BW Offshore: Q2 2018 - Condensed interim consolidated financial information
* EBITDA of USD 105.4 million in the second quarter and EBITDA of USD 213.9 in the first half-year
* BW Catcher successfully completed the 168-hour performance test in July
* Ruche North East appraisal well discovers oil
* Tortue phase 1 drilling campaign completed with 2 production wells
* BW Adolo arrived in Gabon and permanently moored on location
* Contract extension for FPSO Umuroa
EBITDA for the second quarter was USD 105.4 million (USD 108.5 million). The decrease is mainly related to a non-recurring impact from the start-up activities on BW Catcher, partly offset by higher revenues on ABO FPSO resulting from the amended contract, accelerating amortisation of variation-order revenue and certain other non-recurring effects recognised during the quarter. EBITDA for the first half year of 2018 increased by USD 33.3 million to USD 213.9 million (USD 180.6 million).
BW Catcher started exporting gas into the SEAGAL pipeline mid-May and has reached the 60 000 bopd nameplate capacity. Due to the start-up activities, the unit has operated on a reduced day rate during second quarter as previously announced. In early July, BW Catcher completed the 168-hour performance test. The FPSO has operated on a full day rate since the start of the third quarter with only limited running-in disruptions.
In June, BW Offshore signed a one-year contract extension for the lease and operation of the FPSO Umuroa, extending the firm period to the fourth quarter 2019. The FPSO is operating on the Tui field offshore New Zealand for Tamarind. The firm period under the agreement for the Abo FPSO with Nigerian Agip Exploration Ltd, a subsidiary of ENI S.p.A, has been extended until 31 December 2018, with a six-month option.
BW Offshore has completed two production wells including an appraisal side-track on the Tortue field, within the Dussafu license. The first production well, DTM-2H, was successfully drilled and completed in April.
On 14 May, BW Offshore announced the successful completion of the DTM-3 appraisal well to the northwest on the Tortue field. The DTM-3 appraisal side-track wellbore was designed to appraise the western flank of the Tortue field Gamba and Dentale formations. The key objectives for the appraisal side-track were achieved and are currently being assessed for a material upgrade of the Tortue reserves.
Following completion of DTM-3 appraisal side-track, the rig drilled and completed the second horizontal development well, DTM-3H. The two production wells have been completed and are ready for hook-up to the FPSO.
After completion of DTM-3H, the rig moved and commenced to drill the DRNEM-1 appraisal well, to test one of several prospects in the Ruche North East area of the Dussafu Licence. BW Offshore is pleased to announce that the well encountered 15 meters of good quality oil pay in the Gamba formation. In addition, the well encountered 25 meters of oil pay from multiple Dentale horizons. BW Offshore is in the process of drilling an appraisal side-track to delineate the discovery.
BW Adolo left anchorage in Singapore and commenced its transit to Gabon late June. The unit arrived in Gabon on 28 July. The hook up of mooring systems is now completed and the installation of risers and umbilicals is progressing according to plan. Completion is expected in time for planned production start-up from the Dussafu field in September/ October.
"We have made steady progress through the quarter towards first oil on Dussafu. A likely expansion of the reserve base following successful appraisal drilling and the recent arrival of BW Adolo in Gabon are important milestones. BW Catcher reaching nameplate capacity and the contract extension for FPSO Umoroa underlined our strong performance this quarter", 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, CFO Knut R. Sæthre and Managing Director BW Energy Lin G. Espey.
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 provider of floating production services to the oil and gas industry. The company also participates in developing proven offshore hydrocarbon reservoirs. BW Offshore is represented in all major oil & gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 39 FPSO and FSO projects. BW Offshore 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.