BW Energy Posts 80 Percent Jump in Annual Profit

BW Energy, operator of the Dussafu Marin license in Gabon and the Golfinho cluster offshore Brazil, saw its net income for 2023 jump 80 percent over the 2022 figure. The company reported a net income of $81 million, versus $45 million for the year prior.

EBITDA for the year, according to the company’s media release, was $241 million, jumping from $154.2 million for 2022. Full-year 2023 production was approximately 7.6 million barrels of oil, up 97 percent from 2022.

"We delivered strong production from Dussafu and Golfinho, which is reflected in improved financial performance, making the fourth quarter and full year 2023 BW Energy’s best”, said Carl K. Arnet, CEO of BW Energy. “Looking ahead, we expect increased oil production and strong cash generation in 2024 with the completion of the Hibiscus / Ruche phase 1 development program, including start-up of production from Hibiscus South and Ruche fields and ESP replacements, combined with a full-year contribution from Golfinho in Brazil”.

In Dussafu and Golfino, the company said that its share of gross production was approximately 1.5 million barrels of oil and 958,000 barrels of oil respectively during the fourth quarter of the year.

BW Energy said its proved and probable reserves plus best-estimate contingent resources stood at 580 million barrels net. The figure includes 103.1 million barrels in the Dussafu license, reflecting adjustment for net annual production of 5.9 million barrels and positive reserve adjustments for Dussafu, 148.2 million barrels in the Golfinho and Camarupim clusters and BM-ES-23, 138.8 million barrels in the Maromba license, and 190.3 million barrels oil equivalent contingent resources in the Kudu license. The increase mainly reflects the acquisition of the Golfinho and Camarupim clusters and BM-ES-23, the company said.

BW Energy said it continues to prioritize safety and carbon footprint reduction by developing discovered oil and gas resources through the repurposing of existing production infrastructure.

BW Energy expects oil and gas to remain an important part of the global energy mix with increased demand in decades to come and remains focused on realizing long-term value creation via its phased development strategy and investments in high-return assets, it said.

Energy prices remain at high levels despite a softening of macroeconomic drivers during 2023 as geopolitical conflict, global supply chain challenges, inflation and higher interest rates impacted global economic growth, it noted.

Short-term, BW Energy said the focus is on completing the Hibiscus/Ruche development and resolving ESP challenges to bring production up towards the FPSO capacity, and optimizing production at Golfinho in Brazil while preparing for the drilling of two new production wells in 2027. This should further support significant positive cash flow at current oil price levels, the company said.

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