BW Offshore: Q1 2015 - Interim consolidated financial information
(Thomson Reuters ONE) -
* Initiated recovery project for FPSO Cidade de São Mateus
* EBITDA of USD 93.2 million
* Contract extension for Polvo and BW Athena
* Sale of VLCC BW Opal
* Completed USD 80 million bank loan for Petróleo Nautipa
* Dividend payment of USD 0.02 per share
Operating revenues for Q1 2015 amounted to USD 236.8 million, a decrease of USD
28.0 million compared to Q4 2014 of USD 264.8 million. Operating expenses
amounted to USD 143.7 million, a decrease of USD 11.7 million from last
quarter.
EBITDA for the first quarter amounted to USD 93.2 million, down from USD 109.2
million in Q4 2014. Operating profit for the quarter amounted to USD 36.7
million (USD 51.4 million).
Net profit amounted to USD 5.8 million compared to USD 12.7 million.
Main change relates to lower revenue due to FPSO Cidade de São Mateus being off-
hire after the accident 11 February 2015.
Total equity at 31 March 2015 amounted to USD 1,182.6 million, a decrease of USD
15.5 million (1%) (USD 1,198.1 million at 31 December 2014). The equity ratio
was 33.4% at the end of the quarter, up from 32.7%.
As of 31 March 2015, the Company had USD 1,092.4 million in interest-bearing
loans and USD 60.0 million in letters of guarantee drawn under the USD 2,400
million credit facility. The committed amount on the USD 2,400 million credit
facility was USD 1,308.6 million, following scheduled reductions. Total utilised
debt facilities for the company, including bond loans and other facilities was
USD 1,716.0 million. Total available liquidity as of 31 March 2015 amounted to
USD 307.5 million.
On 13 February 2015, the Company settled a USD 50 million unsecured one-year
term loan with Itaú Bank, established during first quarter 2014.
On 25 March, BW Offshore signed the facility documentation for a new USD 80
million senior secured credit facility in respect of the FPSO Petróleo Nautipa.
The loan has a tenor of 7.5 years and will be used for general corporate
purposes.
Net debt amounted to USD 1,542.2 million at 31 March 2015 (USD 1,589.7 million
at 31 December 2014).
Net cash inflow from operating activities was USD 80.6 million (USD 133.2
million). Net cash outflow from investing activities was USD 13.2 million (USD
168.5 million). Cash outflow on investing activities is mainly related to
capitalisation on the Catcher project, capital expenditures for ongoing life
extension activities offset by the sale of BW Opal. Life extension activities
are generally either covered on a cost plus basis or reimbursed through higher
day rates. Net cash outflow from financing activities was USD 131.5 million (USD
66.4 million).
OPERATIONS
BW Offshore operates 17 units. The owned fleet consists of 14 FPSOs and one FSO.
Average uptime during the first quarter was 94.4% (99.8%). The lower uptime was
caused by the off hire of FPSO Cidade de São Mateus.
The Company operates the FPSO Peregrino for Statoil and Sinochem on the
Peregrino oil field offshore Brazil.
The Company also operates the FPSO P-63 owned by Petrobras and Chevron on the
Papa Terra field offshore Brazil for three years in a joint venture with Queiroz
Galvão Óleo e Gás S.A. ('QGOG'). The operation started in November 2013.
On 11 February 2015, there was a gas explosion onboard the FPSO Cidade de São
Mateus, operating on the Camarupim and Camarupim Norte fields for Petrobras in
Espirito Santo Littoral. Production was stopped and the unit has been shut down
since the accident. The accident resulted in nine fatalities and 26 crew needing
medical attention of a total crew of 74. The joint investigation with Petrobras
was started immediately after the accident. The investigation was completed by
end of April and signed by both companies. BW Offshore will communicate findings
and learnings from the accident to the stakeholders in the industry.
In parallel with the investigation damages to and necessary repair of the unit
has been undertaken and is still ongoing. The first phase of the operation has
been to stabilise the unit, free process and subsea systems of hydrocarbons,
empty the unit of cargo and disconnect the unit for transport to a yard for
repairs. The cost of repairs are still being assessed together with impact from
impairment to be taken for damages incurred.
BW Offshore carries insurance cover on a fleet wide basis, for its crew and
support staff, pollution and clean up and any damage to vessels. In addition,
the FPSO Cidade de São Mateus is also covered by a loss of hire insurance. The
accident and its consequences will to a large extent be covered by these
policies and BW Offshore is working closely with insurers and their loss
adjusters in the recovery operations.
In the quarter, BW Offshore received a notice of termination for the FPSO BW
Athena contract from Ithaca Energy. BW Offshore and Ithaca Energy (on behalf of
the Athena-field co-venturers) have agreed a revised contract structure to
continue production on the Athena field beyond expiry of the firm period on a
revised compensation scheme, involving advanced payment of an FPSO
demobilisation fee and sharing of positive cash-flow from the field. Both
parties have the right to terminate on a 60-day notice period.
In March, BW Offshore signed an agreement with PetroRio for a one-year extension
for the lease and operation of the FPSO Polvo. The firm period has been extended
to third quarter 2016 (from third quarter 2015), with options until third
quarter 2022.
On 11 March 2015, the VLCC BW Opal was sold for USD 85.5 million to BW Group.
The transaction was performed on an arms-length basis, based on independent
valuation reports and technical inspection of the vessel. The agreement also
includes an option to buy-back the vessel until first quarter 2017.
All other FPSOs and FSO, except Azurite which is being marketed for new
projects, are on contract per the end of the quarter.
PROJECTS
On 30 April 2014, a contract with Premier Oil and partners for an FPSO to
operate on the Catcher oil field in the UK North Sea was signed. The firm
charter period of the contract is seven years, with expected start up in mid-
2017, with extension options of up to 18 years. Backlog from the contract is USD
2.3 billion including FPSO charter rate and opex and is based on a 10 year
duration.
Good progress was made during the quarter on engineering, procurement and
construction activities. Fabrication of the turret mooring system is progressing
well and topside fabrication activities has started. At the end of the quarter
more than 70% of projected project costs have been committed. BW Offshore is
closely monitoring progress and safety in all the project activities, ensuring
that mitigating actions are implemented quickly if any deviation is detected.
The Company is 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.
DIVIDEND
The Board has declared a cash dividend of USD 0.02 per share for the quarter.
The shares will be traded ex-dividend as of 10 June 2015. The dividend will be
payable on or about 18 June 2015 to shareholders of record on 11 June 2015.
OUTLOOK
The short term outlook for BW Offshore's products and services has changed due
to the drop in oil price. However, more recently we have seen an improvement in
project activity related to previously identified prospects. BW Offshore expects
to increase activity on FEED and bidding in the second half of 2015.
BW Offshore still expects outsourcing of production to be a cost effective
solution for oil companies to pursue oil development initiatives going forward.
BW Offshore's cash flow from the operating units is to a large extent mitigated
by the loss of hire insurance for Cidade de São Mateus in the coming year.
Redeployment of units coming off contracts will depend on oil price development
and related to this, the number of new developments.
The majority of BW Offshore's fleet remain on long term contracts with national
and independent oil companies. The fleet will continue to generate a healthy
cash flow in the time ahead.
Please see the attachments for the full quarterly report and presentation.
BW Offshore hosts a presentation of the financial results at 09:00 (CET) today
at Hotel Continental in Oslo, Norway. The presentation will be given by CEO Carl
K. Arnet and CFO Knut R. Sæthre. The presentation will be broadcasted via
webcast, and will also be available for replay. Please visit www.bwoffshore.com
for link and login details.
For further information, please contact:
Knut R. Sæthre, CFO, +47 9111 7876
Kristian Flaten, Vice President IR and Corporate Finance, +47 9509 2322
About BW Offshore:
BW Offshore is a leading global provider of floating production services to the
oil and gas industry. BW Offshore is the world's second largest contractor with
a fleet of 14 FPSOs and 1 FSO represented in all major oil regions world-wide.
The company also operates additional 2 FPSOs. BW Offshore has a long track
record on project execution and operations, as well as a robust balance sheet
and strong financial capabilities. In more than 30 years of production, BW
Offshore has executed 38 FPSO and FSO projects. The company is listed on the
Oslo Stock Exchange. Further information is also available on www.bwoffshore.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q1 2015 presentation:
http://hugin.info/136844/R/1923773/689918.pdf
Q1 2015 report:
http://hugin.info/136844/R/1923773/689917.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: BW Offshore via GlobeNewswire
[HUG#1923773]
Unternehmensinformation / Kurzprofil:
Datum: 26.05.2015 - 07:30 Uhr
Sprache: Deutsch
News-ID 395581
Anzahl Zeichen: 11291
contact information:
Town:
Oslo
Kategorie:
Business News
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