BW Offshore: Strong Q4 and Full Year 2024 Results Drive Growth and Liquidity

BW Offshore, a leading global provider of floating production solutions, has reported robust fourth quarter and full year 2024 results, reflecting the company's strong performance and growth prospects. The company's expertise in harsh environment conditions and commitment to sustainability have positioned it well to capitalize on the high tendering and FEED activity in the FPSO market.

The company's fourth quarter EBITDA stood at USD 72 million, in line with guidance, while full year 2024 EBITDA amounted to USD 318 million. Operating cash flow for the quarter was USD 79 million, and USD 363 million for the full year. BW Offshore's robust balance sheet was further strengthened by an equity ratio of 30.8% and available liquidity of USD 540 million.



The company's strong financial performance was driven by consistent high commercial uptime and robust cash generation from its fleet. BW Offshore's commitment to returning value to shareholders was evident in the increased fourth-quarter dividend, which was raised to USD 0.14 per share. The total dividend for 2024 amounted to USD 59.2 million, equal to 50% of net income for the year.

BW Offshore's progress on the Barossa FPSO project is a significant contributor to its growth prospects. As of end January 2025, the project was 99% complete and commissioning was at 85% completion, with the vessel being prepared for sail-away in late April. The FPSO is on track for first gas in mid-2025, which will generate substantial revenue for BW Offshore.

For 2025, BW Offshore expects to report EBITDA in the range of USD 220 to 250 million, reflecting the firm backlog for BW Adolo and BW Catcher, as well as the expected start of IFRS revenue recognition from BW Opal at full practical completion during the fourth quarter. The dayrate received for the BW Opal during the start-up and early production phase from mid-2025 will be amortised over the 15-year contract period.

BW Offshore's expertise in harsh environment conditions and commitment to sustainability position it well to capitalize on the high tendering and FEED activity in the FPSO market. The company's strong balance sheet and cash generation capabilities enable it to invest in potential new FPSO projects that meet its selection criteria, taking advantage of the market's high tendering and FEED activity.

In conclusion, BW Offshore's strong fourth quarter and full year 2024 results, driven by consistent high commercial uptime and robust cash generation, position the company well for future growth. The company's commitment to returning value to shareholders, progress on the Barossa FPSO project, and expertise in harsh environment conditions and sustainability make it an attractive investment opportunity in the FPSO market.