HIGHLIGHTS
- Record Q1 EBITDA of USD 182.1 million, net profit of USD 83 million
- Operational cash-flow of USD 154.7 million in the quarter
- Q1 gross production of 4.2 mmbbls with 3.2 mmbbls net to BW Energy
- Highest quarterly production since inception from the Dussafu licence
- Maintained a strong balance sheet with cash position of USD 286.9 million
- Substantial oil discovery in the Bourdon prospect
- Maromba development FID unlocking path to more than doubling production and potential for future dividends
BW Energy, operator of the Dussafu Marin licence in Gabon and the Golfinho cluster offshore Brazil, reported a record quarterly EBITDA of USD 182.1 million for the first quarter of 2025. This was up 31% from USD 141.6 million in the previous quarter on increased oil sales following all-time-high production in Gabon and higher output in Brazil. The net production was ~36,000 bbls/day, including the Tortue, Hibiscus, and Hibiscus South fields in the Dussafu licence (73.5% working interest) and the Golfinho field (100% WI).
'BW Energy delivers a strong first quarter with record production and EBITDA on the back of sustained stable operations across our asset portfolio in Gabon and Brazil,' said Carl K. Arnet, the CEO of BW Energy. 'The accretive start to 2025 is further underpinned by the Bourdon discovery growing our Dussafu reserves, FID on the Golfinho Boost adding to production and reducing OPEX, and finally the Maromba FID. This transformative project is set to unlock industry-leading production growth and position BW Energy for future shareholder distributions.'
DUSSAFU
BW Energy completed three liftings in the first quarter at an average realised price of USD 74.8/bbl. Net production was approximately 2.6 mmbbls of oil and the net sold volume, the basis for revenue recognition, was approximately 3.2 mmbbls including 65,000 bbls of DMO deliveries and 320,889 bbls of state profit oil with an over-lift position of 350,893 bbls at period-end.
Net production from the Dussafu licence averaged ~28,700 bbls/day, an increase of 5% from the previous quarter. Operating cost (excluding royalties) decreased to USD 9.9/bbl from USD 11.7/bbl in the fourth quarter due to operational efficiencies and increased production. Further cost savings are expected as BW Energy is preparing to take over the operations of the BW Adolo FPSO during the current quarter.
On 2 January 2025, Phase 1 of the Hibiscus / Ruche development was completed with eight producing wells, two more than planned at project sanction.
GOLFINHO
Net production from the Golfinho field averaged ~7,300 bbls/day equivalent to a total production of 657,000 bbls in the quarter, up 12% from the previous quarter as gaslift resumed after completion of Petrobras maintenance. One lifting was carried out of ~500,000 bbls at a realised price of USD 75/bbl. Remaining inventory was approximately 597,750 bbls at the end of the period. Operating cost (excluding royalties) averaged USD 42.2/bbl barrel, down from 56.4/bbl in the fourth quarter, primarily due to higher production. In early April, the Brazilian oil and gas regulator ANP extended the production phase under the Golfinho concession contract, which has been extended to 2042 from previously 2031.
OTHER ITEMS
On 28 March, BW Energy entered into an up to USD 500 million Reserve Based Lending (RBL) facility, replacing the 2022 facility which was increased to USD 300 million in 2023. The facility has an initial commitment of USD 400 million, which can be expanded with an additional USD 100 million subject to mutual agreement and satisfaction of customary conditions precedent. The senior secured long-term debt facility matures on 1 October 2030.
At 31 March 2024, BW Energy had a cash balance of USD 286.9 million, compared to USD 221.8 million at end-December. The increase reflects cash flow from operations less debt repayment and investments in the period. The Company had a total drawn debt balance of USD 599 million including the MaBoMo lease, the Dussafu RBL, the Golfinho prepayment facility and bond debt.
Production guidance for 2025 is unchanged at between 11 and 12 mmbbls net to BW Energy. Expected full-year operating cost is maintained at USD 18 to 22/bbl (the basis for calculating unit operating cost has been revised from 2025 onwards to exclude royalties, tariffs, workovers, domestic market obligation purchases, production sharing costs, and incorporates the impact of IFRS 16 adjustments, primarily impacting Gabon operations). Net capital expenditures for 2025 are expected at USD 650-700 million, up from USD 260 to 285 million previously. The increased follows the FIDs for the Maromba development and the Golfinho Boost project.
DEVELOPMENT PLANS
BW Energy confirmed a substantial oil discovery with good reservoir and fluid quality in the Bourdon prospect offshore Gabon. Management estimates indicate 56 million barrels oil in place, of which approximately 25 million barrels are considered recoverable, potentially through a future development cluster following the MaBoMo blueprint. The discovery will enable the Company to book additional reserves not included in its 2024 Statement of Reserves.
Work on optimising Golfinho production continued to focus on stabilising FPSO performance and selected future well workovers. In mid-April, BW Energy made FID on the Golfinho Boost project with planned investments of USD 107 million. The project is set to add 3 kbbls/day of incremental production and 12 mmboe of further reserves, while also increasing production uptime and reducing OPEX with first oil planned in the second half of 2027.
BW Energy has also made FID for the Maromba development offshore Brazil based on a capex-efficient, phased development with a wellhead platform (WHP) and FPSO. The development targets 500 million barrels of oil in place in the highly delineated Maastrichtian sands. First oil is planned in the second half of 2027 with expected plateau production of 60,000 barrels of oil per day, enabling short pay-back time and more than doubling BW Energy’s total net production by 2028.
In Namibia, BW Energy continued to prepare for an appraisal well targeting the Kharas Prospect northwest in the Kudu licence with planned start-up drilling operations in the second half of 2025. Long-lead items have been procured and the Company is reviewing offers for rig capacity.
Click here for the first-quarter earnings presentation.
Source: BW Energy
