BW Energy Ltd. · OSL:BWE
BW Energy — Q4 2022 Earnings Presentation
29 slides from BW Energy's earnings presentation, Feb 28, 2023
Slide 1: Q4 2022
Q4 2022 Carl K. Arnet, CEO Knut R. Sæthre, CFO Lin G. Espey, COO 28 February 2023
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Energy Limited exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance an
Slide 3: Highlights
Highlights • Q4 2022 EBITDA of USD 21.8 million Hibiscus / Ruche development on track for first oil in Q1 2023 and USD 154.2 million for the full year BW MaBoMo and subsea pipeline installation completed • Q4 net loss of USD 8.0 million and USD 45.0 million profit for the full year • One lifting in
Slide 4: Zero-harm objective for people and environment
Zero-harm objective for people and environment Minimizing impact to Working for local society Sound governance environment • No recorded lost time incidents in 2022 • No environmental incidents in 2022 • Environmental and sustainability action plan established for the Dussafu asset 70-80% Estimated
Slide 5: Reserves update
Reserves update Net Dussafu Reserves & Resources (MMBBLS) 31 Dec 2022 31 Dec 2021 Category • Dussafu reserve update reflecting mainly 1P 2P 3P 1P 2P 3P adjustment for annual production of 3.9 Reserves 47.8 70.7 91.1 52.6 73.8 96.5 million barrels 1C 2C 3C 1C 2C 3C Contingent resources 14.0 28.5 50.2
Slide 6: Dussafu
Dussafu
Slide 7: Production at Dussafu
Production at Dussafu • Q4 gross production 883,000 barrels, equal to ~9,600 bbls/day ‒ OPEX at USD ~40 per barrel reflecting the lower production ‒ One lifting with realised price USD 73 per barrel • Increase to gas lift capacity underway ‒ New compressor lifted onboard the FPSO in December ‒ Insta
Slide 8: Dussafu production forecast
Dussafu production forecast Gross production profile kbbls/day • 2022 production of 3.9 million barrels 50 Hibiscus / Ruche Phase 2 Hibiscus / Ruche Phase 1 • 2022 OPEX at USD ~36 per barrel 40 Tortue 30 • Next lifting expected in March 2023 20 • 2023 production expected in the range of 8 to 10 10 m
Slide 9: BW MaBoMo and subsea pipeline installed on field
BW MaBoMo and subsea pipeline installed on field • BW MaBoMo production facility installed on field in October and is being prepared for Hibiscus / Ruche operations • 20 km subsea pipeline to the BW Adolo FPSO installed in October • Flexible pipeline and riser-installation finalised first week of Ja
Slide 10: On track for first oil at end Q1 2023
On track for first oil at end Q1 2023 • Drilling operations started early January ‒ The first production well, DHIBM-3H, targets the Gamba sandstone reservoir on the Hibiscus field ‒ Drilled and cemented all six conductors • Campaign targeting four Hibiscus Gamba and two Ruche Gamba wells ‒ Rig-cont
Slide 11: Maromba
Maromba
Slide 12: Unlocking material production in Campos Basin
Unlocking material production in Campos Basin • Project remains robust meeting investment criteria ‒ Further cost optimisation ongoing in the prevailing high- inflation environment ‒ Finalising contracts for long lead items • Final investment decision subject to completion of project financing activ
Slide 13: Kudu
Kudu
Slide 14: Major milestone reached in Kudu power off-take negotiations
Major milestone reached in Kudu power off-take negotiations • Engagement Protocol signed with NamPower ‒ Covers project feasibility process ‒ Term sheet for future power purchase agreement, to be finally negotiated • Widespread stakeholder support for Kudu project in Namibia ‒ Including political an
Slide 15: 3D seismic survey ongoing
3D seismic survey ongoing • Acquisition of new ~5,000 sq. km 3D seismic to further enhance the depositional model, additional reservoir presence, and identify potential upside targets • Will provide better data to support ongoing FEED work program and potential future farm-in discussions • Recent en
Slide 16: Golfinho
Golfinho
Slide 17: Progressing Golfinho transactions in Brazil
Progressing Golfinho transactions in Brazil • Takeover of 100% operated working interest in Golfinho and Camarupim clusters, 65% in Brigadeiro (BM-ES-23) and FPSO Cidade de Vitoria ‒ Approved as deep-water class A operator by ANP ‒ Build-up of local organization and operational preparedness • Closin
Slide 18: Q4 Financials
Q4 Financials
Slide 19: Income Statement – Q4 2022
Income Statement – Q4 2022 USD million Q4 2022 Q3 2022 Change Operating revenue 64.6 83.5 (18.8) Gain/Loss from oil derivatives (5.6) 11.9 (17.5) • Unrealised loss due to oil price curve Operating expenses (37.3) (33.9) (3.4) EBITDA 21.8 61.5 (39.7) Depreciation (8.2) (8.3) 0.1 • EBITDA decreased du
Slide 20: Income Statement – FY 2022
Income Statement – FY 2022 USD million 2022 2021 Operating revenue 297.5 271.5 Gain/Loss from oil derivatives (19.9) - Operating expenses (123.4) (124.2) EBITDA 154.3 147.2 Depreciation (28.5) (31.8) Depreciation - ROU (27.4) (29.7) Amortisation (4.2) (0.6) Impairment - 13.3 Other expenses (60.1) (4
Slide 21: Balance Sheet
Balance Sheet ASSETS (USD million) Q4 2022 Q3 2022 Change Property and other equipment 1.0 0.8 0.2 Right-of-use assets 209.8 212.8 (3.0) E&P tangible assets 531.8 468.1 63.7 • Mainly related to the Ruche/Hibiscus Intangible assets 212.4 198.4 14.0 Other non-current assets 9.8 10.1 (0.3) development
Slide 22: Q4 2022 cash flow
Q4 2022 cash flow ye BW ENERGY USD million 250,0 ane Ea -76,30 150,0 100,0 186,60 50,0 0 Cash September 30-2022 — Operating cash flow Net investments Net financing activities Cash December 31-2022
Slide 23: Full year 2022 cash flow
Full year 2022 cash flow USD million
Slide 24: Investment in assets
Investment in assets USD million 90 Dussafu Maromba Kudu 80 70 60 50 40 30 20 10 0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
Slide 25: Summary
Summary
Slide 26: Production outlook
Production outlook Net production estimate bbls/day1 80 000 Maromba Phase 2 Maromba Phase 1 60 000 Hibiscus / Ruche Phase 2 Hibiscus / Ruche Phase 1 Tortue 40 000 20 000 0 2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 73.5% WI in the Dussafu licence 95.0% WI in the Maromba licence 26
Slide 27: Strategic priorities and value levers
Strategic priorities and value levers • Production and exploration Step-change in production ahead ‒ Optimising Dussafu output, including new gas lift capacity Gross production bbls/day1 ‒ 3D seismic to assess Kudu potential 35 000 • Development 30 000 Golfinho ‒ Bring Hibiscus / Ruche to first oil
Slide 28: Q&A
Q&A
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