Norway: BW Offshore Revenues Drop. Conversion of Two FPSOs Completed

BW Offshore, the world’s second largest Floating Production Storage and Offloading (FPSO) owner and operator, reports an EBITDA of USD 72.8 million in the fourth quarter of 2011 compared to USD 76.7 million in the previous quarter. The decrease resulted mainly from the lower revenues from the OSX project as the project is completed.

BW Offshore reports an EBITDA of USD 311.9 million in 2011 compared to USD 152.3 million in 2010. The increase is mainly due to the consolidation of the Prosafe Production fleet from October 2010 and commencement of dayrates for BW Pioneer from March 2011.

Construction of the FPSOs BW Athena and BW Joko Tole is completed and the units are currently in the final phase of commissioning before sail-away. The EPC project P-63/Papa Terra is under completion in China until planned departure end of Q2 2012.

The FPSO Ningaloo Vision has been sold to Apache in January 2012 for USD 185 million.

The Purchase price allocation (PPA) has been concluded during Q4 2011. An impairment of USD 138.5 million (non-cash) has been recognised in Q4 2011.

The outlook for the energy market in general and BW Offshore’s position in particular remains strong. Based on BW Offshore’s diversification, presence, financial scale and competence, BW Offshore’s aim is to continue to play a significant role in the FPSO market with profitable growth. BW Offshore is currently pursuing several prospective projects.

The ongoing turmoil in the international financial market has not affected BW Offshore’s results nor the number of prospective projects.

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Offshore Energy Today Staff, February 14, 2012