BW Energy: Fourth Quarter Results 2024
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
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
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.
- BWE Q4 2024
- BWE earnings tables Q4 2024
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