- BW Opal in stable production with Practical Completion moved to Q2 2027
- EBITDA $62.5 million in Q2 and $110.4 million for the first half-year
- Non-cash impairment charge of $125 million on BW Opal; net loss of $102.1 million in Q2 and loss of $78.7 million for the first half-year
- Underlying net profit of $46.6 million for the first half-year, excluding the non-cash impairment
- Operating cash flow of $41.5 million in Q2 and $84.8 million for the first half-year
- Extended BW Catcher contract to end-2030, adding approximately $490 million to firm backlog
- Signed front-end engineering and design (FEED) with Equinor for Bay du Nord floating production, storage, and offloading (FPSO) vessel and opened local office in St. John’s
- Equity ratio 28.3% and $511 million in available liquidity
- Q2 cash dividend $0.063 per share, equivalent to $11 million
- Full-year 2026 EBITDA guidance revised to $250–280 million with limited cash flow impact
- Strategic review ongoing—timeline impacted by extended Practical Completion for BW Opal
BW Opal is currently producing at 85% of nameplate capacity, delivering revenues in line with production. On June 15, BW Opal achieved the Interim Performance Test (IPT), confirming that key production, processing, and utility systems operate in an integrated manner and deliver stable performance under production conditions. As production increased, certain technical issues tied to third-party delivered equipment have been identified and need to be resolved before Practical Completion. Due to long lead times for membranes and to keep production impact to a minimum in close coordination with the client, replacements are expected to be executed in the first quarter of 2027.
As a result, BW Offshore expects to incur approximately $65 million of incremental investment until Practical Completion, largely offset by additional revenue generated before commencement of the firm contract.
A non-cash impairment charge of $125 million was recognized on BW Opal, after moving Practical Completion to the second quarter of 2027. The impairment has no impact on liquidity and contract backlog. The 15-year fixed-term contract will commence on Practical Completion. The impairment charge is triggered due to additional cost to complete as well as additional borrowing cost to be capitalized until completion of BW Opal. The extended timeline to realize Practical Completion was identified, analyzed, and concluded by management in August 2026.
“BW Offshore has full focus on maintaining stable production from BW Opal in close collaboration with the client,” said Marco Beenen, CEO of BW Offshore. “Elsewhere, we have high activity on the Bay du Nord project, executing the extensive FEED in preparation for contract award by Equinor early next year.”
With Practical Completion for BW Opal being moved into 2027, full-year EBITDA guidance has been revised to a range of $250 to $280 million, from the previous range of $310 to $340 million. The underlying cash flow impact in 2026 is limited as BW Opal continues to generate revenue under the interim volume-based contract, while the majority of the additional investment falls into 2027. Of the revision, approximately $40 million relates to amortization of prepayments with no cash effect, limiting the net cash impact in 2026 to approximately $10 million.
The Board of Directors has declared a quarterly cash dividend of $0.063 per share. The shares will trade ex-dividend from August 27, 2026. Shareholders recorded in VPS following the close of trading on Oslo Børs on August 28, 2026, will be entitled to the distribution payable on or around September 7, 2026. The Company reiterates its commitment to maintaining an attractive shareholder return program.
In early June, BW Offshore opened a local office in St. John’s, Newfoundland and Labrador, to strengthen its local presence during the FEED phase and in preparation for the operating phase for the Bay du Nord FPSO project.
BW Offshore announced a strategic review on December 5, 2025. The strategic review is ongoing with interested parties conducting due diligence, but the timeline is impacted by the revised Practical Completion of BW Opal. The Company’s main strategic focus of growing the FPSO business supported by an optimized capital structure and strong partnerships remains unchanged.
On June 30, 2026, the firm and probable backlog measured by expected cash flow from operations amounted to $2.2 billion, of which 97% is firm backlog.
