BW Group's offshore company reports a rise in revenue for the third quarter, according to preliminary numbers from the company. This happens while its FPSO fleet uptime stands at nearly at 100 percent.
Both the top and bottom line grew for offshore company BW Offshore in 2018. The shipping company sees signs of an improved market, in which a higher oil price is expected to result in extended contracts for ships.
BW Offshore is betting hard to bag a new major contract for one of the shipping company's FPSO vessels next year. The overall trend is positive, but there are still significant fluctuations in offshore, CFO Knut R. Sæthre tells ShippingWatch.
The offshore carrier improved its top and bottom line in the first months of the year, helped by a new vessel which began contributing to earnings. The company projects several new projects in the coming years.
BW Offshore had a profitable 2017, producing first oil on a prestige project late in the year. The company has kicked off 2018 on a more solid platform and can benefit from a stronger market, says CEO.
The BW Group's listed offshore carrier BW Offshore logged a net profit of USD 5.2 million and finally closed a quarter without a deficit for the first time since the second quarter 2015, shows the latest report.
BW Offshore, which operates a fleet of FPSO vessels, has now closed the deal to purchase 66.66 percent of an oil field in Gabon. The company is already negotiating to increase this stake with another 25 percent.
The operating result for the full-year 2016 declined at BW Offshore. The setback was mainly due to losses and expenses related to the wrecked FPSO vessel Cidade de São Mateus. On the other hand, the insurance money from that accident compensates for some of the decline.
Norwegian offshore carrier BW Offshore has, following protracted negotiations, reached agreement concerning its insurance arrangements for FPSO Cidade de São Mateus. The vessel was involved in an accident two years ago in which nine people were killed.
Norway's BW Offshore suffered setbacks across the board in the third quarter where oil and gas markets are still being kept down by a low oil price. The company has also announced a reverse share split to ensure its place on the Oslo Stock Exchange.
BW Offshore's revenue and earnings have dropped significantly in the past year. The market is challenged, and so are the customers, notes the company, which has secured padding through a large financing agreement earlier this year.