BW Offshore: Q4 2013 - Interim consolidated financial information
- EBITDA of USD 107.3 million in Q4 2013 and USD 447.4 million for the year 2013
- Stable operations with an uptime of 99.0% during Q4 2013 and full year 2013
- Contract extension on FPSO Polvo and FPSO Abo
- Letter of Intent for acquiring 30% ownership in Polvo oil field
- Acquired newbuilt 320,000 dwt VLCC for future projects
- Dividend payment of USD 0.03 per share
Operating revenues for Q4 2013 amounted to USD 266.7 million, compared to USD 238.4 million in Q3 2013. EBITDA for Q4 2013 amounted to USD 107.3 million, compared to USD 115.5 million in Q3 2013. The net change is mainly reflecting high tender activity in the company during Q4 2013.
Operating profit for Q4 2013 amounted to USD 39.2 million compared to USD 48.6 million in the previous quarter. Net profit amounted to USD 14.2 million compared to USD 18.0 million in the previous quarter.
Total equity at 31 December 2013 amounted to USD 1,124.1 million, corresponding to an equity ratio of 33.5%.
Total available liquidity as of 31 December 2013 amounted to USD 399.2 million.
Net debt amounted to USD 1,613.9 million at 31 December 2013, compared to USD 1,628.8 million at 30 September 2013.
Net cash inflow from operating activities was USD 89.1 million compared to USD 95.5 million in the previous quarter. Net cash outflow from investing activities was USD 33.6 million compared to cash outflow of USD 33.3 million in the previous quarter. This is mostly related to capital expenditures for ongoing life extension activities. Net cash outflow from financing activities was USD 32.2 million compared to cash outflow of USD 73.8 million in the previous quarter.
PRELIMINARY RESULT 2013
BW Offshore recorded a full year EBITDA of USD 447.4 million compared to USD 249.2 million in 2012. The increase of USD 198.2 million is mainly due to a full year contribution from FPSO BW Athena and FPSO BW Joko Tole, which both commenced operation during mid 2012, as well as reduced provisions for cost overruns on the Papa Terra project in 2013 compared to 2012 as the project came to completion in 2013.
BW Offshore recorded a profit before tax of USD 120.0 million in 2013 compared to USD 30.0 million in 2012. Net result for the year amounted to USD 83.6 million compared to USD 1.3 million in 2012.
BW Offshore operates 17 units, the owned fleet consists of 14 FPSOs and one FSO. All units experienced stable performance with an average uptime of 99.0% during the fourth quarter and full year.
BW Offshore operates the FPSO Peregrino for Statoil and Sinochem on the Peregrino oil field offshore Brazil. BW Offshore also operates the FPSO P-63 owned by Petrobras and Chevron on the Papa Terra field offshore Brazil. BW Offshore will operate the FPSO for three years in a joint venture with Queiroz Galvão Óleo e Gás S.A. (QGOG). The operation started in November 2013.
BW Offshore has received notice of termination from Murphy West Africa Limited for FDPSO Azurite. The termination is to be effective from 1 May 2014. Production ceased in November and preparation to abandon the field is on going. The vessel is currently being marketed for new projects.
During the quarter,BW Offshore signed an extension contract for FPSO Abo with Nigerian Agip Exploration Ltd, a subsidiary of ENI S.p.A., of six months until the end of Q2 2014. The contract further has an option until end of Q4 2014. The extension has been agreed to secure operational continuity while joint work to detail a longer term program for investment and production is completed.
The FPSO Sendje Berge is on a short term extension for Addax Petroleum Exploration until end Q1 2014. BW Offshore is discussing with its client a longer term program for investment and production for the unit.
On 19 November 2013 BW Offshore signed a Letter of Intent to acquire 30% of the Polvo oil field in Brazil. The definitive agreement is subject to completion of the due diligence process by BW Offshore, and regulatory, governmental approvals. BW Offshore has the intention to acquire half of HRT Participações em Petróleo S.A. (HRT)'s stake following their purchase, concluded 8 January 2014, of BP's stake in the Polvo field. The Polvo oil field is located in the Campos basin in Brazil. The field was brought onstream in 2007, with a 2013 year to date production of approx. 12,000 bopd. The field installations include the FPSO Polvo, the Polvo A wellhead platform with a drilling rig and an infield pipeline.
On 18 December 2013 BW Offshore exercised an option to acquire the tanker Blue Opal for USD 83.4 million from Daewoo Shipbuilding & Marine Engineering ("DSME"). Blue Opal is a DSME designed and built VLCC (320,000 dwt) from 2012. BW Offshore has performed detailed engineering studies and inspections of the VLCC since Q4 2012, and is currently evaluating several FPSO projects suitable for the vessel. BW Offshore will take possession of the hull, now named BW Opal, during February 2014.
The outlook for BW Offshore's products and services remains good due to the geographical presence, scale and competence of the Company.
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 meeting the Company's financial targets. In addition, the Company is in negotiations for contract extensions for existing units.
BW Offshore intends to grow selectively and expects to see an improvement in the risk and reward balance for new FPSO projects.
BW Offshore will carry on with the efforts to improve safety, efficiency, planning, disciplined execution and financial control in all its operations.
The Board has declared a cash dividend of USD 0.03 per share for Q4 2013.
Please see the attachments for the full quarterly report and presentation.
BW Offshore hosts a presentation of the financial results at 09:00 (CET) today at 'KS Agenda' (Haakon VII gt 9, 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 link and login 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
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 acc. to §5-12 vphl (Norwegian Securities Trading Act)