BW Offshore reported second-quarter 2026 EBITDA of $63 million, up from $48 million in the prior quarter and $57 million a year earlier, but cut its full-year guidance to $250–280 million from $310–340 million as the BW Opal project faced delays. The company’s shares fell 11.23% to $40.35 in premarket trading, erasing gains from a 52-week range of $33.90 to $54.
The downward revision reflects an 18% reduction at the midpoint, with approximately $50 million of the cut attributed to the BW Opal schedule change and $10 million to increased tender activity and ADMEX operations. The project’s practical completion has been pushed to the second quarter of 2027 from the fourth quarter of 2026, with a 15-year fixed contract period starting in Q2 2027 and options extending to 2052. An incremental $65 million investment is required, alongside remaining committed investments of roughly $120 million in cash to completion.
BW Opal is currently producing at about 85% of nameplate capacity, having delivered 97–98% of nominated gas volumes in the quarter and loaded its first condensate cargo of roughly 300,000 barrels in July. Technical issues, including membrane replacement work, methanol tank cleaning, and steam system repairs, have caused sequential production reductions of about 50% for a couple of weeks during each campaign. CEO Marco Beenen and CFO Ståle Andreassen noted the impairment stems from vendor-related technical issues identified during commissioning rather than fundamental design flaws, adding that the charge could be reversible under IFRS if project assumptions improve.
The company maintained a quarterly cash dividend of $11.3 million, or $0.063 per share, translating to a yield of approximately 7.59%, and reaffirmed a minimum annual dividend target of $0.25 per share. Underlying net profit, excluding a $125.3 million non-cash impairment charge, was $23 million, stable compared with $23.4 million in the first quarter. Operating revenues rose to $163.1 million from $130.2 million, while operating expenses increased to $100.6 million from $82.3 million.
BW Offshore ended the quarter with $511 million in available liquidity, including $257 million in cash and cash equivalents, $203 million undrawn on its revolving credit facility, and $31.9 million in BW Opal Asset Co. The company reported a net cash position of $101 million (excluding lease liabilities and BW Opal finance liability) and a leverage ratio of 0.0x over the past two years, with an equity ratio of 28.3%, down from 31.4% in the first quarter. Operating cash flow backlog totals approximately $2.2 billion, with 97% under firm contracts and 55% scheduled beyond 2030.
