Published

BW Offshore: Q3 2016 - Condensed interim consolidated financial information

  • EBITDA of USD 76.9 million
  • Long term financial platform implemented
  • Catcher project on track for first oil in second half of 2017
  • Cost reduction and efficiency program progressing as planned
  • Arbitration process vs Addax due to overdue receivables
  • Berge Helene and Peregrino contracts ending in May and June 2017

EBITDA for the third quarter was USD 76.9 million, a decline of USD 7.7 million (9%) (USD 84.6 million). The reduction in EBITDA for the third quarter compared with the previous quarter was mainly a result of no further loss of hire insurance for Cidade de São Mateus which ended in May. Operating profit for the quarter amounted to USD 19.2 million, a decrease of USD 5.7 million (23%) (USD 24.9 million).

Addax Petroleum Exploration Limited has for some time not paid the Company the full contractual rate for the FPSO Sendje Berge. BW Offshore considers the arguments for not paying the full rate unjustified and has started an arbitration process. During third quarter, the Company submitted a claim to the arbitration tribunal of USD 52.6 million.

BW Offshore received notice in November 2016 that that the contract with Petronas for the FPSO Berge Helene will not be extended beyond May 2017. During the third quarter, BW Offshore was notified that Statoil will not exercise options for extension of contract beyond June 2017 due to a change in the operating model on the Peregrino field. The Catcher project remains within budget with first oil expected in the second half of 2017.

 "We are pleased to see positive developments in several of our focus areas", said Carl K. Arnet, the CEO of BW Offshore. "The Catcher project is progressing well, the fleet performance is good, and our cost cutting initiatives are paying off with full effect from 2017. BW Offshore has established a solid runway and is well positioned to pursue value creating opportunities."
 

Please see attachments for the full quarterly report and presentation.

BW Offshore will host a presentation of the financial results 09:00 (CET) today at Hotel Continental in Oslo, Norway. The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre.

The presentation will be broadcasted via webcast, and will also be available for replay. Please visit www.bwoffshore.com for login-details.

For further information, please contact:

IR@bwoffshore.com

About BW Offshore:

BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore is the world's second largest contractor with a fleet of 14 FPSOs represented in all major oil regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on www.bwoffshore.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.