BW Offshore (BWO) Q4 2024 earnings summary

Executive summary

• Achieved high uptime and strong financial results in 2024, with full-year EBITDA of $380 million and net profit of $120 million, supporting a 22% increase in annual dividend to $59 million.

• Q4 2024 EBITDA reached $72 million, with net profit at $41 million; full-year EBITDA was $318 million, matching guidance, and net profit totaled $120 million.

• Q4 cash dividend increased to $25 million ($0.14/share); full-year dividend was $59 million ($0.33/share).

• Maintained a robust balance sheet and liquidity, enabling continued investment and increased shareholder returns.

• BW Opal project is on track for April 2025 sail-away, with commissioning 85% complete and first gas expected mid-2025.

Financial highlights

• Q4 EBITDA was $72 million, lower than Q3 due to a $10 million one-off from the Sakarya project in Q3.

• Q4 2024 operating revenues were $135.3 million, down from $150.9 million in Q3; full-year revenues were $606.7 million.

• Q4 net profit was $40.8 million; operational cash flow (excluding prepayments) was $54 million.

• Q4 cash flow included $25 million Barossa FPSO pre-payment, $84 million Opal investments, and $157 million debt reduction.

• Backlog stands at $6.2 billion, with $5.3 billion firm.

Outlook and guidance

• 2025 EBITDA expected to temporarily dip to $220–$250 million due to contract phasing and accounting treatment, with a significant rebound anticipated in 2026 as BW Opal contributes fully.

• Main focus is Barossa project completion for mid-2025 start-up; targeting one new FPSO FID in 2025.

• Targeting to land two new FPSO projects in the next three years, with potential revenue growth from projects valued at $1–2 billion each.

• Quarterly dividend for 2025 set at a base of $0.25 per share, with potential for increase if net profit allows.