BW Offshore Limited · OSL:BWO
BW Offshore — Q1 2021 Earnings Presentation
30 slides from BW Offshore's earnings presentation, May 25, 2021
Slide 1: BW Offshore Q1 2021
BW Offshore Q1 2021 25 May 2021 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 beredistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance a
Slide 3: Highlights
Highlights • Q1 EBITDA of USD 111 million Signed FPSO contract for the • Operating cash flow of Barossa gas development USD 114 million before payment of CDSM settlement • Firm backlog increased to BW Ideol launched as a pure-play USD 7 billion offshore floating wind champion • One-year contract ext
Slide 4: Delivering on strategy
Delivering on strategy MAKING REAL INVESTMENTS
Slide 5: Three focus areas
Three focus areas • Contract extensions and redeployments Maximise value from • Value creation in cooperation with BW Energy existing FPSO fleet • Dividend potential as a ~35% shareholder • Sell or recycle units if redeployment opportunities do not materialise Transition to ‘Floating • Long-term FPS
Slide 6: Executing our strategy
Executing our strategy Conventional FPSO fleet Floating Energy Infrastructure - FPSO Current share price1 NOK • Barossa contract finalised – adding USD 4.6 35 32.0 Ownership billion to BWO’s firm contract backlog • Strong cash flow generation in Q1 • 15 year firm + 10 year option period with 2.8 53%
Slide 7: Barossa field - 15 year firm FPSO contract
Barossa field - 15 year firm FPSO contract A world class gas-condensate field to be commercialised via the existing producing Darwin LNG infrastructure Key Term Key project information Barossa field Joint Venture Santos (Operator) Partners SK E&S Natural gas and light condensate Barossa field P50 re
Slide 8: FID secured on Barossa FPSO newbuild end of March 2021
FID secured on Barossa FPSO Key contracts awarded newbuild end of March 2021 • Hull: Samkang M&T • Submerged Turret Production (STP) system: NOV APL • Topside fabrication: Dyna-Mac Fulfils targeted criteria for new projects • Hull engineering: FG Industry • Topside engineering: Toyo India Locking in
Slide 9: BW Ideol launched as a pure-play offshore floating wind champion
BW Ideol launched as a pure-play Strong pipeline of Early mover Extensive track- offshore floating Proven floating wind technology projects in position in the record of partnerships with most attractive complex wind champion with a strong leading local markets for industrial competitive edge utiliti
Slide 10: Project value
Limited capital requirements expected in the development phase Value profile of floating wind projects Attractive returns through four cash flow streams ~5 years 3 years +30 years Dividends Services Technology Cash flow from Selected COD agreements royalties operations divestments Capital employed S
Slide 11: Operational update
Operational update
Slide 12: Fleet performance and HSE focus
Fleet performance and HSE focus Fleet uptime1 HSE record (LTM) 99.4 % 99.7 % 99.9 % 99.0 % 97.3 % 99.4 % 97.8 % 97.4 % 93.2 % 5.0 LTI (2) TRI (3) HPI (4) 4.0 3.0 2.0 1.0 0.0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 • Zero recor
Slide 13: Unit update
Unit update BW Catcher • Production at ~55,000 bopd • Commercial uptime of ~99% • Some operational interruptions in Q1 Polvo • Production until end June 2021 • Redeployment candidate Berge Helene • Sold for recycling April 2021 with net proceeds of USD ~16 million • Recycling in compliance with the
Slide 14: Record backlog provides long-term revenue visibility
Record backlog provides long-term Total FPSO revenue backlog per Q1 2021 revenue visibility Firm backlog of USD 7.0 billion 7% • The Barossa project added USD 4.6 16% billion to the firm backlog in Q1 • BWO will own 51% during firm period, 100% thereafter 38% Total backlog of USD 8.3 billion 55% • O
Slide 15: Fleet contract overview
Fleet contract overview Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026 Barossa FPSO Santos, Australia: 2025-2040 (2050) BW Adolo BW Energy, Gabon: 2018-2028 (2038)* BW Pioneer Murphy Oil, US: 2012-2025 (2030) BW Catcher Prem ier Oil, UK: 2018-2025 (2043) Petróleo Nautipa VAALCO, Gabon: 2002-2022
Slide 16: Successfully reduced COVID-19 costs
Successfully • COVID-19 management related reduced costs reduced to USD 4 million for the quarter COVID-19 costs • Working with 3rd party vendor to carry out remote and in-country risk assessment • Risk management, planning and procedures in place to efficiently manage operational impact • Main oper
Slide 17: A solid partner
A solid partner FINANCE
Slide 18: Healthy underlying EBITDA performance
Healthy underlying EBITDA Operating revenue EBITDA performance in Q11 219 USD Million 111 USD million 300 180 160 250 140 200 120 100 150 80 100 60 40 50 20 0 0 Q419 Q120 Q220 Q320 Q420 Q121 Q419 Q120 Q220 Q320 Q420 Q121 1) Comparative periods have been restated to reflect the FPSO business segment
Slide 19: Income statement
Income statement1 USD million Q1 2021 Q4 2020 2020 Operating revenues 218.9 222.5 886.3 Operating expenses (108.1) (130.6) (450.2) EBITDA 110.8 91.9 436.1 Depreciation & Amortisation (65.2) (62.3) (284.0) Impairment (4.2) (59.6) (292.7) EBIT 41.4 (30.0) (140.6) Net interest expense (12.4) (12.4) (58
Slide 20: Cash flow overview
Cash flow overview USD million 300 250 43 12 6 5 200 15 52 114 60 72 150 56 211 221 214 210 210 100 196 181 140 140 149 149 125 125 50 0 Cash Operating CDSM Investments BW Ideol: BW Ideol: Net Net new debt Payment of Dividends paid To non- Cash BW Ideol: Cash (net) to 01.01.2021 cash flow settlement
Slide 21: Solid financial position
Solid financial position Net debt and leverage ratio Equity ratio USD million 2 000 50% 39.7% Post spin-off of BWE and asset impairment 2.6x 2.3x 2.2x 40% 1 500 1.9x 1.8x 1.8x 2.0x 2.0x 2.1x 2.1x 30% Post spin-off of BWE 0 1 000 931 20% 500 10% 0 0% Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4
Slide 22: Instalment profile provides financial flexibility
Instalment profile provides financial flexibility Gross debt (USD million end Q1 21) Instalment schedule (USD million) 1 200 1200 1 000 1000 800 800 600 600 400 400 200 200 90 0 0 1 Q2-Q4 2021 2022 2023 2024 2025 Convertible bond 1 NOK bonds 2 Petróleo Nautipa facility BW Catcher facility Corporate
Slide 23: Maintaining financial flexibility and returning capital
Maintaining financial flexibility and returning capital Finalising activities Actively Focused on shareholder progressing well managing liquidity returns USD 1.1 billion construction and post CDSM settlement of USD ~43 million Quarterly cash dividend of USD 0.035 delivery debt financing well advance
Slide 24: Summary and outlook
Summary and outlook Protecting people and operations amid lingering COVID-19 pandemic Continued stable EBITDA performance Strong financial flexibility BW Ideol listed as platform for offshore floating wind growth Full focus on the Barossa project Selectively evaluating accretive FPSO prospects and e
Slide 25: Q&A
Q&A We engineer offshore production solutions to progress the future of energy.
Slide 26: Income Statement
Income Statement Q1 2019* Q2 2019* Q3 2019* Q4 2019* FY 2019* Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 CONTINUING OPERATIONS Operating revenue 230.5 251.2 237.7 228.0 947.4 257.7 211.0 195.1 222.5 886.3 218.9 Operating expenses (94.0) (95.8) (104.8) (109.9) (404.5) (127.8) (94.8) (97.0) (130.
Slide 27: Balance sheet
Balance sheet ASSETS Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Vessels and vessels under construction 2 555.5 2 498.3 2 431.8 2 377.1 2 107.2 2 053.5 2 001.1 1 893.1 1 823.5 Property, plant & equipment 13.3 14.1 14.6 16.0 4.4 4.3 4.2 4.1 20.6 Right-of-use assets 23.0 25
Slide 28: Cash flow
Cash flow Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Profit/(loss) before taxes 53.0 50.7 33.3 47.3 184.3 (297.0) 36.5 22.2 (33.7) (272.0) 56.9 Unrealised currency exchange loss/(gain) 0.6 4.9 (16.9) 1.7 (9.7) (9.3) 7.0 2.5 10.6 10.8 2.8 Depreciation and
Slide 29: Key figures
Key figures Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 EBITDA-margin 63.0 % 67.0 % 60.7 % 55.8 % 61.6 % 50.4 % 55.1 % 50.3 % 41.3 % 49.2 % 50.6 % Equity ratio 39.6 % 40.5 % 40.8 % 43.3 % 43.3 % 35.0 % 35.8 % 37.5 % 36.5 % 36.5 % 39.7 % Return on equity 15
Slide 30: Thank you.
Thank you. BW OFFSHORE