Bw Energy Ltd. · OSL:BWE
Bw Energy — Q3 2020 Earnings Presentation
24 slides from Bw Energy's earnings presentation, Nov 18, 2020
Slide 1: BW Energy Q3 2020
ONY BW ENERGY Q3 2020 CEO Carl K. Arnet CFO Knut R. Seethre COO Lin G. Espey 18 November 2020
Slide 2: Disclaimer
Disclaimer Rr swenercy 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 per
Slide 3: Highlights
Highlights EBITDA of USD 22.2 million with one lifting completed to BWE in Q3 2020 Strong cash position of USD 145 million Investment project execution awaits lifting of COVID-19 restrictions B\Y BW ENERGY Ensuring health and safety of all stakeholders while maintaining uninterrupted operations amid
Slide 4: Minimizing impact to environment, working for local society, sound governance
Minimizingimpact to environment Working for local society Sound governance Continued focus on resource efficient developments based on reusing existing offshore assets — jack-up purchase Supporting local communities in Gabon, Brazil and Namibia Zero LTI in the third quarter Estimated GHG emission-sa
Slide 5: Well positioned in current oil demand and price environment
Well positioned in current oil demand and price XR BweNeRay environment + Predicting future energy demand and the oil price Expectations for oil prices far lower than at the start of the year carries a lot of uncertainty Brent crude forward contracts, December of each year ($) * Significantly reduce
Slide 6: Dussafu
Dussafu
Slide 7: Stable operational performance
Stable operational performance * Q3 production 1.42 million bbls, equal to ~15,500 bbls/day gross * Q3 OPEX at USD 19.6 per barrel, down from USD 21 per barrel for 2019 + Full year OPEX expectation increased from USD 17-18 to USD ~19 per barrel — Impact from extended COVID-19 costs and restrictions
Slide 8: Restart of Tortue development activities
Restart of Tortue development activities * Completion and tie-in of Tortue phase 2 wells DTM-6H and DTM-7H — LOlin place for Borr Norve drilling rig — Tentative drilling startlate March 2021 — Gross project investment forecast remains at USD 238 million (original FID budget of USD 275 million) — Fir
Slide 9: Significantly improved Hibiscus/Ruche economics
Significantly improved Hibiscus /Ruche economics — & swaurc Hibiscus Structure Map — Reprocessed Seismic * Jack-up conversion reduces investments, time to first oil and environmental footprint of the development * Revised development CAPEX gives: — Reduced cash break-even of USD ~25 per barrel (Bren
Slide 10: Conversion concept with multiple benefits
Conversion concept with multiple benefits XR BweNeRay * Acquisition of two jack-up drilling rigs for a total of USD 14.5 million — 2003-built sister rigs Atla and Balder, Friede & Goldman JU 2000 DESIGN * Atla MODU conversion to Hibiscus Alpha offshore installation (Ol) engineering project started *
Slide 11: Dussafu production forecast
Dussafu production forecast Gross production profile kbbls/day 40 38 Ruche Phase 2 31 ™ Ruche Phase 1 26 m Tortue 21 T i 13 12 il iT [itiiiiais 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Quarterly gross production (kbbls/day) 18 16 14 12 16,0 11,6 - 10,
Slide 12: Attractive Dussafu economics at current oil prices
Attractive Dussafu economics at current oil prices XR swenersy Operational free cash flow 2020E' USD per bbI + Full year OPEX expectation of USD ~19 per barrel * OPEX expected to decline to approximately USD 11 per barrel at FPSO nameplate capacity USD 35 USD 45 USD S55 MOPEX MFPSOcosts MADMEX MiRoy
Slide 13: Significant remaining potential
Significant remaining potential XR BweNeRay Large inventory of exploration prospects and leads Mo! pthrown RUCHE EEA AREA * The large portfolio of prospects and leads suggests @ Za) Walt Whitman a program of two exploration wells per year for the me Moubenga NW coming five years with a potential to
Slide 14: Maromba
Maromba
Slide 15: Progressing Maromba towards FID
Progressing Maromba towards FID XR BweNeRay + Field Development Plan for Maromba approved by > ‘ans Dacor ANP 3 comorcerte teers . . . an Prec * Project team progressing project towards © fotan Prospects Chinchita environmental approval (IBAMA) — Site and soil survey planned for Q4 2020 * Project an
Slide 16: Q3 Financials
Q3 Financials
Slide 17: Income statement
Income statement Tey ow enerer million Q3 2020 Q22020 Change Operating revenue 38.3 32.0 6.3 . . ATA Operating expenses (461) (10.2) (5.9) EBITDA increased by USD 0.4 million EBIIDA eet we ~ Additional 170kbbls sold in Q2 vs. Q1 (including DMO Depreciation (8.0) (7.7) (0.3) delivery) Depreciation -
Slide 18: Balance sheet
Balance sheet ASSETS Q3 2020 Q2 2020 Change Property and other equipment 0.5 05 (0.0) Right-of-use assets 225.0 234.6 (3.6) E&P tangible assets 237.3 251.9 (14.6) Intangible assets 107.1 100.7 64 Other non-current assets 75 68 0.7 Total non-current assets 5774 594.5 (17.2) Inventories 18.3 86 97 Tra
Slide 19: Cash flow overview
Cash flow overview 1+ BW ENERGY USD million 180 160 140 26 120 100 80 145 60 128 40 20 Cash Jun 30 Operating cash flow Net investments Payment of lease liabilities Cash Sep 30 19
Slide 20: Investment in assets (CAPEX)
Investment in assets (CAPEX) yy ewenersy USD million = Dussafu = Maromba 80 70 60 50 , 3 2 ' = im on || | Q117 Q217 Q3'17 Q417 Q118 Q218 Q318 Q4'18 Q119 Q219 Q319 Q419 Q1'20 Q2'20 Q3'20 S$ Ss 38 roy ° 20
Slide 21: Summary
Summary
Slide 22: Key value catalysts
Key value catalysts XR swenersy Dussafi Hibiscus/Ruche Maromba to tele Tortue Phase 2 a exploration development first oil * Seismic reprocessing evaluation * Tortue Phase 2 Q3 2021: +8-9,000 gross bbls/day peak + ANP approved FDP in Q3 2020 + Up to 10 additional exploration wells * Hibiscus / Ruche
Slide 23: Q&A
Slide 24: BW Energy