Energy SpA — Earnings Release 2020

May 20, 2020

BW Energy: Trading update Q1 2020

BW Energy: Trading update Q1 2020

HIGHLIGHTS

* BW Energy shares commenced trading on Oslo Stock Exchange on 19 February

after raising net USD 121 million in the IPO

* Gross production of 11,485 bbls/day compared to 10,735 bbls/day in Q4

* Completed one lifting of 427,647 bbls net to BW Energy in Q1

* Q1 2020 EBITDA of USD 14.8 million compared to USD 57.3 million in Q4 2019

* Non-cash impairment of USD 10.7 million, reflecting the recorded value of

the Kudu project

* Q1 2020 net loss of USD 23.6 million

* DTM-4H and DTM-5H wells at Dussafu successfully connected to FPSO BW Adolo

* DTM-6H and DTM-7H wells rescheduled due to COVID-19

* Ruche and Maromba projects deferred due to COVID-19

EBITDA for the first quarter of 2020 was USD 14.8 million, down from USD 57.3

million in the fourth quarter 2019. The decrease reflects one lifting from

Tortue with net 0.4 million bbls to BW Energy compared to two liftings and net

1.3 million bbls in the previous quarter, as well as a realised oil price of USD

33 per barrel compared to USD 65 per barrel in the fourth quarter.

Gross production from Tortue increased to an average of 11,485 bbls/day for the

first quarter compared to 10,735 bbls/day for the fourth quarter. Total gross

production from the Tortue field increased to 1,045,000 bbls of oil from

987,000 in the fourth quarter. Production regularity was impacted by a scheduled

downtime for the FPSO to connect the two new wells which came onstream in early

March. Production cost (excluding royalty) was USD 21.8 per barrel in the

quarter compared to USD 22.8 per barrel in the fourth quarter of 2019.

Net financial expense was USD 5.5 million for the first quarter mainly caused by

a USD 1.5 million loss on interest rate swaps and currency losses due to the

strengthening of the USD. Total equity at 31 March 2020 was USD 460.9 million

compared to USD 363.1 million at the end of 2019. The equity ratio was 55.2%

compared to 49.2% at year-end. Total available liquidity at the end of the

quarter amounted to USD 168.3 million compared to USD 81.0 at the end of 2019.

BW Energy is continuing the process to establish a reserve-based lending (RBL)

facility for Dussafu with a syndicate of leading banks.

"We have managed to protect our employees and partners and maintain full

operations amid Covid-19. At the same time, we have taken action to protect our

operational and financial flexibility, having more than halved our planned capex

for 2020," says Carl K. Arnet, CEO of BW Energy. "Our business model enables us

to rapidly adapt to changing conditions, and we will quickly resume our

development activities once restrictions are lifted. Our Dussafu assets are

profitable at low oil prices and this highly prospective area holds significant

remaining potential."

REVISED DEVELOPMENT PLANS AND OUTLOOK

The Company has proactively taken steps to maintain a flexible financial

position. BW Energy's total capital spending program for 2020 has been reduced

from USD 250 million to USD 115 million, of which USD 49 million was expensed in

the first quarter.

As a result, the Dussafu production projection for 2020 has been lowered to

15,000 - 16,500 bbls/day (gross) based on four producing wells, compared to an

average of 11,800 bbls/day achieved in 2019. Operating expenditure per barrel is

expected to decrease to approximately USD 16-18 per barrel, compared to USD 21

per in 2019.

Drilling of the DTM-6H well was completed in March. The installation program to

connect the well to the FPSO has been rescheduled as the COVID-19 restrictions

on international travel limits the movement of essential personnel,

subcontractors and equipment to and from several countries, including Gabon. The

Company has for the same reason suspended drilling and connection of the planned

DTM-7H well and the subsequent exploration well.

The Ruche project has also been deferred until efficient project execution can

be assured.

The Maromba project has been refocused on activities required to progress on

government approvals and optimisation of the field development plan with respect

to investment, operational costs, and schedule.

A conference call followed by Q&A will be hosted by CEO Carl K. Arnet, CFO Knut

R. Sæthre and COO Lin G. Espey today at 14:00 CEST.

Conference call information:

To dial in to the conference call where the first quarter results and Q&A will

be hosted, please dial in to one of the following numbers:

Norway: +47 23 96 39 38

France: +33 170 750 737

Singapore: +65 64 08 57 68

United Kingdom: +44 333 3009 034

United States: +1 833 526 8382

You can also follow the presentation via webcast with supporting slides,

available on:

https://bwe.eventcdn.net/2020q1/

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.

For further information, please contact:

Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76

ir@bwenergy.no

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 FPSOs to reduce time to first oil and cashflow

with lower investments than traditional offshore developments. The main assets

are 73.5% of the producing Dussafu Marine Permit offshore Gabon and a 95%

interest in the Maromba field in Brazil, both operated by the Company. Total net

2P+2C reserves are 247 million barrels at the start of 2020 and gross average

production from Dussafu was 11,779 bbls/day in 2019.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.