BW Offshore’s shares dropped 11.1% to 40.35 Norwegian kroner in early Monday trading after the company slashed its full-year 2026 EBITDA guidance and booked a $125 million non-cash impairment on its BW Opal project.
The Oslo-listed firm revised its 2026 EBITDA outlook to a range of $250 million to $280 million, down from a prior forecast of $310 million to $340 million. The adjustment reflects a $40 million reduction in non-cash amortization of prepayments and a $10 million net cash impact for 2026, the company said. Second-quarter EBITDA totaled $62.5 million, while first-half EBITDA reached $110.4 million.
BW Offshore reported a net loss of $102.1 million in the second quarter and $78.7 million for the first half of the year. Excluding the $125 million impairment charge tied to the BW Opal project, underlying net profit stood at $46.6 million for the first six months. Operating cash flow was $41.5 million in the quarter and $84.8 million for the half-year. The company maintained a 28.3% equity ratio and $511 million in available liquidity, while declaring a quarterly cash dividend of $0.063 per share, equivalent to roughly $11 million.
The BW Opal project, currently operating at 85% of nameplate capacity under an interim volume-based contract, has faced delays pushing practical completion to the second quarter of 2027. Technical issues with third-party equipment, identified after a June 15 interim performance test, prompted the setback. Remediation will involve replacing membranes—subject to long lead times—scheduled for the first quarter of 2027 to minimize production disruption. The company expects to incur approximately $65 million in incremental investment ahead of practical completion, though it anticipates this will be largely offset by additional revenue generated before the firm contract begins.
Elsewhere, BW Offshore extended its BW Catcher contract to the end of 2030, adding roughly $490 million to its firm backlog. The company also signed a Front-End Engineering Design (FEED) agreement with Equinor for the Bay du Nord Floating Production Storage and Offloading (FPSO) project and opened a local office in St. John’s, Newfoundland.
