Bw Energy Announce Fourth Quarter and Full Year Results 2022
EBITDA for the fourth quarter of 2022 was USD 21.8 million, down from USD 61.5 million in the third quarter of 2022, mainly due to a decrease in the realised oil price. One lifting to BW Energy is scheduled in the first quarter of 2023. The drilling campaign at the Hibiscus field commenced at the start of 2023 and is progressing in line with the schedule for first oil from the Hibiscus / Ruche development towards the end of the first quarter of 2023.
“We continue to progress multiple strategic initiatives for long-term value creation through phased development of proven resources and repurposing of existing energy infrastructure. This is reflected in the fast-track Hibiscus / Ruche development which is set to yield a material increase in oil production and a step change in our cash generation as we successively start to add new producing wells. We are also moving towards completion of the acquisitions of the Golfinho and Camarupim Clusters in Brazil, which will add further production and access to low-risk development opportunities,” said Carl K. Arnet, the CEO of BW Energy.
BW Energy completed one lifting in the fourth quarter and realised a price of USD 73 per barrel. BW Energy’s share of gross production was approximately 649,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 745,000 barrels including 65,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of 76,000 barrels at the end of the period.
Gross production from the Tortue field averaged approximately 9,600 barrels of oil per day in the fourth quarter of 2022, amounting to a total gross production of approximately 883,000 barrels of oil for the period. The decrease in production compared to the third quarter of 2022 was mainly due to planned field development and modification activities. Fourth quarter production cost (excluding royalties) was approximately USD 40 per barrel due to the lower production.
Full-year 2022 production averaged approximately 10,600 barrels of oil per day (gross), or approximately 3.9 million barrels of oil. Full-year EBITDA was USD 154.2 million. Average production cost for the year 2022 was USD 36 per barrel.
BW Energy had a cash balance of USD 210.8 million on 31 December 2022, compared to USD 186 million at 30 September 2022. The increase is due to the payment received for the December lifting and a drawdown on BW Energy’s reserves-based lending (RBL) facility, offset by continued investments in the Hibiscus / Ruche development project.
Total Dussafu production for 2023 is projected to be between 8 to 10 million barrels gross, based on first oil from the Hibiscus / Ruche development late in the first quarter. Full-year production cost (excluding royalties) is expected to be USD 20 to 25 per barrel.
HIGHLIGHTS
• Q4 EBITDA of USD 21.8 million and net loss of USD 8.0 million
• Q4 gross production of 883,000 barrels with 649,000 million net to BW Energy
• Completed one lifting of 680,000 barrels (net BWE) at a price of USD ~73 per barrel
• Maintained a strong balance sheet with cash position of USD 210.8 million
• Hibiscus / Ruche development on track for first oil in late Q1 2023 following start of drilling operations and completion of subsea activities in early January
• Planned first oil from Maromba revised to H2 2026
• Full-year EBITDA of USD 154.2 million and net profit of USD 45 million
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