BW Offshore Q2 profit dips but raises full-year guidance

BW Offshore has reported a "strong" second quarter for 2025, with a net profit of $25 million driven by high operational uptime on its producing assets. The performance has led the floating production storage and offloading (FPSO) operator to raise its full-year profit guidance, despite the quarterly profit being lower than the first three months of the year.

For the three months ending June 30, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) was $57 million, contributing to a first-half EBITDA of $148 million. This resulted in a net profit of $87 million for the first six months of the year.

A key development during the period was the successful hook-up of the FPSO BW Opal at the Barossa gas field, with the unit on track to produce its first gas in the third quarter. Chief Executive Marco Beenen commented, “We deliver a strong quarter on the back of high operational uptime on our producing assets. The BW Opal is set to start producing gas from the Barossa field shortly before ramping-up to start its 15-year contract, providing material earnings and cashflow to BW Offshore and supporting future growth.”

However, the company also noted that a front-end engineering and design (FEED) study for an FPSO for Repsol’s Block 29 was completed without progressing to a contract award, leading to an impairment of the capitalised investment cost.

Looking ahead, the company has increased its full-year 2025 EBITDA guidance to a range of $240 million to $260 million, up from a previous forecast of $220 million to $250 million. The board also declared a quarterly cash dividend of $0.063 per share.