BW Energy delivered good progress in the third quarter of 2026, with the major development projects advancing on schedule and within budget. The Company extended its strong Dussafu appraisal track record with two discoveries and made a strategic entry into Angola, adding further production and reserves in a basin with material growth potential.
On 24 October 2026, the Prospector 5 jack-up drilling rig, owned and operated by Borr Drilling, sank during preparations for the MaBoMo Phase 2 drilling campaign. Alongside supporting the ongoing search and rescue efforts, the Company is assessing the impact on the drilling schedule and the 2027 production outlook. BW Energy maintains the target of producing over 100,000 barrels per day in 2028.
HIGHLIGHTS
(Numbers in parenthesis refer to Q2 2026 unless otherwise specified)
Solid operational performance
- Q3 2026 net production of 21.5 (25.3) kbopd, equal to 2.0 (2.3) million barrels (mmbbls)
- Quarterly production cost1 of USD 27.7 (24.0) per barrel
- Production in Gabon and Brazil impacted by temporary technical issues
- Inventory increase to 1.0 mmbbls at quarter-end due to timing of liftings
2028 production target maintained
- Maromba, Golfinho and Bourdon projects progressing on plan and cost
- MaBoMo appraisals add 8-9 mmbbls of recoverable volumes, supporting two production wells
- MaBoMo phase 2 delayed by the rig incident, schedule under assessment
- Strategic Angola entry set to add net 8 kbopd of production from Q1 2027 and ~19 mmbbls net 2P reserves
Financial results impacted by timing of liftings
- Q3 2026 EBITDA of USD 46.9 (140.6) million and net loss of USD 0.7 (profit 43.9) million
- Q3 operating cash flow of negative USD 19.4 (positive 260.1) million
- Cash position of USD 200.3 (254.0) million at 30 September
- Signed USD 208 million long-term financing for the Bourdon wellhead platform (WHP)
- Extended USD 250 million corporate revolving credit facility (RCF) by 18 months
2026 guidance updated
- Production: ~23 kbopd (from low end of 24-27 kbopd)
- Production cost1: USD 22-26 per barrel (unchanged)
- CAPEX: Suspended in light of well program rescheduling (was USD 600-650 million)
- G&A: USD 12-14 million (unchanged)
Comment from the CEO of BW Energy, Carl K. Arnet:
'Our thoughts are with everyone affected by the Prospector 5 rig incident, the crew and their families, friends and colleagues, and in particular those still missing and their loved ones. At BW Energy, the safety of people will always come first, and we are supporting the ongoing search and rescue operations in close collaboration with the Gabonese authorities and Borr Drilling, with valuable help from our neighbouring operators.
Production from MaBoMo has resumed, and the two discoveries made earlier in the campaign add to the resources we plan to develop in Phase 2. The incident affects the timing of those barrels rather than the resources themselves. We will incorporate the remaining wells into the wider Dussafu drilling programme and update the market on timing once the plan is in place.
Looking further ahead we maintain our production target of over 100,000 barrels per day in 2028 supported by good progress on the remaining sanctioned high-return development projects in Brazil and Gabon, as well as our expansion into Angola. Backed by a robust financing framework, we remain on track to deliver strong long-term cash flow and material value creation for the BW Energy shareholders.'
PRESENTATION AND MATERIAL
Please find attached the third quarter 2026 report and presentation. The report, presentation, excel data book and webcast are all available on:
www.bwenergy.no/investors/reports-and-presentations
Source: BW Energy
