Edition:
United Kingdom

BW Offshore Q4 EBITDA lags forecast


Tuesday, 19 Feb 2019 

Feb 19 (Reuters) - BW Offshore Ltd ::Q4 EBITDA $148.9 MILLION (REUTERS POLL $166 MILLION).Q4 NET PRODUCTION FROM TORTUE WAS CLOSE TO 1 MILLION BBLS.LOOKING AHEAD, START OF PHASE 2 OF TORTUE DEVELOPMENT WILL BE A PRIORITY TOGETHER WITH RELENTLESS FOCUS ON SAFE AND EFFECTIVE OPERATIONS ACROSS ALL OUR ASSETS AND ACTIVITIES.FIRST LIFTING FROM TORTUE COMPLETED DECEMBER 2018 - 550 THOUSAND BBLS GROSS.NSAI CONFIRMED REMAINING TORTUE P2 GROSS RESERVES - 35.1 MILLION BBLS OF OIL.BW CATCHER OPERATED CONSISTENTLY ABOVE NAMEPLATE CAPACITY AND AN AGREEMENT FOR EXCESS PRODUCTION ABOVE NAMEPLATE CAPACITY WAS AGREED WITH CLIENT EFFECTIVE FROM 1 NOVEMBER.THE GLOBAL BALANCE OF CRUDE OIL SUPPLY AND DEMAND HAS TIGHTENED, WHICH COMBINED WITH LOWER BREAK-EVEN COSTS FROM INCREASED EFFICIENCIES AND SIGNIFICANT REPRICING OF OIL EXPLORATION ASSETS, IS EXPECTED TO LEAD TO MORE PROJECTS SANCTIONED GOING FORWARD. T.Q4 NET RESULT $10.3 MILLION (REUTERS POLL $39.8 MILLION).THE MARKET OUTLOOK FOR OFFSHORE FIELD DEVELOPMENTS AND FPSOS IN PARTICULAR IS FAVOURABLE..EXPECTS INCREASED FOCUS ON INCREMENTAL INVESTMENTS TIED TO EXISTING INFRASTRUCTURE, WITH GREEN-FIELD INVESTMENTS FOLLOWING LATER IN THE CYCLE.2019 PRODUCTION GUIDANCE RANGE OF 3.5 TO 3.9 MILLION BBLS (GROSS).2P RESERVES INCREASED WITH MORE THAN 50% IN 2018.INTERNAL TORTUE RESERVE ESTIMATE INCREASED TO 40 MILLION BBLS (2P GROSS).RESTRAINED APPROACH TO NEW FPSO INVESTMENTS DUE TO MARKET PREVAILING TERMS.