BW Offshore reported a second quarter net loss of $102.1 million after recognising a $125 million non-cash impairment charge on floating production storage and offloading vessel BW Opal.
The financial hit followed a decision by management in August 2026 to push the vessel's practical completion date to the second quarter of 2027.
Despite the impairment, the company recorded $62.5 million in second quarter earnings before interest, taxes, depreciation, and amortisation, bringing its first-half figure to $110.4 million.
Underlying net profit for the first six months reached $46.6 million when excluding the non-cash charge.
Operating cash flow stood at $41.5 million for the quarter and $84.8 million for the first half of the year. Due to the adjusted timeline for BW Opal, full-year EBITDA guidance was revised down to a range of $250 million to $280 million from an earlier projection of $310 million to $340 million.
BW Offshore explained that the net cash impact in 2026 will remain limited to approximately $10 million, as BW Opal continues generating revenue under an interim contract while producing at 85 per cent capacity.
To address technical issues with third-party equipment, the firm expects to incur approximately $65 million in incremental investment through practical completion.
“BW Offshore has full focus on maintaining stable production from BW Opal in close collaboration with the client,” Chief Executive Officer Marco Beenen said. He added that the firm maintains high activity on the Bay du Nord project while executing front-end engineering and design work in preparation for an expected contract award from Equinor early next year.
In other fleet developments, an extension of the BW Catcher contract through late 2030 added roughly $490 million to the firm backlog. Total firm and probable backlog measured by expected operational cash flow reached $2.2 billion as of June 30.
