Bw Offshore Limited · OSL:BWO
Bw Offshore — Q4 2023 Earnings Presentation
29 slides from Bw Offshore's earnings presentation, Feb 29, 2024
Slide 1: BW Offshore Q4 2023
BW Offshore Q4 2023 29 February 2024 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 • Q4 EBITDA USD 91 million Commenced integration phase for • Q4 operating cash flow BW Opal in Singapore USD 230 million • Includes USD 132 million in pre-payments of the Barossa Sale of shares in BW Energy to BW FPSO dayrate Group for USD 176 million • FY 2023 EBITDA USD 306 million and
Slide 4: Operational update
Operational update
Slide 5: BW Opal FPSO progressing to schedule
BW Opal FPSO progressing to schedule 98% complete 94% complete 96% complete Turret and Mooring System Hull construction1 Topsides construction1 construction1 • Integration work underway in Singapore, with 11 out of 16 topside modules successfully installed • Focus on maintaining schedule and mitigat
Slide 6: Fleet and HSE performance
Fleet and HSE performance Weighted average fleet uptime1 HSE record (LTM)5 99.2% 99.1% 98.6% 98.5% 99.2% 97.3% 96.2% 95.3% 95.4% 3.0 LTI² TRI³ HPI⁴ 2.0 1.0 0.0 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 • One recorded HPI • Zero LTIs 1) Weig
Slide 7: Strong cash flow underpinned by the core FPSO fleet
Strong cash flow Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 underpinned by BW Opal Santos, Australia: 2025-2040 (2050) BW Adolo BW Energy, Gabon: 2018-2028 (2038)2 the core FPSO BW Catcher Harbour Energy, UK: 2018-2025 (2043) fleet BW Pioneer Murphy Oil, US: 2012
Slide 8: Portfolio successfully streamlined and high-graded
Portfolio successfully streamlined and high-graded Concluded fleet divestment programme in 2023 Complex operational set up FPSOs with marginal cash contribution, coming off contracts or with short remaining durations Significant reduction of Old units with limited redeployment potential Limited impa
Slide 9: A Solid Partner
A Solid Partner FINANCE
Slide 10: EBITDA performance
EBITDA performance EBITDA EBITDA outlook 91 USD million 290-310 • EBITDA impacted by close- USD million out of the Petróleo Nautipa FY 2024 (expected) contract • Based on firm contract backlog • Full-year EBITDA of USD 306 180 million 160 140 • Exceeding guided range 120 of USD 285-295 million 100 8
Slide 11: Income statement
Income statement USD million Q4 2023 Q3 2023 2023 2022 Operating revenues 170.4 156.4 659.2 774.1 • Financial instruments and Operating expenses (79.3) (81.9) (353.7) (428.4) other financial items were EBITDA 91.1 74.5 305.5 345.7 negative, mainly due to Depreciation & Amortisation (46.8) (45.9) (18
Slide 12: Q4 cash flow overview
Q4 cash flow overview USD million 600 • USD 132 million received in 500 pre-payment of the Barossa FPSO dayrate 400 8 • USD 195 million 230 205 28 19 7 6 15 investments related to 110 Barossa 300 24 10 4 200 364 364 375 367 361 346 271 267 267 282 282 246 246 100 - 12
Slide 13: Financing received tracking Barossa progress
Financing received tracking Barossa progress Funds received end Q4 2023 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 890 USD 195 USD ~849 USD ~1,934 million million million million1 Drawn Remaining Injected
Slide 14: Strong cash flow supports deleveraging
Strong cash flow supports deleveraging Net debt and leverage ratio1 Equity ratio2 USD million 1,500 50% 1.6x 1.5x 1.4x 40% 1.4x 1,000 30.2% 1.1x 1.1x 30% 0.9x 0.6x 20% 500 10% 172 0 0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Net debt / LTM repo
Slide 15: Solid financial position provides financial flexibility
Solid financial position provides financial flexibility Maturity profile Sale of shares in 600 USD million BW Energy to BW 12% annualised Group for USD dividend yield1 ~176 million 500 400 Plan to redeem the Total liquidity of convertible bond 300 USD 606 million2 by the end of 2024 200 Secured and
Slide 16: Disciplined approach to allocation of capital
Disciplined approach to allocation of capital Capital allocation framework Announced quarterly dividend USD per share 0.088 • Maintain high operational uptime on the FPSO fleet 0.061 0.061 0.059 • Sustain a robust balance sheet through debt reductions in periods with surplus cash flow enabling capac
Slide 17: Strategic priorities
Strategic priorities 28/02/2024 17
Slide 18: Strong demand for FPSOs
Strong demand for FPSOs # of FPSO awards (2010-2024e) 20 Oil price (Bloomberg) Likely FPSO awards 2024-20301 15 10 7 5 0 4 Market backdrop • Continued high Brent price supports demand for new FPSOs, extensions and redeployments • Lenders and equity investors are increasingly selective on which proje
Slide 19: BW Ideol fulfilled strategic objectives during 2023
BW Ideol fulfilled strategic objectives during 2023 Maturing development projects and expanding pipeline Eolmed floater assembly progressing • Progressing Buchan Offshore Wind project with Offshore Scoping Report submission and completion of geotechnical and environmental campaigns • Submitted AO5 t
Slide 20: Delivered on strategic priorities in 2023
Delivered on strategic priorities in 2023 Successful mobilisation of the BW Opal hull 22 months after first steel cut Concluded the fleet divestment programme Refinanced USD 595 million of commercial debt and high yield bond Distributed USD ~49 million in dividends based on 2023 results 20
Slide 21: Outlook
Outlook Main focus to ensure safe and timely execution of the Barossa project Unlock value in contract extensions Selectively progressing new infrastructure-like FPSO projects Support BW Ideol as a private company capitalised by new industrial shareholders Maintain an attractive shareholder return p
Slide 22: Q&A
Q&A We engineer offshore production solutions to progress the future of energy.
Slide 23: 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 ~95 million, reducing • USD ~60 million of non-cash revenue to be BW Catcher 2018-2025 (2043) 57,764 USD 2
Slide 24: 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 Q4 2023 FY 2023 CONTINUING OPERATIONS Operating revenue 218.9 207.8 199.6 203.0 829.3 193.6 192.8 176.5 211.2 774.1 166.3 166.1 156.4 170.4 659.2 Operating expenses (108.1) (116.7
Slide 25: 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 Q4 2023 FY2023 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 40.0 97.6 Currency translation differences (1.7) 2.7 (4
Slide 26: Balance sheet
Balance sheet ASSETS 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 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 2,833.5 Other property, plant & equipment 20.6 19.1 18.2 17.
Slide 27: 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 Q4 2023 FY 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 42.4 113.3 Adjustments for: - Depreciation and amortisation 65.2 68.0 68.8
Slide 28: 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 Q4 2023 FY 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 % 53.5 % 46.3 % Equity ratio 39.7 % 39.9 % 39.0 % 33.9 % 33.9 % 3
Slide 29: Thank you.
Thank you. BW OFFSHORE