Bw Offshore Limited · OSL:BWO
Bw Offshore — Debt Investor Presentation (November 2023)
39 slides from Bw Offshore's debt investor presentation, Nov 16, 2023
Slide 1: BW Offshore Ltd Credit investor update
BW Offshore Ltd Credit investor update 16 November 2023
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: Business and strategy, Financials, Appendix
1 Business and strategy 2 Financials 3 Appendix 3
Slide 4: BW Offshore is well positioned in a strong market
BW Offshore is well positioned in a strong market 1 2 3 Supportive market outlook Robust financial position Delivering on strategy • Strong commodity prices and increased focus • Highly robust balance sheet, substantial • Oil and gas expected to remain key on long-term energy security driving robust
Slide 5: BW Offshore at a glance
BW Offshore at a glance • Global operator of FPSOs with a >40-year track record • OSE-listed since 2006 with a USD ~395m market cap • BW Group largest shareholder with ~49.9% ownership • Existing units producing ~68k boe/d with fleet uptime of ~99.2% • One new FPSO under construction Unit2 Office •
Slide 6: BW Offshore is strongly committed to operating responsibly and sustainably
BW Offshore is strongly committed to operating responsibly and sustainably Safe and secure Environmentally Non-discriminating Strong governance operations conscious operations and fair employer framework 3 0.22 -38% 0 55/45 83% 17 80% Number of LTIs LTI rate GHG emissions Number of Gender split of n
Slide 7: Part of BW Group – the leading global maritime group
Part of BW Group – the leading global maritime group Energy Energy transition Shipping Handysize gas carriers FPSOs Listed company Unlisted company Product and chemical tankers E&P VLCC tankers Water and wastewater systems LPG and petrochemicals tankers Solar power and energy storage LNG carriers an
Slide 8: Part of a value chain that provides safe and affordable supply of energy
Part of a value chain that provides safe and affordable supply of energy “BW Offshore engineers offshore production solutions to progress the future of energy” Processing, distribution Exploration Development Production End use & marketing Decommissioning Recycling Seismic Oil Refining Production FP
Slide 9: Strategic priorities – addressing energy security and transition
Strategic priorities – addressing energy security and transition • Successfully divested non-core fleet Extracting maximum value • Safe-guard operation of core units, ensuring predictable solid cash flow and capture from the conventional contract extensions FPSO fleet • Capitalise on ownership in BW
Slide 10: Portfolio has been successfully streamlined and high-graded
Portfolio has been successfully streamlined and high-graded Concluding fleet divestment programme in 2023 Complex operational set up FPSOs with marginal cash contribution, coming off Significant Limited contracts or with short remaining durations reduction of Old units with limited redeployment pote
Slide 11: Focused portfolio of high-spec FPSO units
Focused portfolio of high-spec FPSO units Overview of current fleet Weighted average fleet uptime BW Pioneer BW Adolo BW Catcher BW Opal 99.1% 96.2% 96.2% 99.2% 99.1% 98.6% 98.5% 99.2% 95.3% 95.4% • One of few FPSOs capable • Serves as a hub for • Purpose built harsh • BW Opal will produce of operat
Slide 12: Robust backlog ensuring strong and long-term revenue stream
Robust backlog ensuring strong and long-term revenue stream Revenue backlog end Q3 20231 Contract overview BWO Unit ’22 ’23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 ‘30 ‘31 ‘32 interest BW 51% Opal 32% USD BW 100% Adolo2 ~6.8bn 68% BW 100% Catcher BW 100% BW Opal BW Adolo, BW Catcher and BW Pioneer Pioneer of which
Slide 13: Remaining field life support contracts extensions on existing fleet
Remaining field life support contracts extensions on existing fleet BW Catcher BW Adolo BW Pioneer US US Norway São Tomé and Príncipe Gabon Cascade/Chinook field UK Catcher field Dussafu license The Republic of the Congo Mexico Gross production (kboepd) Discoveries (kboepd) 50 50 16 25 25 8 0 0 0 ‘2
Slide 14: BW Opal progressing according to schedule
BW Opal progressing according to schedule 98% 86% 92% complete complete complete Turret and Mooring System Hull construction1 Topsides construction1 construction1 • The Barossa project is a joint venture between Santos (50.0%), • Hull en route to Singapore with topside integration to commence upon a
Slide 15: Selectively progressing new projects in an active FPSO market
Selectively progressing new projects in an active FPSO market # of FPSO awards and oil price from 2010-2023e # USD/bbl Overview of likely FPSO awards 2023-20301 20 Brent oil price # of FPSO awards 140 120 15 100 80 10 60 5 40 20 0 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23E 6 Market backdrop • Oil
Slide 16: Disciplined approach to capturing profitable energy transition opportunities
Disciplined approach to capturing profitable energy transition opportunities and growth through new ventures • Gas is an important transition fuel and provides flexible low carbon electricity Positioning ourselves 1 for profitable energy • Vast opportunities to apply our leading capabilities in rapi
Slide 17: Material value from stake in BW Energy
Material value from stake in BW Energy Introduction to BW Energy Overview of portfolio and key highlights • BW Energy is an E&P company focused on low risk phased developments Other • Listed on OSE with a market cap of USD ~684m and owned ~23.3% by BW Offshore 23.3% BW Offshore 23.3% BW Group 39.5%
Slide 18: BW Offshore remains focused on maximising value
BW Offshore remains focused on maximising value 1 Safe-guard • Streamlined portfolio, lowered operational risk and improved cash flow visibility operations of • Ensuring predictable cash flow and continued best-in-class operational uptime core FPSO units • Constructive dialogue with customers to cap
Slide 19: Business and strategy, Financials, Appendix
1 Business and strategy 2 Financials 3 Appendix 19
Slide 20: Financial strategy and capital allocation framework
Financial strategy and capital allocation framework Capital Capital Risk structure allocation management • Focus on minimising cost of capital to support • Disciplined approach to taking on new FPSO • Limited interest risk exposure as ~100% of the business, fulfil all financial obligations and proje
Slide 21: BW Offshore's business model has proven resilient through the cycles
BW Offshore’s business model has proven resilient through the cycles Full-year operating revenue1 Divestment programme Full-year EBITDA1 USDm initiated in 2021 USDm 947 543 Guidance 886 862 845 829 467 774 436 423 700 401 626 346 336 319 290-310 285-295 2016 2017 2018 2019 2020 2021 2022 Q3’23 LTM 2
Slide 22: Strong financial position and demonstrated deleveraging track record
Strong financial position and demonstrated deleveraging track record Net debt and leverage ratio1 Selected financial highlights (as of Q3 2023) USDm Net debt Net debt / LTM reported EBITDA 2.1x USD 290-310m USD ~6.8bn Expected EBITDA 807 Revenue backlog2 in FY 2024 1.6x 1.6x 1.5x 653 1.4x 607 1.4x 5
Slide 23: Proven access to capital validated through recent refinancings
Proven access to capital validated through recent refinancings Maturity profile1 Strong and supportive bank group USDm 600 USD 295 BW Catcher facility • Refinanced with ten international banks million Corporate facility • Five-year tenor Convertible bond Revolving • Priced at 250 basis points above
Slide 24: Robust project finance model developed through the Barossa project
Robust project finance model developed through the Barossa project Equity joint venture partners committing USD 240 million Financing received tracking Barossa progress by end Q3 20231 USD 1.15 billion debt facility USD 240 million equity ICMK Offshore JV 24% 25% 51% USD USD 100% 785m 176m 1 Asset C
Slide 25: Taking BW Ideol private to facilitate financing partnerships
Taking BW Ideol private to facilitate for financing partnerships and efficient access to private growth capital • Material pipeline of floating offshore wind EPCI and co-development projects Delivered on • Remains committed to its ambition of becoming a leading global floating wind project strategy
Slide 26: Business and strategy, Financials, Appendix
1 Business and strategy 2 Financials 3 Appendix 26
Slide 27: Senior management
Senior management Marco Beenen Ståle Andreassen Kei Ikeda Rune Bjorbekk Anders S. Platou Magda Karim Vakil Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Commercial Officer Chief Strategy Officer General Counsel • Appointed COO in 2016, • Joined the company in 2008, •
Slide 28: Board of Directors
Board of Directors Andreas Sohmen-Pao Rebekka Glasser Herlofsen Maarten R. Scholten René Kofod-Olsen Carl K. Arnet Chairman Director Director Director Director • Chairman of BW Group, BW • Experienced director, including • Former General Counsel of • CEO of V. Group • CEO of BW Energy LPG, Hafnia, B
Slide 29: BW Offshore company history
BW Offshore company history 29
Slide 30: Principles of economics for Barossa
Principles of economics for Barossa Fixed price Pre- Transfer of ownership after firm period purchase of FPSO payments • Asset Co owns the FPSO during the firm contract period and receives all economic benefits from the bareboat charter net of taxes • Ownership of the FPSO will be transferred to Cha
Slide 31: Partnering with global infrastructure investors for the Barossa FPSO JV
Partnering with global infrastructure investors for the Barossa FPSO JV Global leading operator of • Listed since 2006 with USD ~395m market cap maritime energy assets with a • Engineering and project development expertise track record spanning more than • Part of global leading maritime group BW Gr
Slide 32: 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 ~70 million of non-cash revenue to be BW Catcher 2018-2025 (2043) 57,764 USD 220 - 230 million USD ~95 m
Slide 33: Income statement
Income statement Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 CONTINUING OPERATIONS Operating revenue 218.9 207.8 199.6 203.0 829.3 193.6 192.8 176.5 211.2 774.1 166.3 166.1 156.4 Operating expenses (108.1) (116.7) (102.5) (100.7) (428.0) (1
Slide 34: Other comprehensive income
Other comprehensive income Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Net profit/(loss) for the period 97.2 5.9 5.2 (46.1) 62.2 46.3 12.3 29.6 41.3 129.5 17.8 10.9 28.9 Currency translation differences (1.7) 2.7 (4.3) (2.8) (6.1) (2.2) (7.
Slide 35: Balance sheet
Balance sheet 31/03/2021 30/06/2021 30/09/2021 31/12/2021 31/03/2022 30/06/2022 30/09/2022 31/12/2022 31/03/2023 30/06/2023 30/09/2023 ASSETS Vessels 1,823.5 1,813.4 1,813.5 1,836.0 1,913.0 2,034.9 2,189.1 2,394.3 2,379.3 2,520.9 2,662.7 Other property, plant & equipment 20.6 19.1 18.2 17.3 14.9 11.
Slide 36: Cash flow
Cash flow Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Profit/(loss) before taxes 56.9 12.3 10.5 (32.8) 46.9 54.1 18.4 32.9 44.3 149.7 20.8 14.0 36.1 Adjustments for: - Depreciation and amortisation 65.2 68.0 68.8 68.0 270.0 55.3 51.4 50.8 5
Slide 37: Key figures
Key figures Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 EBITDA-margin 50.6 % 43.8 % 48.6 % 50.4 % 48.4 % 43.8 % 39.2 % 45.6 % 49.7 % 44.7 % 47.5 % 36.7 % 47.6 % Equity ratio 39.7 % 39.9 % 39.0 % 33.9 % 33.9 % 35.9 % 35.2 % 33.8 % 32.9 % 32.
Slide 38: BW Offshore Limited shareholder list
BW Offshore Limited shareholder list # Name Shares (#) Shares (%) 1 BW Group Limited 90,245,285 49.9% 2 Cobas Asset Management SGIIC S.A. 18,812,015 10.4% 3 Salt Value AS 4,515,464 2.5% 4 Dimensional Fund Advisors 3,975,699 2.2% 5 Vanguard 3,247,033 1.8% 6 Arctic Fund Management 3,043,368 1.7% 7 Fir
Slide 39: We engineer offshore production solutions to progress the future of energy.
We engineer offshore production solutions to progress the future of energy.
BW Offshore — Debt Investor Presentation (November 2023) on 6ix