BW Offshore: Q3 2013 - Interim consolidated financial information

  • EBITDA of USD 115.5 million in Q3 2013 and EBITDA of USD 340.2 million YTD
  • Stable operations with an uptime of 99.4%
  • First oil achieved on FPSO P-63 (Papa Terra project)
  • Dividend payment of USD 0.03 per share

Operating revenues for Q3 2013 amounted to USD 238.4 million, compared to USD 255.1 million in Q2 2013. EBITDA for Q3 2013 amounted to USD 115.5 million, compared to USD 107.7 million in Q1 2013. The increase in EBITDA is reflecting stable operation in the quarter from the fleet as well as no further changes to the cost estimate for the completion of the Papa Terra project.

Operating profit for Q3 2013 amounted to USD 48.6 million compared to USD 41.5 million in the previous quarter. Net profit amounted to USD 18.0 million for the quarter compared to USD 22.3 million in the previous quarter.

Total equity at 30 September 2013 amounted to USD 1,141.4 million. The equity ratio was 34.3% at the end of the quarter, up from 34.0% last quarter.

Total available liquidity as of 30 September 2013 amounted to USD 400.7 million. During the quarter the Company successfully completed a USD 284.6 million financing facility related to BW Joko Tole.

Net debt amounted to USD 1,628.8 million at 30 September 2013, compared to USD 1,649.7 million at 30 June 2013.

Net cash inflow from operating activities was USD 95.5 million compared to USD 95.9 million in the previous quarter. Net cash outflow from investing activities was USD 33.3 million compared to cash outflow of USD 21.3 million in the previous quarter. This is mostly related to capital expenditures for life extension activities. Net cash outflow from financing activities was USD 73.8 million compared to cash outflow of USD 52.8 million in the previous quarter.

OPERATIONS AND PROJECTS
BW Offshore`s fleet consists of 14 FPSOs and one FSO. All units experienced stable performance with an average uptime of 99.4% during the third quarter.

BW Offshore also operates the FPSO Peregrino and is beginning operation for the FPSO P-63 in November. The FPSO Peregrino is owned by Statoil and Sinochem, and is operating on the Peregrino oil field offshore Brazil. The FPSO P-63 is owned by Petrobras and Chevron and is operating on the Papa Terra field offshore Brazil.

BW Offshore has received notice of termination on the contract with Murphy West Africa Limited for FDPSO Azurite. The termination is to be effective from 1 May 2014.

During the quarter BW Offshore agreed a third short term extension for FPSO Sendje Berge with Addax Petroleum Exploration until end Q1 2014. The extension has been agreed to secure operational continuity while joint work to detail longer term program for investment and production is completed.

The FPSO Abo is on a one year extension for Nigerian Agip Exploration until 31 December 2013. BW Offshore is currently negotiating for a long term contract extension of the unit.

OUTLOOK
The outlook for the energy market in general and FPSO business in particular remains good. Based on BW Offshore's products, geographical presence, scale and competence, the Company is well positioned to grow its core business.

BW Offshore's cash flow from the operating units is secure and based on long term contracts with national and independent oil companies. The fleet of BW Offshore will continue to generate a steady cash flow in the time ahead providing a sound basis for dividend payments as well as for further investments in new assets.

BW Offshore is currently evaluating several projects likely to meet the Company's financial targets. This includes both contract extensions for existing units, as well as contracts for new units and operations. BW Offshore expects to grow selectively and intends to see an improvement in the risk and reward balance for new FPSO projects. The company will carry on with the efforts to improve safety, efficiency, planning, disciplined execution and financial control.

The Board has declared a cash dividend of USD 0.03 per share for Q3 2013.

Please see the attachments for the full quarterly report and presentation.

In connection with the earnings release, BW Offshore will hold a conference call and Q&A session with CEO Carl K. Arnet and CFO Knut R. Sæthre.

Time: Thursday 21 November 2013 at 13.00 (CET)

Norway: +47 2350 0486
UK: +44 (0) 20 3427 1918
US: +1 212 444 0896
Singapore: +65 6622 1942

Conference code: 5199295

The participants will be asked for their name, company and conference code.

If you are unable to participate in the conference call, there are two alternatives for replay: Dial-in or recording available on our website post the call. Please visit www.bwoffshore.com/ir for details.

For further information, please contact:

Knut R. Sæthre, CFO, +47 9111 7876 (Media)
Kristian Flaten, Vice President IR and Corporate Finance, +47 9509 2322 (Investors/analysts)

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 and 1 FSO represented in all major oil regions world-wide. The company also operates additional 2 FPSOs. BW Offshore has a long track record on project execution and operations, as well as a robust balance sheet and strong financial capabilities. 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 of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.