BW Offshore: Fourth quarter and full year results 2017

  • EBITDA of USD 73.5 million in the fourth quarter
  • First oil produced by BW Catcher in December and First Oil Certificate received in January
  • Closing of the agreement with ICBC Leasing for the issuance of preference shares in BW Catcher
  • Contract extensions for Sendje Berge, Umuroa and FPSO Polvo (January 2018)

EBITDA for the fourth quarter was USD 73.5 million (USD 82.1 million). Although BW Catcher started generating revenues from 23 December, EBITDA decreased by USD 8.6 million, mainly due to loss provisions released in the third quarter for overdues paid and the revised contract for FPSO Sendje Berge.

First oil from BW Catcher was safely achieved on 23 December 2017. The initial hydrocarbon volumes were produced following a very effective hook-up and commissioning period. The FPSO arrived at the Catcher field offshore UK on 18 October, after sail-away from the Keppel Shipyard in Singapore late August. On 6 January 2018, BW Catcher received the First Oil Certificate following a successful completion of a 72-hour interim performance test.

Good progress was made during the fourth quarter on developing the Dussafu project in Gabon. BW Energy expect to have the lease contract for the FPSO Adolo (formerly Azurite) signed shortly. The pre-laying of anchors and mooring lines for the FPSO, was completed at the Tortue field in December 2017. BW Adolo fits well with the approved field development plan specifications. The FPSO is at the Keppel yard in Singapore for necessary upgrades.

In November, BW Offshore raised USD 275 million in equity by issuing preference shares in BW Catcher Limited to ICBC Financial Leasing Co., Ltd.

In October, BW Offshore signed a four-year contract extension for the FPSO Sendje Berge with Addax Petroleum Exploration (Nigeria) Ltd.  In November, BW Offshore signed a one-year contract extension for the lease and operation of Umuroa.

"We delivered on our strategic priorities in 2017 with first oil on Catcher within time and budget, the ICBCL equity transaction, contract extensions and progress on the Dussafu development. We also strengthened our operational capabilities through the year", said Carl K. Arnet, the CEO of BW Offshore. "We enter 2018 with a stronger financial and operational platform, and are positioned to take advantage of gradually improving market conditions."

In January 2018, BW Offshore signed an agreement with Petrorio for a one-year extension for the lease and operation of the FPSO Polvo.

Please see attachments for the full quarterly report and presentation, Annual Report 2017 and the Annual Statement of Reserves.

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 details.

For further information, please contact:

Knut R. Sæthre, CFO, +47 9111 7876 

About BW Offshore:

BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 15 owned FPSOs and one FSO represented in all major oil & gas 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 39 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is available on www.bwoffshore.com.

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