Annual Report 2021
2
Contents
EDITORIAL
3 CEO's letter
- BW Offshore in brief
- Global footprint
STRATEGY
- A diversified offshore energy company
- Strategic priorities
GOVERNANCE
- Directors' report
- Board of Directors
- Management
- Corporate governance report
- Shareholder information
SUSTAINABILITY REPORT
29 Values
31 Commitment
- Corporate ESG goals
- Objective 1: Safe and secure operations
40 Objective 2: Environmentally conscious operations
47 Objective 3: Being a non-discriminating and fair employer
53 Objective 4: A strong governance framework
- Summary of ESG KPIs
- TCFD report
FINANCIAL STATEMENTS
- Consolidated financial statements
- Parent company financial statements
- Responsibility statement
- Alternative performance measures
- Independent auditor's report
- ADDRESSES
- GRI INDEX
CONTENTS | EDITORIAL STRATEGY GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS
BOE PER DAY | EBITDA 2021 USD MILLION |
540 000 | 401.3 |
EXECUTED PROJECTS | EMPLOYEES |
40 | |
1 849 |
UNITS | OFFICES | |
14 | 15 | |
We engineer offshore production solutions to progress the future of energy
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3 | Editorial | CEO's letter | CONTENTS | EDITORIAL STRATEGY GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS |
CEO's letter
We have just completed a strategically important year where
BW Offshore made significant progress in becoming a diversified offshore energy company. Our strategy is reflected in three clear priorities for long-term value creation. Growing our core floating production business, extracting maximum value from our conventional FPSO fleet, and building a substantial and growing position in offshore renewable energy infrastructure, in particular floating wind.
ATTRACTIVE LONG-TERM RETURNS AND STRONG PARTNERSHIPS
The second transformational milestone to highlight is the 15-year contract with Santos in Australia for the FPSO to the Barossa gas field. The natural gas from the field will, when production starts in 2025, be shipped to utilities in Asia as a cleaner substitute for coal in electricity production.
Barossa represents a new type of infrastructure- like projects for BW Offshore with attractive long-term returns, supported by strong partnerships with equity co-investors and
STRONG TAILWINDS
I am especially pleased with our first substantial step within renewable energy. The acquisition and listing of BW Ideol makes us an early mover in floating offshore wind, a market with vast long- term potential. By combining BW Ideol's unique floater technology and extensive offshore wind capabilities with BW Offshore's four decades of experience from complex offshore floating productionprojects,wearewellpositionedtobenefit from long-term growth and value-generation opportunities created by the global energy transition.
Following BW Ideol's journey this past year has been exciting. The culmination, for now, came in January 2022 with the announcement by BW Ideol and its partners in the Floating Energy Allyance that they have secured the rights to develop a 1GW-capacity floating wind farm off the northeast coast of Scotland in the ScotWind leasing round. The award validates BW Ideol's floater technology and project development capabilities and confirms that we made the right decision when investing in early 2021. BW Offshore stands ready to support BW Ideol and its partners in delivering this substantial project.
banks. The FPSO concept is based on our own RapidFramework® design, leveraging lessons learned from the BW Catcher development, and proves that we can transfer competence from traditional FPSO projects to the construction of large-scale floating production infrastructure.
BW Offshore has always been an innovative company, willing to explore new and better ways to work, and creating purpose and value for our employees, owners, partners and the communities where we operate. We will continue to be a
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4 Editorial | CEO's letter
CONTENTS | EDITORIAL STRATEGY GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS
pioneering organisation guided by our values 'We LEAD with Integrity' in all aspects of our operations.
This also includes taking a step back to evaluate how we maximise the value from our non-core fleet. In April 2021, our FPSO Berge Helene was divested for recycling, in compliance with our internal standard for responsible recycling as well as international standards. In January 2022, we signed an agreement with an Indonesian consortium for the sale of FPSO Joko Tole for further operations under local ownership, and in February 2022, Cidade de São Vicente was sold for recycling, in accordance with the same procedure as for Berge Helene. These transactions follow our strategy to optimise value from the FPSO fleet, while progressing our transition to floating energy infrastructure investments.
FOCUS ON CONTINUOUS IMPROVEMENT
A year ago, I emphasised the importance of strengthening our culture based on the principle of 'Learning from Failure' after we experienced an accident onboard FPSO Espoir Ivoirien, resulting in the loss of two colleagues. During 2021, we have investigated the underlying and systemic issues that may have contributed to the accident. Project Evolve was launched as an extension to this work, with a goal to strengthen the BW Offshore organisation and its capacity to continuously make all efforts to minimise risks and ensure the
safety and security of everyone working for the company. We are committed to 'Zero Harm' as the consistent and transparent outcome of all our operations.
As a company, we have a responsibility to all our stakeholders to have a sound environmental, social, and governance framework to guide our business. We seek to communicate transparently on how we manage risks and capture opportunities in the fast-moving energy transition, through our strategy and our sustainability and governance reporting, as you can read more about in this annual report.
A STRONG FOUNDATION FOR FUTURE
VALUE CREATION
The Covid-19 pandemic continues to affect operations and the market environment. Higher energy prices in 2021 and into 2022 are a sign of improved market fundamentals supported by vaccines and more normalised global activity levels. We, like the rest of the world, still have to handle the pandemic, which includes following public health advice concerning vaccinations, travel restrictions, quarantine protocols for our offshore personnel and other measures such as continued use of home offices.
Despite these challenges, we maintained 95 per cent commercial uptime in 2021 and significantly
progressed strategic initiatives. I recognise the work put in by the entire BW Offshore team to make this possible, and would like to extend my gratitude to every single employee, contractor and business partner, and especially to our very own offshore teams for their dedication through the year.
WE ENGINEER OFFSHORE PRODUCTION SOLUTIONS TO PROGRESS THE FUTURE OF ENERGY
I am proud to lead a company with a clear purpose that sets our course moving forward.
This guides our strategy and the opportunities we pursue to grow within offshore energy infrastructure and low-carbon solutions, in order to generate sustainable and growing returns to all our stakeholders over time.
Marco Beenen
CEO
"
BW Offshore has always been an innovative company, willing to explore new and better ways to work, and creating purpose and value for our employees, owners, partners and the communities where we operate.
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5 Editorial | BW Offshore in brief
BW Offshore in brief
BW Offshore engineers innovative floating production solutions, and has nine FPSOs in operation. By leveraging four decades of offshore operations and project execution, the Company creates tailored energy solutions for evolving markets worldwide.
The BW Offshore team delivers with a combined engineering and operating mindset when designing new FPSOs, preparing redeployments and exploring new opportunities. The Company fosters a culture where people grow and thrive.
BW Offshore has around 2 000 employees and is publicly listed on the Oslo Stock Exchange.
Read about BW Offshore's history on the Company's website.
CONTENTS | EDITORIAL STRATEGY GOVERNANCE SUSTAINABILITY REPORT FINANCIAL STATEMENTS
KEY EVENTS
- Signed USD 4.6 billion, 15-year firm FPSO Services contract for the Barossa project with Santos.
- Successfully completed Floating Wind subsidiary BW Ideol private placement and listing on Euronext Growth.
- One-yearcontract extensions for Sendje Berge and ABO FPSO.
- Recycling of Berge Helene in compliance with Hong Kong International Convention.
- Total FPSO contract backlog of USD 7.7 billion.
- Quarterly dividend payments, totaling USD 25 million annually.
- USD 66 million in gross proceeds from block sale of shares in BW Energy in October.
KEY FIGURES
Commercial uptime | 95.0% | |
LTI | Per million hours | 0.78 |
Operating revenues | USD million | 829.3 |
EBITDA | USD million | 401.3 |
EBIT | USD million | 42.0 |
Operating cash flow | USD million | 510.2 |
Net profit | USD million | 62.2 |
Total assets | USD million | 3 009.7 |
Total equity | USD million | 1 021.4 |
Equity ratio | 33.9% | |
Market cap | USD million | 547 |
Enterprise value | USD million | 1 409 |
Daily export | BOE per day | 540 000 |
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BW Offshore Limited published this content on 26 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2022 11:31:04 UTC.