BW Offshore has announced second quarter and first half results 2026
HIGHLIGHTS
- BW Opal in stable production with Practical Completion moved to Q2 2027
- EBITDA USD 62.5 million in Q2 and USD 110.4 million for the first half-year
- Non-cash impairment charge of USD 125 million on BW Opal; net loss of USD 102.1 million in Q2 and loss of USD 78.7 million for the first half-year
- Underlying net profit of USD 46.6 million for the first half-year, excluding the non-cash impairment
- Operating cash flow USD 41.5 million in Q2 and USD 84.8 million for the first half-year
- Extended BW Catcher contract to end-2030, adding approximately USD 490 million to firm backlog
- Signed FEED with Equinor for Bay du Nord FPSO and opened local office in St. John’s
- Equity ratio 28.3% and USD 511 million in available liquidity
- Q2 cash dividend USD 0.063 per share equivalent to USD 11 million
- Full-year 2026 EBITDA guidance revised to USD?250-280?million with limited cash flow impact
- Strategic review ongoing - timeline impacted by extended Practical Completion for BW Opal
BW Opal is currently producing at 85% of nameplate capacity, delivering revenues in line with production. On 15 June, BW Opal achieved the Interim Performance Test (IPT), confirming that key production, processing and utility systems operate in an integrated manner and deliver stable performance under production conditions. As production increased, certain technical issues tied to third-party delivered equipment have been identified and need to be resolved before Practical Completion. Due to long lead times for membranes and to keep production impact to a minimum in close coordination with the client, replacements are expected to be executed in the first quarter of 2027.
As a result, BW Offshore expects to incur approximately USD 65 million of incremental investment until Practical Completion, largely offset by additional revenue generated before commencement of the firm contract.
A non-cash impairment charge of USD 125 million was recognised on BW Opal, after moving Practical Completion to the second quarter of 2027. The impairment has no impact on liquidity and contract backlog. The 15-year fixed-term contract will commence on Practical Completion. The impairment charge is triggered due to additional cost to complete as well as additional borrowing cost to be capitalised until completion of BW Opal. The extended timeline to realise Practical Completion was identified, analysed and concluded by management in August 2026.
'BW Offshore has full focus on maintaining stable production from BW Opal in close collaboration with the client,' said Marco Beenen, CEO of BW Offshore. 'Elsewhere, we have high activity on the Bay du Nord project, executing the extensive FEED in preparation for contract award by Equinor early next year.'
With Practical Completion for BW Opal being moved into 2027, full-year EBITDA guidance has been revised to a range of USD 250 to 280 million, from the previous range of USD 310 to 340 million. The underlying cash flow impact in 2026 is limited as BW Opal continues to generate revenue under the interim volume-based contract, while the majority of the additional investment falls into 2027. Of the revision, approximately USD 40 million relates to amortisation of prepayments with no cash effect, limiting the net cash impact in 2026 to approximately USD 10 million.
The Board of Directors has declared a quarterly cash dividend of USD 0.063 per share. The shares will trade ex-dividend from 27 August 2026. Shareholders recorded in VPS following the close of trading on Oslo Børs on 28 August 2026, will be entitled to the distribution payable on or around 7 September 2026. The Company reiterates its commitment to maintaining an attractive shareholder return programme.
In early June, BW Offshore opened a local office in St. John’s, Newfoundland and Labrador, to strengthen its local presence during the Front-End Engineering and Design (FEED) phase and in preparation for the operating phase for the Bay du Nord FPSO project.
BW Offshore announced a strategic review on 5 December 2025. The strategic review is ongoing with interested parties conducting due diligence, but timeline is impacted by the revised Practical Completion of BW Opal. The Company's main strategic focus of growing the FPSO business supported by an optimised capital structure and strong partnerships remains unchanged.
On 30 June 2026, the firm and probable backlog measured by expected cash flow from operations amounted to USD 2.2 billion of which 97% is firm backlog.
Please see attached the Q2 Presentation. The earnings tables are available at: https://bwoffshore.com/financials
Attachments
Source: BW Offshore
