BW ENERGY: FIRST QUARTER RESULTS 2024
BW ENERGY FIRST QUARTER RESULTS
2024
HIGHLIGHTS
- Q1 EBITDA of USD 109.7 million and net profit of USD 47.4
million
- Q1 gross production of 3.1 million barrels with 2.5 million net
to BW Energy
- Three liftings of ~1.9 million barrels (net BWE) at average
realised price of USD ~83 per barrel
- First oil from Hibiscus South in early March, five months after
initial discovery
- Second Hibiscus South well confirms northern extension with
good reservoir quality
- Substantial oil discovery on the northern flank of the Hibiscus
field
- Signed USD 150 million sale & leaseback for MaBoMo
production facility in April
- Golfinho prepayment facility extended and increased
- Maintained a strong balance sheet with cash position of USD
~150 million
BW Energy, operator of the Dussafu Marin licence in Gabon and
the Golfinho cluster offshore Brazil, reported EBITDA for the first
quarter of 2024 of USD 109.7 million, down from USD 133.4 million
in the fourth quarter of 2023, mainly due to lower oil sales in the
quarter.
Net production from the operated assets was ~27,300 barrels of
oil per day in the quarter, slightly up from the previous quarter.
This includes production from the Tortue, Hibiscus and Hibiscus
South fields in the Dussafu licence (73.5% working interest) and
the Golfinho field (100% working interest) after assuming ownership
in late August 2023.
"BW Energy continues to progress the Hibiscus / Ruche drilling
program, optimising available rig time to increase production and
reserves through low-cost, low-risk development activity and
efficient ESP replacements once equipment becomes available,” said
Carl K. Arnet, the CEO of BW Energy. “In Brazil, the Golfinho field
is producing in line with expectations as we prepare for the
planned infill drilling campaign, and in Namibia, the potential of
the Orange Basin and our Kudu asset is reaffirmed by another major
new oil discovery.”
DUSSAFU
BW Energy completed two liftings in the first quarter at an
average realised price of USD 83 per barrel. BW Energy’s share of
gross production was approximately 1.66 million barrels of oil. The
net sold volume, which is the basis for revenue recognition in the
financial statements, was approximately 1.7 million barrels
including 97,500 barrels of DMO deliveries and 203,800 barrels of
state profit oil with an over-lift position of 167,800 barrels at
the end of the period. Proceeds in the amount of approximately USD
50 million from the second lifting in March were received in April
2024.
Net production from the Dussafu licence averaged 18,260 barrels
of oil per day in the quarter. Production was impacted by the
previously communicated electrical issues affecting the ESPs
(electrical submersible pumps) on the Hibiscus field. First quarter
production cost (excluding royalties) was 17% lower than the prior
quarter at approximately USD 23 per barrel. The decrease reflected
improved operational efficiency and production.
In March, production started from the DHBSM-1H well in the
Hibiscus South field five months after the initial discovery in
November 2023.
The Company continues the work on resolving the electrical
integrity issues affecting the ESPs. Currently, the DHIBM-6H well
is producing on natural flow. The DHIBM-3H, DHIBM-4H and DHBSM-1H
wells are producing on ESP. The programme of diagnosis, repair and
replacement of the ESPs is well underway.
In May and June, the FPSO BW Adolo will undergo annual scheduled
maintenance, resulting in a planned shutdown for approximately
three weeks.
GOLFINHO
Net production from the Golfinho field averaged 9,030 barrels of
oil per day in the first quarter, amounting to a total production
of 822,500 barrels in the period. One lifting was carried out in
February of 490,000 barrels at a realised price of USD 82 per
barrel. Remaining inventory was approximately 657,900 barrels at
the end of the period. Production cost (excluding royalties)
averaged USD 48 per barrel. This compares with Q4 production costs
of USD 44 per barrel, mainly reflecting lower production.
OTHER ITEMS
During the quarter, the Company extended and increased the
Golfinho prepayment facility to USD 120 million from originally USD
80 million. The facility was fully drawn at the end of the
period.
In April, the Company executed a USD 150 million sale and
leaseback agreement with a Minsheng Financial Leasing Co entity for
the MaBoMo production facility with a ten-year term with an option
to repurchase the unit from the end of year seven. The transaction
has freed up net USD 110 million of liquidity to BW Energy and is
not reflected in the end of period cash position.
BW Energy had a cash balance of approximately USD 150 million on
31 March 2024, compared to USD 194 million on 31 December 2023. The
decrease reflects the net impact from oil sold in the period,
drawdown on the expanded prepayment facility and investments,
primarily related the ongoing Hibiscus Ruche field development. The
Company had a total drawn debt balance of USD 412.8 million as of
31 March 2024 including the Golfinho prepayment facility.
Total production net to BW Energy from Gabon and Brazil for 2024
is projected to be between 10 and 12 million barrels, based on the
current Hibiscus / Ruche development plan and ESP work-over
schedule. Full-year production cost (excluding royalties) is
expected to be USD 30 to 35 per barrel. Net capital expenditures
are expected in the range USD 280 to 330 million. The increase is
directly related to the successful exploration activities and added
reserves in Dussafu.
DEVELOPMENT PLANS
The ongoing Hibiscus / Ruche drilling campaign has the potential
to bring total oil production on the Dussafu licence up to the FPSO
capacity of approximately 40,000 barrels per day gross when all
wells are on-stream.
Drilling of the DRM-3H well in the Ruche field has been
completed with production start pending delivery of a new
conventional ESP (electrical submersible pump). This is expected
during the second quarter. Following completion, the Borr Norve
jackup drilled the DHBSM-2P pilot well, which confirmed that the
Hibiscus South deposit extends into the northern part of the field
with good reservoir quality, increasing reserve estimates.
Preliminary evaluation indicates gross recoverable reserves of 5 to
6 million barrels of oil and approximately 14 million barrels of
oil in place.
In May, the Company made a substantial oil discovery with good
reservoir quality in the DHIBM-7P pilot, appraising the northern
flank of the Hibiscus field. Evaluation of well data confirm
approximately 24 metres of pay in an overall hydrocarbon column of
37 metres and the first example of a common Gamba-Dentale
hydrocarbon accumulation in Hibiscus field. Preliminary evaluation
indicates a notable increase in both the volume of oil in place and
gross recoverable reserves.
The Hibiscus / Ruche Phase 1 drilling campaign has been expanded
to nine wells. In addition to the four Hibiscus wells, one Hibiscus
South well and one Ruche well, drilled to date, the updated plan
includes the second Hibiscus South well, a fifth Hibiscus well and
a Bourdon prospect test well.
In Brazil, BW Energy continued preparations for the two planned
Golfinho infill wells (GLF-51 oil well and GLF-50 gas well) which
are expected to double production in 2027. This included filing of
permitting documents with the environmental regulator IBAMA. Final
Investment Decision (FID) is planned later this
year.
Also in Brazil, the Maromba development plan progressed with
completion of the revised concept expected in the second quarter of
2024. Total oil production from Maromba at peak annual average is
expected between 30-40,000 barrels of oil per day. In April, BW
Energy paid the second and last instalment of USD 20 million for
FPSO Polvo, renamed BW Maromba. The FPSO is at the COSCO yard in
China where it is being prepared for upgrades. The final investment
decision for the Maromba development is subject to completion of
the project financing.
In Namibia, BW Energy is progressing the revised development
plan for the gas-to-power project and analysing data from the 3D
seismic survey completed in May 2023. Interpretation of the initial
data has enhanced the depositional model and de-risked potential
targets with additional prospects identified, and the Company
continued the work on securing long-lead items for a future
exploration program.
REPORTS AND PRESENTATION
Please find the first-quarter earnings presentation attached.
The reports are also available at:
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 Knut R. Sæthre and COO Lin
G. Espey at 14:00 CEST.
You can follow the presentation via webcast with supporting
slides, available on:
Viewer Registration • Q1 2024
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.
For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76
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 Marin 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 and a 95% interest in the Kudu field in
Namibia, all operated by BW Energy. 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
Grafico Azioni BW Energy (TG:6BW)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni BW Energy (TG:6BW)
Storico
Da Gen 2024 a Gen 2025