1 will accelerate our production growth and value creation," said Marco Beenen, CEO of BW Offshore.

Please see attachments for the full press release and presentation. The Earnings Tables are available at:

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 Marco Beenen and CFO Ståle Andreassen.

The presentation will be broadcasted via webcast and will also be available for replay.

Please visit for details.


For further information, please contact:

Ståle Andreassen, CFO, +65 97 27 86 47
Anders S. Platou, Head of Corporate Finance, +47 99 50 47 40 or

About BW Offshore:

BW Offshore is a leading provider of floating production services to the oil and gas industry. The company also participates in developing proven offshore hydrocarbon reservoirs. BW Offshore is represented in all major oil and gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 40 FPSO and FSO projects.
BW Offshore is listed on the Oslo Stock Exchange.

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