28/02-2017 07:30:15: (BWO) BW Offshore: Fourth quarter and full year results 2016
- EBITDA of USD 164.5 million including insurance recovery of USD 94.3 million related to FPSO Cidade de São Mateus
- Impairment of USD 135.4 million recognised due to damages on FPSO Cidade de São Mateus
- Impairment of USD 87.8 million recognised on other vessels
- Acquisition of stake in Dussafu field
- Ongoing arbitration process vs Addax due to overdue receivables
- Short-term contract extension for Abo FPSO
- Farm-Out Agreement for stake in Kudu license offshore Namibia signed in February 2017
- Completed reverse share split
EBITDA for the fourth quarter was USD 164.5 million, an increase of USD 87.6 million (USD 76.9 million). The increase in EBITDA was mainly a result from the insurance settlement for FPSO Cidade de São Mateus of USD 94.3 million.
During the fourth quarter an impairment assessment of the fleet was completed. As a result, BW Offshore recorded an impairment loss of USD 222.6 million. An impairment of USD 135.5 million was recognised due to damages on FPSO Cidade de São Mateus. The remaining impairment was charged to the vessels BW Athena, FPSO Polvo, Berge Helene and Espoir Ivoirien. Operating loss for the quarter amounted to USD 115.3 million, a decrease of USD 134.5 million (Operating profit USD 19.2 million).
BW Offshore has signed interim extension agreements for the Abo FPSO with Nigerian Agip Exploration Ltd. until 31 March 2017. The short-term extensions have been agreed to secure operational continuity while joint work is continuing to conclude the negotiations.
Addax Petroleum Exploration Limited has for some time not paid the Company the full contractual rate for Sendje Berge. During the third quarter, the Company submitted a claim to the arbitration tribunal for unpaid contractual rate. The claim amounted to USD 66.7 million by end of the fourth quarter. BW Offshore is currently awaiting the formal outcome of a preliminary hearing carried out by the arbitration tribunal during first quarter of 2017.
The Catcher project remains within budget with first oil expected in the second half of 2017.
During the fourth quarter, BW Offshore, as 66.67% partner in a coming joint venture with BW Group, signed agreements to acquire a significant share (more than 80%) in the Dussafu field offshore Gabon subject to certain conditions and approval by Gabonese authorities. The project reflects the Company's strategy to participate in alternative field development models to ensure the continued employment of assets. In February 2017, BW Offshore acquired a stake in the proven Kudu gas field offshore Namibia. The Kudu infrastructure project is underpinned by local power demand.
"BW Offshore is developing its capability to participate in and be a partner for developing proven hydrocarbon resources offshore by acquiring the stakes in Dussafu and Kudu," said Carl K. Arnet, the CEO of BW Offshore. "With the Catcher project on track for first oil later this year, continued good fleet performance and a more efficient organization, we are positioned for increased market activity."
Please see attachments for the full quarterly report and presentation.
BW Offshore will host a presentation of the financial results 09:00 (CET) today at Hotel Continental in Oslo, Norway. The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre.
The presentation will be broadcasted via webcast, and will also be available for replay. Please visit www.bwoffshore.com for login-details.
For further information, please contact:
About BW Offshore:
BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO represented in all major oil & gas regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is 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.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: BW Offshore via Globenewswire
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