Bw Offshore Limited · OSL:BWO
Bw Offshore — Q4 2021 Earnings Presentation
32 slides from Bw Offshore's earnings presentation, Feb 28, 2022
Slide 1: BW Offshore Q4 2021
BW Offshore Q4 2021 28 February 2022 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 • FY 2021 EBITDA of USD 401 Barossa FPSO progressing on schedule in million and operating cash flow of a challenging market environment USD 510 million • Q4 EBITDA of USD 102 million and operating cash flow of BW Ideol secures close to 1GW of offshore USD 148 million floating wind acreage
Slide 4: Operational update
Operational update
Slide 5: Barossa FPSO project progressing on schedule
Barossa FPSO project progressing on schedule Key contracts Managing a challenging awarded / secured supply chain market • Hull fabrication: Samkang M&T • Major orders placed for valves, exotic piping materials and • Turret system: NOV APL stainless steel for topsides and • Topside early fabrication
Slide 6: Fleet performance and HSE focus
Fleet performance and HSE focus Fleet uptime1 HSE record (LTM) 99,0 % 97,3 % 99,4 % 97,8 % 97,4 % 98,7 % 93,2 % 91,6 % 91,3 % 5,0 LTI² TRI³ HPI⁴ 4,0 3,0 2,0 1,0 0,0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 • Espoir Ivoiri
Slide 7: ~98% of backlog from core FPSOs
~98% of backlog Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 from core Barossa FPSO Santos, Australia: 2025-2040 (2050) BW Adolo BW Energy, Gabon: 2018-2028 (2038)* FPSOs BW Catcher Harbour Energy, UK: 2018-2025 (2043) BW Pioneer Murphy Oil, US: 2012-2025 (2030) Le
Slide 8: Accelerating transitioning to energy infrastructure
Accelerating transitioning to energy infrastructure BW Joko Tole divested • Sale to Indonesian consortium1 will release more than USD 50 million of liquidity • The local organisation offered employment with the new owner • Providing technical support to the buyer BW Cidade de São Vicente recycled •
Slide 9: Maximising value from non-core fleet
Maximising value Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026 from non-core Petróleo Nautipa Yúum K’ak’ Náab VAALCO, Gabon: 2002-2022 Pemex, Mexico: 2007-2022 fleet Espoir Ivoirien CNR, Ivory Coast: 2002-2022 (2036) Abo FPSO Agip/Eni, Nigeria: 2003-2022 Sendje Berge Addax/Sinopec, Nigeria: 2005
Slide 10: A solid partner
A solid partner 28/02/2022 10
Slide 11: Healthy underlying EBITDA performance in Q4
Healthy underlying EBITDA Operating revenue EBITDA performance in Q4 203 USD million 102 USD million 300 180 EBITDA Comments 160 250 • Positive EBITDA impact of USD ~12 140 million due to one-off war-risk insurance 200 120 distribution and adjustment to provisions 100 at year-end 150 80 • COVID-19 r
Slide 12: Income statement
Income statement USD million Q4 2021 Q3 2021 2021 2020 Operating revenues 203.0 199.6 829.3 886.3 Operating expenses (100.7) (102.5) (428.0) (450.2) EBITDA 102.3 97.1 401.3 436.1 Depreciation & Amortisation (68.0) (68.8) (270.0) (284.0) Impairment (86.3) - (90.5) (292.7) Gain (loss) on sale of asset
Slide 13: Q4 cash flow overview
Q4 cash flow overview 500 USD million 450 • Operating cash flow includes USD 66 million 400 received in pre-payment of 126 350 the Barossa FPSO dayrate 178 148 300 168 • USD 151 million 17 8 6 29 investments related to 250 66 8 37 Barossa for Q4 • USD 178 million paid from 200 the Barossa JV to the
Slide 14: Financing received tracking Barossa progress
Financing received tracking Barossa progress Funds received end Q4 2021 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 210 USD 40 USD ~199 USD ~449 million million million million1 Drawn Remaining Injected Re
Slide 15: Solid financial position
Solid financial position Net debt and leverage ratio1 Equity ratio2 USD million 1 500 50% 2,0x 2,0x 2,1x 2,1x 2,2x 2,2x 2,1x 1,6x 40% Q4 asset impairment of USD 86 million 33,9% 0 1 000 30% 653 20% 500 10% 0 0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Slide 16: Instalment profile provides financial flexibility
Instalment profile provides financial flexibility Gross debt (USD million end Q4 21) Instalment schedule (USD million) 1 000 1200 900 1000 800 700 800 600 500 600 400 400 300 200 200 100 0 0 1 2022 2023 2024 2025 Convertible bond1 NOK bonds2 Corporate facility Petroleo Nautipa BW Catcher facility BW
Slide 17: Maintaining financial flexibility and returning capital
Maintaining financial flexibility and returning capital Maximising value from Actively Focused on shareholder non-core fleet managing liquidity returns Abo FPSO and Sendje Berge contract Large projects require ample liquidity A quarterly cash dividend of USD 0.035 extensions buffers and working capi
Slide 18: Strategic investments
Strategic investments DELIVERING ON STRATEGY 28/02/2022 18
Slide 19: BW Ideol secures close to 1GW of offshore floating wind acreage in ScotWind
BW Ideol secures close to 1GW of offshore floating wind acreage in ScotWind leasing round ScotWind License Round Areas under option agreements Lease for 960MW capacity awarded The Floating Energy Allyance NE8 area by the Crown Estate Scotland partnership includes: • The “option agreement” is for are
Slide 20: Value creation model supported by Ardersier Port development
Value creation model supported by Ardersier Port development Value profile of floating wind projects Five cash flow streams Ardersier Port development Dividends COD IRR Services agreements Technology royalties Project value FID EPCI margin Consenting Selected divestments Set to become Europe’s first
Slide 21: Floating wind to power offshore infrastructure
Floating wind to power offshore infrastructure Expressed interest from oil companies for solutions that BWO-BW Ideol Joint Venture leverages FPSO and increase gas available for sale and reduce greenhouse gas floating wind competencies to develop low-carbon offshore emissions (GHG) energy production
Slide 22: BW Energy progressing towards Hibiscus-Ruche start-up
BW Energy progressing towards Hibiscus-Ruche start-up Operations: • Tortue field average gross production of ~12,250 barrels of oil per day in the fourth quarter of 2021 • Increased production as a result of the start of production from the two new Tortue phase-2 wells Dussafu Hibiscus-Ruche: Status
Slide 23: Delivering on strategic priorities in 2021
Delivering on strategic priorities in 2021 Grow the FPSO • Significant progress on the Barossa FPSO project with a new robust project business through new finance model established energy infrastructure • Good progress on new potential projects under the same model projects Maximise value from • Mai
Slide 24: Summary and outlook
Summary and outlook Fully focused on the Barossa project Higher energy prices support contract extensions Continuing to divest units approaching the end of the contract Progressing FPSO prospects and energy transition opportunities Firming up material floating wind project pipeline with BW Ideol 24
Slide 25: Q&A
Q&A We engineer offshore production solutions to progress the future of energy. 25
Slide 26: Income statement
Income statement Q4 2019* FY 2019* Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 CONTINUING OPERATIONS Operating revenue 228,0 947,4 257,7 211,0 195,1 222,5 886,3 218,9 207,8 199,6 203,0 829,3 Operating expenses (109,9) (404,5) (127,8) (94,8) (97,0) (130,6) (450,2)
Slide 27: Other comprehensive income
Other comprehensive income Q4 2019* FY 2019* Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Net profit/(loss) for the period 30,6 106,1 (273,6) 29,7 14,6 (43,0) (272,3) 97,2 5,9 5,2 (46,1) 62,2 Currency translation differences 0,4 (0,5) (2,3) (0,5) (0,2) 0,6 (2,4) (1
Slide 28: Balance sheet
Balance sheet ASSETS Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Vessels and vessels under construction 2 377,1 2 107,2 2 053,5 2 001,1 1 893,1 1 823,5 1 813,4 1 813,5 1 836,0 Property, plant & equipment 16,0 4,4 4,3 4,2 4,1 20,6 19,1 18,2 17,3 Right-of-use assets 22,0 17
Slide 29: Cash flow
Cash flow Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Profit/(loss) before taxes 47,3 184,3 (297,0) 36,5 22,2 (33,7) (272,0) 56,9 12,3 10,5 (32,8) 46,9 Adjustments for: - Depreciation and amortisation 110,9 412,4 95,5 63,2 63,0 62,3 284,0 65,2 68,0
Slide 30: Cash flow YTD 2021
Cash flow YTD 2021 USD million 700 600 199 256 500 313 305 400 13 30 18 29 72 66 8 65 29 300 311 59 25 37 451 200 394 382 351 351 334 327 327 334 297 297 300 274 274 269 269 237 237 100 140 140 0 30
Slide 31: Key figures
Key figures Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 EBITDA-margin 55,8 % 61,6 % 50,4 % 55,1 % 50,3 % 41,3 % 49,2 % 50,6 % 43,8 % 48,6 % 50,4 % 48,4 % Equity ratio 43,3 % 43,3 % 35,0 % 35,8 % 37,5 % 36,5 % 36,5 % 39,7 % 39,9 % 39,0 % 33,9 % 33,9
Slide 32: Thank you.
Thank you. BW OFFSHORE