BW Offshore tightens quarterly loss

Norway-based FPSO provider BW Offshore narrowed its net loss during the fourth quarter 2016 amid impairments of $223 million. 

Net loss for the fourth quarter 2016 was $114.4 million, a negative movement of $103.2 million compared to the net loss of $11.2 million in the third quarter of 2016. However, the company’s net loss was smaller when compared to the fourth quarter of 2015 and net loss of $234.5 million.

Operating revenues for the quarter amounted to $298.2 million, a decrease compared to $318.8 million in the prior-year quarter. Operating expenses were $133.9 million, compared to $83 million in 4Q 2015.

During the fourth quarter 2016, BW Offshore recorded an impairment loss of $222.6 million. An impairment of $135.5 million was recognized due to damages on FPSO Cidade de São Mateus caused by the fatal accident offshore Brazil in February 2015.

The remaining impairment was charged with $49 million on BW Athena, $19.9 million on FPSO Polvo, $8.7 million on Berge Helene and $9.5 million on Espoir Ivoirien.

Net debt was $1.63 billion at December 31, 2016, compared to $1.639 billion in the year before.

Looking ahead, BW Offshore said the oil and gas markets remain challenging. While the company is experiencing increased market activity, it still expects the number of awards to be low in the medium-term. The FPSO provider concluded that a more positive view on long-term activity levels is maintained as offshore developments will remain an important part of the oil and gas supply to meet future energy demand.

Offshore Energy Today Staff