BW Offshore: First quarter results 2026
First quarter results 2026
HIGHLIGHTS
- Q1 EBITDA of USD 47.9 million and operating cash flow of USD 43.3 million
- Robust balance sheet with USD 568 million in available liquidity
- Q1 cash dividend of USD 0.063 per share
- BW Opal production restarted, commissioning and practical completion expected mid-2026
- Signed FEED with Equinor for Bay du Nord FPSO and established local office in St. John’s
- Extended BW Catcher contract through 2030
- Strategic review progressing
- Full-year 2026 EBITDA guidance revised to USD 310-340 million
On BW Opal, the replacement of the compressor dry-gas seals was completed in March. Gas production recommenced in early May after a temporary shutdown during March and April for cleaning the heat exchanger trains. A root cause analysis of the heat exchanger fouling has been completed and is currently under joint review by Santos and BW Offshore. Commissioning is progressing in parallel with practical completion expected mid-2026.
On 29 April, BW Offshore signed the Front-End Engineering and Design (FEED) agreement with Equinor for the Bay du Nord FPSO, to operate offshore Newfoundland and Labrador, Canada. The FEED is expected to run through 2026 and will mature the FPSO design, finalise the project execution plan and delivery schedule, and advance commercial and contractual alignment towards a firm offer to Equinor. Equinor is targeting Final Investment Decision (FID) and potential contract award in early 2027.
Subsequent to quarter-end, the Company agreed amended terms for the BW Catcher contract with Catcher field partners, establishing a defined end-of-term framework to 31 December 2030 plus or minus six months. Effective from 1 February 2026, the amendments increase firm operating cash flow backlog by approximately USD 490 million and provides clarity on the contract end date, enabling active marketing of the FPSO for redeployment opportunities.
“During the quarter and subsequent weeks, BW Offshore has strengthened its cash flow profile and the long-term growth trajectory. The Bay du Nord FEED is an important step towards securing a new major FPSO project, while the BW Catcher extension materially increases our firm operating cash flow backlog and enables us to actively market the unit for future projects. Our immediate operational focus remains on completing the BW Opal commissioning and the safe and efficient ramp-up of production,” said Marco Beenen, CEO of BW Offshore.
The Board of Directors has declared a quarterly cash dividend of USD 0.063 per share. The shares will trade ex-dividend from 21 May 2026. Shareholders recorded in VPS following the close of trading on Oslo Børs on 20 May 2026, will be entitled to the distribution payable on or around 1 June 2026.
The strategic review announced on 5 December 2025 remains active and progressing. The Company will provide further updates if and when appropriate. The Company’s main strategic focus of growing the FPSO business supported by an optimised capital structure and strong partnerships remains unchanged.
FINANCIALS
EBITDA for the first quarter of 2026 was USD 47.9 million (USD 47.8 million in Q4 2025), reflecting solid operational performance from the fleet, despite the temporary shutdown on BW Opal. EBIT for the first quarter was USD 27.5 million (USD 27.5 million).
Net financial items were positive at USD 1.6 million (negative USD 0.5 million).
Loss from equity-accounted investments was USD 2.7 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 3.0 million (USD 1.0 million).
Net profit for the first quarter was USD 23.4 million (USD 24.1 million).
On 31 March 2026, total equity was USD 1 278.5 million (USD 1 293.0 million), and the equity ratio was 30.0% (30.2%).
The Company was net cash positive by USD 166.7 million (USD 211.8 million) as of 31 March 2026. The reduction in net cash during the quarter primarily reflected the Q4 2025 dividend payment of USD 33.2 million, representing the planned top-up distribution to bring total 2025 shareholder distributions to 50% of 2025 net profit.
Available liquidity was USD 568.3 million, excluding consolidated cash from BW Ideol and including USD 203 million available under the undrawn revolving credit facility.
Due to reduced commercial uptime on BW Opal and amended terms for BW Catcher, the full-year EBITDA guidance has been revised to the range of USD 310 to 340 million, from previously USD 340 to 370 million.
FPSO OPERATIONS
The FPSO fleet continued to deliver stable operations in the quarter with a weighted average fleet uptime of 100% (100% in Q4 2025). Production from the BW Adolo FPSO declined slightly due to a well workover to replace an electrical submersible pump and natural depletion.
On 31 March 2026, the firm and probable backlog measured by expected cash flow from operations amounted to USD 2.3 billion of which 97% is firm backlog (USD 2.2 billion and 77%). The increase reflects the amended BW Catcher contract period.
FPSO PROJECT OPPORTUNITIES
In connection with the Bay du Nord FEED, the Company will develop a local content plan in line with the Frame Agreement and the Atlantic Accord. BW Offshore has also established a local office in St. John’s, Canada, with official opening planned for early June.
The Company continues to progress selected FPSO newbuild and redeployment opportunities, including tenders in Brazil and Mexico.
FLOATING ENERGY TRANSITION SOLUTIONS
BW Offshore owns 68% of BW Ideol, a floating offshore wind technology company. The three floaters for the 30 MW Eolmed project were successfully connected to the grid, achieving first power in April. The project has now entered a phase of technical testing ahead of final commissioning in May. The Fos3F project, which targets a fabrication line for concrete floating foundations, secured combined grants of EUR 127 million from the EU Innovation Fund and the French Government.
BW Elara is progressing towards investment decision for the first floating desalination unit in early 2027.
OUTLOOK
BW Offshore expects that the current fleet will continue to generate significant cash flow in the time ahead, supported by the increased firm contract backlog. Furthermore, growing energy demand continues to drive demand for developing new FPSO projects with long production profiles, low break-even costs and reduced emissions.
Increased project complexity and higher construction costs necessitates financial structures with significant day rate prepayments during the construction period for new lease and operate projects. Alternatively, oil and gas companies may finance and own FPSOs, relying on FPSO specialists for the design, construction and installation scope, combined with operation and maintenance services. BW Offshore is well positioned to offer both solutions.
As FPSO project sanctions have lagged expectations, there is a historically high number of projects at various stages of maturity, reflected in high FEED and tendering activity. The Company continues to selectively evaluate new projects that meet required return targets, offer contracts with no residual value risk after firm period, and provide a financeable structure with strong national or investment grade counterparties. Several of the FPSO projects the Company is engaging with are expected to reach FID over the next 12 to 36 months.
Current market dynamics and the high competence levels required for project execution should enable better risk-reward and improved margins for FPSO companies going forward. Furthermore, BW Offshore is evolving its project execution model focused on strong partnerships for the design, engineering and construction phases and overall strengthened risk management. The same principles are also applied to new business opportunities within floating transition solutions.
Please see attached the Q1 Presentation. The earnings tables are available at:
https://bwoffshore.com/financials
BW Offshore will host a webcast of the financial results 09:00 (CEST) 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 – Q1 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 the Norwegian Securities Trading Act
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