Agenda Highlights and fleet overview Integration Finance Market Summary 30 November 2010 3
Highlights Q3 2010 EBITDA of USD 79.3 million before results from associates Successful acquisition of Prosafe Production Signed agreement for the sale of the APL division to National Oilwell Varco for USD 500 million in cash…
Global footprint Norway Russia Latvia Cyprus USA China Mexico Bermuda India Philippines Singapore Brazil BW Offshore units BW Offshore offices Recruitment centers 30 November 2010 5
Project status FPSO BW Pioneer for Petrobras Riser and umbilical pull in completed after some weather delay Final hook up of swivel and disconnect system ongoing FPSO P-63 (Papa Terra) for Petrobras - COSCO Dalian, China Structural…
Integration and change processes Integration of Prosafe Production well under way Maintaining excellent operation on all vessels Capturing key employees Implementing best practice from both companies Combined organization will be…
Board and Management Board of Directors Management Dr Helmut Sohmen Carl K. Arnet Chairman CEO Ronny Johan Langeland Knut R. Sthre Vice Chairman CFO Carine Smith Ihenacho Tom A. Kristiansen EVP Business Development & Technology…
New organisational structure TWO MAIN HUBS OSLO SINGAPORE DIVISIONS Business Development and Operations Finance Projects Engineering Technology (Oslo) (Oslo) (Singapore) (Singapore) (Oslo) SUPPORT FUNCTIONS General…
FINANCE
Key takeaways Stable financial and operational performance Good progress on P-63/Papa Terra project revenues booked in accordance with percentage of completion method OSX project started booking of engineering and manager…
Balance sheet Equity ratio 47.9% Net interest bearing debt USD 811.9 million USD million 30.09.10 30.09.09 31.12.09 Total non-current assets 1,791.0 2,069.1 2,134.8 Assets of disposal group held for sale 498.4 0.0 0.0 Total…
Cash forecast Cash at 30 September 2010 USD 76.9 million Operating cash flow of USD 61.2 million in Q3 2010 and USD 217.4 million per 30 September 2010 Growing operational cash flow based on fixed long term contracts with strong…
Refinance status BW Offshore is seeking a refinancing of the companys corporate debt in the bank market Strong interest from existing bank syndicate A complete restructuring will provide predictable terms and flexibility for both…
Increased complexity Sendje Berge (2005) BW Pioneer (2010) Benign water Hurricanes Spread moored Turret moored Simple topside Quick disconnect 140 m water depth Fluid swivel 2,500 m water depth 30 November 2010 22
Future industry challenges Larger and more complex units Stricter environmental requirements - Investment up to USD 1.5 bn Technical challenges Local content requirement - Deeper/less benign - Supplier selection - Logistics…
Project and risk management Commercial Project execution Country Engineering progress Contract conditions Supply chain Quality of work Clients Field development Start-up Solidity Bidding process Cost estimating…
FPSO market significantly stronger Increased activity in all market regions Financial strength and track record increasingly important factors to secure contracts High activity with BW Offshore focusing on project robustness,…
Market opportunities Brazil South East Asia 30-40 opportunities 20-30 opportunities Local content Price Limited technology requirements Size of projects Limited local content issues Technology - important All types of commercial…
BW Offshores market proposition Class leading production uptime - Production uptime five year average uptime is 99.2% 100.0% 99.0% 98.0% Strong project execution capabilities 97.0% 96.0% Track record of more than 30 FPSO 95.0%…
Higher returns for future business Positive market outlook Limited competition Target good return projects Expect improvement in value creation Improved contracts (T&Cs) Lower prices and improved delivery time from suppliers…
SUMMARY
Improved shareholder returns Worlds second largest FPSO player Excellent operational results Strong operating cash flow from solid counterparties supports dividends Diversified and solid client base with operations in all key…
Units on contract in operation Sendje Berge, FPSO Sinopec, Nigeria 60,000 bpd oil processing 55 mmscfd gas compression 2,000,000 bbls storage Spread mooring Yum KakNab, FPSO Pemex, Mexico 600,000 bpd oil handling 200,000…
Units on contract in operation Belokamenka, FSO Sovkomflot, Russia 2,400,000 bbls storage Cargo heating system Spread mooring BW Pioneer, FPSO Petrobras, US 80,000 bpd oil processing 25.6 mmscfd gas export 600,000 bbls…
Units on contract in operation Ningaloo Vision, FPSO Apache, Australia 63,000 bpd oil processing 80 mmscfd gas compression 620,000 bbls storage Disconnectable turret Espoir Ivorien, FPSO CNR, Ivory Coast 40,000 bpd oil…
Units on contract in operation Umuroa, FPSO AWE, New Zealand 50,000 bpd oil processing 25 mmscfd gas compression 775,000 bbls storage Turret mooring Abo, FPSO Agip, Nigeria 44,000 bpd oil processing 44 mmscfd gas…
Units on contract in operation Azurite, FDPSO Murphy, Congo 40,000 bpd oil processing 18 mmscfd gas compression 1,400,000 bbls storage Spread mooring Cidade de So Mateus, FPSO Petrobras, Brazil 35,000 bpd oil processing 353…
Units on contract in operation Madura Jaya FSO Kodeco, Indonesia 630,000 bbls storage 30 November 2010 40
Units on contract - project OSX-1, FPSO OSX, Brazil 42,000 bpd liquid processing 40,000 bpd oil processing 60,000 pbd water injection 53 mmscfd gas compression 950,000 bbls storage Turret mooring BW Jayengrono (TSB), FPSO…
Units on contract - project P-63 (Papa Terra), FPSO Petrobras, Brazil 2,200,000 bbls storage capacity Ex BW Nisa (ULCC) 30 November 2010 42
Conversion candidates BW Ara ULCC 2,000,000 bbls storage capacity Takama VLCC 1,900,000 bbls storage capacity 30 November 2010 43
Further information: www.bwoffshore.com IR contact: Kristian Flaten, VP Finance & IR kristian.flatenbwoffshore.com 30 November 2010 44
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