BW Offshore’s shares declined more than 11% in early trading after the company cut its full-year 2026 EBITDA guidance, citing delays to the BW Opal project. The Norwegian oil services provider now expects EBITDA in the range of $250 million to $280 million, down from a previous forecast of $310 million to $340 million.
The revision follows a $125 million non-cash impairment charge on BW Opal and technical issues identified during a June 15 interim performance test. The project, currently operating at 85% of nameplate capacity under an interim volume-based contract, has had its practical completion date pushed to the second quarter of 2027. Replacement of membranes, delayed due to long lead times, is now scheduled for the first quarter of 2027.
For the first half of 2026, BW Offshore reported a net loss of $78.7 million, though underlying net profit excluding the impairment charge was $46.6 million. Operating cash flow totaled $84.8 million in the period, with available liquidity standing at $511 million and an equity ratio of 28.3%. The company declared a quarterly cash dividend of $0.063 per share, equivalent to approximately $11 million.
Elsewhere, BW Offshore extended its BW Catcher contract to the end of 2030, adding about $490 million to its firm backlog. The company also signed a front-end engineering and design (FEED) agreement with Equinor for the Bay du Nord FPSO project and opened a local office in St. John’s in preparation for a contract award expected early next year.
CEO Marco Beenen said the company remains focused on maintaining stable production from BW Opal in collaboration with the client, while high activity continues on the Bay du Nord project ahead of the anticipated contract award.
