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fourth quarter and full year results 2019 - Correction*

BW Offshore fourth quarter and full year results 2019


  • EBITDA of USD 169.4 million and operating cashflow USD 134.6 million for the quarter
  • EBITDA of USD 709.9 million and operating cashflow USD 608.3 million for the full year
  • Extensions signed for Abo FPSO and FPSO Polvo
  • Gross production from Tortue of 987 thousand bbls of oil in the quarter and 4.3 million bbls for the full year
  • Tullow 10% back-in right exercised
  • BW Energy completed second production well of Tortue phase 2 development
  • BW Energy IPO completed in February 2020
  • USD 100.6 million dividend distributed to BW Offshore shareholders in the form of BW Energy shares
  • Proposed initial annual dividend of USD 25 million paid on a quarterly basis

EBITDA for the fourth quarter of 2019 was USD 169.4 million, up from USD 162.1 million in the third quarter. The increase was due to the impact of two liftings from Tortue, and net 1.3 million bbls sold from BW Energy, partly offset by additional provisions and no revenues recognised for FPSO Umuroa negatively impacting results with USD 13 million in the quarter.

Full-year 2019 EBITDA and operating cashflow were at an all-time high due to continued high commercial uptime for the FPSO segment and strong operational results for the E&P business throughout the year.

In December, BW Offshore was awarded a one-year extension to the Abo FPSO contract and the FPSO Polvo received a one-year extension in January 2020. Both units have over time received multiple extensions, confirming that FPSOs have a commercial life far beyond the initial fixed contract period. On Umuroa, the client has not paid any contractual commitments since the third quarter of 2019. It is highly uncertain whether any outstanding amount can be recovered as the client is under receivership. As a result, the fourth quarter is negatively impacted by USD 13 million. Demobilisation from the field and transportation of the unit back to Singapore is being planned which is estimated to cost in the range of USD 20 million.

Gross production from Tortue averaged 10,735 bbls per day in the fourth quarter. The total gross production from the Tortue field was 987 thousand bbls of oil. Two liftings were completed by the licence partners in the fourth quarter, and approximately 1.3 million bbls net was sold from BW Energy at an average realised price of USD 65.1 per barrel. Production cost (excluding royalty) was USD 22.8 per barrel in the quarter.

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 high-yield bond with maturity in 2023. The two issues refinanced the existing Nordic high-yield bond portfolio, extended maturities and enabled resumption of dividend payments.

On 19 February, BW Offshore completed the planned IPO for listing of BW Energy on the Oslo Stock Exchange, raising gross proceeds of approximately USD 125 million to finance future growth investments. To meet free-float requirements for the listing, BW Offshore distributed 37.7 million shares in BW Energy as dividend in kind to its shareholders. The total value of the dividend shares is approximately USD 100.6 million or equivalent to USD 0.54 per share. Due to financial and oil market volatility during the offer period following the outbreak of the Corona virus in China, the transaction was completed on revised terms compared to the initial plan. Following the completion of the IPO and dividend in kind distribution, BW Offshore holds approximately 38.8% of the shares outstanding in BW Energy.

“The IPO of BW Energy will enable the company to progress as a stand-alone E&P growth company and execute its strong pipeline of projects to deliver long-term value creation for both existing and new shareholders. These include BW Offshore shareholders who received direct ownership through our first dividend distribution in more than four years,” said Marco Beenen, the CEO of BW Offshore. “We will support BW Energy as a close partner and FPSO provider in years to come. We will also explore business opportunities in a firming FPSO lease and operate market while maintaining a commercially disciplined approach to new investments.”

Following the completion of the IPO of BW Energy, the plan is for the Company to start paying quarterly cash dividends from second quarter of 2020. The board will propose an initial annual dividend of USD 25 million.

Please see attachments for the full press release, presentation, Annual Report and Annual Statement of Reserves. 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 further information, please contact:
Ståle Andreassen, CFO, +65 97 27 86 47
Anders S. Platou, Head of Corporate Finance, +47 99 50 47 40

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 of the Norwegian Securities Trading Act.