Good morning, everyone. Welcome to the first quarter trading update of BW Offshore.

My name is Marco Beenen, and together with Ståle Andreassen, our CFO, I will run you through the presentation in this call. Please note our disclaimer.

Starting with the highlights, we delivered a stable first quarter EBITDA of $48 million and a net profit of $23 million. We reached an agreement to extend the BW Catcher contract through 2030, and that increased our firm backlog.

We signed the FEED contracts with Equinor for the Bay du Nord FPSO, targeting a final investment decision in 2027. We continue our predictable shareholder distribution program with a maximum payout under our governance.

Based on that, this quarter we will pay a cash dividend of $11 million or 6.3 cents per share. We adjusted the full-year guidance reflecting the Catcher contract and technical downtime on BW Opal, and Ståle will come back to both in more detail.

On the strategic review, as communicated in December, we engaged an external advisor in response to the incoming interest against a backdrop of strong FPSO market fundamentals and a significant rerating in the sector. This process is active and progressing.

Our board and management are fully engaged, and we will provide a more substantive update when the process reaches a conclusion, but not before. What I can confirm is that our operational priorities and capital allocation framework are unchanged.

We're not in a holding pattern waiting for an outcome. Then moving on with the operational update, starting with BW Opal.

On Opal, we completed the replacement of all export compressor seals in March, and there is only one flash gas compressor seal remaining, which is due to be replaced this month. Gas production recommenced in May after a temporary shutdown in March and April, and that was to clean the heat exchangers in the dew point train.

The root cause analysis for the heat exchanger fouling has been completed and is currently under joint review with Santos, and that includes the determination of the source of the substance that has caused the fouling. We expect to gradually increase now the production towards practical completion, which is expected end of June or early July.

Then I move on to BW Catcher. As I mentioned, we are very pleased with this new contract that we have concluded with Harbour Energy, and this contract will now take effect in 1st of February '26 and then runs until 2030, plus or minus 6 months.

This is about a 5-year extension, and it adds approximately $490 million of firm operating cash flow to our backlog. An important element of this agreement is that the previous unilateral rolling 12-month extensions have been removed, and this now provides clarity around the contact end date, and it allows us to market the unit early for new projects thereafter.

The updated terms include a 10% discount to the previous dayrate, and for more information regarding the new terms, I refer to the appendix slides of this presentation. Then I move on with HSE and also fleet performance.

We focus on maintaining a strong safety record, and we're pleased that this quarter there were zero incidents to report. The trend upwards that you see is caused by reduced man-hours, as BW Opal is now in a commissioning phase and no new construction projects have started yet.

The fleet delivered 100% commercial uptime in the quarter, but this excludes BW Opal as we're still in the commissioning phase and the contract term hasn't started. Then an update on our backlog.

As mentioned, the BW Catcher contract extension significantly increases our firm operating cash flow. At the end of the first quarter, it stands now at $2.3 billion, of which 97% is firm, and that, in comparison, at year-end last year, the firm portion of the backlog was 77%.

BW Adolo production was a bit above 26,000 barrels per day, slightly down versus the last quarter of last year, and that is due to well workover to replace an electrical submersible pump and also natural depletion. Furthermore, BW Energy has secured a 25-year field extension of the Dussafu field.

Then Catcher, already discussed, and she delivered commercial uptime above 100%. On Pioneer, we continue to provide O&M services under a 5-year contract, and with Murphy Oil now confirming the drilling of the Chinook field in the second half of this year, we expect production to increase for the remaining part of the contract, and that benefits the management fee structure.

As expected, we signed the FEED contract with Equinor for the Bay du Nord FPSO, and this FEED is expected to run through 2026. That includes further maturing the FPSO design, finalization of the execution plan, and commercial alignment with Equinor as well as our selected subcontractors and vendors.

Final investment decision and contract award is then expected in early '27. We have now also opened a new office in St.

John's, and that is to strengthen the relationship with the local supplier base in preparation of our pre-operations and subsequent O&M services. With that, I hand over to Ståle, who will take you through the financials.

Thank you, Marco. As usual, I'll cover kind of three elements, which is the financial performance and the guidance, then we'll look at the cash generation and the capital allocation, and lastly, the balance sheet.

We'll start with the EBITDA performance and guidance. First quarter EBITDA, as Marco said, was 47.9 million, and essentially stable quarter-on-quarter.

This is a result of strong and high commercial uptime from the core existing fleet, however, offset by limited contribution from FPSO Opal during the temporary shutdown that we saw in March and April. Moving on to the guidance, we've had to revise our 2026 EBITDA outlook to between $310 to $340 million.

The reduction is driven by two identifiable factors: the temporary shutdown for Opal, as the timing there, and the amended terms for the new contract on BW Catcher with a 10% discount. Roughly 2/3 of the reduction relates to Opal, and 1/3 relates to Catcher.

More importantly, the underlying cash generation visibility remains very solid with these two units. This is driven by the long-term value drivers, the 15-year contract to commence for BW Opal, and also now Catcher adding approximately 5 years of firm backlog.

The income statement shows a very stable quarter. Operating revenues were just over $130 million, and EBITDA, as mentioned earlier, 47.9 million.

Depreciations was broadly stable, and we delivered an EBIT of 27.5 million in the quarter, again aligned with previous quarter. Net profit was a solid 23.4 million, corresponding to an earnings per share of 13 cents in dollar terms.

The quarter itself was therefore resilient despite the limited contribution from Opal. Cash flow, of course, remaining an important part of the investment case overall, this quarter we generated $43 million of operating cash flow now in Q1, which is a reduction quarter-on-quarter, mainly driven by the impact from Opal, or the lack of contribution compared to expectations in Q1.

We continued to incur some capex related to that unit due to the ongoing commissioning work and repair work offshore. About 20 out of 29 million this quarter is related to Opal.

The rest is funding for our project, Elara, together with BW Group, and some capex undertaken by BW Ideol. The reduction in cash also reflects $33 million of Q4-announced dividend payment, which was paid in Q1, where we topped up the 2025 distribution to reach 50% of net profit.

If you take into account that, as well as other recurring items, debt servicing and interest, cash net to BW Offshore was 329 million at end of Q1, and very substantial, I would say. We retain a net consolidated cash position of $167 million per end of Q1, and an equity ratio of 30% sharp.

This gives us flexibility at an important part in the cycle. BW Opal is moving towards practical completion, Catcher, as Marco has said, has now been extended through 2030, and Bay du Nord is in FEED, now progressing towards FID early 2027.

I want to mention we continued to present net debt and leverage excluding BW Opal project debt, and that is because the unit has not reached practical completion and is not yet contributing steady-state EBITDA. Once that is achieved, we will move to a leverage presentation view including both debt related to that unit and EBITDA, giving investors a complete picture.

Nevertheless, the key message is in any case that leverage remains relatively low and very well managed, and financial flexibility in the company is good. At quarter-end, available liquidity stood at $568 million, which again includes an RCF, which is completely undrawn.

All-in cost of our debt remains at an attractive 4.9%, and again, I want to remind you that all our floating-rate debt is fully hedged. The board has declared a Q1 dividend of 11.3 million, as also mentioned by Marco, equivalent to 6.3 dollar cents per share.

That is consistent with the framework of paying a minimum of 25 cents in dollar terms minimum per year, but paid quarterly, with a potential top-up in the fourth quarter to reach 50% of net profit. Overall, we continue to prioritize a balanced capital allocation framework.

We want to make sure we are financially resilient, we are able to support selective growth, as also talked about earlier and which Marco will come back to, and returning cash to shareholders. With that, I'll hand it back to Marco.

Thank you, Ståle. In the next section, I would like to give you an update on our strategic priorities that are with the aim to deliver the growth of our portfolio.

I would like to start with the FPSO market. The FPSO market remains strong, and that's a result of the growing global energy demand and also the focus on energy security, with multiple projects in various stages of maturity led by Africa, Brazil, and Asia.

There has been a clear shift from the conventional lease and operate to EPCI and O&M contract models or hybrid models, like we developed for BW Opal and also for the Bay du Nord project, all with the aim to reduce project finance cost. We are agnostic to those contract models, and we have experience with all of them.

We're well-positioned for both the large newbuild FPSOs and also smaller redeployment projects, and we have proven this through the delivery of BW Opal, which is again one of the largest gas FPSOs in the world, and we also have access to a high-quality FPSO hull for redeployment with the acquisition of Angora earlier this year. We now also have clarity on Catcher, which is a very attractive redeployment candidate in 2031 after this firm term that we announced will end.

We can apply flexible execution models, including strong partners, to projects that meet our selection criteria. We have a strong focus on winning new projects, and while we maintain a disciplined approach, and this is reflected in our ambition of winning one new project every other year.

Currently, our 12-month focus is on the Americas, where we are working actively on selected projects, and those are led by Bay du Nord in Newfoundland Labrador, which I just mentioned, but that is in addition to Albacora and Búzios 12 in Brazil, and also the Tekani and Zama projects in Mexico. The Brazil tenders will be done in a partnership with Saipem, and the Mexico projects with our client Harbour Energy are very suitable for redeployment of BW [Huara?]

and also later prospects with BW Catcher. We also see opportunities to leverage our FPSO expertise to develop low-carbon energy solutions and to create future growth opportunities in adjacent business segments.

We take a disciplined approach with selective allocation of capital till these markets mature, and we focus on creating the same shareholder value as in our core FPSO business. In BW Ideol, which is a floating offshore wind specialist, we have already 68% ownership, and this company is progressing multiple projects.

The latest development is EolMed, a 30 MW project in South of France that was now connected to the grid and delivered first power in April, and earlier this month, the three turbines reached maximum capacity. We also continue to progress our desalination joint venture with BW Group, where we leverage BW Water's technology.

BW Alara has now taken the investment decision for the first unit, with a planned delivery in early 2027. Natural other segments to consider which are close to our FPSO business are FLNG, gas-to-power, and with that, we can expand our offshore energy production solution portfolio.

That brings me to the outlook. To sum up, our key priorities are, first of all, the final commissioning, production ramp-up, and contract commencement of BW Opal, and also to complete the FEED for Bay du Nord in '26, and then we target a contract award in early 2027, so that underpins the target of one FPSO FID in the next 12 months.

We also want to bring the first floating desalination unit to the market in 2027, and we continue to focus on value creation for shareholders through an attractive shareholder return program, as well as concluding our strategic review process. Then, we're happy to take any questions you may have.

Okay. We have some questions that has come in.

I'll read those, and then I'll try and distribute it as I see best fit. First question is related to the strategic review, and maybe you can reiterate what you're saying.

The person is asking whether it's possible to provide more details about the strategic review, and also around the timing and how far the review is.

Yeah. I think I've said what I can say, but I want to emphasize again that this process has the full attention of our board and management, and the process is ongoing, and we conduct that in a professional manner.

What I can say is the underlying business that you've seen today, the backlog, the fleet performance, and the financial position, Bay du Nord, all of that is the foundation of which any outcome will be assessed. I also want to emphasize that our primary obligation is to create value for shareholders, and that's the lens through which this process is being conducted.

We will communicate further when there's something more definitive to say, and that's not right now.

Yeah. Next question: Could you update on BW [Huara?]

opportunities and condition and likelihood of a new contract in 2026? You did link it to some of the project opportunities you talked about in Mexico.

Maybe you want to

cover

it a little bit.

I think it was covered in the update in the market and what our targets are. For the targets in Mexico, BW [Huara?]

is a strong candidate because it gives a very strong starting point for the hull and the gas turbine solution. That's definitely a market for her.

We also see some opportunities in Asia, Australia for [Huara?] .

There's three, four of those out there. Yeah.

Next one: Is there an increase in local content around the world, or at least local competition making it more difficult to win FPSO contracts? It's another one for you, Marco.

You can chip in, Ståle, but, well, I would say there is always a drive and an increasing push for local content for all areas where oil and gas is being developed. I don't recognize so much the comment on local competition.

I don't think that's the issue. Local content matters, it also matters for us, and we're actually quite proud of our track record of delivering very high local content in our operations everywhere we operate, close to 100%.

For construction, currently it's only Brazil that really pushes for a significant amount of local content, and well, that is built into the price and into the project execution models by the whole FPSO industry. In other places, that's less the case, and it's simply because it will result in non-economic projects.

Yeah. Maybe as a comment, I think you said it.

I don't necessarily see that's been changing that lot. There has been a drive in certain jurisdictions, Brazil in particular, for construction.

When it comes to operations, we see this as a natural part of it. UK has a very strong focus on local operations.

We do the same in Australia, will be the same in Canada, etc. I would say it's more about predictability, the visibility on what terms you're working on so you can plan ahead.

As you say, well, otherwise, we just welcome it, because that's how we have always done it. We're used to it, nothing that I would say that concerns us.

Yeah. Exactly.

Next one: Can you explain more about your evolving project execution model? Does it mean you're securing a preferred shipyard and other contractors for future contracts?

I think we also said it before in other updates. As we see that these FPSO projects are becoming larger and larger and the capex number becoming higher and higher, it's important that we make sure that we bring this project within a risk level that is appropriate to the size of our company.

Therefore, the updated project execution approach is very much focused on carving out some of the EPC risk and margins to partners, and that's either joint venture partners, but it can also be large part of the scopes EPC subcontracted to, yeah, shipyards or topside contractors. That reduces the overall risk for us.

Of course, it also reduces the margin, but it brings it in the right risk-reward balance relative to the size of our company.

Next question: Good morning. Can you please share Can you please provide more color on the new Catcher terms?

What's the new annual EBITDA contribution towards 2028 and from 2028 onwards? There's a couple of questions here.

I'll take them one by one. I can start with with this one.

We have provided the updated guidance in in the analytical slides further back on I think it's on page 20 22. Now we're we're guiding on between 140 to 160 million with 150 million annual EBITDA contribution as being a midpoint here, which is 10% down from what we have guided on earlier, in line with with the discount provided under the new contract.

From '28 onwards, there's always been a step-down in the contract where the the base rate steps down by approximately 25% from where it is today, and a production-linked KPI system kicks in, which is effectively that we get 25% of produced kind of barrels above 6,000 barrels a day multiplied multiplied by the the Brent oil price that that is there, and also capped to it. Under the new scheme, the same mechanisms apply: 10% discount to the to the charter rate, both now and also after 2028 on the lower rate, but the KPI schemes kicks in again.

It has there are some lower caps, which probably from a practical point of view will not make much of a difference. You I think analysts and investors and others can can do their own calculations on on production levels.

As a as a guidance, I could indicate that if you have if you're producing, say, 12, 15,000 barrels and oil price is in the $60 to $70 range, you will end up with somewhat of the same all-in rate for for Catcher post-2028 as you as you would would before 2028. Of course, this depends on exact production and it depends on the oil the prevailing oil price at at at the at the moment.

I believe with the new updated information, it should give anyone a pretty good avenue to to calculate and and estimate the sensitivity to to this.

You said KPI scheme, and I know you meant production tariff scheme.

So... Production tariff scheme, yeah, correct.

The rate reduces 25%, but then it's kind of replenished by a production tariff scheme, as you explained.

The next question was related to Opal: What's the projected capex for Opal to ensure contract start-up? I presume this is related to remaining cash out.

Remaining forecast of cash out is between 110 to 120 million in paying all outstanding bills. In terms of growth that we have seen as a result of these delays and the additional work that we have done, that would be in the range of 30 to 35 million to the capex overall, just to kind of give both angles to this.

Remaining kind of cash out is more linked to just things that are to be paid on a certain milestone basis, etc.

Important to also note that we also receive more income ahead of the contract term,

we're

as a net effect...

Yeah. There's natural offset pre-contract as long as you produce.

The last question is from the same person: Is the Bay du Nord FEED generating any free cash flow? The answer is it's cash-neutral.

There was never an intent that we would make any free cash flow or any profit on the FEED. It's a cash-neutral engagement driving us towards FID on the project.

We're basically getting reimbursed what's being spent for engineering and design and development activities. Next question: As of Q1 balance sheet, what is remaining capex related to Opal and the responsibility of BWO?

I believe we have just answered that one. Also, are we able to recover any of the costs related to Opal startup challenges from either equipment suppliers or the client?

I believe this is related to the repair activities and the root cause analysis. I'm not sure what you want to say on that, Marco.

Um... It's whether we are able to recover any

of

these additional costs.

I would think the delays that we had in the last, I would say, couple of months linked to the heat exchangers, that was obviously an unprecedented event, and it took a while to fully understand the source of this. I think our view is that this was not under our control, and as such, that is a topic for a discussion for cost recovery.

Given we are where we are, difficult to speculate on that now as we're focusing now on bringing production back up to kind of stable levels, working constructively with Santos doing so.

Then

rather come back to the outcome later when conclusions are made.

That needs to be fully concluded first, and then these discussions will also take place. Yeah.

The next question is following kind of Bay du Nord and Opal. The question is, which other gas projects that BW Offshore is considering?

I mentioned where we have, for the next 12 months, we have a strong focus on Brazil and Mexico, and several tenders are progressing there. For gas projects, we are looking at the Indonesia developments.

There's several interesting gas projects there that could be a next gas project.

Yep. Then there's another question, but that's more of a clarification to what we talked about earlier on Catcher.

It's just to confirm that the dayrate step-down from '28 is a 25% reduction versus the original base rate or 20, 25% reduction from the new rate effectively 2026? Yeah.

The rate in '28, pre-contract amendment, would drop by 25% from where it is today. Then with the 10% discount that we are providing, there is a further drop from the original rate in 2028, because the way we measure it, the transition is consistent.

There was 25% drop in the rate from today and into 2028, and with the 10% discount on today's rate, there'll be a 25% drop from that new discounted rate to the new base rate being used for 2028 and onwards. Hopefully, that is clear.

For Petrobras project which BW Offshore is bidding, such as Albacora and Búzios 12, where minimum local content is being imposed, what are the measures being taken when partnering?

Yeah. There are clear expectations for the Petrobras tenders, for the Albacora and Búzios 12, the clear local content expectations which we will comply with.

Together with our partner, we are developing a local content plan and approach. We're in a competitive process, I don't want to give further details on that exact plan.

Okay. Just trying to see here if that's that one.

Nope. Is there

any more questions?

No more questions popping up. That seems to be the end of it.

Then I think I'll give it back to you, Marco, for closing.

Yeah. Thank you.

I'm looking at if there's anything popping up still last minute, but it doesn't look like that's the case. With that, then we have also answered all the questions, and I do want to thank everyone for participation in this call and also for asking the questions as you did.

Wishing everyone a good day. Thank you very much.