Bw Energy Ltd. · OSL:BWE
Bw Energy — Q2 2024 Earnings Presentation
26 slides from Bw Energy's earnings presentation, Aug 29, 2024
Slide 1: Second quarter 2024 Presentation
Second quarter 2024 Presentation Carl K. Arnet, CEO Brice Morlot, CFO Lin Espey, COO 29 August 2024
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Energy 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 an
Slide 3: First-half 2024 highlights
First-half 2024 highlights Net Production Revenue OPEX / BBL 25.5k bbls/day USD 346.2M USD ~32 Up 130% YoY Up 104% YoY Down 25% YoY Brazil Brazil 34% 32% 43.0 32 Gabon Gabon 66% 68% 1H 2023 1H 2024 EBITDA Net Income Operating Cash Flow USD 185.6M USD 61.9M USD 85.1M Up 143% YoY Up 200x YoY Up 19% Yo
Slide 4: Q2 Highlights
Q2 Highlights • Net production of ~23,610 barrels per day • Q2 2024 EBITDA of USD 75.9 ‒ After successfully completing annual maintenance on million with a net profit of USD BW Adolo 14.5 million • Strengthened liquidity by USD 210 million • 3 liftings totalling ~1.7 million net barrels at an averag
Slide 5: New wells and ESP change-outs positively impacting production
New wells and ESP change-outs positively impacting production Gross bbls/day 60,000 Tortue Hibiscus Golfinho 1st conventional ESP installed 50,000 Golfinho Closing Dussafu 40,000 MaBoMo Maintenance ESP failures 30,000 Hibiscus 1st Oil 20,000 10,000 - Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23
Slide 6: Zero-harm objective for people and environment
Zero-harm objective for people and environment Minimising impact Working for Strong governance to environment local society framework • One LTI recorded to date in 2024 • No environmental incidents to date in 2024 • Supports local communities by investing in operated areas in to foster growth and de
Slide 7: Gabon
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Slide 8: Dussafu production
Dussafu production • Q2 net production ~1.41 million barrels, equal to Dussafu net production ~15,570 bbls/day kbbls/day ‒ Impacted by three-week scheduled maintenance 18.3 shutdown on BW Adolo and MaBoMo in May and June 17.1 16.5 15.6 • OPEX at USD ~29 per barrel due to the maintenance period ‒ Exp
Slide 9: Bringing an additional 23 million barrels of Hibiscus reserves to production
Bringing an additional 23 million1 barrels of Hibiscus reserves to production DHIBM-7P • Successful appraisals confirm significant Dussafu potential and enable rapid development of low-cost and low-risk production DHBSM-2P • Started producing from DHBSM-2H end July as first well with conventional ES
Slide 10: Brazil
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Slide 11: Golfinho production and strategic shift to maximise existing asset base
Golfinho production and strategic shift to maximise existing asset base • Q2 production ~0.73 million barrels, equal to ~8,040 Golfinho net production bbls/day kbbls/day1 ‒ Production impacted by gas lift compressor uptime 11.2 10.4 ‒ Production cost (excluding royalties) averaged USD 48 per barrel
Slide 12: Maromba development
Maromba development • Progressing more cost-efficient development based on dry tree wellhead platform and FPSO • Evaluating solution with integrated drilling facility to further reduce total field investments and ability to access additional reserves • Targeting completion of ongoing concept studies
Slide 13: Namibia
Namibia 13 Ww BW ENERGY
Slide 14: Kudu exploration program supported by recent major oil discovery
Kudu exploration program supported by recent major oil discovery • Working on defining target for first exploration well • Securing long-lead items for a 2025 exploration program • Preparing independent rig tender • Working closely with other operators in the Orange Basin to explore common use of av
Slide 15: Expanding footprint in strategically important region with ReconAfrica investment
Expanding footprint in strategically important region with ReconAfrica investment • Participation in a potential high-impact exploration program onshore Namibia • Synergies with Kudu gas-to-power project if gas resources are discovered • Experienced ReconAfrica management team • ~6.6% shares outstan
Slide 16: Q2 2024 financials
Q2 2024 financials 16
Slide 17: Expanding sources of financing and adding flexibility
Expanding sources of financing and adding flexibility • USD 100 million five-year senior unsecured bond issued in June 2024 with coupon rate of 10% ‒ Placement significantly oversubscribed with strong Nordic and international investor demand ‒ An application has been made for the bonds to be listed
Slide 18: Income statement – Q2
Income statement – Q2 In Millions of USD Income Statement Q2 2024 Q1 2024 Change Operating revenue 165.9 185.0 (19.1) Gain/(Loss) from oil derivatives (1.5) (3.3) 1.8 Operating expenses (88.5) (72.0) (16.5) EBITDA 75.9 109.7 (33.8) • About 200k barrels less sold in Q2 vs. Q1 and higher per Depreciat
Slide 19: Balance sheet
Balance sheet In Millions of USD Assets Q2 2024 Q1 2024 Change Property and other equipment 4.6 3.6 1.1 Right-of-use assets 95.8 101.2 (5.4) Tangible assets 1,114.8 1,078.4 36.3 • Hibiscus/Ruche development, Maromba project Intangible assets 269.5 263.1 6.4 Other non-current assets 86.5 46.4 40.1 •
Slide 20: Cash flow overview Q2 2024
Cash flow overview Q2 2024 USD million 300.0 155.3 244.2 250.0 63.4 200.0 150.1 150.0 100.0 (124.6) 50.0 0.0 Cash 31 March 2024 Operating cash flow Net investments Net financing activities Cash 30 June 2024 20
Slide 21: Lifting schedule and hedging
Lifting schedule and hedging • Dussafu Quarterly liftings schedule to BW Energy ‒ 1 lifting in Q2 2024: ~734.000 barrels net to BW Energy in May at USD 80/bbl ‒ 2 liftings in Q3 2024: ~796,000 barrels in July at USD 86/bbl and ~779,700 barrels net to BW Energy in August 2 • Golfinho ‒ 2 liftings in
Slide 22: Summary
Summary YR, sweeney 22
Slide 23: 2024 production guidance maintained
2024 production guidance maintained Net Total 10 – 11 Lower end of previous range due to Golfinho production reliability production1 million barrels Production USD 30 – 35 Unchanged cost per barrel Reflects additional investment in Dussufu following recent drilling Net Capex USD ~350 million success
Slide 24: Increased diversification and step-change in production
Increased diversification and step-change in production • Complete ESP program and maximise Dussafu output Production • First oil from Hibiscus South in March, second well added from August • Drill Bourdon appraisal well Exploration • Complete 3D seismic evaluation to assess Kudu potential and prepa
Slide 25: Q&A
Q&A 25
Slide 26: ir@bwenergy.no www.bwenergy.no
ir@bwenergy.no www.bwenergy.no 26