BW Offshore: Third quarter results 2025
Third quarter results 2025
HIGHLIGHTS
- Q3 EBITDA of USD 43.9 million and operating cashflow of USD 142.0 million
- Robust balance sheet with USD 624 million in available liquidity
- Q3 cash dividend of USD 0.063 per share
- BW Opal achieved RFSU and first gas, receiving 60% of contractual dayrate from 16 September
- Signed Heads of Agreement with Equinor for Bay du Nord FPSO
- JV established with BW Group to design and build Floating Desalination Units (FDUs)
- BW Ideol fabrication line in France selected for EU Commission grant for up to EUR 74 million
- Successful upsizing of the corporate credit facility to USD 220 million
- Full-year 2025 EBITDA guidance range narrowed to USD 240-250 million
On 16 September, the BW Opal FPSO successfully reached ready-for-start-up (RFSU) for the Santos operated Barossa LNG project, triggering the commencement of payment of 60% of the contractual dayrate under the charter.
The Board of Directors has declared a quarterly cash dividend of USD 0.063 per share. The shares will trade ex-dividend from 19 November 2025. Shareholders recorded in VPS following the close of trading on Oslo Børs on 18 November 2025, will be entitled to the distribution payable on or around 28 November 2025.
“We are proud to deliver first gas from BW Opal, signalling the end of the construction phase and the transition to operations with subsequent revenue and cash flow recognition,” said Marco Beenen, the CEO of BW Offshore. “The Bay du Nord project with Equinor is progressing towards FEED early next year, as we continue to execute on our strategy for growth and value creation supported by high commercial uptime, robust cash generation from the existing fleet and a strong balance sheet.”
FINANCIALS
EBITDA for the third quarter of 2025 was USD 43.9 million (USD 57.1 million in Q2 2025), reflecting good operational performance. The reduction is primarily due to the recognition of one-off revenues related to the Repsol project in the second quarter. EBIT for the third quarter was USD 22.5 million (USD 21.2 million).
Net financial items were positive at USD 6.7 million (USD 5.8 million). Both quarters were positively impacted by a valuation gain on the financial liability related to the Barossa project. This was driven by changes in the timing of future cash flows from the facility, as well as a favourable mark-to-market adjustment on interest rate hedges.
The loss from equity-accounted investments was USD 3.6 million (loss of USD 1.9 million), including a valuation adjustment on the Barossa finance receivable related to changes in timing of future cash flows.
Tax expense was USD 2.3 million (USD 0.5 million).
Net profit for the third quarter was USD 23.3 million (USD 24.6 million).
On 30 September 2025, total equity was USD 1 273.9 million (USD 1 279.3 million) and the equity ratio was 30.5% (30.7%).
As a result of strong cash generation from the fleet and asset sales in recent quarters, the Company was net cash positive by USD 186.6 million (USD 213.4 million) as of 30 September 2025.
In September, the Company successfully refinanced its existing revolving credit facility into a new USD 220 million facility, maturing on 10 November 2028. The increased borrowing limit under the new facility provides increased financial flexibility and a solid foundation for future growth. Available liquidity was USD 624.3 million, excluding consolidated cash from BW Ideol and including USD 220 million available under the new revolving credit facility.
FPSO OPERATIONS
The FPSO fleet continued to deliver stable operations in the quarter with a weighted average fleet uptime of 98.7% (99.9% in Q2 2025). During the quarter, BW Catcher and BW Adolo continued to maintain high commercial uptime despite undergoing 14 days and 17 days of scheduled annual maintenance, respectively.
For BW Opal, the provision of O&M services and corresponding revenue recognition commenced following the full operational readiness of the Darwin supply base. The dayrate received from 16 September relating to the charter of the unit is included in cash flow but not recognised as revenue. The next milestone, Interim Performance Test (IPT), increases the payable dayrate to 85%. Practical Completion (PC), which is expected in the first quarter 2026, will conclude the project delivery phase and the start of the 15-year firm contract period with 100% dayrate payments and revenue recognition.
On 30 September 2025, the firm and probable backlog measured by expected cashflow from operations amounted to USD 2.1 billion (USD 2.2 billion).
FPSO PROJECT OPPORTUNITIES
In early September, BW Offshore signed a Heads of Agreement (HoA) with Equinor, as the preferred bidder for the Bay du Nord FPSO for Canada’s first deepwater development offshore Newfoundland and Labrador. Following completion of the pre-FEED phase, the client has exercised the option for a bridging phase focused on further technical and commercial maturation of the FPSO concept. This includes refining a smart and cost-effective design and progressing toward a commercial solution. Preparations are underway for the FEED phase, expected to commence in early 2026, subject to approvals by Equinor and BP. A contract award is expected by end 2026.
FLOATING ENERGY TRANSITION SOLUTIONS
BW Offshore is committed to contribute to the energy transition by leveraging FPSO expertise to deliver low-carbon energy solutions and expand into new sectors, focusing on low-emission oil and gas, CO2 transport, gas-to-power and floating ammonia to meet evolving energy demands. The Company maintains a disciplined approach with selective and diligent allocation of capital and a commitment to creating shareholder value.
BW Offshore and an affiliate BW Group have established a 50/50 joint venture entity (JV), BW Elara, to design and build FDUs, using BW Water technology to produce fresh water from salt water to address a growing global water constraint. The FDUs will be delivered through a flexible service supply model. BW Offshore will oversee the overall project execution in cooperation with the JV, including hull design and construction, and system integration based on proven technology. A ready-built FDU can be deployed and fully operational within as little as three months from contract signing and the JV sees clear market potential underpinning an ambition to develop and operate a multi-regional fleet over time.
BW Offshore owns 64% of BW Ideol, a leader in offshore floating wind technology and co-development with 15 years of experience in the development of floating wind projects. The 1 GW Buchan offshore wind project in Scotland is progressing with submission of onshore and offshore consent applications completed. In France, the three floating substructures for the Eolmed floating wind pilot were launched and turbine integration is underway. Commissioning of the three floating units based on BW Ideol’s proprietary design is expected by end-2025. BW Ideol also holds a 5% ownership stake in Eolmed.
In November, BW Ideol’s Fos3F-project for developing a fabrication line for concrete floating foundations in Fos-sur-Mer, France, was selected by the European Commission’s Innovation Fund for a grant of up to EUR 74 million. BW Ideol and the Commission will now enter the grant agreement preparation phase to finalise the funding contract. This process is expected to be completed in the first half of 2026.
OUTLOOK
Growing energy consumption continues to drive interest for FPSO developments with long production profiles, low break-even costs and reduced emissions. Increased project complexity and construction costs necessitates financial structures with significant day rate prepayments during construction for new lease and operate projects. Alternatively, oil and gas majors may fund and own FPSOs, relying on FPSO specialists for design, construction and installation, as well as operations and maintenance services. BW Offshore is well positioned to offer both solutions, with a special focus on gas and harsh-weather FPSOs, and redeployments with lower costs and shorter lead times.
Sanctioning of FPSO projects continues to lag market expectations, with a growing number of projects at various stages of maturity reflected in increased FEED and tendering activity. BW Offshore has clear selection criteria for new projects based on securing the return requirement through the firm contract period, strong counterparties and application of partner models. BW Offshore expects that a number of the FPSO projects the Company is engaging in will reach a final investment decision within the next 12 to 36 months.
The market dynamics and the high competence levels required for project execution, should enable better risk-reward and improved margins for FPSO companies going forward. The Company is evolving its execution model, seeking strong project partnerships for the design, engineering and construction phases and overall strengthened risk management to complement the successful partner financing model established for the BW Opal.
Based on the financial performance year to date and outlook for the fourth quarter of 2025, the Company has narrowed the full-year EBITDA outlook to USD 240-250 million from previously USD 240-260 million. BW Offshore expects that the fleet will continue to generate significant cash flow in the time ahead, supported by the firm contract backlog.
Please see attached the Q3 Presentation. The earnings tables are available at:
https://www.bwoffshore.com/ir/
BW Offshore will host a webcast of the financial results 09:00 (CET) today. The presentation will be given by CEO Marco Beenen and CFO Ståle Andreassen.
Webcast information:
You can follow the presentation via webcast with supporting slides and a Q&A module, available on:
BW Offshore Limited – Q3 presentation webcast
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:
Ståle Andreassen, CFO, +47 91 71 86 55
IR@bwoffshore.com or www.bwoffshore.com
About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has a fleet of FPSOs and floating wind solutions. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets worldwide. BW Offshore has around 900 employees and is publicly 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.
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