BW Energy: Fourth Quarter Results 2024

31 Jan 2025 07:30 CET

BW ENERGY FOURTH QUARTER RESULTS 2024

HIGHLIGHTS


?          Record Q4 EBITDA of USD 141.6 million, net profit of USD 56.8 million
?          Full-year revenue of USD 0.8 billion (+57%), EBITDA of USD 457.4
million (+90%) and net profit of USD 165.9 million (+105%)
?          Operational cash-flow of USD 117.7 million in the quarter
?          Q4 gross production of 4.0 mmbbls with 3.1 mmbbls net to BW Energy
?          Highest quarterly production since inception from the Dussafu licence
?          ESP replacement program completed as planned with 8 producing
Hibiscus / Ruche wells from early 2025
?          Current gross production at Dussafu above 40,000 bbls/day
?          Maintained a strong balance sheet with cash position of USD 221.8
million

BW Energy, operator of the Dussafu Marin licence in Gabon and the Golfinho
cluster offshore Brazil, reported a record quarterly EBITDA of USD 141.6 million
for the fourth quarter of 2024. This was up from USD 130 million in the previous
quarter on increased oil sales following all-time-high production in Gabon. The
net production was 33,600 bbls/day, including the Tortue, Hibiscus, and Hibiscus
South fields in the Dussafu licence (73.5% working interest or "WI") and the
Golfinho field (100% WI).

Full-year 2024 net production was approximately 10.1 million barrels of oil, up
69% from 2023. EBITDA was USD 457.4 million (USD 241.0 million). The full-year
figures are preliminary and unaudited. BW Energy will publish audited 2024
figures on 26 February 2025.

"BW Energy delivers strong production growth, increased reserves and record
financial performance in the fourth quarter and full year 2024 supported by new
ESPs, successful appraisal wells and the completion of the Hibiscus / Ruche
development," said Carl K. Arnet, the CEO of BW Energy. "We have a pivotal 2025
ahead, executing on our strategy for growth and long-term value creation.
Appraisal of the Bourdon structure in Gabon is ongoing, and we plan to sanction
the Maromba development in Brazil in coming weeks. Then, in the second half we
will drill the first Kudu appraisal in Namibia, a high impact well which may
help unlock secure access to energy in a part of Southern Africa with unstable
supply."

DUSSAFU
BW Energy completed three liftings in the fourth quarter at an average realised
price of USD 72.5/bbl. Net production was approximately 2.5 mmbbls of oil and
the net sold volume, the basis for revenue recognition, was approximately 2.7
mmbbls including 97,500 bbls of DMO deliveries and 311,429 bbls of state profit
oil with an under-lift position of 248,700 bbls at period-end.

Net production from the Dussafu licence averaged ~27,300 bbls/day, an increase
of 36% from the previous quarter. Operating cost (excluding royalties) decreased
to USD 18.5/bbl from USD 20.5/bbl in the third quarter due to operational
efficiencies and increased production. Further cost savings are expected as BW
Energy is preparing to take over the operations of the BW Adolo FPSO during the
first half of 2025.

All ESP change outs were completed as planned and on 2 January 2025, Phase 1 of
the Hibiscus / Ruche development was completed with eight producing wells, two
more than planned at project sanction.

GOLFINHO
Net production from the Golfinho field averaged ~6,400 bbls/day equivalent to a
total production of 585,000 bbls in the quarter, up 17% from the previous
quarter. A planned shutdown of a Petrobras gas plant restricted gaslift capacity
for approximately 40 days, with only ESP wells producing. One lifting was
carried out of ~500,000 bbls at a realised price of USD 73.5/bbl. Remaining
inventory was approximately 440,500 bbls at the end of the period. Operating
cost (excluding royalties) averaged USD 56.4/bbl barrel, down from 63.3/bbl in
the third quarter, primarily due to higher production.

OTHER ITEMS
At 31 December 2024, BW Energy had a cash balance of USD 221.8 million, compared
to USD 209.8 million at end-September. The increase reflects cash flow from
operations, debt repayment and investments. The Company had a total drawn debt
balance of USD 563 million including the MaBoMo lease, the Dussafu RBL, the
Golfinho prepayment facility and bond debt.

Production guidance for 2025 is between 11 and 12 mmbbls net to BW Energy. Full-
year operating cost is expected to be USD 18 to 22/bbl (the basis for
calculating unit operating cost has been revised from 2025 onwards to exclude
royalties, tariffs, workovers, domestic market obligation purchases, production
sharing costs, and incorporates the impact of IFRS 16 adjustments, primarily
impacting Gabon operations). Net capital expenditures are expected at USD 260 to
285 million, including the appraisal well in Namibia. The capex guidance is
excluding the Maromba development and the Golfinho Boosting project, both
awaiting FID.

DEVELOPMENT PLANS
In Gabon, the Bourdon appraisal prospect, targeting potential gross recoverable
reserves of ~30 million barrels in Gamba and Dentale formations, was spud
earlier this month and results are expected during the first quarter. At end-
October, BW Energy (37.5% WI and operator) signed production sharing contracts
(PSCs) for the Niosi Marin and Guduma Marin exploration blocks, which are
adjacent to the Dussafu licence and significantly expands the resource base for
infrastructure-led exploration. Planning for a 3D seismic campaign is ongoing.

Work on optimising Golfinho production continued to focus on stabilising FPSO
performance and selected future well workovers. BW Energy is preparing to
commence the Golfinho Boosting project to replace current gaslift with ESPs in
two wells to increase production and production regularity from mid-2026.

The Maromba development, targeting low-risk barrels in an oil-rich area with
multiple producing assets, is progressing towards planned final investment
decision (FID) next month based on the sustainable re-use of an FPSO and a jack-
up with drilling capacity and dry trees. This enables a cost-efficient
development with an investment budget of USD 1.2 billion and short pay-back
time. Project financing is close to completion

In Namibia, BW Energy has sanctioned the drilling of an appraisal well targeting
the Kharas Prospect northwest in the Kudu licence with planned start-up drilling
operations in the third quarter. Long-lead items have been secured and the
Company is reviewing offers for rig capacity. There is a close dialogue with
other operators in the Orange Basin on exploring common use available resources.
Development planning and concept selection for the Kudu gas-to-power project
also continued with relevant stakeholders.

REPORTS AND PRESENTATION
Please find the fourth-quarter earnings presentation attached. The reports are
also available at:

www.bwenergy.no/investors/reports-and-presentations
(http://www.bwenergy.no/investors/reports-and-presentations)

 BW Energy will today hold a conference call followed by a Q&A hosted by CEO
Carl K. Arnet, CFO Brice Morlot and COO Lin G. Espey at 15:00 CET.

You can follow the presentation via webcast with supporting slides, available
on:

VIEWER REGISTRATION ? Q4 2024 (https://events.webcast.no/viewer-
registration/RLEuPs34/register)

Call-in information:

Participants dial in numbers:

DK: +45 7876 8490
SE: +46 8 1241 0952
NO: +47 2195 6342
UK: +44 203 769 6819
US: +1 646-787-0157
Singapore: 65-3-1591097
France: 33-1-81221259

PIN code: 980877

Please note, that if you follow the webcast via the above URL, you will
experience a 30 second delay compared to the main conference call. The web page
works best in an updated browser - Chrome is recommended.

BW Energy will publish the audited 2024 annual report, the reserves report and
the report on payments to governments on 26 February 2025.

For further information, please contact:
Brice Morlot, CFO BW Energy, +33.7.81.11.41.16
ir@bwenergy.no

About BW Energy:
BW Energy is a growth E&P company with a differentiated strategy targeting
proven offshore oil and gas reservoirs through low risk phased developments. The
Company has access to existing production facilities to reduce time to first oil
and cashflow with lower investments than traditional offshore developments. The
Company's assets are 73.5% of the producing Dussafu Marine licence offshore
Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in
the BM-ES-23 block, a 95% interest in the Maromba field in Brazil, a 95%
interest in the Kudu field in Namibia, all operated by BW Energy. In addition,
BW Energy holds approximately 6.6% of the common shares in Reconnaissance Energy
Africa Ltd. and a 20% non-operating interest in the onshore Petroleum
Exploration License 73 ("PEL 73") in Namibia. Total net 2P+2C reserves and
resources were 580 million barrels of oil equivalent at the start of 2024.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

637485_BWE earnings tables Q4 2024.pdf
637485_BWE Q4 2024.pdf