Bw Offshore Limited · OSL:BWO
Bw Offshore — Q4 2019 Earnings Presentation
36 slides from Bw Offshore's earnings presentation, Feb 27, 2026
Slide 1: BW Offshore Q4 and full year 2019
BW OFFSHORE Q4 and full year 2019 CEO Marco Beenen CFO Ståle Andreassen 28 February 2020 SMARTER TOGETHER
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 RECENT HIGHLIGHTS Record revenue and EBITDA in 2019 EBITDA of USD 169 million in Q4 Operating cash flow of USD 135 million in Q4 Completed two liftings to BW Energy BW Energy IPO and capital raise completed Successful refinancing of Nordic high-yield bond portfolio USD 101 million of BWE
Slide 4: Strong financial performance in 2019
Strong financial performance in 2019 Revenues EBITDA 1,153 USD million 710 USD million 1400 800 1200 700 600 1000 2019 FPSO EBITDA 500 800 400 600 300 400 200 200 100 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4
Slide 5: BW Energy IPO completed
BW Energy IPO completed Raised gross proceeds of USD 125 million before Listing day 19 February 2020 overallotment BWE financed on stand-alone basis through to first oil on Maromba with direct access to additional capital through listing USD ~101 million of BWE shares to BWO shareholders as dividend
Slide 6: Operations
OPERATIONS 6
Slide 7: Strong fleet performance and HSE focus
Strong fleet performance and HSE focus Fleet uptime HSE record (LTI1) 5,0 99,6 % 100,0 % 98,4 % 99,5 % 99,4 % 99,7 % 99,9 % 99,0 % 95,6 % 4,0 3,0 2,0 1,0 0,0 The FPSO fleet has delivered 99% average uptime over the BWO prioritises safety first in all its operations and strives last five years toward
Slide 8: Unit update
Unit update BW Catcher BW Adolo Berge Helene Umuroa Production at ~58,000 bopd Production at ~10,700 bopd Preservation and condition Client in liquidation Uptime ~98% in Q4 Uptime ~99% assessment ongoing at Total impact for 2019 of USD Keppel Shipyard 23 million No excess contribution Ready for star
Slide 9: Combined strategy unlocks value in existing fleet
Combined strategy unlocks value in existing fleet Continuous FPSO extensions BW Cidade de FPSO Polvo Abo FPSO Petróleo Nautipa BW Pioneer São Vicente Discussing further Extended until Q2 2020 Extended until Q3 2021 Extended until end 2020 Extended until Q3 2021 extensions Bringing redeployment candi
Slide 10: Fleet contract overview
Fleet contract overview Unit 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 BW Adolo* BW Energy, Gabon: 2018-2028 (2038) BW Catcher Premier Oil, UK: 2018-2025 (2043) Yúum K’ak’ Náab Pemex, Mexico: 2007-2022 (2025) BW Joko Tole Kangean, Indonesia: 2012-2022 (2026) Espoir Ivoiri
Slide 11: BWE continues to exceed expectations
BWE continues to exceed expectations 2019 EBITDA of USD 192 million E&P EBITDA per quarter1 In USD millions USD million 70 USD USD Tortue production 4.3 million bbls (gross) for 2019 million million 60 Tortue production ~987,000 bbls (gross) in Q4 50 ‒ ~10,700 bbls per day ‒ Two liftings completed b
Slide 12: Finance
FINANCE
Slide 13: Q4 income statement highlights
Q4 income statement highlights Operating revenue EBITDA EBIT 303 USD million 169 USD million 59 USD million 300 200 200 180 180 250 160 160 140 140 200 120 120 150 100 100 80 80 100 60 60 40 40 50 20 20 0 0 0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q
Slide 14: Income statement highlights Q4 FPSO segment
Income statement highlights Q4 FPSO segment1 Operating revenue EBITDA EBIT USD 228 USD million 118 USD million million 22USD USD million million 200 200 300 180 180 250 160 160 140 140 200 120 120 150 100 100 80 80 100 60 60 40 40 50 20 20 0 0 0 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 18
Slide 15: Income statement highlights Q4 E&P segment
Income statement highlights Q4 E&P segment1 Operating revenue EBITDA EBIT 93 USD million 58 USD million 36USD USD million million 70 100 70 90 60 60 80 50 70 50 60 40 40 50 30 30 40 30 20 20 20 10 10 10 0 0 0 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q3 18 Q4 18 Q1 19 Q
Slide 16: Income statement
Income statement USD million Q4 2019 Q3 2019 2019 2018 Operating revenues 303.4 267.2 1,153.0 870.4 Operating expenses (133.7) (105.2) (443.8) (382.6) Share of profit from associates (0.3) 0.1 0.7 1.4 EBITDA 169.4 162.1 709.9 489.2 Depreciation, amortization and impaiments (110.8) (96.3) (412.3) (33
Slide 17: Significant strengthening of balance sheet
Significant strengthening of balance sheet Net debt (USD million) and leverage ratio Equity ratio 50% 2 000 43,3% 3,6x 3,2x 3,3x 3,0x 40% 2,5x 2,0x 1 500 1,6x 1,4x 1,4x 30% 0 997 1 000 20% 500 10% 0 0% Net debt / LTM reported EBITDA 17
Slide 18: Strong operational cash flow in 2019
Strong operational cash flow in 2019 1600 USD million 1400 1200 1000 1001 1137 800 98 600 131 608 400 653 98 522 522 38 200 386 288 250 250 142 142 0 Cash 2018 Operating cash Net investments Investment FPSO New debt Debt instalments Payment of net From/(to) non- Cash 2019 flow E&P & Other interest a
Slide 19: Good progression on multiple financing initiatives
Good progression on multiple financing initiatives Gross debt (USD million end Q4 19) 1 400 Successful fleet and bond refinancing ✓ 3 1 200 Convertible bond New USD 673 million corporate fleet facility ✓ 1 000 1 Issued 400 million in convertible and Nordic high yield ✓ New bonds bonds to refinance l
Slide 20: Stable FPSO backlog and increasing E&P reserves
Stable FPSO backlog and increasing E&P reserves FPSO revenue backlog per Q4 (USD billion) E&P assets per Q4 (mmbl net reserves and resources) Tortue 31.2 Firm Ruche Area 51% 5.5 49% 51.5 Option 138.1 247 26.2 Maromba Dussafu 2C Note: Options considered likely to be exercised 3% ~10,700 bopd Q4 2019
Slide 21: Dividends resumed
Dividends resumed Dividend policy BW Offshore has an objective to generate competitive long-term total shareholder returns. This return will be achieved through growth and dividend distributions. The Company intends to pay dividends on a quarterly basis. The Board of Directors targets a sustainable
Slide 22: Strategy and Outlook
STRATEGY AND OUTLOOK
Slide 23: Selective investment approach enhancing financial performance
Selective investment approach enhancing financial performance FPSO EBITDA (USD millions) 544 BW Catcher confirming ability to deliver 468 new high-value FPSO projects 340 BW Adolo redeployment triggered by clearly defined E&P strategy Successful launch of BW Energy and Dussafu investment 2017 2018 2
Slide 24: Tightening FPSO market offers growth opportunities
Tightening FPSO market offers growth opportunities FPSO contract awards per year1 25 200 180 20 160 Average Brent oil price FPSO orders per year 140 15 120 100 10 80 60 5 40 20 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e 2021e Lease EPC Lease (
Slide 25: Multiple paths to FPSO growth
Multiple paths to FPSO growth BW Cidade de São Vicente Petróleo Nautipa FPSO Polvo BW Pioneer Abo FPSO Extensions BW Adolo Berge Helene Umuroa BW Athena BW Opportunity Redeployments BW Energy BW Catcher “Catcher Copy” Rapid Framework Newbuilds One new significant project beyond Berge Helene redeploy
Slide 26: Delivering on strategic priorities
Delivering on strategic priorities FPSO backlog provides long-term cash flow visibility Oil price fluctuates at levels providing FPSO extensions Tightening FPSO market Actively pursuing new FPSO projects meeting required risk-return criteria Continued value generation through redeployments for field
Slide 27: 2019 achievements laying foundation for long-term growth
2019 achievements laying foundation for long-term growth All-time-high Group EBITDA Improved HSE performance Strong financial position 1.4x USD 710 million LTI 0.48 (LTM) Net debt / LTM reported EBITDA BWE listing completed Resumption of cash dividends Positioned for growth ~USD 101 million USD ~0.0
Slide 28: Q&A
Q&A
Slide 29: For further information please contact ir@bwoffshore.com
For further information please contact ir@bwoffshore.com
Slide 30: Event guidance
Event guidance H2 2019 H1 2020 H2 2020 - Petróleo Nautipa extension✓ - Extensions for: - Berge Helene redeployment - Abo extension ✓ - FPSO Polvo✓ contract - Umuroa not extended✓ - BW Cidade de São Vicente - Extensions for: - Upgrades to BW Adolo - BW Pioneer - Petróleo Nautipa - FPSO Cidade de São
Slide 31: Q4 operational cash flow
Q4 operational cash flow 900 USD million 800 700 600 556 595 500 400 25 47 135 300 25 8 200 369 323 323 260 260 284 259 250 250 100 0 Cash Q3'19 Operating cash Net investments Investment FPSO New debt Debt instalments Payment of net From/(to) non- Cash Q4'19 flow E&P & Other interest and controlling
Slide 32: Income statement
Income statement Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Operating revenue 150.3 626.0 192.5 200.2 222.3 255.4 870.4 296.4 286.0 267.2 303.4 1,153.0 Operating expenses (77.3) (290.7) (84.5) (95.1) (96.0) (107.0) (382.6) (110.1) (94.8) (105.2) (
Slide 33: Balance sheet
Balance sheet ASSETS Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Vessels and vessels under construction 2,808.4 2,778.2 2,743.1 2,681.2 2,614.6 2,555.5 2,498.3 2,431.8 2,377.1 Property and other equipment 10.1 10.2 10.6 12.0 13.3 13.3 14.1 14.6 16.0 Right-of-use assets* -
Slide 34: Cashflow
Cashflow Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Profit/(loss) before taxes 13.2 43.5 27.6 - 24.8 24.4 76.8 53.0 50.7 33.3 47.3 184.3 Unrealised currency exchange loss/(gain) (11.1) 28.0 14.1 (12.3) 0.6 (15.7) (13.3) 0.6 4.9 (16.9) 1.7 (9.7) De
Slide 35: Key figures
Key figures Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 EBITDA-margin 48.9 % 53.7 % 56.4 % 52.6 % 56.9 % 58.3 % 56.2 % 63.0 % 67.0 % 60.7 % 55.8 % 61.6 % Equity ratio 36.8 % 36.8 % 37.4 % 37.2 % 37.2 % 38.7 % 38.7 % 39.6 % 40.5 % 40.8 % 43.3 % 43.3
Slide 36: Segments
Segments Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 FPSO 151.4 629.0 194.2 202.7 218.7 245.9 861.5 230.5 251.2 237.7 228.0 947.4 E&P - - - - 8.7 30.5 39.2 84.0 56.2 49.5 92.7 282.4 Eliminations (1.1) (3.0) (1.7) (2.5) (5.1) (21.0) (30.3) (18.1) (2