BW Offshore is reporting a record high in operating performance during 2019 in its year-end earnings' report.
The Oslo-quoted company said it has achieved its highest ever full-year Ebitda of $710m, compared to $489m in the previous year.
BW Offshore also reported a net profit $106m in 2019, compared to $36.5m in 2018. Revenues in 2019 reached $1.15bn.
The company put its improved results down to a strong fleet performance, with 99% average up time over the last five years, and a strong health, safety and environment record.
The company said the outlook for the offshore market is positive after “several years of under investment”.
BW Offshore said: “The market outlook for offshore field developments, and FPSOs in particular, is favourable. Initially, the company expects increased focus on incremental investments tied to existing infrastructure, with green-field investments following later in the cycle.”
$13m hit
However, the company's fourth quarter earnings were negatively affected by $13m following the bankruptcy of the operator of its FPSO Umuroa (built 2007). The company expects to take further financial impairment of around $20m in 2020 as a result.
“The client has not paid any contractual commitments sine the third quarter of 2019. It is highly uncertain whether any outstanding amount can be uncovered as the client is in receivership,” BW Offshore said.
In February, the outfit successfully raised $125m in an Oslo initial public offering for BW Energy.
Following the listing, BW Offshore has proposed a $25m quarterly cash dividend from the second quarter of 2020. However, Arctic Securities described this figure as “on the soft side”.
The investment bank said that BW Offshore “clearly has the capacity to pay more”.
