BW Offshore: Fourth quarter and full year results 2025

Core Insights - BW Offshore reported strong operational and financial performance in 2025, achieving key milestones with the BW Opal FPSO and maintaining high commercial uptime across its fleet [4][10] - The company declared a quarterly cash dividend of USD 0.18 per share, totaling USD 67.0 million for the year, marking a 12% increase from 2024 [3][8] - For 2026, BW Offshore expects EBITDA to range between USD 340-370 million, driven by the ramp-up of BW Opal and a firm backlog of contracts [4][8] Operational Performance - BW Opal FPSO commissioning and production ramp-up continued, with a target to reach 100% production capacity by Q2 2026 [2] - The FPSO fleet achieved a weighted average uptime of 100% in Q4 2025, up from 98.7% in Q3 2025 [10] - The firm and probable backlog of expected cash flow from operations was USD 2.2 billion as of December 31, 2025 [10] Financial Highlights - Q4 2025 EBITDA was USD 47.8 million, an increase from USD 43.9 million in Q3 2025, with a net profit of USD 24.1 million [6][7] - Full-year 2025 EBITDA totaled USD 240.1 million, with operating cash flow of USD 409.2 million [8] - The company ended 2025 with total equity of USD 1,293.0 million and an equity ratio of 30.2% [9] Strategic Developments - BW Offshore is engaging an external adviser for a strategic review in response to interest in the strong FPSO market [5] - The company is advancing the Bay du Nord FPSO project with Equinor, with the FEED phase planned to commence in H1 2026 [11] - BW Offshore holds a 68% stake in BW Ideol following a strategic partnership, enhancing its capabilities in floating transition solutions [12] Market Outlook - The company anticipates continued significant cash flow generation from its current fleet, supported by a firm contract backlog [14] - Increased project complexity and higher construction costs are leading to a demand for financial structures with significant day rate prepayments [15] - BW Offshore expects several FPSO projects to reach final investment decisions within the next 12 to 36 months, positioning itself for improved margins [17]