BW Offshore: Q2 2015 - Condensed interim consolidated financial information
(Thomson Reuters ONE) -
* EBITDA of USD 105.0 million
* Recovery project for FPSO Cidade de São Mateus ongoing
* Successful placement of a NOK 900 million senior unsecured bond
* Dividend payment of USD 0.01 per share
Operating revenues for Q2 2015 amounted to USD 243.7 million, an increase of USD
6.9 million from last quarter.
EBITDA for the second quarter amounted to USD 105.0 million, an increase of USD
11.8 million from USD 93.2 million in Q1 2015.
Depreciation amounted to USD 72.0 million, an increase of USD 14.7 million.
Net profit amounted to USD 19.6 million compared to USD 5.8 million.
Main change to EBITDA relates to higher revenues due to recognition of demob fee
from termination of the original contract offset by lower revenues under the
revised contract with Ithaca Energy for FPSO Athena. EBITDA is also positively
affected by unused maintenance days invoiced to clients during second quarter.
Lastly EBITDA is negatively impacted by the accident on Cidade de São Mateus, as
the Company only started recognising loss of hire insurance from mid-May.
Depreciations have increased mainly as depreciations of non-recoverable costs on
BW Athena have been accelerated due to the outlook under the revised contract
with Ithaca Energy.
Net financial expenses have decreased mainly as a result of higher interest
rates reducing net liability on hedging contracts.
Total equity at 30 June 2015 amounted to USD 1,189.5 million, an increase of USD
6.9 million (USD 1,182.6 million at 31 March 2015). The equity ratio was 32.5%
at the end of the quarter, down from 33.4%.
As of 30 June 2015, the Company had USD 1,022.4 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 1,793.9 million. Total available liquidity as of 30 June 2015 amounted to
USD 418.3 million.
During the quarter, BW Offshore successfully completed a NOK 900 million senior
unsecured bond issue with maturity in June 2020. The interest payable on the
bond is NOK NIBOR + 425bps. The bond loan has been swapped to USD. The proceeds
will be used for general corporate purposes.
Net debt amounted to USD 1,577.4 million at 30 June 2015 (USD 1,542.2 million at
31 March 2015).
Net cash inflow from operating activities was USD 129.3 million (USD 80.6
million). Net cash outflow from investing activities was USD 125.7 million (USD
13.2 million). Cash outflow on investing activities is mainly related to
capitalisation on the Catcher project and capital expenditures for ongoing life
extension activities. Life extension activities are generally either covered on
a cost plus basis or reimbursed through higher day rates. Net cash inflow from
financing activities was USD 37.2 million (Net cash outflow of USD 131.5
million).
BW Offshore operates 17 units. The owned fleet consists of 14 FPSOs and one FSO.
Average uptime during the second quarter was 99.8% (94.4%). The lower uptime in
the first quarter was caused by the off hire of FPSO Cidade de São Mateus, which
is now excluded from the average uptime until the unit recommences operations
after the repair project.
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.
Work is still ongoing after the accident on Cidade de São Mateus 11 February
2015 to empty the unit of cargo and disconnect the unit for transport to a yard
for repairs. The disconnection of the unit has been significantly delayed by the
approval process in Brazil. The cost of repairs are still being estimated
together with impact from impairment to be taken for damages incurred. As the
unit is still at the field, it has been challenging to get access to make an
accurate assessment of the damages, and consequentially also to decide the book
value to be impaired. This impairment charge will be booked as soon as a
reliable estimate can be made.
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 from
12 May for a period of 12 months. 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. Given the
delay to the disconnection the unit is expected to be without rate for some time
before repairs can be carried out and the unit returns to the field. The length
of this period is still uncertain.
All other FPSOs and FSO are on contract per the end of the quarter. Azurite has
been returned by the client before the end of the fixed contract and is marketed
for new projects.
PROJECTS
The Catcher project remains within budget with expected first oil in 2017. Good
progress was made during the quarter on engineering, procurement and
construction activities. Construction of the turret mooring system is
progressing well with the mating cone module completed and delivered to the hull
fabrication yard.
Hull activities have slipped due to yards inability to progress the hull
delivery in accordance with the contractual schedule. A mitigation plan has been
implemented to minimise the impact to the overall project schedule. Topside
fabrication is developing as planned. At the end of the quarter more than 75% of
the projected project cost has 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 one cent per share for the quarter.
The shares will be traded ex-dividend as of 10 September 2015. The dividend will
be payable on or about 18 September 2015 to shareholders of record on 11
September 2015.
OUTLOOK
The short- and medium term outlook for BW Offshore's products and services has
changed due to the drop in oil price. Macro conditions for the offshore industry
have significantly worsened with expected continued drop in capital expenditure.
BW Offshore still expects outsourcing of production to be a cost effective
solution for oil & gas companies but believes it is prudent to expect a
prolonged downturn in orders being awarded.
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.
Redeployment of units coming off contracts will be affected by the reduced
number of new developments. In the current market, BW Offshore believes it is
important to preserve financial capacity for a more uncertain future.
Please see the attachments for the full quarterly report and presentation.
BW Offshore hosts a presentation of the financial results at 09:00 (local time)
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 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.
Q2 2015 report:
http://hugin.info/136844/R/1948118/707584.pdf
Q2 2015 presentation:
http://hugin.info/136844/R/1948118/707585.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#1948118]
Unternehmensinformation / Kurzprofil:
Datum: 28.08.2015 - 07:30 Uhr
Sprache: Deutsch
News-ID 416506
Anzahl Zeichen: 10586
contact information:
Town:
Oslo
Kategorie:
Business News
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