Bw Offshore Ltd. — Earnings Release 2025

Feb 27, 2026

BW Offshore: Fourth quarter and full year results 2025

BW Offshore: Fourth quarter and full year results 2025

Fourth quarter and full year results 2025

HIGHLIGHTS

* Q4 EBITDA USD 47.8 million and operating cashflow of USD 107.7 million

* 2025 EBITDA USD 240.1 million and operating cashflow of USD 409.2 million

* Equity ratio 30.2% and USD 634.5 million in available liquidity at year-end

2025

* Q4 dividend USD 0.18 per share equivalent to USD 33.2 million

* 2025 dividend USD 67.0 million, fifth consecutive year of increased

shareholder distribution

* BW Opal commissioning progressing, targeting 100% production within Q2 2026

* BW Opal transitioning to volume-based rate from mid-March, practical

completion expected in Q2 2026

* Limited strategic review ongoing

* Full-year 2026 EBITDA guidance in the range of USD 340-370 million

Commissioning and production ramp-up for BW Opal FPSO continued with BW Offshore

receiving a commissioning rate equal to 60% of the contractual dayrate.

Commissioning was extended in the fourth quarter by two connection failures on

the utilities and firewater seawater piping systems and a campaign to strengthen

similar connections across the FPSO. In early 2026, compressor dry-gas seal

replacements have impacted production regularity. BW Opal is targeting to reach

100% production capacity within the second quarter of 2026. BW Offshore will

transition to a production volume-based dayrate in mid-March, with revenue

recognition commencing at that time. Formal practical completion and

commencement of the 15-year fixed contract is also expected in the second

quarter.

The Board of Directors has declared a quarterly cash dividend of USD 0.18 per

share. The shares will trade ex-dividend from 4 March 2026. Shareholders

recorded in VPS following the close of trading on Oslo Børs on 5 March 2026,

will be entitled to the distribution, payable on or around 13 March 2026. The

total dividend for 2025 amounts to USD 67.0 million (USD 0.37 per share) equal

to 50% of net income for the year. This is an increase of 12% compared to 2024.

"In 2025, BW Offshore achieved key operational and strategic milestones with

first gas from BW Opal, high commercial uptime from the fleet and strong cash

flow generation. We also delivered a dividend equal to 50% of net income marking

the fifth consecutive year of increased shareholder distributions," said Marco

Beenen, CEO of BW Offshore. "With BW Opal ramping up production, we expect

EBITDA growth in 2026. We continue to advance the prestigious Bay du Nord FPSO

project with Equinor and with BW Elara we progress growth opportunities within

floating transition solutions."

For 2026, BW Offshore expects to report EBITDA in the range of USD 340-370

million. The outlook reflects firm backlog for BW Adolo and BW Catcher and

expected revenue recognition from BW Opal following the transition to volume-

based rate from mid-March.

On 5 December 2025, BW Offshore announced the engagement of an external adviser

to assist in a strategic review. The process is a response to incoming interest

for the Company considering the strong FPSO market. The Company's main strategic

focus of growing the FPSO business supported by an optimised capital structure

and strong partnerships remains unchanged.

FINANCIALS

EBITDA for the fourth quarter of 2025 was USD 47.8 million (USD 43.9 million in

Q3 2025), reflecting strong operational performance from the fleet. EBIT for the

fourth quarter was USD 27.5 million (USD 22.5 million).

Net financial items were negative at USD 0.5 million (positive USD 6.7 million).

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

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

related to changes in timing of future cash flows.

Tax expense was USD 1.0 million (USD 2.3 million).

Net profit for the fourth quarter was USD 24.1 million (USD 23.3 million).

On 31 December 2025, total equity was USD 1 293.0 million (USD 1 273.9 million),

and the equity ratio was 30.2% (30.5%).

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

quarters, the Company was net cash positive by USD 211.8 million (USD 186.6

million) as of 31 December 2025.

Available liquidity was USD 634.5 million, excluding consolidated cash from BW

Ideol and including USD 220 million available under the undrawn revolving credit

facility.

FPSO OPERATIONS

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

weighted average fleet uptime of 100% (98.7% in Q3 2025).

On 31 December 2025, the firm and probable backlog measured by expected cashflow

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

FPSO PROJECTS

BW Offshore continued to progress all technical and commercial discussions on

schedule for the Bay du Nord FPSO under the Heads of Agreement signed with

Equinor in September. The pre-FEED and bridging phases have been completed, and

the FEED is planned to commence in the first half of 2026, subject to final

agreements with Equinor. The process for ordering major long-lead equipment

packages is underway and the Company expects to open a local office in St.

John's, Canada, during the first half of 2026.

FLOATING TRANSITION SOLUTIONS

BW Offshore now holds 68% of BW Ideol following a strategic partnership with

Holcim in December. This transaction, which includes a capital increase, funds

operations for the upcoming year. Operationally, the three floaters for the 30

MW Eolmed wind pilot project were completed with turbines and are now enroute

for connection and commissioning. Additionally, the Fos3F project, for

developing a fabrication line for concrete floating foundations, secured

combined grants of EUR 127 million from the EU Innovation Fund and the French

Government.

The BW Elara joint venture, created by BW Offshore and an affiliate BW Group to

design and build Floating Desalination Units (FDUs), progressed towards

investment decision for the first unit in 2026. In parallel, there was high

commercial activity across target markets. The FDUs will be delivered through a

flexible service supply model.

OUTLOOK

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

cash flow in the time ahead, supported by the firm contract backlog.

Furthermore, growing energy demand continues to drive demand for developing new

FPSO projects with long production profiles, low break-even costs and reduced

emissions.

Increased project complexity and 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 companies 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.

After an extended period with FPSO project sanctions lagging expectations there

is a historically high number of projects at various stages of maturity,

reflected in increased FEED and tendering activity. The Company 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 a number of the FPSO projects the Company is engaging

with will reach a final investment decision over the next 12 to 36 months.

Current market dynamics and the high competence levels required for project

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

companies going forward. Furthermore, BW Offshore is evolving its project

execution model focused on strong partnerships for the design, engineering and

construction phases and overall strengthened risk management. The same

principles are also applied to new business opportunities within floating

transition solutions.

Please see the attached the fourth quarter presentation and 2025 Annual Report

and Sustainability Statement. The earnings tables are available at:

https://bwoffshore.com/financials

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/VG2G1zzc/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.