Fourth quarter and full year results 2025

HIGHLIGHTS

• Q4 EBITDA USD 47.8 million and operating cashflow of USD 107.7 million
• 2025 EBITDA USD 240.1 million and operating cashflow of USD 409.2 million
• Equity ratio 30.2% and USD 634.5 million in available liquidity at year-end 2025
• Q4 dividend USD 0.18 per share equivalent to USD 33.2 million
• 2025 dividend USD 67.0 million, fifth consecutive year of increased shareholder distribution
• BW Opal commissioning progressing, targeting 100% production within Q2 2026
• BW Opal transitioning to volume-based rate from mid-March, practical completion expected in Q2 2026
• Limited strategic review ongoing
• Full-year 2026 EBITDA guidance in the range of USD 340-370 million
  
  

Commissioning and production ramp-up for BW Opal FPSO continued with BW Offshore receiving a commissioning rate equal to 60% of the contractual dayrate. Commissioning was extended in the fourth quarter by two connection failures on the utilities and firewater seawater piping systems and a campaign to strengthen similar connections across the FPSO. In early 2026, compressor dry-gas seal replacements have impacted production regularity. BW Opal is targeting to reach 100% production capacity within the second quarter of 2026. BW Offshore will transition to a production volume-based dayrate in mid-March, with revenue recognition commencing at that time. Formal practical completion and commencement of the 15-year fixed contract is also expected in the second quarter.

The Board of Directors has declared a quarterly cash dividend of USD 0.18 per share. The shares will trade ex-dividend from 4 March 2026. Shareholders recorded in VPS following the close of trading on Oslo Børs on 5 March 2026, will be entitled to the distribution, payable on or around 13 March 2026. The total dividend for 2025 amounts to USD 67.0 million (USD 0.37 per share) equal to 50% of net income for the year. This is an increase of 12% compared to 2024.

"In 2025, BW Offshore achieved key operational and strategic milestones with first gas from BW Opal, high commercial uptime from the fleet and strong cash flow generation. We also delivered a dividend equal to 50% of net income marking the fifth consecutive year of increased shareholder distributions,” said Marco Beenen, CEO of BW Offshore. “With BW Opal ramping up production, we expect EBITDA growth in 2026. We continue to advance the prestigious Bay du Nord FPSO project with Equinor and with BW Elara we progress growth opportunities within floating transition solutions.”

For 2026, BW Offshore expects to report EBITDA in the range of USD 340-370 million. The outlook reflects firm backlog for BW Adolo and BW Catcher and expected revenue recognition from BW Opal following the transition to volume-based rate from mid-March.

On 5 December 2025, BW Offshore announced the engagement of an external adviser to assist in a strategic review. The process is a response to incoming interest for the Company considering the strong FPSO market. The Company’s main strategic focus of growing the FPSO business supported by an optimised capital structure and strong partnerships remains unchanged.

FINANCIALS
EBITDA for the fourth quarter of 2025 was USD 47.8 million (USD 43.9 million in Q3 2025), reflecting strong operational performance from the fleet. EBIT for the fourth quarter was USD 27.5 million (USD 22.5 million).

Net financial items were negative at USD 0.5 million (positive USD 6.7 million).

Loss from equity-accounted investments was USD 1.9 million (loss of USD 3.6 million), including a valuation adjustment on the Barossa finance receivable related to changes in timing of future cash flows.

Tax expense was USD 1.0 million (USD 2.3 million).

Net profit for the fourth quarter was USD 24.1 million (USD 23.3 million).

On 31 December 2025, total equity was USD 1 293.0 million (USD 1 273.9 million), and the equity ratio was 30.2% (30.5%).

As a result of strong cash generation from the fleet and asset sales in recent quarters, the Company was net cash positive by USD 211.8 million (USD 186.6 million) as of 31 December 2025.

Available liquidity was USD 634.5 million, excluding consolidated cash from BW Ideol and including USD 220 million available under the undrawn revolving credit facility.

FPSO OPERATIONS
The FPSO fleet continued to deliver stable operations in the quarter with a weighted average fleet uptime of 100% (98.7% in Q3 2025).

On 31 December 2025, the firm and probable backlog measured by expected cashflow from operations amounted to USD 2.2 billion (USD 2.1 billion).

FPSO PROJECTS
BW Offshore continued to progress all technical and commercial discussions on schedule for the Bay du Nord FPSO under the Heads of Agreement signed with Equinor in September. The pre-FEED and bridging phases have been completed, and the FEED is planned to commence in the first half of 2026, subject to final agreements with Equinor. The process for ordering major long-lead equipment packages is underway and the Company expects to open a local office in St. John’s, Canada, during the first half of 2026.

FLOATING TRANSITION SOLUTIONS
BW Offshore now holds 68% of BW Ideol following a strategic partnership with Holcim in December. This transaction, which includes a capital increase, funds operations for the upcoming year. Operationally, the three floaters for the 30 MW Eolmed wind pilot project were completed with turbines and are now enroute for connection and commissioning. Additionally, the Fos3F project, for developing a fabrication line for concrete floating foundations, secured combined grants of EUR 127 million from the EU Innovation Fund and the French Government.

The BW Elara joint venture, created by BW Offshore and an affiliate BW Group to design and build Floating Desalination Units (FDUs), progressed towards investment decision for the first unit in 2026. In parallel, there was high commercial activity across target markets. The FDUs will be delivered through a flexible service supply model.

OUTLOOK
BW Offshore expects that the current fleet will continue to generate significant cash flow in the time ahead, supported by the firm contract backlog. Furthermore, growing energy demand continues to drive demand for developing new FPSO projects with long production profiles, low break-even costs and reduced emissions.

Increased project complexity and higher construction costs necessitates financial structures with significant day rate prepayments during the construction period for new lease and operate projects. Alternatively, oil and gas companies may finance and own FPSOs, relying on FPSO specialists for the design, construction and installation scope, combined with operation and maintenance services. BW Offshore is well positioned to offer both solutions.

After an extended period with FPSO project sanctions lagging expectations there is a historically high number of projects at various stages of maturity, reflected in increased FEED and tendering activity. The Company continues to selectively evaluate new projects that meet required return targets, offer contracts with no residual value risk after firm period, and provide a financeable structure with strong national or investment grade counterparties.

BW Offshore expects that a number of the FPSO projects the Company is engaging with will reach a final investment decision over the next 12 to 36 months.

Current market dynamics and the high competence levels required for project execution should enable better risk-reward and improved margins for FPSO companies going forward. Furthermore, BW Offshore is evolving its project execution model focused on strong partnerships for the design, engineering and construction phases and overall strengthened risk management. The same principles are also applied to new business opportunities within floating transition solutions.

Please see the attached the fourth quarter presentation and 2025 Annual Report and Sustainability Statement. The earnings tables are available at:

https://bwoffshore.com/financials

BW Offshore will host a webcast of the financial results 09:00 (CET) today. The presentation will be given by CEO Marco Beenen and CFO Ståle Andreassen.

Webcast information:
You can follow the presentation via webcast with supporting slides and a Q&A module, available on:

BW Offshore Limited – Q4 presentation webcast

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:
Ståle Andreassen, CFO, +47 91 71 86 55
IR@bwoffshore.com or www.bwoffshore.com

About BW Offshore:
BW Offshore engineers innovative floating production solutions. The Company has a fleet of FPSOs and floating wind solutions. By leveraging four decades of offshore operations and project execution, the Company creates tailored offshore energy solutions for evolving markets worldwide. BW Offshore has around 900 employees and is publicly listed on the Oslo stock exchange.

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