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This article first appeared on GuruFocus.

Release Date: November 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• BW Offshore Ltd (BWOFY) successfully commenced operations with its new flagship, BW Opal, marking the end of the construction phase and the start of cash flow recognition.

• The company signed a heads of agreement with Ecuador for the Bay du Nord FPSO project, progressing towards engineering start in early 2026.

• A joint venture with BW Group was established to design and build floating desalination units, expanding into a new business segment.

• BW Offshore Ltd (BWOFY) reported strong safety performance with zero recordable incidents during the quarter.

• The company maintained a strong financial position with a net cash position of $187 million and a comfortable equity ratio of 30.5%.

• The commercial uptime of the fleet was slightly below 99% due to scheduled maintenance, impacting overall performance.

• The practical completion of BW Opal has been delayed to the first quarter of 2026, affecting revenue recognition timing.

• The company’s bondholders did not agree to proposed covenant amendments, maintaining existing restrictions until maturity in 2028.

• BW Offshore Ltd (BWOFY) faces challenges in the FPSO market with larger and more complex developments requiring revised risk management approaches.

• The company does not provide specific guidance on net profit for the fourth quarter, creating uncertainty for investors.

Q: Could you update on the VHra and clarify if BW Offshore has purchased it and the opportunities being pursued for that unit? A: Yes, we have renamed the unit and completed the transaction as announced earlier. This unit is now available for redeployment, providing us with a competitive position for smaller projects based on tanker conversions. We see about three prospects where we can apply this solution. – Marco Beenen, CEO

Q: What do you make of the Namibia opportunity, and how does it fit your harsh environment criteria? A: We are closely monitoring the Namibia development but are not bidding on the Venus project as there are already three companies actively working on it. We see potential in the Namibian market, especially for early production units based on redeployments. – Marco Beenen, CEO

Q: Should we expect any CapEx related to BW Opel in the fourth quarter, and how should we think about maintenance CapEx for the current fleet going forward? A: There will be some CapEx in Q4 related to closing out contracts, estimated at $30-40 million gross. For the current fleet, our contracts are reimbursable, meaning clients reimburse us for maintenance, so we do not forecast additional regular CapEx. – Stolla Andreasen, CFO