Earnings Release • Oct 28, 2025
Earnings Release
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BW ENERGY: THIRD QUARTER RESULTS 2025
BW ENERGY THIRD QUARTER RESULTS 2025
BW Energy delivered continued strong operational performance in the third
quarter of 2025, with high production uptime, efficient execution of the annual
Dussafu maintenance program and competitive cost levels. The Maromba development
and the Golfinho Boost project progressed to plan with key financing milestones
completed, and the Kharas-1A appraisal well on the Kudu field offshore Namibia
was successfully spudded towards the end of the period. Backed by strong cash
generation and a resilient financial structure, BW Energy is well positioned to
deliver industry-leading organic growth and create long-term shareholder value.
HIGHLIGHTS
(Numbers in parenthesis refer to Q3 2024)
Strong operational performance
* Q3 2025 net production of 2.4 (2.4) million barrels (mmbbls), equal to 26.3
(25.6) kbopd
* Operating cost(1) of USD 22.7 (17.7) per barrel
* Successful completion of three-week annual maintenance in Gabon on time and
budget
Key development projects on track
* Maromba and Golfinho Boost projects progressing to plan
* Bourdon moving towards final investment decision (FID)
* Kudu appraisal well underway
Robust financial results
* Q3 2025 EBITDA of USD 96.0 (130.0) million and net profit of USD 20.1 (48.0)
million
* Operating cash flow of USD 89.5 (144.9) million
* Cash position of USD 259.3 (209.8) million at 30 September
* Liquidity strengthened with USD 250 million revolving credit facility
* 2025 capex guidance reduced by USD 175 million primarily due to Maromba rig-
lease financing
* Completed USD 365 million Maromba FPSO financing
Updated 2025 guidance
* Production: 11-12 mmbbls (30-32 kbopd) (unchanged)
* Operating cost(1): USD 19-21 per barrel (USD 18-22 per barrel)
* CAPEX: USD 475-525 million (USD 650-700 million)
* G&A: USD 19-22 million (unchanged)
1) Operating costs exclude royalties, tariffs, workovers, crude oil purchases
for domestic market obligations, production sharing costs in Gabon, and
incorporates the impact of IFRS 16 adjustments
Comment from the CEO of BW Energy, Carl K. Arnet:
"BW Energy continues to deliver on our strategy for long-term value creation
founded on safe, efficient operations and disciplined cost management across the
portfolio combined with development of accretive projects in our diversified,
high value asset base. We are on track to meet our full year production
expectation while reducing operating costs and investments for the year.
The key growth projects in Brazil are progressing well, and we continue to
mature the Bourdon development towards sanction based on a blueprint of the
successful MaBoMo concept, further supporting delivery of industry-leading
production growth to around 90,000 barrels per day in 2028. We are also well
underway with appraisal drilling on Kudu offshore Namibia.
During the quarter, we further strengthened the financial structure with most
maturities extending beyond Maromba first oil while maintaining a conservative
leverage outlook. With our strong underlying cash generation, we are well
positioned to deliver growth and long?term value for our shareholders."
FINANCIAL UPDATE
Net sold volumes in the period were 2.9 mmbbls (including 0.29 mmbbls of DMO
deliveries) (2.5 mmbbls in Q3 2024) at an average realised price of USD
68.5/bbl (USD 82.0). Total revenues were USD 199.6 (215.4) million and EBITDA
was USD 96.0 (130.0) million. The decrease in EBITDA was mainly due to the lower
realised prices. Operating expenses were USD 103.6 (85.4) million, with the
increase mainly related to planned maintenance activity at Dussafu.
Depreciation was USD 51.7 (51.6) million and operating profit the quarter was
USD 44.3 million (USD 78.4) million Net financial expense was USD 8.8 (13.2)
million. Tax expense was USD 15.4 (17.3) million. Net profit was USD 20.1
million, compared to a profit of USD 48.0 million in the third quarter of 2024.
Total equity at 30 September 2025 was USD 987.8 (805.4) million with the equity
ratio stable at 41% (42%). Total available liquidity at 30 September 2025
amounted to USD 529.3 (279.8) million, of which USD 259.3 (209.8) million in
cash, USD 200 million undrawn RCF, and USD 70 (70) million undrawn debt
facility.
Net cash inflow from operating activities was USD 89.5 (144.9) million in the
quarter, reflecting lower realised oil prices and maintenance, partly offset by
a reduction in working capital. Net cash outflow for investing activities was
USD 120.3 (98.6) million, mainly for the Maromba and the Kudu appraisal. Net
cash inflow from financing activities was USD 97.2 (outflow 80.7), reflecting
proceeds from new debt and financing facilities.
CORPORATE MATTERS
During the quarter, BW Energy closed a significant share of the Maromba
development debt financing. This included a USD 365 million project finance
facility, which was significantly oversubscribed and is backed by the China
Export & Credit Insurance Corporation ("Sinosure"). The facility will cover
around 80% of the total FPSO project cost and is provided by a syndicate
comprising The Export-Import Bank of China ("CEXIM"), Abu Dhabi Commercial Bank
PJSC ("ADCB"), Arab Banking Corporation B.S.C. ("Bank ABC"), National Bank of
Fujairah (NBF), and Commercial Bank of Dubai (CBD). CEXIM, ADCB, and Bank ABC
acted as Mandated Lead Arrangers, with ADCB and Bank ABC also serving as
Structuring, Advisory, and Documentation Banks, and Bank ABC as Technical
Advisory Bank.
BW Energy also signed a USD 250 million corporate revolving credit facility with
DNB Bank, providing enhanced financial flexibility for ongoing field development
and general corporate purposes. The facility is backed by BW Group, reflecting
continued confidence in the company's strategy.
In addition, the company entered into a short-term lease with Minsheng Financial
Leasing Co., Ltd. (MSFL) covering the USD 107.5 million purchase price of the
Super Gorilla class jack-up rig BW MAROMBA B which will be converted to the
integrated drilling wellhead platform for Maromba. The long-term Maromba rig
project lease financing is nearing completion.
In September, BW Energy appointed Brice Morlot (previously the Chief Financial
Officer) as Chief Operating Officer and Thomas Young as new CFO (previously the
Chief Strategy Officer).
OPERATIONS
Gabon
Net production from the Dussafu licence averaged 20.0 kbopd, stable compared to
the year-ago period as the planned annual maintenance on BW Adolo FPSO and
MaBoMo offset underlying increased production following completion of all the
MaBoMo Phase 1 wells at the end of 2024. Dussafu production availability was
80%. Operating cost of USD 15.7/bbl (USD 13.4/bbl) reflects the production
impact of the maintenance campaign.
Brazil
Net production from the Golfinho field averaged 6.3 kbopd, or approximately 0.6
mmbbls for the quarter, up from 0.5 mmbbls in year-earlier period which was
impacted by temporary reduced gaslift capacity. Production availability was 92%
in the quarter. Operating cost averaged USD 44.8/bbl (USD 33.9/bbl). The
increase reflects the absence of a one-off favorable cash adjustment that
benefited the prior-year quarter.
In the fourth quarter, the FPSO Cidade de Vitória will undergo approximately
five weeks of annual maintenance.
2025 GUIDANCE
Production guidance for 2025 is unchanged at between 11 and 12 mmbbls net to BW
Energy. Expected full-year operating cost is narrowed to USD 19 to 21/bbl, from
previously USD 18 to 22/bbl. Expected net capital expenditures for 2025 are
reduced to USD 475 to USD 525 million (previously USD 650 -700 million), mainly
related to the Maromba development, the Golfinho Boost project and the Kudu
appraisal. The reduction is primarily due to the lease financing of the rig
acquisition ahead of the expected long-term project lease of the Maromba
wellhead platform which moves payments out in time.
EXPLORATION AND DEVELOPMENT
In Gabon, the MaBoMo Phase 2 project in the Dussafu licence has entered the
execution phase with planned drilling of four additional production wells from
the third quarter of 2026. The Bourdon discovery continues to be matured towards
FID based on three initial wells and a development cluster based on the MaBoMo
blueprint.
In Brazil, the Maromba development and the Golfinho Boost project progressed to
plan. During the quarter, BW Energy took possession of the jack-up rig which
will be converted to a combined wellhead and drilling platform.
In Namibia, the Kharas-1 appraisal well was spud in mid-September by the Deepsea
Mira semisubmersible drilling rig.
Please find attached the third quarter presentation which includes all financial
statements in its appendix. The presentation, excel data book and webcast are
available on:
www.bwenergy.no/investors/reports-and-presentations
CONFERENCE CALL/WEBCAST?
BW Energy will today hold a conference call followed by a Q&A hosted by CEO Carl
K. Arnet, COO Brice Morlot and CFO Thomas Young at 14:00 CET.?
You can follow the presentation via webcast:
Viewer Registration Q3 2025 (https://events.webcast.no/viewer-
registration/lTrIhSE7/register)
Call-in information
Participants dial in numbers:
DK: +45 7876 8490
SE: +46 8 1241 0952
NO: +47 2195 6342
UK: +44 203 769 6819
US: +1 646-787-0157
Singapore: 65-3-1591097
France: 33-1-81221259
Conference code: 980877
For further information, please contact:
Martin Seland Simensen, VP Investor Relations
About BW Energy:
BW Energy is a growth E&P company with a differentiated strategy targeting
proven offshore oil and gas reservoirs through low risk phased developments. The
Company has access to existing production facilities to reduce time to first oil
and cashflow with lower investments than traditional offshore developments. The
Company's assets are 73.5% of the producing Dussafu Marine licence offshore
Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in
the BM-ES-23 block, a 95% interest in the Maromba field in Brazil, a 95%
interest in the Kudu field in Namibia, all operated by BW Energy. In addition,
BW Energy holds approximately 6.6% of the common shares in Reconnaissance Energy
Africa Ltd. and a 20% non-operating interest in the onshore Petroleum
Exploration Licence 73 ("PEL 73") in Namibia. Total net 2P+2C reserves and
resources were 599 million barrels of oil equivalent at the start of 2025.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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