Bw Offshore Ltd.

Earnings Release • Feb 27, 2025

BW Offshore: Fourth quarter and full year results 2024

BW Offshore: Fourth quarter and full year results 2024

Fourth quarter and full year results 2024

HIGHLIGHTS

* Q4 EBITDA USD 72 million and 2024 EBITDA USD 318 million in line with

guidance

* Strong commercial performance with Q4 operating cashflow of USD 79 million

and 2024 operating cashflow of USD 363 million

* Robust balance sheet with an equity ratio 30.8% and USD 540 million in

available liquidity

* Q4 cash dividend raised to USD 0.14 per share

* Increased cash flow in sight with Barossa FPSO on track for April sail-away

* Full-year 2025 EBITDA guidance in the range of USD 220-250 million

BW Offshore continues to progress the Barossa project according to schedule and

well within the updated budget. As of end January 2025, construction and

integration was 99% complete and commissioning at 85% completion. The vessel is

currently being prepared for sail-away in late April. The FPSO is on track for

first gas in mid-2025.

For 2025, BW Offshore expects to report EBITDA in the range of USD 220 to 250

million. The EBITDA outlook reflects the firm backlog for BW Adolo and BW

Catcher and the expected start of IFRS revenue recognition from BW Opal at full

practical completion during the fourth quarter. Dayrate received for the BW Opal

during the start-up and early production phase from mid-2025 will be amortised

over the 15-year contract period. Contract negotiations for BW Pioneer are

progressing well, however no guidance on EBITDA has been included beyond firm

contract.

The Board of Directors has declared a quarterly cash dividend of USD 0.14 per

share. The shares will trade ex-dividend from 3 March 2025. Shareholders

recorded in VPS following the close of trading on Oslo Børs on 4 March 2025,

will be entitled to the distribution payable on or around 11 March 2025. The

total dividend for 2024 amounts to USD 59.2 million, equal to 50% of net Income

for the year.

"We continue to maintain a strong balance sheet supported by consistent high

commercial uptime and robust cash generation from the fleet with 2024 EBITDA

above initial guidance. Our commitment to returning value to shareholders stands

firm as reflected in the increased fourth-quarter dividend, and a total

distribution for 2024 reflecting 50% of net profit for a second consecutive

year," said Marco Beenen, CEO of BW Offshore. "As BW Opal progresses to schedule

and soon departs the yard in Singapore for the Barossa field, we are moving

ahead with potential new FPSO projects that meet our selection criteria in a

market with high tendering and FEED activity."

FINANCIALS

EBITDA for the fourth quarter of 2024 was USD 71.9 million (USD 83.2 million in

Q3). The EBITDA reflects solid operational performance across the FPSO fleet.

Third quarter EBITDA was higher due to the final contribution from engineering

and design work on the Sakarya project.

EBIT for the fourth quarter was USD 30.8 million (USD 37.6 million).

Net financial items were positive at USD 19.4 million (negative USD 16.4

million), of which net interest expense amounted to USD 3.0 million (USD 4.3

million). Fourth quarter was impacted by the recognition of a valuation gain on

the finance liability related to the Barossa project, due to changes in timing

of future expected cash flows and a positive mark-to-market adjustment on

interest rate hedges resulting from an increase in swap rates.

The share of loss from equity-accounted investments was USD 9.5 million,

including a valuation adjustment on the Barossa finance receivable related to

changes in timing of future expected cash flows (loss of USD 5.7 million).

Net profit for the fourth quarter increased significantly to USD 40.8 million

(USD 13.0 million).

Total equity as of 31 December 2024 was USD 1 246.6 million (USD 1 208.6

million). The equity ratio was 30.8% at the end of the quarter (29.6%).

As a result of strong cash generation from the fleet and the sale of BW Energy

shares in 2024, the Company was net cash positive by USD 74.4 million as of 31

December 2024 (USD 38.4 million net cash positive at the end of September).

Available liquidity was USD 540 million, excluding consolidated cash from BW

Ideol and including USD 233.8 million available under the corporate loan

facility.

FPSO OPERATIONS

The FPSO fleet continued to deliver stable uptime in the quarter with a weighted

average fleet uptime of 99.2% (98.9% in the third quarter).

BW Adolo delivered strong commercial performance as fourth quarter production

increased to 37,150 barrels per day (bbls/day), resulting in strong cash flow

stemming from the tariff under the contract that generate USD 1.5/bbl for the

first 20,000 bbls/day of production and USD 3/bbl for production beyond 20,000

bbls/day.

Performance from BW Catcher and BW Pioneer was stable and consistent with high

commercial uptime.

FPSO PROJECTS

In January, BW Offshore was selected to perform the pre-FEED study for the Bay

du Nord FPSO project by Equinor. The project reflects BW Offshore's expertise in

floating production solutions for harsh environment conditions, and commitment

to delivering sustainable and innovative solutions. The pre-FEED study will play

an important role in supporting Equinor's strategic goals for the Bay du Nord

development.

LOW CARBON ENERGY SOLUTIONS

BW Offshore is committed to contribute to the energy transition by developing

low-carbon offshore energy production solutions, by leveraging FPSO expertise to

deliver low-carbon energy and expand into new sectors, focusing on low-emission

oil and gas, CO2 transport, gas-to-power and floating ammonia to meet evolving

energy demands. The Company maintains a disciplined approach with selective and

diligent allocation of capital and a commitment to creating shareholder value.

BW Offshore also owns 64% of BW Ideol. BW Ideol is a leader in offshore floating

wind technology and co-development, with over 14 years of experience in the

development of floating wind projects.

In December, BW Ideol's project partners, EDF Renewables and Maple Power, were

awarded the Mediterranean Tender (AO6) floating offshore wind project in France.

The 250-megawatt (MW) development will leverage BW Ideol's proprietary Damping

Pool® technology, a proven solution that optimises the stability and performance

of floating wind turbines in challenging marine environments. A total of 12

floating foundations and turbines are planned to be installed at the site.

OUTLOOK

Growing energy demand continues to drive interest in developing new

infrastructure-type FPSO projects with long production profiles, low break-even

costs and focus on lower emissions. Increased project complexity, combined with

higher construction costs, necessitates financial structures with significant

day rate prepayments during the construction period for new lease and operate

projects.

Alternatively, oil and gas majors may finance and own FPSOs, relying on FPSO

specialists for the design, construction and installation scope, combined with

operation and maintenance services. BW Offshore is well positioned to offer both

solutions.

In recent years, the number of sanctioned FPSO projects have lagged market

expectations. Consequently, there is a growing number of projects at various

stages of maturity, reflecting a pent-up demand for FPSOs. Increased FEED and

tendering activity is a function of this, and BW Offshore expects that a number

of the FPSO projects the Company is engaging with will reach a final investment

decision over the next 12 to 36 months. The market dynamics, combined with the

high competence levels required for project execution, should enable better

risk-reward and improved margins for FPSO companies going forward.

BW Offshore continues to selectively evaluate new projects that meet required

return targets, offer contracts with no residual value risk after firm period,

and provide a financeable structure with strong national or investment-grade

counterparties.

BW Offshore expects that the fleet will continue to generate significant cash

flows in the time ahead, supported by the USD 5.3 billion firm contract backlog

at the end of December 2024.

Please see attached the Q4 Presentation. The earnings tables are available at:

https://www.bwoffshore.com/ir/

BW Offshore will host a webcast of the financial results 09:00 (CET) today. The

presentation will be given by CEO Marco Beenen and CFO Ståle Andreassen.

Webcast information:

You can follow the presentation via webcast with supporting slides and a Q&A

module, available on:

BW Offshore Limited - Q4 Presentation Webcast

(https://events.webcast.no/viewer-registration/J4pZk5v1/register)

Please note, that if you follow the webcast via the above URL, you will

experience a 30 second delay compared to the main conference call. The web page

works best in an updated browser - Chrome is recommended.

For further information, please contact:

Ståle Andreassen, CFO, +47 91 71 86 55

IR@bwoffshore.com or www.bwoffshore.com

About BW Offshore:

BW Offshore engineers innovative floating production solutions. The Company has

a fleet of 3 FPSOs with potential and ambition to grow. By leveraging four

decades of offshore operations and project execution, the Company creates

tailored offshore energy solutions for evolving markets world-wide. BW Offshore

has around 1,100 employees and is publicly 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.