BW Offshore pushes BW Opal completion to Q2 2027 and books $125 million impairment

BW Offshore has postponed Practical Completion of BW Opal to the second quarter of 2027 as it works to resolve technical issues associated with third-party equipment. The FPSO is producing at 85% of nameplate capacity, and the company said its Interim Performance Test on June 15 confirmed stable, integrated operation of key production, processing and utility systems.

Replacement membranes are expected to be installed in the first quarter of 2027 because of long lead times and efforts to minimize the effect on production. BW Offshore expects approximately $65 million of incremental investment through Practical Completion, although it said additional revenue earned before the firm contract begins should largely offset that amount. The 15-year fixed-term contract will start when Practical Completion is achieved.

The revised schedule resulted in a $125 million non-cash impairment and contributed to BW Offshore reducing full-year 2026 EBITDA guidance to $250 million-$280 million from $310 million-$340 million. The company reported second-quarter EBITDA of $62.5 million, a net loss of $102.1 million and operating cash flow of $41.5 million. Available liquidity stood at $511 million at the end of the period.

Elsewhere in the portfolio, BW Offshore extended the BW Catcher contract through the end of 2030, adding approximately $490 million to firm backlog. Total firm and probable backlog was $2.2 billion at June 30, with 97% classified as firm.

The company also signed a FEED agreement with Equinor for the Bay du Nord FPSO and opened an office in St. John’s, Newfoundland and Labrador. BW Offshore said it is preparing for a potential contract award by Equinor in early 2027. Its strategic review remains underway, although the revised BW Opal completion schedule has affected the timeline.