BW Offshore: Q3 2017 - Condensed interim consolidated financial information
* EBITDA of USD 82.1 million in the third quarter
* BW Catcher hooked up at the field offshore UK in October
* Contract extensions for FPSO Sendje Berge and FPSO Umuroa
* Closing of the agreement with ICBCL for the issuance of preference shares in BW Catcher
EBITDA for the third quarter was USD 82.1 million, a decrease of USD 36.5 million (USD 118.6 million). The decrease in EBITDA was mainly as a result of a significant reversal of loss provisions as overdues were paid by Addax during second quarter 2017.
The BW Catcher FPSO arrived at the Catcher field in the UK on 18 October, and completed the hook up of the Submerged Turret Production ("STP") buoy mooring system one day later, before successfully completing a rotation test around the buoy on 20 October. The final pull-in of risers and umbilicals is complete and commissioning activities have commenced. The Catcher project continues to perform within budget with first oil expected towards the end of 2017.
On 23 October, BWO signed a four-year contract extension for the FPSO Sendje Berge with Addax Petroleum Exploration (Nigeria) Ltd. The contract, which commenced on 6 November, includes two additional one-year extension options. The revised and agreed commercial terms include a new day rate partially linked to oil production volumes and oil price. The termination notice announced on 5 May 2017 was withdrawn and the arbitration was settled as part of the agreed terms.
On 21 November, BWO signed a one-year contract extension for the lease and operation of the FPSO Umuroa. The FPSO is operating on the Tui field offshore New Zealand for Tamarind.
During third quarter BW Energy Dussafu B.V (BWE), a subsidiary of BW Offshore, signed a Letter of Intent (LOI) for the use of FPSO Azurite on the Dussafu field. The LOI is awaiting final approval by the government. The Dussafu development is on target and budget for first oil in 2H 2018.
"The Catcher hook-up was another important milestone, confirming good execution on a complex and challenging project. Catcher remains on track for first oil later this year and will deliver a step-change in or our cash flow from next year", said Carl K. Arnet, the CEO of BW Offshore. "The recent contract extensions for Sendje Berge and Umuroa shows that our installed FPSOs continue to offer value for our clients beyond the initial contract period."
On 14 November, BW Offshore completed the equity transaction for BW Catcher with ICBC as planned. This has significantly strengthened the balance sheet and made the Company well positioned to make new investments in an improving market.
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 at www.bwoffshore.com.
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 38 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.