BW Offshore Reports $2.2 Billion Backlog as BW Opal Starts Barossa Operations and Bay du Nord Advances

BW Offshore’s 2025 results reflect the transition from a major construction cycle into a more operations-led phase. Confirmed results include revenue of $509.5 million, EBITDA of $240.1 million, net profit of $134.2 million, operating cash flow of $409.2 million and year-end available liquidity of $635 million. Revenue and EBITDA declined from 2024, but net profit increased and the group ended the year with net cash of $211.8 million, excluding the BW Opal finance liability.

The most important operational change was BW Opal’s move from construction and commissioning into production at Santos’ Barossa development offshore northern Australia. The FPSO left the Singapore shipyard in May and achieved first gas on September 20. It initially earns a commissioning rate equal to 60% of the contractual dayrate. BW Offshore expects practical completion in the second quarter of 2026, which would start the 15-year firm charter period. This remains a future milestone rather than a completed event.

Portfolio changes reduced BW Offshore’s exposure to older owned units while preserving service revenue. BW Pioneer was sold to Murphy Oil for $125 million in March 2025, accompanied by a five-year reimbursable O&M agreement. BW Energy assumed operation of BW Adolo in May, while BW Offshore remained lessor under amended terms that include a mutual $100 million put-call option exercisable in 2028. The company also acquired the former Nganhurra for $15 million and renamed it BW Hurra, positioning the laid-up hull as a potential FPSO redeployment candidate. No redeployment contract has yet been reported.

For new business, BW Offshore signed a Heads of Agreement with Equinor Canada in September as preferred bidder for the Bay du Nord harsh-environment FPSO. Pre-FEED work was completed during 2025, followed by a bridging or pre-engineering phase at the beginning of 2026. The proposed unit would have a disconnectable turret and capacity of 160,000 boe/d. The report does not constitute an FPSO contract award or final investment decision. By contrast, the Repsol Block 29 FEED was completed without advancing to an award, resulting in a $14.5 million impairment of capitalized engineering costs.

The $2.2 billion contracted operating cash flow backlog and rising cash contribution expected from BW Opal give BW Offshore capacity to pursue selective growth. Management continues to target approximately one FPSO project every other year and expects several projects under evaluation to reach FID over the next 12–36 months. This is guidance and market positioning, not evidence that those projects have been sanctioned.

Outside FPSOs, BW Ideol advanced the Buchan and Eolmed floating-wind projects, secured announced grant support for a concrete-foundation fabrication line at Fos-sur-Mer and added Holcim as a minority shareholder. BW Offshore’s ownership in BW Ideol was 68% after the transactions. The new 50:50 BW Elara venture with BW Group is discussing construction of its first floating desalination unit in 2026. These activities indicate diversification and potential future fabrication demand, although they remain small relative to the FPSO business: all 2025 revenue was reported as originating from oil and gas operations and leasing when considered by sector.

The report also discloses that BW Offshore engaged an external adviser in December 2025 for a strategic review following incoming interest in the company. The report does not identify a bidder or confirm a transaction. This should therefore be monitored as an unresolved corporate-development signal.