GlobeNewswire by notified

BW Energy: Third Quarter 2022 Results

Share

THIRD QUARTER 2022 RESULTS

HIGHLIGHTS

  • Q3 EBITDA of USD 61.5 million and net profit of USD 33.8 million
  • Q3 gross production of ~960,000 barrels with ~700,000 net to the Company
  • Completed one lifting with ~682,000 barrels sold (net BWE) at a price of USD ~101 per barrel
  • Hibiscus / Ruche development on track for first oil in late Q1 2023
  • Progressing towards closing of Golfinho in Q1 2023, approved as deep-water class A operator by ANP
  • Maintained a strong balance sheet with a cash position of USD 186 million
  • Initial draw-down of USD 100 million made on Reserve Based Lending (RBL) facility

EBITDA for the third quarter of 2022 was USD 61.5 million, up from USD 5.5 million in the second quarter of 2022, primarily due to one lifting to the Company at a price of USD 101 per barrel. A further lifting to the Company is scheduled in December 2022.

"We deliver stable production and solid cash generation from our Dussafu operations. The Hibiscus / Ruche development is progressing to schedule with the BW MaBoMo production facility and the subsea pipeline to the BW Adolo FPSO is already installed. With drilling set to commence in January, we are on track for first oil towards end of the first quarter," said Carl K. Arnet, the CEO of BW Energy.

BW Energy's share of gross production was approximately 700,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 715,000 barrels including 32,500 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of 185,000 barrels at the end of the period.

Gross production from the Tortue field averaged approximately 10,400 barrels of oil per day in the third quarter of 2022, amounting to a total gross production of approximately 960,000 barrels of oil for the period. Production was in line with the previous quarter and remain affected by the continued shortage of gas lifting capacity. The new gas lift compressor arrived in Gabon in late October and is being prepared for mobilisation to the FPSO with planned installation at year-end and start-up in the first quarter of 2023.

Third quarter production cost (excluding royalties) was approximately USD 36 per barrel. Cash balance was USD 186 million at 30 September 2022, compared to USD 123 million at 30 June 2022. The increase is due to the payment received for the August lifting and a drawdown on the Company's reserve-based lending (RBL) facility, partly offset by continued investments in the Hibiscus / Ruche development project. The six-year RBL facility was signed in August with an initial commitment of USD 200 million which can be expanded up to an additional USD 100 million.

At the start of the period, the Company had commodity price hedges for a remaining total volume of one million barrels for 2022 and 2023, of which 37% is for 2022. These were a combination of swaps and zero-cost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised realised crude oil hedge losses in the amount of USD 2.9 million and unrealised gains in the amount of USD 14.9 million for the third quarter.

The Dussafu 2022 total production estimate for 2022 is maintained at approximately 4.0 million barrels gross and full-year production cost (excluding royalties) is expected at approximately USD 35 per barrel.

DEVELOPMENT PLANS

In late September, the BW MaBoMo offshore production facility arrived in Gabon on schedule. The production facility has since been installed on site and preparations are underway for future drilling operations and for the tie-in of the export pipeline to the BW Adolo FPSO and the BW MaBoMo. Twenty kilometres of the subsea pipeline has now been installed, with final connections planned for year-end. Separately, the drilling rig is on schedule to spud the first production well planned in January. This is in line with the plan for first oil from the Hibiscus / Ruche development towards the end of the first quarter of 2023.

The total gross Hibiscus / Ruche Phase 1 development Capex is projected to be approximately USD 440 million, mainly due to first oil shifting into 2023 with certain elements originally considered operating expenses being reclassified as project investments. Capex still remains below the original final investment budget of USD 490 million gross.

In Brazil, Company progressed the Maromba development project following the April decision to proceed with the project and agreement to purchase the FPSO Polvo, which will be upgraded and redeployed to the field.

In Namibia, BW Energy is negotiating heads of terms for the Kudu gas to power project with the local power company. The review of geophysical and well data from previous exploration activities and recently purchased 2D seismic data has confirmed the high potential of the Kudu license. The Company has decided to acquire 3D seismic over the license to further enhance the depositional model, identify potential exploration targets and better data to support FEED work programs and for potential future farm-in discussions.

Also in Brazil, the Company continued to prepare for the acquisition of a 100% operated working interest (WI) in the Golfinho and Camarupim Clusters and 65% WI in the BM-ES-23 block from Petrobras, as well as taking over the FPSO Cidade de Vitoria from Saipem. This includes progressing relevant approvals from the Brazilian authorities, operational preparedness, field development planning and build-up of the local BW Energy organization. The Company was approved as a deep-water class A operator by ANP in November. Both transactions are expected to close in the first quarter of 2023, subject to fulfilment or waiver of conditions precedent. The transactions are expected to add approximately 9,000 barrels of oil per day net to BW Energy as well as several proven low risk in-field development opportunities with short lead times and substantial potential long-term upside.

Please see the attached Q3 presentation. The earnings tables are 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.

Call-in information:

https://event.loopup.com/SelfRegistration/registration.aspx?booking=X0gz34lmgpKnp0w5Uvi5LC3aIjEbzi73koGtRczdcCI=&b=2389e96d-457b-46a8-bebb-fec356d5b031

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

https://events.webcast.no/viewer-registration/ZjC1UOf6/register

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 main assets are 73.5% of the producing Dussafu Marine Permit offshore Gabon and a 95% interest in the Maromba field in Brazil, both operated by the Company. Total net 2P+2C reserves were 240 million barrels at the start of 2022.

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

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Correction: AB Linas Agro Group investors calendar for the 20232.12.2022 08:00:43 CET | Press release

A list of key information disclosure dates in 2023: February 28, 2023Interim half-year unaudited report for FY 2022/2023.March 1, 2023Investor Conference Webinar to introduce unaudited financial and activity results for the half-year of FY 2022/2023.May 31, 2023Interim unaudited report for 9 months of FY 2022/2023.June 1, 2023Investor Conference Webinar to introduce unaudited financial and activity results for 9 months of FY 2022/2023.August 31, 2023Interim unaudited report for 12 months of FY 2022/2023.September 4, 2023Investor Conference Webinar to introduce unaudited financial and activity results for 12 months of FY 2022/2023.Week 40 (Oct 2-6, 2023)Notice on Annual General Meeting of shareholders.Week 43 (Oct 23-27, 2023)Resolutions of the Annual General Meeting of shareholders and Annual audited results for FY 2022/2023.November 30, 2023Interim unaudited report for 3 months of 2023/2024 financial year.December 1, 2023Investor Conference Webinar to introduce unaudited financial and

PRESS RELEASE: NACON UNVEILS THE MG-X PRO MADE FOR iPHONE®2.12.2022 08:00:00 CET | Press release

NACON UNVEILS THE MG-X PRO MADE FOR iPHONE® Lesquin, 2 December 2022 – The premium gaming accessories designer NACON is pleased to announce the launch of its new MG-X Pro Made For iPhone® controller. The officially licensed Xbox MG-X Pro Made For iPhone® cloud-gaming controller is the ideal controller for subscribers to Xbox Game Pass Ultimate™. Like the MG-X Pro for Android, which has won critical acclaim since its release in January 2022, the MG-X Pro Made For iPhone® provides all the classic controls of an Xbox controller for cloud gaming on mobile with Game Pass Ultimate™ and with any compatible game in the Apple Store. The MG-X Pro Made for iPhone® is compatible with a wide range of iPhone® models, from the 6S to the latest, thanks to its adjustable holder and Bluetooth® connectivity. The MG-X Pro Made For iPhone® connects to your iPhone® in mere seconds and lets you play all games available in Xbox Game Pass Ultimate™. The ergonomic handles, asymmetric sticks, bumpers, triggers,

KBC Group: KBC Bank Ireland welcomes decision of Minister for Finance to approve the sale of substantially all of its performing loan assets and liabilities to Bank of Ireland Group2.12.2022 08:00:00 CET | Press release

Press Release Outside trading hours – Regulated information* Brussels, 2 December 2022 (8 a.m. CET, before Brussels stock exchange hours) KBC Bank Ireland welcomes decision of Minister for Finance to approve the sale of substantially all of its performing loan assets and liabilities to Bank of Ireland Group. On the 16th of April 2021, KBC Group announced that KBC Bank Ireland had entered into a Memorandum of Understanding (MoU) with Bank of Ireland Group. On the 22nd of October 2021 KBC Bank Ireland entered into a legally binding agreement with Bank of Ireland Group whereby it would acquire substantially all of KBC Bank Ireland’s performing loan assets and deposits. In addition, a small portfolio of non-performing mortgages (NPEs) will also be acquired as part of the transaction. On the 24th of May 2022 the transaction received approval from the Irish Competition and Consumer Protection Commission (CCPC), and today, 2 December 2022, KBC can confirm that the deal received final approval

Mining sector puts energy into ESG, but lacks focus on gender and diversity2.12.2022 08:00:00 CET | Press release

Demand for greater transparency fuels shift in sustainable approach, finds new survey LONDON, Dec. 02, 2022 (GLOBE NEWSWIRE) -- Energy efficiency has soared up the list of environmental priorities for the mining industry and now features in the top three for most companies, along with air and water pollution and waste management. It’s one of the key findings from a survey of global mining sector decision-makers published today by mining executive search and recruitment consultants, Stratum International, and independent ESG accreditors, Digbee. Tackling climate change and biodiversity loss come lower on the list of environmental, social and governance (ESG) factors for many mining businesses, according to the new report. And there’s a concerning lack of focus on gender and diversity for a sector which needs to change the perception that mining is a male-only environment. The issue is deemed the “least important” social priority for mining companies over the next two years. Will Coetzer

Press Release: Statement from Sanofi regarding: rule 2.12 of the takeover rules2.12.2022 07:55:00 CET | Press release

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.12 OF THE IRISH TAKEOVER PANEL ACT, 1997, TAKEOVER RULES, 2022 (THE "TAKEOVER RULES"). NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. DECEMBER 2, 2022 Statement from Sanofi regarding: rule 2.12 of the takeover rules Paris, December 2, 2022. As required by Rule 2.12 of the Takeover Rules, Sanofi S.A. (“Sanofi”) confirms that any offer for Horizon Therapeutics plc, if made by Sanofi, will be solely in cash. There is no certainty that any offer will be made, nor as to the terms on which any such offer may be made, if forthcoming. About Sanofi We are an innovative global healthcare company, driven by one purpose: we chase the miracles of science to improve people’s lives. Our team, across some 100 countries, is dedicated to transforming the practice of medicine by working to turn the impossible