Bw Offshore Ltd.

Earnings Release • Nov 14, 2025

BW Offshore: Third quarter results 2025

BW Offshore: Third quarter results 2025

Third quarter results 2025

HIGHLIGHTS

* Q3 EBITDA of USD 43.9 million and operating cashflow of USD 142.0 million

* Robust balance sheet with USD 624 million in available liquidity

* Q3 cash dividend of USD 0.063 per share

* BW Opal achieved RFSU and first gas, receiving 60% of contractual dayrate

from 16 September

* Signed Heads of Agreement with Equinor for Bay du Nord FPSO

* JV established with BW Group to design and build Floating Desalination Units

(FDUs)

* BW Ideol fabrication line in France selected for EU Commission grant for up

to EUR 74 million

* Successful upsizing of the corporate credit facility to USD 220 million

* Full-year 2025 EBITDA guidance range narrowed to USD 240-250 million

On 16 September, the BW Opal FPSO successfully reached ready-for-start-up (RFSU)

for the Santos operated Barossa LNG project, triggering the commencement of

payment of 60% of the contractual dayrate under the charter.

The Board of Directors has declared a quarterly cash dividend of USD 0.063 per

share. The shares will trade ex-dividend from 19 November 2025. Shareholders

recorded in VPS following the close of trading on Oslo Børs on 18 November

2025, will be entitled to the distribution payable on or around 28 November

"We are proud to deliver first gas from BW Opal, signalling the end of the

construction phase and the transition to operations with subsequent revenue and

cash flow recognition," said Marco Beenen, the CEO of BW Offshore. "The Bay du

Nord project with Equinor is progressing towards FEED early next year, as we

continue to execute on our strategy for growth and value creation supported by

high commercial uptime, robust cash generation from the existing fleet and a

strong balance sheet."

FINANCIALS

EBITDA for the third quarter of 2025 was USD 43.9 million (USD 57.1 million in

Q2 2025), reflecting good operational performance. The reduction is primarily

due to the recognition of one-off revenues related to the Repsol project in the

second quarter. EBIT for the third quarter was USD 22.5 million (USD 21.2

million).

Net financial items were positive at USD 6.7 million (USD 5.8 million). Both

quarters were positively impacted by a valuation gain on the financial liability

related to the Barossa project. This was driven by changes in the timing of

future cash flows from the facility, as well as a favourable mark-to-market

adjustment on interest rate hedges.

The loss from equity-accounted investments was USD 3.6 million (loss of USD 1.9

million), including a valuation adjustment on the Barossa finance receivable

related to changes in timing of future cash flows.

Tax expense was USD 2.3 million (USD 0.5 million).

Net profit for the third quarter was USD 23.3 million (USD 24.6 million).

On 30 September 2025, total equity was USD 1 273.9 million (USD 1 279.3 million)

and the equity ratio was 30.5% (30.7%).

As a result of strong cash generation from the fleet and asset sales in recent

quarters, the Company was net cash positive by USD 186.6 million (USD 213.4

million) as of 30 September 2025.

In September, the Company successfully refinanced its existing revolving credit

facility into a new USD 220 million facility, maturing on 10 November 2028. The

increased borrowing limit under the new facility provides increased financial

flexibility and a solid foundation for future growth. Available liquidity was

USD 624.3 million, excluding consolidated cash from BW Ideol and including USD

220 million available under the new revolving credit facility.

FPSO OPERATIONS

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

weighted average fleet uptime of 98.7% (99.9% in Q2 2025). During the quarter,

BW Catcher and BW Adolo continued to maintain high commercial uptime despite

undergoing 14 days and 17 days of scheduled annual maintenance, respectively.

For BW Opal, the provision of O&M services and corresponding revenue recognition

commenced following the full operational readiness of the Darwin supply base.

The dayrate received from 16 September relating to the charter of the unit is

included in cash flow but not recognised as revenue. The next milestone, Interim

Performance Test (IPT), increases the payable dayrate to 85%. Practical

Completion (PC), which is expected in the first quarter 2026, will conclude the

project delivery phase and the start of the 15-year firm contract period with

100% dayrate payments and revenue recognition.

On 30 September 2025, the firm and probable backlog measured by expected

cashflow from operations amounted to USD 2.1 billion (USD 2.2 billion).

FPSO PROJECT OPPORTUNITIES

In early September, BW Offshore signed a Heads of Agreement (HoA) with Equinor,

as the preferred bidder for the Bay du Nord FPSO for Canada's first deepwater

development offshore Newfoundland and Labrador. Following completion of the pre-

FEED phase, the client has exercised the option for a bridging phase focused on

further technical and commercial maturation of the FPSO concept. This includes

refining a smart and cost-effective design and progressing toward a commercial

solution. Preparations are underway for the FEED phase, expected to commence in

early 2026, subject to approvals by Equinor and BP. A contract award is expected

by end 2026.

FLOATING ENERGY TRANSITION SOLUTIONS

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

FPSO expertise to deliver low-carbon energy solutions 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 and an affiliate BW Group have established a 50/50 joint venture

entity (JV), BW Elara, to design and build FDUs, using BW Water technology to

produce fresh water from salt water to address a growing global water

constraint. The FDUs will be delivered through a flexible service supply model.

BW Offshore will oversee the overall project execution in cooperation with the

JV, including hull design and construction, and system integration based on

proven technology. A ready-built FDU can be deployed and fully operational

within as little as three months from contract signing and the JV sees clear

market potential underpinning an ambition to develop and operate a multi-

regional fleet over time.

BW Offshore owns 64% of BW Ideol, a leader in offshore floating wind technology

and co-development with 15 years of experience in the development of floating

wind projects. The 1 GW Buchan offshore wind project in Scotland is progressing

with submission of onshore and offshore consent applications completed. In

France, the three floating substructures for the Eolmed floating wind pilot were

launched and turbine integration is underway. Commissioning of the three

floating units based on BW Ideol's proprietary design is expected by end-2025.

BW Ideol also holds a 5% ownership stake in Eolmed.

In November, BW Ideol's Fos3F-project for developing a fabrication line for

concrete floating foundations in Fos-sur-Mer, France, was selected by the

European Commission's Innovation Fund for a grant of up to EUR 74 million. BW

Ideol and the Commission will now enter the grant agreement preparation phase to

finalise the funding contract. This process is expected to be completed in the

first half of 2026.

OUTLOOK

Growing energy consumption continues to drive interest for FPSO developments

with long production profiles, low break-even costs and reduced emissions.

Increased project complexity and construction costs necessitates financial

structures with significant day rate prepayments during construction for new

lease and operate projects. Alternatively, oil and gas majors may fund and own

FPSOs, relying on FPSO specialists for design, construction and installation, as

well as operations and maintenance services. BW Offshore is well positioned to

offer both solutions, with a special focus on gas and harsh-weather FPSOs, and

redeployments with lower costs and shorter lead times.

Sanctioning of FPSO projects continues to lag market expectations, with a

growing number of projects at various stages of maturity reflected in increased

FEED and tendering activity. BW Offshore has clear selection criteria for new

projects based on securing the return requirement through the firm contract

period, strong counterparties and application of partner models. BW Offshore

expects that a number of the FPSO projects the Company is engaging in will reach

a final investment decision within the next 12 to 36 months.

The market dynamics and the high competence levels required for project

execution, should enable better risk-reward and improved margins for FPSO

companies going forward. The Company is evolving its execution model, seeking

strong project partnerships for the design, engineering and construction phases

and overall strengthened risk management to complement the successful partner

financing model established for the BW Opal.

Based on the financial performance year to date and outlook for the fourth

quarter of 2025, the Company has narrowed the full-year EBITDA outlook to USD

240-250 million from previously USD 240-260 million. BW Offshore expects that

the fleet will continue to generate significant cash flow in the time ahead,

supported by the firm contract backlog.

Please see attached the Q3 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 - Q3 presentation webcast (https://events.webcast.no/viewer-

registration/ay4bgWEv/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 FPSOs and floating wind solutions. By leveraging four decades of

offshore operations and project execution, the Company creates tailored offshore

energy solutions for evolving markets worldwide. BW Offshore has around 900

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.