BW Offshore Limited · OSL:BWO
BW Offshore — Q2 2021 Earnings Presentation
28 slides from BW Offshore's earnings presentation, Aug 24, 2021
Slide 1: BW Offshore Q2 2021
BW Offshore Q2 2021 24 August 2021 CEO Marco Beenen CFO Ståle Andreassen
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Offshore Limited exclusively for information purposes. This presentation may not beredistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance a
Slide 3: Highlights
Highlights • Q2 EBITDA of USD 91 million Barossa FPSO project on track • Operating cash flow of with major contracts / packages USD 134 million placed • Includes USD 56 million in pre- payments from the Barossa FPSO dayrate • Cash dividend of USD 0.035 per USD 1.15 billion bank financing share to be
Slide 4: Operational update
Operational update
Slide 5: Fleet performance and HSE focus
Fleet performance and HSE focus Fleet uptime1 HSE record (LTM) 99.7 % 99.9 % 99.0 % 97.3 % 99.4 % 97.8 % 97.4 % 98.7 % 93.2 % 5.0 LTI (2) TRI (3) HPI (4) 4.0 3.0 2.0 1.0 0.0 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 • Zero recorded LT
Slide 6: Unit update
Unit update Polvo • Production stopped per contract expiration date • Decommissioning has started in preparation for disconnection • Pre-FEED concludes suitability for planned Maromba development by BWE Espoir Ivoirien Sendje Berge • Planned shutdown in August and • Upcoming two month planned shutdo
Slide 7: Building a solid backlog for the future
BW Catcher Building a Targeting investment grade rating USD ~4.0 billion market cap solid backlog 2021 estimated EBITDA of USD ~2.2 billion The Catcher field is the main field for Harbour Energy for the future BW Catcher commercial uptime of >100% for Q2 BW Adolo Revenue backlog end Q2 2021 of Debt
Slide 8: Barossa FPSO project execution
Barossa FPSO project execution Key contracts awarded / secured • Hull fabrication: Samkang M&T • Turret system: NOV APL • Topside fabrication: Dyna-Mac • Hull engineering: FG Industry • Topside engineering: Toyo India • Integration yard: Resource Reservation Letter signed with yard and contract T&C’
Slide 9: Fleet contract overview
Fleet contract overview Unit 2018 2019 2020 2021 2022 2023 2024 2025 2026 Barossa FPSO Santos, Australia: 2025-2040 (2050) BW Adolo BW Energy, Gabon: 2018-2028 (2038)* BW Pioneer Murphy Oil, US: 2012-2025 (2030) BW Catcher Harbour Energy, UK: 2018-2025 (2043) Petróleo Nautipa VAALCO, Gabon: 2002-202
Slide 10: Managing COVID-19
Managing • COVID-19 management related COVID-19 costs of USD ~5 million for the quarter • Costs are largely due to quarantine requirements as part of pre-boarding protocol Confirmed COVID-cases in Q2 • Risk management, planning and procedures in place to efficiently manage operational impact 1 2 • B
Slide 11: A solid partner
A solid partner FINANCE
Slide 12: Healthy underlying EBITDA performance
Healthy underlying EBITDA Operating revenue EBITDA performance in Q21 208 USD million 91 USD million 300 • Some non-recurring costs related to 180 160 lay-up of BW Cidade de São Vicente 250 140 and sail away of Umuroa from New 200 120 Zealand 100 150 • BW Ideol fully consolidated in BW 80 Offshore P
Slide 13: Income statement
Income statement1 USD million Q2 2021 Q1 2021 2020 Operating revenues 207.8 218.9 886.3 Operating expenses (116.7) (108.1) (450.2) EBITDA 91.1 110.8 436.1 Depreciation & Amortisation (68.0) (65.2) (284.0) Impairment - (4.2) (292.7) EBIT 23.2 41.4 (140.6) Net interest expense (12.3) (12.4) (58.1) Gai
Slide 14: Cash flow overview
Cash flow overview USD million 400 350 41 16 300 134 88 250 16 6 3 8 200 55 150 302 302 230 214 100 210 210 208 208 203 203 148 148 50 0 Cash Operating cash Investments Proceeds from Debt repayment Payment of net Dividends paid Proceeds from To non- Cash BW Ideol: Cash (net) to 01.04.2021 flow (1) d
Slide 15: Solid financial position
Solid financial position Net debt and leverage ratio Equity ratio USD million 2 000 50% 39.9% Post spin-off of BWE and asset impairment 2.3x 40% 1 500 1.9x 1.8x 1.8x 2.0x 2.0x 2.1x 2.1x 2.2x 2.2x 30% Post spin-off of BWE 0 1 000 854 20% 500 10% 0 0% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1
Slide 16: Instalment profile provides financial flexibility
Instalment profile provides financial flexibility Gross debt (USD million end Q2 21) Instalment schedule (USD million) 1 200 1200 1 000 1000 800 800 600 600 400 400 200 200 61 0 0 1 Q3-Q4 2021 2022 2023 2024 2025 Convertible bond 1 NOK bonds 2 Corporate facility Petróleo Nautipa facility BW Catcher
Slide 17: Maintaining financial flexibility and returning capital
Maintaining financial flexibility and returning capital Barossa FPSO financing near Actively Focused on shareholder completion managing liquidity returns USD 1.15 billion construction and post Barossa project ramping up with Quarterly cash dividend of USD 0.035 delivery debt financing provided by es
Slide 18: Strategic investments
Strategic investments DELIVERING ON STRATEGY
Slide 19: Positioning in floating offshore wind segment
Positioning in floating offshore wind segment “Renewable Power BW Ideol Invenergy Services” task force • BW Offshore owns ~53% of the • Established a joint “Renewable • Heads of Terms with leading U.S. listed floating wind company, BW Power Services” task force with renewable energy and utility Ideo
Slide 20: Building the project pipeline with strong partners
Building the project pipeline with strong partners • EolMed engineering contract and license agreement • Partnership agreement with leading utility for the Brittany tender in France • Collaboration with Hitachi ABB Power Grids on developing industry-first scalable floating substations for offshore w
Slide 21: BW Energy represents a significant value
BW Energy represents a significant value • Dussafu license in Gabon - Tortue Phase 1 producing an average of ~10,500 bbls/day (gross) Attractive - Tortue Phase 2 drilling completed in July on time and below budget. Preparing for tie-ins to BW Adolo with first oil expected Q4 2021 assets - Hibiscus /
Slide 22: Summary and outlook
Summary and outlook Fully focused on the Barossa project Maximising value for units approaching end of contract Hibiscus / Ruche project on track for first oil in Q4 2022 Developing floating wind project pipeline with 1.5 GW in operation by 2030 Evaluating FPSO prospects and energy transition opport
Slide 23: Q&A
Q&A We engineer offshore production solutions to progress the future of energy.
Slide 24: Income Statement
Income Statement ‘CONTINUING OPERATIONS, Operating revenue 2B 280 ATA TT O85 222,58 HZ_ 71S TB ‘Operating expenses (958) (2048) (1095) (ands) (1278) (948) (970) (1306) (450.2) (208.3) (2368,7) Operating profit/(loss) before depreciation/amortisation 485428 aka 1062 on a9 ea os aa Depreciation (868)
Slide 25: Balance sheet
Balance sheet [assets a: Vessels and vessels under construction 24983-24348 23771 Propery, plant & equipment wi 146 160 Right-of-use assets 250 228 2,0 ESP tangible assets 1881 159 0 6. - - - - - = Intangible assets and goodwill 408 92,5 wii 43 43 3g 33 181059 Equity accounted investments 98 101 98
Slide 26: Cash flow
Cash flow Profit/ioss| before taxes 30,7 355 a8 3843 (297.0) 222 (2720) 569 123 Unrealised currency exchange loss/(gain) 49 (16.8) a7 (87) (8,9) 25 108 28 (3.6) Depreciation and amortization 1010 36,4 ngs igs 955 630 2840 652 «80 Share of loss/(profit| from equity accounted investments cs) toa) 08 (
Slide 27: Key figures
Key figures EBITDA-margin Equity ratio Return on equity Return on capital employed Net interest-bearing debt (USD million) Cash flow per share (USD) EPS - basic (USD) EPS - diluted (USD) Outstanding shares - end of period (million) ‘Share price (NOK) Market cap (NOKm) Market cap (USDm) a2 2019 67,0%
Slide 28: Thank you.
Thank you. BW OFFSHORE