Bw Offshore Limited · OSL:BWO
Bw Offshore — Q1 2024 Earnings Presentation
27 slides from Bw Offshore's earnings presentation, May 24, 2024
Slide 1: BW Offshore Q1 2024
BW Offshore Q1 2024 24 May 2024 CEO Marco Beenen CFO Ståle Andreassen
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Offshore Limited exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance
Slide 3: Highlights
Highlights • Q1 EBITDA USD 86 million • Q1 operating cash flow USD 91 million Barossa remains on track • Includes USD 33 million in pre-payments of the Barossa FPSO dayrate USD 11 million quarterly cash • Q1 Net profit USD 37 million dividend equal to 0.06 per share Full-year 2024 EBITDA outlook mai
Slide 4: Operational update
Operational update
Slide 5: BW Opal FPSO progressing on schedule
BW Opal FPSO progressing on schedule 82% FPSO construction Complete • Integration work in Seatrium is progressing well • 13 of 16 topside modules lifted onboard and integrated at the yard in Singapore • Mooring lines installed offshore Darwin and being connected to the STP buoy • Focus on maintainin
Slide 6: Fleet and HSE performance
Fleet and HSE performance Weighted average fleet uptime1 HSE record (LTM)5 99.2% 99.1% 98.6% 98.5% 99.2% 97.3% 100.0% 95.3% 95.4% 3.0 LTI² TRI³ HPI⁴ 2.0 1.0 0.0 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 • Two recorded HPI • One LTIs 1) Weig
Slide 7: Strong cash flow underpinned by the core FPSO fleet
Strong cash flow Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 underpinned by BW Opal Santos, Australia: 2025-2040 (2050) BW Adolo BW Energy, Gabon: 2018-2028 (2038)2 the core FPSO BW Catcher Harbour Energy, UK: 2018-2025 (2043) fleet BW Pioneer Murphy Oil, US: 2012
Slide 8: A Solid Partner
A Solid Partner FINANCE
Slide 9: EBITDA performance
EBITDA performance EBITDA EBITDA outlook 86 USD million 290-310 • EBITDA contribution of USD USD million 9 million from early works FY 2024 (expected) activities on new project • Based on firm contract backlog opportunities in Q1 180 • Full-year 2024 EBITDA 160 outlook maintained 140 120 100 80 60 4
Slide 10: Income statement
Income statement USD million Q1 2024 Q4 2023 2023 Operating revenues 168.6 170.4 659.2 Operating expenses (83.1) (79.3) (353.7) EBITDA 85.5 91.1 305.5 • USD 6 million positive impact Depreciation & Amortisation (45.6) (46.8) (187.2) under other financial items from Impairment 1.1 0.0 (5.1) settlemen
Slide 11: Q1 cash flow overview
Q1 cash flow overview USD million 600 5 10 • USD ~33 million received in 500 pre-payment of the Barossa 100 FPSO dayrate 176 3 7 400 91 94 16 10 • USD ~92 million 2 investments related to Barossa 300 531 522 200 422 422 417 401 401 391 391 361 361 358 360 360 100 - 11
Slide 12: Financing received tracking Barossa progress
Financing received tracking Barossa progress Funds received end Q1 2024 USD 1.15 billion USD 240 million USD ~1 billion Funds received from total debt facility equity pre-payments USD ~2.4 billion financing USD 890 USD 205 USD ~881 USD ~1,976 million million million million1 Drawn Remaining Injected
Slide 13: Strong cash flow and low leverage support growth
Strong cash flow and low leverage support growth Net debt and leverage ratio1 Equity ratio2 USD million 1,500 50% 40% 1.5x 1,000 1.4x 1.4x 31.1% 30% 1.1x 1.1x 0.9x 20% 500 0.6x 10% 0.1x 28 0 0% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Net debt /
Slide 14: Solid financial position provides financial flexibility
Solid financial position provides financial flexibility Maturity profile 600 USD million USD 11.3 million cash Available liquidity dividend for Q1 2024 500 USD 682 million1 USD 0.06 per share 400 300 Plan to redeem 200 Convertible bond, USD All in cost of debt 4.9% 157 million, by end of 95% hedged
Slide 15: Strategic priorities
Strategic priorities 23/05/2024 15
Slide 16: Despite strong demand awards are lagging
Despite strong demand awards are lagging Market backdrop • Continued high Brent price supports demand for Likely FPSO awards 2024-20301 new FPSOs, contract extensions and redeployments • Increased complexity and higher costs necessitate financial structures with significant prepayments • Trend towar
Slide 17: Well positioned in highly selective market
Well positioned in highly selective market Awards lagging expectations amid increased Maintaining disciplined approach In a favourable position costs and complexities • L&O and EPCI combined with O&M is the • Experience from all major FPSO regions • Selective lenders and equity investors preferred c
Slide 18: BW Ideol progressing business development initiatives and project portfolio
BW Ideol progressing business development initiatives and project portfolio Launch of standardised floating foundation design for mass Eolmed floater assembly production • Optimised for varying metocean conditions across all key markets • Designed for scalability and replication with minimal harbor
Slide 19: Outlook
Outlook Main focus to ensure safe and timely execution of the Barossa project Unlock value through contract extensions Selectively progressing new infrastructure-like FPSO projects Support BW Ideol as a private company capitalised by new industrial shareholders Maintain an attractive shareholder ret
Slide 20: We engineer offshore production solutions to progress the future of energy
We engineer offshore production solutions to progress the future of energy.
Slide 21: Analytical information
Analytical information Unit Contract status LDT Annual firm period EBITDA range Annual depreciation Cash flow vs EBITDA BW Adolo 2018-2028 (2038) 47,544 USD 60 - 75 million1 USD ~27 million USD ~95 million, reducing • USD ~45 million of non-cash revenue to be BW Catcher 2018-2025 (2043) 57,764 USD 2
Slide 22: Income statement
Income statement Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 CONTINUING OPERATIONS Operating revenue 193.6 192.8 176.5 211.2 774.1 166.3 166.1 156.4 170.4 659.2 168.6 Operating expenses (108.8) (117.2) (96.1) (106.3) (428.4) (87.3) (105.2) (81.9) (79.3) (3
Slide 23: Other comprehensive income
Other comprehensive income Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY2023 Q1 2024 Net profit/(loss) for the period 46.3 12.3 29.6 41.3 129.5 17.8 10.9 28.9 40.0 97.6 36.8 Currency translation differences (2.2) (7.1) (7.3) 9.2 (7.4) 1.2 1.1 (3.7) 5.1 3.7 (2.2) Equity-a
Slide 24: Balance sheet
Balance sheet ASSETS 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Vessels 1,913.0 2,034.9 2,189.1 2,394.3 2,379.3 2,520.9 2,662.7 2,833.5 2,889.2 Other property, plant & equipment 14.9 11.9 9.5 8.5 6.8 4.8 2.9 2.8 2.6 Right-of-use assets 17.0 16.9 22.8
Slide 25: Cash flow
Cash flow Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Profit/(loss) before taxes 54.1 18.4 32.9 44.3 149.7 20.8 14.0 36.1 42.4 113.3 39.5 Adjustments for: Depreciation and amortisation 55.3 51.4 50.8 51.3 208.8 48.2 46.3 45.9 46.8 187.2 45.7 Impairment - -
Slide 26: Key figures
Key figures Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 EBITDA-margin 43.8 % 39.2 % 45.6 % 49.7 % 44.7 % 47.5 % 36.7 % 47.6 % 53.5 % 46.3 % 50.7 % Equity ratio 35.9 % 35.2 % 33.8 % 32.9 % 32.9 % 32.4 % 31.9 % 31.0 % 30.2 % 30.2 % 31.1 % Return on equity 11
Slide 27: Thank you.
Thank you. BW OFFSHORE