Energy SpA — Earnings Release 2022

Aug 25, 2022

BW Energy: Second Quarter and First-Half 2022 Results

BW Energy: Second Quarter and First-Half 2022 Results

SECOND QUARTER AND FIRST-HALF 2022 RESULTS

HIGHLIGHTS SECOND QUARTER AND FIRST HALF

* EBITDA of USD 5.5 million for Q2 2022 and USD 71 million for H1 2022

* H1 2022 gross production of 2.0 million barrels with 1.5 million barrels net

to the Company

* Strong operating cash flow of USD 84.9 million and cash position of USD 123

million at 30 June

* Decision to proceed with Maromba development and agreement to purchase FPSO

Polvo

* Hibiscus / Ruche development on track for first oil in Q1 2023 with the

production unit BW MaBoMo (former Hibiscus Alpha) under mobilisation to

Gabon

* Agreement to acquire Golfinho and Camarupim Clusters from Petrobras to add

net production of ~9,000 barrels of oil per day from early 2023 and several

additional low-risk development opportunities

* Agreement to acquire the FPSO Cidade de Vitoria, currently producing on the

Golfinho field approved by Saipem and Petrobras

* Signed inaugural Reserve Based Lending facility of up to USD 300 million in

August

"We are progressing several initiatives which are expected to yield a step-

change in production and cash flow generation from early next year and further

support our long-term growth. These are led by the Hibiscus / Ruche development

where we have completed the BW MaBoMo conversion and the field acquisitions in

Brazil, both of which are set to contribute significantly to increased oil

production from late first quarter 2023. Further, we are moving ahead with the

Maromba development towards first oil in 2025 and we are maturing plans for the

increasingly attractive Kudu gas field in Namibia", said Carl K. Arnet, the CEO

of BW Energy.

EBITDA for the second quarter of 2022 was USD 5.5 million, down from USD 65.5

million in the first quarter of 2022 due to no liftings to BW Energy in the

period. EBITDA for first half of 2022 was USD 71.0 million compared to USD 80.2

million in the same period of 2021. The decrease in EBITDA was largely due to

lower sales volumes partly offset by a higher realised oil price.

Gross production from the Tortue field averaged approximately 10,700 barrels of

oil per day in the second quarter of 2022, amounting to a total gross production

of approximately 975,000 barrels of oil for the period. There were no BW Energy

liftings in the second quarter. Production cost (excluding royalties) was

approximately USD 35 per barrel.

BW Energy had a cash balance of USD 123 million at 30 June 2022, compared to USD

111 million at 31 March 2022. The increase reflects receipt of payment for a

March lifting to the Company, offset by continued investments in the Hibiscus /

Ruche development project.

The Hibiscus / Ruche development is progressing towards first oil at the end of

the first quarter of 2023. The BW MaBoMo (former Hibiscus Alpha) conversion was

completed in August with the unit currently under mobilisation on a heavy-lift

vessel to Gabon. Additional production from the Hibiscus and Ruche fields is

expected at approximately 30,000 barrels of oil per day once all six planned

wells are in production during 2023.

In April, the Company decided to proceed with the Maromba development project

offshore Brazil and signed an agreement to purchase the FPSO Polvo from BW

Offshore. The Maromba development plan is based on an initial drilling campaign

of three wells with planned first oil in 2025 and a second campaign for an

additional three wells in 2027. Total oil production at peak annual average is

expected between 30-40,000 barrels of oil per day.

In June 2022, BW Energy signed an agreement to acquire 100% working interest

(WI) in the Golfinho and Camarupim Clusters and 65% WI in the BM-ES-23 block

offshore Brazil from Petrobras for an initial cash consideration of USD 3

million at signing with USD 12 million due at closing and contingent payments

after closing of up to USD 60 million tied to oil price and production. BW

Energy will be the operator in all the concessions. The Company also agreed to

acquire the FPSO Cidade de Vitoria, producing on the Golfinho field, from Saipem

for a cash consideration of USD 73 million paid in instalments. Both

transactions are subject to fulfilment or waiver of conditions precedent with an

expected closing and effective date in the first quarter of 2023.

The transactions are expected to add approximately 9,000 barrels of oil per day

net to BW Energy from early 2023. The Golfinho Cluster has several proven low

risk in-field development opportunities with short lead times and substantial

potential long-term upside from proven gas accumulations.

In August, BW Energy signed an international Reserve Based Lending Facility of

up to USD 300 million. The funds will initially be used to finance the further

development of the Dussafu license offshore Gabon.

BW Energy will today hold a conference call followed by a Q&A hosted by CEO Carl

K. Arnet, CFO Knut R. Sæthre and COO Lin G. Espey at 14:00 CEST.

Dial-in details:

Norway: +47 5798 9430

United States: +1 (646) 307-1963

Singapore: +65 3159 1234

UK: +44 20 3481 4247

France: +33 173 023 136

The presentation may also be followed via webcast on:

https://streams.eventcdn.net/bwe/q2-202 (https://streams.eventcdn.net/bwe/q2-

2022/)2 (https://streams.eventcdn.net/bwe/q2-2022/)/

(https://streams.eventcdn.net/bwe/q2-2022/)

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:

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 production facilities 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 were 241 million barrels at the start of 2022.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.