Bw Offshore Limited · OSL:BWO
Bw Offshore — Q2 2024 Earnings Presentation
27 slides from Bw Offshore's earnings presentation, Aug 30, 2024
Slide 1: BW Offshore Q2 2024
BW Offshore Q2 2024 30 August 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 • Q2 EBITDA USD 77 million • Q2 operating cash flow Barossa project progressing to plan USD 107 million • Includes USD 50 million in pre-payments of the Barossa FPSO dayrate Q2 cash dividend of USD 11 million • Q2 Net profit USD 29 million equal to USD 0.06 per share Full-year 2024 EBITDA
Slide 4: Operational update
Operational update
Slide 5: BW Opal FPSO progressing on schedule, 86% complete
BW Opal FPSO progressing on schedule 86% complete • All topside modules successfully lifted onboard • Integration ~75% completed • Pre-commissioning and commissioning are ramping up • Focus on maintaining schedule and mitigating project risks • Long-term project economics remain intact • FPSO on tr
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% 100.0% 98.9% 95.4% 3.0 LTI² TRI³ HPI⁴ 2.0 1.0 0.0 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 • Zero recorded HPI • One LTI 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: A Solid Partner
A Solid Partner FINANCE
Slide 9: EBITDA performance
EBITDA performance EBITDA EBITDA outlook 77 USD million 305-315 • EBITDA includes USD ~7 USD million million contribution from FY 2024 (expected) Sakarya • Based on firm contract backlog • FEED work completed with 100 USD ~10 million of additional 90 contribution expected in Q3 80 as contract is clo
Slide 10: Income statement
Income statement USD million Q2 2024 Q1 2024 2023 Operating revenues 151.9 168.6 659.2 Operating expenses (74.5) (83.1) (353.7) EBITDA 77.4 85.5 305.5 • Net profit USD 29 million Depreciation & Amortisation (45.5) (45.6) (187.2) Impairment 0.0 1.1 (5.1) • Earnings per share USD 0.16 Gain (loss) on s
Slide 11: Q2 cash flow overview
Q2 cash flow overview USD million 600 • USD ~50 million received in 500 pre-payment of the Barossa 14 1 107 58 7 11 113 11 FPSO dayrate 400 28 • USD ~111 million investments related to Barossa 300 467 467 459 448 448 423 437 437 200 401 401 395 395 100 - 11
Slide 12: Financing received tracking Barossa progress
Financing received tracking Barossa progress Funds received end Q2 2024 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 960 USD 213 USD ~932 USD ~2 105 million million million million1 Drawn Remaining Injected
Slide 13: Strong cash flow and low leverage support growth
Strong cash flow and low leverage support growth Net debt and leverage ratio1 Equity ratio2 USD million 50% 40% 900 1.4x 1.4x 30.4% 30% 1.1x 1.1x 0.9x 20% 0.6x 400 10% 0.1x 0.0x 0% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 -100 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Net debt / LTM rep
Slide 14: Solid financial position provides financial flexibility
Solid financial position provides financial flexibility Maturity profile USD million USD 11.3 million cash 400 Available liquidity dividend for Q2 2024 350 USD 728 million1 USD 0.06 per share 300 250 200 150 Plan to redeem 100 Convertible bond, USD All in cost of debt 4.9% 157 million, by end of 95%
Slide 15: Strategic priorities
Strategic priorities 27/08/2024 15
Slide 16: Despite strong demand awards are lagging
Despite strong demand awards are lagging Market backdrop • Continued high Brent price supports demand for Likely FPSO awards 2024-20301 new FPSOs, contract extensions and redeployments • Increased complexity and higher costs necessitate financial structures with significant prepayments • Trend towar
Slide 17: Well positioned in highly selective market
Well positioned in highly selective market Awards lagging expectations amid increased Maintaining disciplined approach In a favourable position costs and complexities • L&O and EPCI combined with O&M is the • Experience from building large and complex • Selective lenders and equity investors preferr
Slide 18: BW Ideol focused on project portfolio and business development initiatives
BW Ideol focused on project portfolio and business development initiatives Eolmed: Arrival of blades for the wind turbines Maturing 1GW Buchan Offshore Wind development project towards final consent expected in 2026 Eolmed progressing with all steel blocks in production and delivery of wind turbine
Slide 19: Outlook
Outlook Main focus to complete the Barossa project for start-up in 1H 2025 Unlock value through 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
Slide 20: Q&A
Q&A We engineer offshore production solutions to progress the future of energy.
Slide 21: 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 ~30 million of non-cash revenue to be BW Catcher 2018-2025 (2043) 57,764 USD 2
Slide 22: Income statement
Income statement Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 CONTINUING OPERATIONS Operating revenue 193.6 192.8 176.5 211.2 774.1 166.3 166.1 156.4 170.4 659.2 168.6 151.9 Operating expenses (108.8) (117.2) (96.1) (106.3) (428.4) (87.3) (105.2) (8
Slide 23: Other comprehensive income
Other comprehensive income Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY2023 Q1 2024 Q2 2024 Net profit/(loss) for the period 46.3 12.3 29.6 41.3 129.5 17.8 10.9 28.9 40.0 97.6 36.8 29.2 Currency tra ns l a tion di fferences (2.2) (7.1) (7.3) 9.2 (7.4) 1.2 1.1 (3.7) 5.1
Slide 24: Balance sheet
Balance sheet ASSETS 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Vessels 1,913.0 2,034.9 2,189.1 2,394.3 2,379.3 2,520.9 2,662.7 2,833.5 2,889.2 2,969.3 Other property, plant & equipment 14.9 11.9 9.5 8.5 6.8 4.8 2.9 2.8 2.6 2.4 Right-of-use
Slide 25: Cash flow
Cash flow Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Profit/(loss) before taxes 54.1 18.4 32.9 44.3 149.7 20.8 14.0 36.1 42.4 113.3 39.5 31.5 Adjustments for: Depreciation and amortisation 55.3 51.4 50.8 51.3 208.8 48.2 46.3 45.9 46.8 187.2 45.7 4
Slide 26: Key figures
Key figures Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 EBITDA-margin 43.8 % 39.2 % 45.6 % 49.7 % 44.7 % 47.5 % 36.7 % 47.6 % 53.5 % 46.3 % 50.7 % 51.0 % Equity ratio 35.9 % 35.2 % 33.8 % 32.9 % 32.9 % 32.4 % 31.9 % 31.0 % 30.2 % 30.2 % 31.1 % 30.4
Slide 27: Thank you.
Thank you. BW OFFSHORE