BW Offshore: Fourth quarter and full year results 2018

  • EBITDA for the quarter was USD 148.9 million and EBITDA for the full year was USD 489.2 million
  • Q4 net production from Tortue was close to 1 million bbls
  • First lifting from Tortue completed December 2018 - 550 thousand bbls gross
  • NSAI confirmed remaining Tortue P2 gross reserves - 35.1 million bbls of oil
  • Extensions signed for Abo and Polvo
  • Agreement with Premier Oil for excess production for BW Catcher

           

EBITDA for the fourth quarter of 2018 was USD 148.9 million, an increase from USD 126.4 million in the third quarter on improved performance at BW Catcher and the first oil-lifting from Tortue in December, which yielded net 504 thousand bbls to BW Energy. Production costs at Tortue was affected by certain non-recurring expenses related to payments to the Government and purchases of consumables.

BW Catcher operated consistently above nameplate capacity and an agreement for excess production above nameplate capacity was agreed with the client effective from 1 November 2018. The Company has signed agreements to extend the leases for the FPSOs Abo and Polvo. FSO Belokamenka has been sold for recycling in accordance with the Hong Kong convention with net gain to BW Offshore of USD 7 million.  

Gross production from Tortue averaged 11.8 thousand bbls per day in the fourth quarter. The total net production to the BW Energy partnership was 997 thousand bbls. The first offloading of 550 thousand bbls of oil was completed in December, yielding net 504 thousand bbls to the BW Energy partnership at a realised price of USD 56 per barrel of oil. Revenues in the quarter was based on lifted volumes in accordance with IFRS 15.

"We achieved several milestones over the past year in line with the strategic priorities we had at the onset of 2018. Production from BW Catcher was consistently above the nameplate capacity in the last quarter, and several lease extensions were signed for the rest of the FPSO fleet. We successfully implemented our E&P model by bringing the Tortue field to first oil within budget and ahead of schedule in less than 18 months and with the first oil lifting executed in the fourth quarter. Looking ahead, the start of Phase 2 of the Tortue development will be a priority together with relentless focus on safe and effective operations across all our assets and activities," said Carl K. Arnet, the CEO of BW Offshore.

Please see attachments for the full press release, Q4 Presentation, Annual Report and Annual Statement of Reserves. Earnings Tables are available at: www.bwoffshore.com/ir

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 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 and gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 40 FPSO and FSO projects. BW Offshore is listed on the Oslo Stock Exchange.

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