Sitemap Search About us Our business Investor relations Press room HSSEQ Careers Contact HomeNewsSolid operation and financials in first half 2014 Operating with class leading HSE ratios and 99.7% uptime, BW Offshore presented an operating profit in first half 2014 of USD 187 million. BW Offshore owns and operates 18 units. The owned fleet consists of 14 FPSOs, one FSO and one VLCC tanker. All operating units experienced stable performance with an average uptime of 99.7% during the second quarter. Operating revenues for the first half of 2014 amounted to USD 557 million, with second quarter revenue of USD 319.9 million. The increase in operating revenues for the second quarter mainly represent early termination fee for FPSO Azurite. The net effect from this termination is USD 70 million. Operating profit for the first half of 2014 amounted to USD 187.3 million, with net profit of USD 134.3 million. The termination from Murphy West Africa Limited for FDPSO Azurite was effective May 2014. The vessel is currently being marketed for new projects. BW Offshore is being compensated for the early termination of the contract. The compensation is reflecting the value of the remaining period of the original fixed term of the contract. During the second quarter BW Offshore received a contract extension for the FPSO BW Athena with Ithaca Energy. The primary term of the contract expires in second quarter of 2015, and Ithaca Energy has exercised the option for a secondary term of up to five years. Ithaca Energy has the right to terminate the contract on a rolling 12-month notice. BW Offshore is currently on a short term extension contract until end of fourth quarter 2014 for FPSO Abo with Nigerian Agip Exploration Ltd, a subsidiary of ENI S.p.A. The extension has been agreed to secure operational continuity while joint work to detail a longer term program for investment and production is completed. BW Offshore is currently performing life extension activities on the unit, which are being compensated on a reimbursable cost plus basis. All other FPSOs and FSOs are currently on longer term contracts. Total equity at 30 June 2014 amounted to USD 1,213.9 million, with an equity ratio of 34.9%. Net debt amounted to USD 1,574.1 million and BW Offshore has total available liquidity of USD 460.7 million. Additionally, on 24 July BW Offshore successfully negotiated a USD 800 million 10 year combined construction and long term financing for the FPSO Catcher. PROJECTS On 30 April 2014 BW Offshore signed a contract with Premier Oil for a FPSO to operate on the Catcher oil field in the UK North Sea. The field is owned by Premier Oil (50% operator), Cairn Energy (30%) and MOL (20%). The firm charter period of the contract is seven years, with extension options of up to 18 years. Based on a field life of 10 years, the contract value is USD 2.3 billion including FPSO charter rate and opex. BW Offshore's scope includes the delivery of the FPSO, mooring system, installation and operation of the unit throughout the charter period. BW Offshore will order a new built hull from Japan for the project, while conversion and integration work will be performed in Singapore. The FPSO shall be ready for production mid-2017. The project is financed by a project specific bank facility of USD 800 million in addition to BW Offshore's existing liquidity. At the time of this report, the Catcher project is now well underway. Project team mobilisation has been completed and major subcontracts for the new built hull and the turret mooring system have been executed. The project is now ramping up planned engineering and procurement activities. OUTLOOK The outlook for BW Offshore’s products and services remains good due to the geographical presence, scale and competence of the Company. BW Offshore’s cash flow from the operating units is secure and based on long term contracts with national and independent oil companies. The fleet of BW Offshore will continue to generate a steady cash flow in the time ahead, providing a sound basis for dividend payments as well as for further investments in new assets. BW Offshore is currently evaluating several projects meeting the Company’s financial targets. In addition the Company is in negotiations for contract extensions for existing units. BW Offshore intends to grow selectively and expects to see a continued improvement in the risk and reward balance for new FPSO projects. BW Offshore will carry on with the efforts to constantly improve safety, efficiency, planning, disciplined execution and financial control in all its operations. The Board has declared a cash dividend of USD 0.03 per share for Q2 2014. Please see the attachments for the full quarterly report and presentation. Q2 2014 Report Q2 2014 Presentation News