BW Offshore: Q1 2018 - Condensed interim consolidated financial information
* EBITDA of USD 108.5 million in the first quarter
* BW Catcher First Oil Certificate received in January
* Contract extension for FPSO Polvo
* Contract extension for Abo FPSO
* Successful completion of two first wells at Tortue in April and May
* Tuning of BW Catcher process facilities ongoing
EBITDA for the first quarter was USD 108.5 million (USD 73.5 million). The increase was mainly related to a full quarter of income from BW Catcher, partly offset by no contribution from Berge Helene which is being demobilised after completing its contract at the end of the fourth quarter of 2017. In addition, the FPSO Sendje Berge provided lower contribution for the quarter due to the revised contract with Addax.
The first oil certificate on BW Catcher was achieved in January and crude oil production reached the 60 000 bopd nameplate capacity in mid-May. The export of excess associated gas into the SEGAL pipeline system started mid-May. The FPSO has operated on a reduced day rate from the second quarter due to delays in start-up activities. The company expects to record a one-off negative impact on the second quarter 2018 EBITDA in the range of USD 15-20 million reflecting this.
During the quarter, BW Offshore signed an agreement with Petrorio for a one-year extension for the lease and operation of the FPSO Polvo. In April 2018, BW Offshore signed an extension for the Abo FPSO with Nigerian Agip Exploration Ltd until 31 March 2019. The contract comprises a firm period of 2 months and a 9-month extension period on the same terms.
BW Offshore successfully drilled and completed the first development well, DTM-2H, located in the Tortue field, within the Dussafu License on 7 April. Drilling operations were completed with no safety-related incidents, on schedule and within budget. Interpretation of the logging results indicates that the well was entirely consistent with pre-drill prognosis and objectives.
On 14 May, BW Offshore announced the successful completion of the DTM-3 appraisal well on western flank of the Tortue field, extending the known distribution of hydrocarbon resources within the Gamba and Dentale formations. The well confirmed the presence of oil in the western flank of the Gamba formation which had previously been classified as contingent resources.
BW Adolo (formerly known as Azurite) is at the Keppel yard in Singapore for necessary upgrades before relocating to Gabon to be installed and commence operation on the Dussafu field. Project activities progressed well during the quarter, and the project has now reached the mechanical completion and the commissioning phase. The FPSO is on track to leave Singapore to support the planned start-up of operations on Dussafu in the second half of 2018.
"It was an active start to the year with ramp-up of production on Catcher and contract extensions. We continued to make good progress on the Dussafu development where the recent appraisal well confirmed the quality of the Tortue field and provided further confidence in the upside potential of the license", said Carl K. Arnet, the CEO of BW Offshore.
Please see attachments for the full quarterly report and presentation.
BW Offshore will host a presentation of the financial results 09:00 (CEST) 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 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 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.