BW Offshore reported a sequential rise in quarterly EBITDA but reduced its full-year guidance following delays to the BW Opal floating production storage and offloading vessel (FPSO) project. The company’s Q2 2026 EBITDA increased to $63 million from $48 million in Q1, while half-year EBITDA totaled $110 million.
The revised guidance for 2026 now stands at $250-280 million, down from the prior range of $310-340 million. The reduction reflects a delay in the practical completion of the BW Opal FPSO, now expected in Q2 2027 instead of Q4 2026. CEO Marco Beenen attributed the delay to standalone vendor and subcontractor quality issues rather than a fundamental design flaw.
The BW Opal project, operated under a 15-year fixed contract with Santos starting upon completion, is now projected to contribute $265-275 million in annual EBITDA post-completion. The delay has also triggered an incremental investment of approximately $65 million, on top of remaining committed outlays of $120 million through completion. BW Offshore’s shares fell 11.23% to 40.25 NOK ($40.30) following the announcement.
The company’s Q2 net loss widened to $102 million, primarily due to a $125 million non-cash impairment related to BW Opal. Excluding the impairment, underlying net profit stood at $23 million for the quarter and $46 million for the first half of 2026. Quarterly cash dividends of $11 million were declared, equivalent to $0.063 per share, though no top-up is expected in Q4 2026 to meet the minimum annual commitment of $0.25 per share.
BW Offshore maintained a strong liquidity position with $511 million in total available funds, including $203 million in undrawn revolving credit capacity. The company’s net cash position stood at $101 million with zero leverage, while its equity ratio was 28.3%, above the 25% covenant minimum. The operating cash flow backlog remains robust at approximately $2.2 billion, with 97% of revenue firmly contracted.
Other operational updates included production at BW Adolo in Gabon averaging above 26,000 barrels per day and BW Catcher in the UK North Sea delivering about 19,928 barrels per day. BW Offshore also owns 68% of BW Ideol and operates BW Elara as a 50/50 joint venture with BW Group.
Debt maturities remain manageable, with $27 million due in both 2026 and 2027 for the BW Catcher facility and $90 million in NOK bonds maturing in 2028. The company continues to target FPSO awards between 2026 and 2030, with the Bay du Nord project’s FEED phase running through the end of 2026.
