The outlook for BW Offshore's products and services remains good, and the company has reported another set of solid results for Q3 2014. BW Offshore continuously delivers class-leading results on HSE and uptime, and has recorded USD 248.5 million of revenues in the quarter.

The demand situation for leased units remains good and is expected to remain at 10-12 awards per year in spite of the recent drop in oil price. The trend of longer front-end definition phases before projects are sanctioned is continuing. BW Offshore expects outsourcing of production to be one of the solutions and part of the current cost saving initiatives by the oil companies. 

BW Offshore intends to grow selectively and expects to see a continued improvement in the risk and reward balance for new FPSO projects 

OPERATION

BW Offshore operates 18 units. The owned fleet consists of 14 FPSOs, one FSO and one VLCC tanker. All operating units experienced stable performance with an average uptime of 99.5% during the third quarter. BW Offshore also operates additional two FPSOs. 

BW Offshore's cash flow from the operating units is secure and based on long term contracts with national and independent oil companies. The fleet of BW Offshore will continue to generate a steady cash flow in the time ahead. The trend of continued production outside the initially planned period is continuing. BW Offshore's expertise in maintaining production and assets over long periods is increasingly providing a sound basis for dividend payments as well as further investments in new assets.

Petroleo Nautipa

PROJECTS

The Catcher project has progressed according to planned schedule. In addition to progressing on engineering and procurement activities, some construction activities have now started, including parts of the turret mooring system. BW Offshore are and will continue to be working closely with all subcontractors to mitigate risk of any cost or schedule change to the project going forward. 

The company is also undertaking a number of modification and life extension activities on existing units. These activities are either covered on a cost plus basis or reimbursed through higher day rates. 

FINANCE

EBITDA in Q3 2014 was USD 120.3 million, with operating profit of USD 64.1 million. The results includes 100% of FPSO Petróleo Nautipa, as well as a recognised profit from the acquisition of the unit of USD 19.7 million. 

Total equity at 30 September 2014 amounted to USD 1,207.6 million, with an equity ratio of 33.9%. Net debt amounted to USD 1,577.5 million and total available liquidity was USD 372.0 million. The Board has declared a cash dividend of USD 0.03 per share for Q3 2014. 

Please see the attachments for the full quarterly report and presentation.

Q3 2014 Report

Q3 2014 Presentation

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