BW Energy Stock

Welcome to the BW Energy Q2 presentation. My name is Allen. I'll be your coordinator for today's event. Please note, this call is being recorded. [Operator Instructions] I will now hand you over to your host, Carl Arnet, to begin today's conference. Thank you.

Thank you, operator. A warm welcome to this BW Energy Second Quarter 2026 Update. This update will be hosted, as usual, by our Chief Operating Officer, Brice Morlot; and our Chief Financial Officer, Thomas Young; and myself, Carl Arnet.

Please note our disclaimer. And then on to the second quarter highlights. We have just started the MaBoMo Phase 2 drilling campaign. Super exciting. And more of that will follow later on in the presentation. All development projects are on plan and budget. And we had, of course, a record high cash flow on the current oil prices in the quarter, which has strengthened our financial position with respect to sources and uses. We are very much on track to deliver above 100,000 barrels production per day in 2028.

On the Q2 results, we had revenues of $296 million in the second quarter. We had a net profit of $44 million. Cash from operations, we're at $260 million. And we had a very healthy cash position of $254 million end of Q2.

BW Energy is executing on 5 projects currently, which will add 222 million barrels of reserves, 2P reserves. And all these have low breakevens and rapid payback. This will take us to 100,000 barrels per day. We will double production in '27, and we will double again in 2028 from current levels of around 25,000 barrels.

The MaBoMo Phase 2 drilling has just started and is on track. Maromba project is on track. Golfinho Boost project is on track. Bourdon is on track, and we have also the Golfinho new wells, the new infill wells we're planning. This is also on track where we have ordered all long lead items.

In addition to our, let's say, very concrete plans that you will be also given more granularity on later on in the presentation, we have significant upsides in all our licenses. We have the Bourdon area upsides. We have additional Dussafu targets in the north and east of our license with Walt Whitman area. We have the Maromba carbonates, and we have the prospects of the Greater Golfinho area. So we have a significant backlog of additional targets that we are aiming to unlock as we go.

Very quickly, I will give you the update or status on the Maromba project. The FPSO steel renewal is very near completion. And the current main work stream is on the topside piping and equipment refurbishment and time of new equipment. The wellhead platform, the leg extension has been executed, very impressive. We have some of the longest legs in the business right now. And we are continuing with the refurbishment of the equipment. So far, we've had no impact of the turmoil in the area and the logistic challenges have been solved without causing any project impact.

SURF. The SURF contractor has been selected, and procurement is continuing of all long lead items, and we are also progressing well on the engineering.

On the drilling, we have selected drilling contractor, and we are preparing for the initial 6 wells.

So that's it, short and sweet. I will then leave the word to Brice, that will take you through the operational update.

Thank you, Carl. Good afternoon, everyone. Now let me walk you through the operational performance in the quarter. Total net production was 25,000 in Q2, broadly in line with Q1. At Dussafu, production was 19,000 barrel oil per day with 98% production availability, reflecting strong consistent performance in Gabon.

At Golfinho, we produced 6,000 barrel oil per day at 74% availability, stable relative to Q1 and in line with expectation as we manage the ESP configuration ahead of the Boost installation.

On the full year guidance of 24,000 to 27,000 barrel oil per day, this is unchanged. For the second half, 3 events would impact the production output. We have a 2 weeks planned shutdown at Dussafu in September. One Dussafu ESP is malfunctioning and potentially would require a workover if confirmed down. We are working right now to confirm this. And on the positive side, we see upside to Golfinho production should the gas lift compressor reliability be improved in the second half. We are working to resolve that as well. This is the issue that is the core improvement of the Golfinho Boost project and should be removed in total by midyear next year.

As there are both events on the upside and downside that could happen, we keep the range unchanged, but production is expected to track towards the lower end of the guidance range for the full year.

On the unit OpEx in Q2, it was $24 per barrel, so slightly above Q1 that was $22 per barrel. The absolute costs are largely stable. The increase is primarily driven by higher fuel prices for power generation. So no structural cost deterioration. The full year OpEx guidance of $22 to $26 per barrel is unchanged. First half average was $23 per barrel, so comfortably within the range. The H2 profile will be influenced by the Dussafu shutdown and in Brazil by the Golfinho gas cost sensitivity to oil price.

So MaBoMo Phase 2 drilling campaign, I'm very pleased to present this today. The campaign has just started. We started a few days ago. We are currently drilling 2 Northwest Hibiscus appraisal wells, targeting additional reserves in a part of the Dussafu field that has not been produced before. If the appraisal confirms the resource, we will fast track conversion to production wells in late 2027, adding production with minimal incremental cost. So a successful outcome could add up to 10,000 barrel oil per day, and this is on top of the 4 MaBoMo platform production wells already planned in the business plan.

These 4 production wells follow the appraisal program and each well is expected to add approximately 5,000 barrel oil per day gross. And we expect first oil from this campaign in early Q1 '27. And the sequencing is deliberate, appraisal first, then convert and scale, consistent with how we operate across the portfolio.

So Dussafu has a long and layered production runway and this slide shows how it builds up. We have the MaBoMo Phase 2 delivered in -- for the first oil in Q1 2027, adding approximately 20,000 barrel oil per day for -- from 4 new producers with a further 10,000 barrel oil per day potential from the 2 appraisal wells that we are drilling as we speak, if successful. We should get the answer by September.

Bourdon Phase 1 follows in Q1 '28, adding approximately 10,000 barrel oil per day from 3 initial wells across 12 slot platform. Then we'll have Bourdon Phase 2 that will come in 2029. And then Walt Whitman appraisal drilling is planned for 2030.

The long-term production target for the Dussafu area is between 30,000 and 45,000 barrel oil per day gross. The Akoum platform, which is the platform for Bourdon is currently in conversion and will serve as a hub for the Bourdon development and opens up the southern part of the license for further exploration with Bourdon Updip, Bourdon Southwest, Abeille and Bourdon Southeast. So Dussafu is not a maturing asset. The asset still has the majority of its production life ahead of it.

Now Thomas will take you through the financial section.

Thank you, Brice, and good afternoon, everyone. Q2 was a strong quarter. The oil price environment gave us a meaningful tailwind that sat directly into revenues and cash generation, resulting in record operating cash flow for the quarter. That cash generation has done real work on the balance sheet. Liquidity is up, leverage is down, and we've entered the second half in a better financial shape than when we started the year, which is pretty good when you're in the middle of the heaviest investment program in the company's history.

Now let me take you through the key drivers behind our quarterly results. Net production came in at 2.3 million barrels or 25,300 barrels per day, essentially flat on the first quarter. Sales, though, were 3.2 million barrels against 2.2 million in Q1. That difference, what we produce and what we sell is probably worth a moment because it does drive a lot of what we see in the quarter. We produce continuously, but we sell in cargoes of roughly 1 million barrels a piece. So the 2 really line up neatly within the quarter.

At the end of Q1, we were carrying about 1 million barrels of produced but unsold oil, and we sold that down in Q2. On the revenue side, that worked out well for us. We realized $103.5 per barrel before hedges against $79 per barrel in the first quarter. And with Brent averaging around $104, we captured essentially the full market price. We also lifted 1.4 million barrels in April at $121 per barrel which is a level we haven't seen since 2022. So those inventory barrels were produced in the first quarter cost and sold at second quarter prices and that timing alone was worth somewhere in the order of $20 million. Perhaps fortunate more than clever, but money is money, so.

On the cost side, it works the other way, which explains why EBITDA only grew $29 million on $124 million of additional revenue. The inventory cost that was parked in Q1 came back out in Q2, a swing of roughly $76 million with higher royalty and depreciation on sold volumes on top. This is of course simply a timing effect, not margin compression, to be clear on that, and the underlying unit economics are unchanged. After $40 million hedging loss on the 1.2 million barrels of hedged barrels, effective realized price was approximately $90 per barrel and total revenue was $296 million.

Which brings me to cash. And I think the $254 million that you can see on the right-hand side is best understood in 2 parts. Around $121 million is what the business actually earned in the quarter, which is sold oil, cost paid, taxes paid and I guess, can be seen as the underlying run rate at current oil price. The other $139 million came out of working capital, which is essentially the first quarter reversing.

If you remember in Q1, working capital absorbed about $134 million and operating cash flow was negative. And I did say we expect this reversal in this quarter. One thing I would like to flag for your models though. The $40 million hedge loss is charged in the second quarter, but it does not actually settle in cash until the third. So it's sitting in payables as of the end of the quarter, which means first quarter operating cash flows will land roughly $40 million below what third quarter earnings would imply.

Investment activities were $101 million across Maromba, Golfinho Boost and Dussafu. Financing was a net outflow of $66 million, mostly repayments of the corporate revolver. All that translates into a stronger balance sheet across most parameters. And I think the slide sums it up quite well. Starting from the left, net interest-bearing debt has come down $113 million to $698 million, with leverage falling from 2x down to 1.8x. Frankly, this is not development we expected to see before 2027. So it's a comforting sight in the middle of an investment program. Worth saying that CapEx, of course, is going to ramp up in the second half. So we do still expect to have higher leverage before we get to first oil on Maromba.

Book equity increased $113 million to $1.142 billion, driven by the net profit and the hedge book moving in our favor relative to Q1. The equity ratio is back up to 40% and putting that against our equity covenant, which is effectively 25% before Maromba first oil. That leaves us with a very comfortable headroom. And on liquidity, we closed at $544 million, roughly $210 million above the first quarter. That is $254 million of cash, $290 million of undrawn revolving credit facilities across the revolver and the reserve-based lending facility. The 2 key drivers are $100 million of RBL accordion that we closed in the quarter and operating cash inflow, which, of course, is partly offset by debt repayments and ongoing investment spend.

On the guidance, we are keeping the full year guidance unchanged across all 4 lines. On production, first half came in at 25,200 barrels per day, tracking the midpoint. In the second half, we expect production to be skewed towards the lower end of the range as some factors will impact production rates. At Dussafu, a 2-week planned shutdown in September and ESP potentially requiring a workover. And on the positive side, we see upsides to Golfinho production should the gas lift compressor reliability be improved in the second half.

On operating costs, we were at $24 per barrel against a range of $22 to $26. Unit costs cuts both ways. Fuel costs move with oil price and unit cost moves to volume. So a strong price deck with production at the lower end pushes us slightly towards the top half of the range for the year. CapEx is at $231 million at the halfway point implies a step-up in the second half as expected on the back of a back-weighted CapEx program, let's say, with MoBoMo Phase 2 drilling underway and MoBoMo milestone payments coming through.

G&A of about $11 million for the first half, tracks ahead of the midpoint. We expect it to drop in the second half compared to first half, which had a few one-offs. We remain comfortable in the full year range.

This chart brings together everything we've covered today and paints a picture of what comes next. What drives us above 100,000 barrels per day by 2028 is entirely organic, 5 projects already in execution or sanctioned and funded built on the same infrastructure-led model that defines the company. And the growth does not stop at 100,000 barrels per day. The appraisal and upside layer represents a further step-up that is within reach from assets that we already own and operate. Those are already identified resources and named targets, which includes Bourdon Phase 2, Golfinho Phase 2 and 3 and upside improvement targets around the current Maromba development.

Beyond that, the exploration layer adds Walt Whitman, Niosi, Guduma, Golfinho prospects and further exploration in the Maromba area. So each of these layers feed naturally into next and should enable us to comfortably sustain 100,000 barrels per day of production, hopefully into the next decade.

To close, the investment case rests on 4 pillars: more than 600 million barrels of reserves and resources as the foundation for organic growth, a plan already in execution to take production from 25,000 barrels per day today to above 100,000 by the end of 2028, a portfolio that returns above 30% IRR at $60 Brent and $2 billion to $4 billion of free cash flow depending on oil price between 2026 and 2030 against an enterprise value of around $2.2 billion today. So I think that remains a pretty solid investment case.

And with that, that ends the prepared presentation, and I will hand over to the operator for Q&A. Thank you very much.

There are currently no questions from the phone line. Please proceed for the written question.

All right. We have a question here. "Can you give an update on the Kudu data room process? How much interest have you seen? And what are the next steps?" Brice, you could take that.

Yes. So we did open the data room at the AAPG conference in Windhoek, that was mid-June. And actually, we have seen a very good interest from a good range of players, and we are now on -- the process is ongoing. So we will update the market when there is something material to report.

Very good. I think this one is also for you, Brice. "How should we think about the production ramp into '27 as MoBoMo Phase 2 wells and Maromba comes online?"

Yes. So in '27, we will have a lot of projects coming online. First, MaBoMo Phase 2 with 4 new wells, perhaps 2 on top of that. We will get the result of the Northeast appraisal. And if it's positive, we will add more wells from the MaBoMo Phase 2. We will have Golfinho Boost coming online as well and then Maromba towards the end of the year. So taken together, we expect production to build steeply through the year, moving towards 50,000 barrels per day in the second half. But we'll provide more guidance on the 2027 later in the year.

Thank you. Next question. "Q2 production cost of $145 million was the highest ever. What was the key drivers? And what should we expect in the next few quarters?"

So as mentioned, most of the increase is due to the Q1 underlift barrels that was released into the second quarter as it was sold. And that's the single biggest item. If you strip out these, let's say, timing effects, the operating expenses was about the same as the first quarter. So it's largely flat, in other words. And looking forward, the inventory line does not really repeat at the scale because the position is currently down to 0.2 million barrels.

Next, we have, "Q2 cash flow was strong, driven by working capital. Is working capital now at a normalized level? Or should we expect a reversal shortly?"

Broadly normalized, yes. The one thing I would flag again is the $40 million of hedge settlement, which was charged to the second quarter, but does go out in cash in the third quarter.

I have a, "What is the nature of Brazil oil export tax, $7 million in the quarter. Should we expect this to be a recurring effect? Are you expecting an effect of similar size in the coming quarters."

It is a temporary 12% crude oil export tax in Brazil. In July '26, the levy was extended for an additional 60 days, and that is to stabilize domestic fuel supplies amid global geopolitical tensions. So we believe they will, at the moment, end in 60 days, roughly.

I have a question here for you, Brice. "How would you assess the geological risk in Maromba?"

Well, we've been -- on Maromba, we have been working on the data set we have since many years now. And we do have a lot of data, DST data. And we are quite confident with the geological risk. So we don't see a lot of risk on the production forecast coming from the subsurface.

Thank you. Next question. "You target more than 100,000 barrels a day from 2028. Do you have any unit OpEx target guidance from this year and onwards?"

[ Boost in ] Golfinho OpEx will come down as production comes on through our investment program. Maromba should start below $10 per barrel on average over the first few years of production. So in total, on the company level, we expect significant reductions from levels in 2026 as we see the outcome of these various investment programs that we have across our assets coming online.

I have a question here for you, Brice. "Could you please provide a bit more color on how you work to mitigate potential disruptions to the Maromba wellhead sail away from Dubai in late '26?"

Yes. So [ Hormuz ], we are assessing options. And actually, we have several opportunities. But as Carl stated last quarter, the rig is, in fact, Chinese and that could prove valuable. So in general, we have a low concern for the situation, and we expect to be able to get the rig out in due time.

Right. I think that's all the questions I can see here. So that concludes the Q&A. Thank you very much, and we'll see you on the next quarter.

Again, warm welcome to this presentation of first quarter, and we have added a small update on our activities. So please note our disclaimer as usual. So today will be hosted by first, our Chief Operating Officer, Brice Morlot, that will take you through the operational update. Then Jerome Bertheau will take you through the Maromba update. And then Thomas Young will round it off with the financial update. I will have the pleasure of taking you through a little lead-in where I boast about our exploits, of course. And then Martin will be taking care of the -- or he will be the moderator for the questions, Q&A.

So first quarter, all projects on plan and cost. We have been able to sanction Bourdon and new Golfinho wells, and we have lifted our production target to more than 100,000 barrels per day, sustained production into the next decade. We have a strong position financially, and we are generating cash. So the business looks good. And we had a very decent operational performance in the first quarter. That's the bottom line. EBITDA, $111 million; net profit, $33 million, and this will, of course, be gone through in detail. And our end cash position was a healthy $161 million, plus we have, of course, unused facilities on top of that. So BW Energy is delivering on its growth strategy. We are pleased that we can now say that Maromba, which we presented to you last year, more or less exactly a year ago, -- we said we were going to do funding. We have delivered on all the funding activities. We have acquired the jack-up. It's now in the yard and the conversion has started and the FPSO upgrades are going well. So we are very much on track for first oil in end 2027. And we are working hard now on the next phases of the Maromba development. This is, of course, a big transformative project for us, and we will go through that in more detail. Golfinho Boost project is on track. We have done the initial subsea work that is completed. We are now entering a phase where we will focus on the FPSO and optimize that and its operations. This is an old asset, and we have to lift the performance of this asset, which is something we have known about for a long time, which we are very capable of. We have done this many times in our previous life, so we know exactly what to do. But it is a significant effort, but we have now a very clear path for production and production increase, and that's why we are now going to take this significant step and upgrade [ Vittoria ]. We have sanctioned Bourdon -- this will add very material resources to our Dussafu license. We have also achieved a license extension, but more of that will follow. The Bourdon development will follow the MaBoMo blueprint. So it's a sister rig. It will be a somewhat simpler topside, but it will have 12 well slots. And this is, of course, to be able to harvest from the greater Bourdon area. It will be placed in a location where it will have very nice reach over nearby potential resources. So we have also sanctioned Greater Bourdon area appraisal wells. And we will also drill 1 well in the Walt Whitman area as the next area in the Dussafu license we want to unlock. So again, Dussafu continues to deliver. We're extremely proud of the license and what we have been able to do with this license. Golfinho, we have sanctioned new wells. These are infield wells, low-risk wells that we will drill and connect to the infrastructure that is there. We're targeting to lift production from Golfinho to 30,000 barrels. And we are -- have now completed a very extensive study of the total Golfinho area. We have a huge license in Golfinho, and we have now had time and let's say, we've had the time to go through all the data that we have acquired with the license from Petrobras, the previous operator. And we are finding a lot of opportunities. So more wells and more appraisals will follow on Golfinho as well, and we have identified a huge number of targets for these activities. So we are actually 10 years this year. BW Energy. And if we look back from 2016 when we started, we estimate that about $300 million has been invested and the current market cap is $1.5 billion. So we are, I think, rightly proud of that. And as we are going to explain today, there's a lot more coming, and we are targeting more than 100,000 barrels per day in 2028. So our model, we have explained this many times, but I think it doesn't hurt to repeat. We are looking at discovered resource, but that cannot be unlocked. -- with potential. That's the first step. If we get access to it, we reuse existing infrastructure, we repurpose facilities. We thereby do not have to take on the huge investments associated normally with oil and gas developments. So we limit the cash at risk. We are now fully capable of doing all developments internally. Of course, we use subcontractors, but we run all our projects in-house. Then we prove up. We show that our models are working, that we get the production we're supposed to have and then we scale. And on top of that, we have very efficient infrastructure financing. So we are very capital efficient. So this is the BWE model. I think we're quite unique in many of these aspects. And in particular, I think we're unique in our ability to repurpose existing assets and in the financing that we have managed to put together for these assets. So if you look at our assets, we have demonstrated this strategy, I think, very clearly. Dussafu started out 24 million barrels. Today, we have increased that by 580%. Golfinho not as significant yet, but we're working on it. And of course, Maromba, there was no clear path to development at all. So in percentage terms, it's unlimited. But of course, it's 122 million barrels of reserves in the current development. So in aggregate, I think we have an excellent track record of expanding our high-quality resource base. And we have had excellent reserve replacement, which I think is also a bit unique as this is getting tougher and tougher in the industry in general. Our portfolio. So today, production is about 25,000 barrels per day. We operate 2 production assets, Golfinho and Dussafu. And as you can see, we have 5 projects in execution and our total reserve base is more than 600. And we have a lot of reserve life left at current production, but we're also, of course, working to increase our resource base. We operate in what we consider to be very stable locations, very stable countries. I know there are some confusion on what stability is. We're not necessarily talking about political stability, but we're talking about stable conditions for the type of business we are in. And if you look at Gabon, they have an excellent track record of 100 years of never challenging PSA terms. That is more than you can say about a lot of other places where oil and gas operate. Brazil, we also see that as a stable country in terms of their support for the oil and gas industry and their interest in exploiting their indigenous resources. A bit more temperormental on tax maybe. But Still, we regard this as a very stable place. And other places like Namibia, we think also has great stability. So we operate in what we consider to be an interesting part of the world, the Atlantic margin. Today, we are executing -- we have 3 projects in execution that will add 154 million barrels of oil equivalent 2P reserves. We have just FID-ed 2 more projects, which will add 68 million. And we have significant growth potential in all these licenses. That is really the bottom line. So we have a clear path to sustaining more than 100,000 barrels per day production. And as you can see, this is how it's composed of project producing, project in execution and appraisal and upsides. And of course, we have a significant exploration activity. And just to remind everybody, we recently shot seismic of the Niosi and Guduma licenses in Gabon. We also covered part -- the Witan part of the Dussafu license where the seismic resolution was not perfect. So we are active also in the near-field exploration activities already. So investment case, more than 600 million barrels of oil equivalents, reserves and resources, more than 100,000 barrels per day by end of '28, more than 30% IRR at 60. And we will generate between USD 2 billion and USD 4 billion at $60 to $90 oil price from until 2030. So with that, I will hand over to Brice that will take you through Dussafu and Golfinho and the operations in general. And then he will hand over to Jerome that will go through Maromba. And then we have Thomas that will take you through the financials.

Thank you, Carl. Good morning, everyone. Operational performance and production availability stays high. At Dussafu, we completed a well workover to maintain ESP. The job was completed with a hydraulic workover unit, so without a rig in 3 months. So we are very happy with these results. And Dussafu has since returned to normal operating level. Production availability for the quarter is high at 86%. At Golfinho, the production was impacted by unplanned well maintenance, but corrective measures are underway and the availability for the quarter was 79%. On the rig schedule, we have decided to optimize the 2026 drilling sequence to confirm the potential of the Northwest Hibiscus area. We will drill 2 pilot wells, the 10 P1 and 10 P2. And the objective is to confirm this area upfront because in the case of success, we will install 2 additional slots on the MaBoMo well bay and will increase the well capacity of the platform from 12 to 14. So that means that at the end of MaBoMo Phase 2 drilling campaign, we can add 2 additional wells, and we'll have 6 wells in production by the end of '27. So therefore, we are updating the 2026 guidance to 23,000 to 26,000 barrels per day. The revised drilling sequence is a value-driven decision, and it sets the stage for higher long-term production capacity at Dussafu. On OpEx, OpEx were impacted by 1 workover in Gabon and unplanned maintenance in Brazil. So the Q1 '26 OpEx came in at $26.9 per barrel -- so this reflects 2 factors, the lower production because of the Golfinho well maintenance and the workover cost at Dussafu. So in light of this production outlook guidance revised, we revised as well the OpEx guidance to $22 to $26 per barrel. The change is driven by a revised production range, and it's not indicative of a structural cost increase. Let's go to Gabon now. Dussafu remains the backbone of the company, and this illustration is interesting because it demonstrates the strategy of the company, which is repurposing assets to develop discovered resources -- the company installed FPSO Adolo with just 2 subsea wells. And at the time, the recoverable reserves were only $24 million, which is very low. Since then, the reserve have been multiplied by 7. Tortue was a success. The company added 4 additional subsea wells, then spend money in appraisal and discovered the Hibiscus field. They installed a jackup, urpost drilling rig as a production facility with more slots with 12 slots, and it was a success because today, we have 8 TSP in production. And at the end of MaBoMo Phase 2, we'll have 12 and maybe 14 if Northwest is a success. So that's great. And in Q1 '26, the asset produced 19,200 barrel oil per day for the quarter net to BW Energy. Operating costs in Gabon are low at $16 per barrel. One important milestone is this quarter, we have now produced a total of 50 million barrels on the Dussafu license, 50 million barrel produced already in this license from 0. We are continuously adding new discoveries with minimal incremental capital, and we have grown the net 2P and 2C recoverable resources to 136 million barrels. Since 207, BW has delivered good reserve growth and multiplied by 7. So we can now zoom in on the reserves. This slide is quite interesting. The reserve -- this slide captured the reserve and resources trajectory of Dussafu and the underlying approach that has driven it. 11 of 12 successful exploration and appraisal wells since the inception. And at the beginning in 2017, the reserve has grown from 24 million to 163 million now. So this track record speaks directly to the quality of our subsurface understanding. Looking ahead, there are a lot of less potential in the license. All the yellow dots you see will be appraised, and we have both short-term and long-term plan for the area. So let me go through the next drilling campaign. This is the MaBoMo Phase 2 drilling campaign. The drilling program is designed to maximize long-term value rather than near-term production. So we will spud in July with the Bor rig, and we will first drill the Northwest region of Hibiscus to appraise this region. And in case of success, that would trigger 2 additional development wells. We have the long lead items. So in case of success, we will put those wells in production. MaBoMo Phase 2 outside of this additional well is 4 wells that will be put in production end of '26 and in '27. And each well will add 5,000 barrels per day with first oil expected by the end of this year. Then we will present to you. is the next step on Dussafu is a major and we are very happy today to announce that we have on a short video to show you the project.

[Presentation]

We love Gabon. We continue to invest in Gabon. This license keeps on giving and there is more to come. And the next phase is Bourdon is unlocking growth. Phase 1 targets 25 million barrels of gross 2P reserves. First oil is planned in Q1 '28. The project delivers strong economics, IRR of 25% at $60 per barrel. And we have a capital-efficient development concept that replicates the approach we have proven at MaBoMo with a redeployed jack-up. Basically, it's a blueprint of MaBoMo, but with an optimized development. And after that, we will have another phase. We call this the Greater Bourdon area. This area contains additional unrisked oil in place with Bourdon updeep, Bourdon Southwest, Southeast and Abeay. And by installing a 12-slot well platform here will enable us to produce this region as well. All these targets are reachable from the platform that we will install. We have -- so the development of Bourdon is a capital-efficient design with the capacity to scale. You can see on the right how we intend to develop this field. We will have a jack-up rig that will be converted as a well platform, 12-slot well bay, giving us ample capacity to future appraisal wells. The new well platform will be uninhabited. We want to leverage the MaBoMo living quarter, and we will transport the crew with boats between the 2 platforms to reduce the OpEx and leverage the existing assets. There will be 3 initial ESP wells, and the production will be exported in multiphase flow, oil, water and gas through the existing pipeline. The power will be supplied by Adel, the FPSO Adolo to leverage the existing power capacity. And MaBoMo platform will be as well connected to a subsea cable to reduce the diesel consumption on MaBoMo. We will have an integrated electrified field from the FPSO Adolo. So this design reuse existing infrastructure to the maximum extent possible, keeping capital requirements low and execution risk manageable. Basically, Bourdon is a blueprint of MaBoMo, but with an optimized approach. On the capital side, Bourdon economics are compelling, and we have an efficient leasing structure. The total Phase 1 CapEx is approximately $300 million covering the wellhead platform and 4 wells. There will be 3 producers and 1 pilot to appraise the Bourdon Northwest area as well. We will order the long lead items, and we will put this well in production in case of success. On the leasing side, the long-term needs cover 100% of the wellhead platform cost at highly competitive terms. And we will sign very soon the long-term lease -- sorry, the term sheet is not signed. And so the lease structure will cover $200 million and $100 million will be for the dining part. Economics are compelling. The IRR is above 25% at $60, breakeven of $45 per barrel at 10% discount and a payback of less than 2 years. So this project is providing strong returns, minimal upfront capital and very important, there is no balance sheet conflict with the Maromba development. This is for Bourdon Phase 1, but we have other phases and Beyond Phase 1 of Bourdon, I will show you how Dussafu looks like. We are working on a 5 years business plan. The Dussafu area has a clear multiyear drilling pipeline, targeting 30,000 to 45,000 barrels per day. Bourdon Phase 2, the drilling will start in 2028, and we are targeting 200 million barrels in place across Abe, Bourdon, Bordoun west, Bordoun East. Then we have the well treatment area, and we want to create another satellite here. There is an existing discovery. We are actually working right now on the reprocessing of this region. And this will -- there is as well 200 million of potential in place in this region. And all in all, -- the total appraisal spend from '28 to 2030 is approximately $100 million. This is the future of Dussafu. Each platform we install will unlock a new wave of development, and that's what we're going to do as well with -- well treatment. That was to cover Gabon. Now we will go in Brazil, and I'm going to cover Golfinho. Golfinho is 100% operated and owned by BW Energy. The production this quarter was around 6,000 barrels in Q1. And we are very happy as well to announce that we have made FID on 3 infill wells, long lead items and the tieback of the Camarupin field that you can see on the right. There is an existing wellhead on this field that we acquired, and we will just put this wellhead back in production to the FPSO Adolo by putting a new pipeline. This new phase targets approximately 15 million barrels of reserves with highly attractive economics. And beyond that, we have as well a phase program to unlock Golfinho with more than 500 million barrels of near-field appraisal targets including Camarupupim and the field on the right that is called Brigadero. On the reserve side, the company acquired Golfinho in 2023. The 2P reserves have grown significantly from 40 million to 105 million barrels. The new phase will extend the field lifetime, but as well adding reserves. This is the 64 million you see on 2C resources. We see the license as highly prospective with multiple growth opportunity and the existing infrastructure of the FPSO and as well the pipeline that the company owns can allow us to export gas and sell gas onshore. So it provides a very attractive tieback opportunities. I will give you an update on the Boost project that we sanctioned last year. Golfinho Boost project is progressing to plan. This project is on time, on budget. The purpose of this project is to change the artificial lift system from gas lift to seabed DSPs. It's a 12 million barrels of incremental reserves. The purpose of this project is to set the stage for the infill well, stabilize the production to 10,000 and stabilize the uptime as well because we are investing in maintaining the FPSO. It will add 3,000 barrels of production plateau and the CapEx is around $107 million so far on budget. Good economics as well, $47 per barrel at 10% discount. But the real step change for Golfinho are the infill wells program that I'm going to present to you now. The Golfinho infill campaign tripled the production roughly from the 10,000 after boost to 30,000 when the 3 wells will be online. The project includes 2 gas wells, the tieback of Camarupim and twin well, Golfinho 50 and 2 oil wells, 2 twin wells, Golfinho 51 and Golfinho 54. Production will start end of '28, and the main CapEx will be spent after Maromba first oil. The campaign targets 50 million barrel recoverable. Actually, those wells are some of the highest returning projects in our portfolio. In terms of CapEx, in total, we are -- we will spend $450 million, of which only $170 million are committed to the long lead items with investments starting in H2 '26. We want to order the long lead items to reduce the rig commitment time. The remaining $280 million are optional, and it will depend on the condition of the market. The development costs are quite low. It's $9 per barrel and -- this is because of the existing infrastructure. And in terms of economics, the economics are excellent, breakeven of $40 per barrel at 10% discount, IRR above 50% at $60 Brent and a payback of around 2 years. So in sum, the launch of the first well campaign on Golfinho makes a lot of sense for us now, and it shortened our decision cycle on rig contracting. And it allows us to act swiftly on attractive opportunity in a down cycle market. This is the last slide of Golfinho, and it's to give you the flavor of what is what we call greater Golfinho area. There are a lot of opportunities in this block. We are currently working on optimizing Golfinho production through Boost -- then there will be Phase 1 with the 4 wells, tieback of Camarooupim and 3 infill wells in the reservoir we well know. And then there will be Phase 2. Phase 2, there will be a second well in Camarupupim, Camarupupim 5H, which looks commercially very accretive. And the broader area on Phase 2 contains a mix of undeveloped discoveries with DSTs and exploration targets as well. We are actually working on reprocessing the seismic of this Phase 2 region. And then there will be a Phase II study is ongoing to evaluate the possible tieback of Grigadeero. There are as well discoveries on this block and DSTs. And then Phase 4 is more exploration-driven phase with additional targets within tieback distance to the FPSO. This is Golfinho. This gives you an indicative plan of what we intend to do in the coming 5 to 7 years on Golfinho. But we are very excited with Golfinho. We see a lot of potential on the Greater Golfinho area, and we are looking forward to progressing the infill development program. Then I will give the floor to my colleague, Jerome, that will present you the Maromba project.

Thank you, Bruce, and good morning, everyone. So we were here a year ago to FID this Maromba project, and we are now in a full execution phase. So as a reminder, Maromba until production platform, wallet platform, which is a converted checkup that you see in the illustration here, which is being converted in Dubai and an FPSO, which is repurposed Polvo and being converted in Costco Dalian in China. So the key figures of the project remain the same. So we are targeting 60,000 barrels of oil per day from end of '27 with a plateau. This is developing 122 million barrels reserve at below $10 per barrel OpEx and a breakeven around $40 per barrel. So this is in the best ranking of the worldwide project today. We have a very good project here. And I'm pleased to report that we are executing on time and on budget. So this is per our target from last year. Going now in the different work stream. So the FPSO is in Cosan, as I said, we just completed the first dry dock. All long lead items are on order and all the vendors are confirming that they are on time. Topside refurbishment is ongoing, preparing for the new modules to arrive, and we are targeting sail away to Brazil in March '27. We platform is -- has arrived in Dubai end of last year. We've spent 3 months to do in-depth condition assessment to understand the full scope. We dismantled a lot of mechanical equipment to go for OEM refurbishment. And we are now working on the leg extension. So we've completed 2 out of the 3 legs. So we rotated the rig 2 weeks ago to be able to do the last leg extension. And then the next step will be to go to dry dock and then restart the unit before it leaves to Brazil. And the last work stream is the preparation for drilling. So we've purchased all the tangibles. They will be delivered by end of the year. We are tendering all drilling services and the O&M services. We are planning to get the rig to be operated by a third party in Brazil. And we will work on the mobilization of so we will work on the mobilization of the crew in Dubai to commission the unit before it leaves to Brazil. So the idea is to have a fully commissioned unit before we leave Dubai. So going now into details of the FPSO. So we've been in dry docks during Q1. Dry dock lasted 55 days. We've replaced 1,500 tonnes of steel. This is a key milestone for the refurbishment of the unit. So the FPSO is now back at side, and we're working on the refurbishment of the top side, preparing for the new module to arrive in Q3. So that's new boilers and produced water module. And the idea is to start commissioning activity during the summer. So we commissioned in stage, and we can ensure that we will be ready on time for March 27 away. We also plan to get ANP, the Brazilian authority to audit the FPSO end of the year. So we have some time to take their comments into the work we are doing in China and fix all snag list before we leave the Q side. So the jackup in Dubai. So this is a picture taken 2 weeks ago where we were doing the first 2 legs extension. We're using one of the highest cranes of the world. So this is the tallest in the Middle East. I've been actually on top of the leg. It's a bit scary to get there. So we are finishing this leg extension in June. We will be testing what we've done. So we will jack to the top. And then we are preparing to go to the dry dock. And in parallel of this activity, we are refurbishing all drilling equipment. So most of the critical equipment have been dismantled and sent to OEM, and they will start delivering during the summer. So cranes, BOP, draw works, all this is being refurbished, getting -- sorry, getting ready for drilling. Of course, the situation in UAE has changed from late February. We have closely monitored the situation for our people first. We have plan in place should the situation deteriorate. And as well, we have had to follow closely all the logistics. So some equipment had to be rerouted to other ports in the region. But so far, we managed to get all the supply to come to Dubai. And the other work we are looking at is the final towing to Brazil. Of course, almost straight is closed now and will be difficult to pass, but we are already talking with the HLB companies and trying to maximize chances to be able to leave. And so this is work ongoing to make sure that we don't get any delay. So this is the overall plan and how it's getting together in 2027. So FPSO will be told to Brazil from March '27 during 90 days. So the FPSO will arrive just before summer, and we have a couple of months of hookup and then commissioning. The wallet platform will arrive in Q1 '27 in Brazil. And the plan is to install a subsea template and then spud the first well. The idea is to have 2 wells ready when the FPSO is commissioned so that we can make first oil with 2 wells. So the first -- the flow lines are on time. So they will be delivered in U.K. in late '26, and we plan to install them from Q2 next year. So we are finalizing the tender for the installation vessel now in Brazil, being ready for chain, so the mooring of the FPSO and the self installation. And the drilling, so we will start in April '27 when the template is installed, and it's a 6 well program. Each well is around 53 days. So we will finish early '28, the drilling program. So this first phase of Maromba is 12 wells. So we are drilling 6 wells from next year, and then we will pause and then drill another 6 wells. This is not the final development. We see a lot more potential on Maromba. And one potential is carbonate -- so carbonates are actually being produced in the region by Pere have been produced in Pereguo and Polvo as well. And we want to use our platform to appraise those carbonates. So this is a finger shape reservoir you see in the illustration. And if we are successful, we could replicate our development model with additional platforms that we could install and keep a longer plateau on Maromba. So now I will update you on the -- on Namibia on Kudu. So Kudu is a gas field that was discovered in 1974. So there was 8 wells drilled in Kudu and 5 encountered hydrocarbons. This is 1.5 Tcf recoverable resources. And we've been doing a 3D seismic acquisition that allowed us to drill an appraisal well end of last year that encountered petroleum system, and we discovered liquid hydrocarbons. So the Cat-1 allow us to understand better the reservoir, but we've seen that we will need more appraisal program to be able to develop Kudu. And given this is not our core business to do this long appraisal program, we want to open a data room to bring in a partner to be able to do this program. Also, we see Kudu as very well located in the urban Orange Basin with all the other discoveries. This is a gas reservoir that could be a great hub for LNG and power. And so we are working on some potential development plans having Kudu as a hub. So this is the update for Namibia. And I will hand over to my colleague, Thomas.

Good morning, everyone. It's a pleasure to be here today. It's another exciting quarter for BW Energy. We have 2 big FIDs. So we're keeping fairly busy. With the current state of the macro environment, I think it's fair to say we feel pretty invigorated about our strategy as well as maybe slightly vindicated in our position as a growth-focused E&P. And it's nice to have such a vast opportunity set of organic growth opportunities that we can deliver on that Brice and Jerome took us through. Let's look at some numbers. We had higher oil prices in Q1, a healthy quarter. That converted to an EBITDA of $111 million. Q1 net profit was at $33 -- and we also reduced our guidance a little bit on the production side. As Price mentioned, this was because of the optimization of the rigs on MaBoMo Phase 2. We pushed 2 production wells in '27, put forward 2 appraisal wells. This will allow us to then effectively drill these wells sooner in a success case. So negative for '26, positive for Dussafu as a whole. More importantly, we had 2 new FIDs at Bourdon and Golfinho. This raises our long-term production outlook to more than 100,000 barrels a day by 2028, which we are excited about. We've also been quite busy on the financing side. We closed another sale and leaseback of the Jasmine rig. We signed a term sheet for the wellhead platform, the long-term well platform for Bourdon, and we also executed our accordion option on the RBL on Dussafu, which adds $100 million in liquidity next quarter. Moving into the presentation, starting with the current quarter and then moving to the long-term outlook. Production in the quarter was the same, 2.3 million barrels, same as Q4. Sales were slightly up. That is really because we sell our cargoes in kind of 500 to 1 million barrel parcels. Some quarters can slip into the next. Oil price was higher at $79 realized oil price, up from $62. That's really a function of -- we sold about half our barrels early in the quarter when oil prices were low, and we sold the other half later in the quarter when oil price was high. So that resulted in $79. Revenue side, the higher oil price and more sales, it puts us at $173 million. Let's take a look at financial -- sorry, our cash flow bridge here. We opened the quarter with $151 million in cash. Operating cash flow before working capital was $87 million. That was largely in line with EBITDA. Working capital change, probably worth mentioning what's going on here. We had a lifting at the end of the quarter where a substantial part of that was pushed into the following quarter. We also had an underlift position in Brazil, inventory accruing at $104 per barrel, which was the oil price in March, which added to this. On the investment side, we invested $126 million in Maromba and Golfinho Boost primarily, but that was as planned, and we also drew down some debt to support those financing activities. So that leaves us at $161 million in net cash at the end of '26 and liquidity of $333 million. Probably worth mentioning that I think Carl alluded to it, we -- in addition to liquidity, we have about $350 million in undrawn project finance facilities across the Maromba -- we platform and the FPSO. And next quarter, we're adding $200 million in addition between the RBL and the long-term lease. So worth noting. Turning to the balance sheet. I think the graph show a pretty clear story. We're leveraging the balance sheet to support our growth phase. Our interest-bearing debt has gone from $300 million a year ago to now -- that's according to plan, and that's what we said we would do a year ago when we were here. Leverage ratio is increasing naturally. A lot of these investments are, of course, EBITDA is coming '27, '28, '29. Quick equity is increasing. You can see the equity ratio dropping a little bit, again, a natural function of a growth phase. We're adding to the denominator total assets, which is then awaiting profit coming in '27, '28, '29. And liquidity, I think we've largely covered. So moving to the debt stack. You can see at the end of the quarter, we had now $1 billion in debt. That is across 7 highly diversified financial instruments, mostly are bank based. They have low cost, and they're quite efficient and long term. I think probably worth mentioning is a couple of things there. Firstly, that we've structured our debt. So most of our amortizations are happening after Maromba First oil. And a significant part of that, again, is very long-term infrastructure-based financing with 7- to 12-year amortization profiles. In addition, we've added some debt to the quarter, like we mentioned, $80 million on Janine as well as 200 million coming next quarter that's not currently reflected there in additional liquidity. Next, I'd like to spend a couple of minutes on how we think about our capital allocation framework. We have 3 tiers in order of priority. First is high-return growth investments. We have a very large organic opportunity set of fully operated opportunities with an IRR ranging in 30%, 40%, 50% at $60 oil price that we feel compelled to invest in. Secondly, we have a target to optimize our capital structure. And to be specific on what we mean here, so we have a baseline of efficient long-term infrastructure financing that we intend to keep. It improves our economics. It's long term, it's flexible. We have the other part, which is quite a bit of revolving credit facilities, either through RBL or on corporate level, which we want to repay after Maromba first oil. Once we've done that, then we have the firepower to keep investing in new opportunities as they come up. Lastly, we want to return excess cash flow to shareholders. We have a framework today where we can pay 50% of net profit as dividends after Maromba first oil. So we think this is pretty straightforward, and it's really what drives our decision-making day-to-day. Next, as we call it a strategy update, I felt compelled to make a slide that kind of explains how this all fits together. I think I see key 3 structural advantages that sets us apart. Number one, we can acquire proven reserves at an attractive entry price. There's not a lot of other oil companies our size that play in the greenfield space. So we're left mostly alone, which means we don't have a lot of competition. Also means that whether oil price is $50 or $150, you can still acquire barrels in the ground at a relatively low price. I mean, Maromba as an example, we acquired the -- or to date, we paid $0.30 per barrel 2P. And by the time we get first oil, we've paid roughly $0.90 per barrel of 2P in acquisition costs. Secondly, we're a full cycle field and infrastructure capable company. I think what is worth focusing on and Carl did as well is really the infrastructure, being able to manage, operate, deliver the infrastructure really sets us in a unique position when we develop new fields. It allows us to create efficient field developments that minimize cash at risk and also maximize returns and set up this phased approach. It's really where we see quite a unique opportunity set also in terms of how we finance the infrastructure, which is really how we unlock the greenfields through the financing as well. We've developed what we think is a creative low-cost infrastructure backed financing model. I can't take you through how that worked on Maromba as an example. Starting at the unlevered case, we have a 35% IRR at $60. That's already very good or I think Jerome said world-class returns, which I agree with. We then added the FPSO financing. And the FPSO financing is interesting because it really relates to the redeployment of infrastructure. When when we take a redeployment versus a new build or a new conversion, it's mostly pipe, steel, repair life extension, borrowing work, but it's shipyard work, which increased the local content of the project, which then enables ECA financing. So that's export credit agency-based financing because of the high local content. So countries try to get you to the country to do their project and they provide an insurance wrap around it. That then allowed us to finance the project 80%, 9.5 years door-to-door at circa plus 2.8% margin, which is competitive in our business. On top of that, we've added a we've created a greenfield infrastructure finance model with Chinese leasing houses. This has been something we've been working on for many, many years. It was always a core idea behind the B2B strategy. And now we're delivering on that. So in total, we have a very, I would say, repeatable model. We've done on Dussafu. We're doing it on Maromba and now we're about to do it on Bourdon. So let's take a look at our project pipeline. This is an extended pipeline. It shows really everything that we plan to do with what we already have. On the green side here, you can see these are projects that we have FID-ed or sanctioned that we are executing on. On the gray side, there are things that are coming. I think we covered a lot of that. The green side, it represents 222 million barrels of net reserves to B2B. These are our investments that have a portfolio NPV 0 breakeven of about $40 per barrel, which we think is quite strong. And I think the key takeaway here is you can see in Gabon, we're pretty much drilling for the foreseeable future. And in Brazil, we're doing the same. We're pingponging between Golfinho and Maromba for the next few years. And this really reflects our company's value buckets, as you can see. Moving to our sources and uses. Yes. So we have -- on the left-hand side, we have our sources on the right-hand side, where we're going to spend it. We're focusing on Maromba first oil. That's been -- that's -- we've done that -- we did that also last year. It's life before and after Maromba first oil, and Maromba is a little bit closer today than it was a year ago. We're 18 months away. And the reason we do that is because after Maromba First oil, we're pretty much self-funded and this graph becomes somewhat irrelevant at that point. But until then, we've added Bourdon and Golfinho FID to this to our users. We've added the financings that we discussed and also the ones that we're planning to add next quarter. And I think the key takeaway is that we are covered at $60 per barrel long-term oil price. So with these new FIDs, I'd like to show you a new slide that we've included that includes our phasing of CapEx. I think key takeaway here again is we -- well, first thing to note is we've increased our guidance from $500 million to $600 million to $600 million to $650 million off the back of the 2 new FIDs on Golfinho and Bourdon. I think it's also worth noting here all these projects in this CapEx pipeline are -- have a payback of about 1 to 2 years after first oil at $60 per barrel Brent for each respective project. So it's a strong CapEx spend portfolio. So in terms of growth and investments, I always like to think quality over quantity, but Peter is brimming with quality. So on to our production outlook. We've -- with the additional FIDs, we are now above 100,000 barrels in 2028. And with the additional wells, we'll be keeping it that way for a few years. In 2027, we're adding -- we're doubling our production due to MaBoMo and due to Golfinho Boost. In '28, we're doubling again with Maromba coming in line with 60,000 barrels a day. And then Bourdon and Golfinho is creating this run room here. And then I think we've talked about the upsides and appraisals that we're also working on through further exploration at Dussafu and work on Golfinho, et cetera. The next slide looks at how this translates into free cash flow generation for the company. It's a new slide we've added to highlight the significant value creation that's coming up in the company. It compares our enterprise value as of a few days ago, sitting at $2.4 billion with free cash flow at various oil prices. not to pick a particular one, but since the red line kind of lines up well with the $70 oil case, you can see at $70 oil price, the company pays itself back within 5 years. So we think this is a pretty solid investment case, of course. That concludes the outlook section. So let me just recap the updated production guidance for the year. There's been several revisions. We've talked about the production. It's due to optimization of MaBoMo Phase 2 and a delay to a vessel on Golfinho. We -- on the unit OpEx, that's naturally increasing, production down, OpEx goes up. But there's also some effect from higher oil prices. Golfinho is exposed to higher gas price, which is a function of oil price. And -- or both fields are exposed to diesel. But obviously, that's -- we disproportionate to the increase in our revenues. So -- it is what it is. CapEx we covered. G&A is unchanged. Then on to the investment case. Just to repeat it, B2B is a resilient company. We have a diversified growth model. We have more than 600 million barrels of reserves and resources that we are either executing on or will execute on. We're currently executing on projects that will bring us from 25,000 barrels a day to 100,000 barrels a day by the end of 2028. That's with a portfolio return of more than 30% IRR at $6 per barrel Brent. And with the free cash flow generation that we just looked at, that we will repay the company in about 5 years at fairly reasonable oil prices. So with that, thank you, and back to Martin for Q&A.

Yes. Great. We will start with questions from the audience and then move on to questions online. [Operator Instructions] So maybe we start from here, right? I have a helper here in the audience, too.

Teodor Sveen-Nilsen. Congrats on 2 FIDs, looks really promising. Just want to ask around the -- you talked about sustained production of more than 100,000 barrels after 2030. If you could give some more color on how you're going to fight decline, which exploration prospects, which appraisal wells that will ensure no decline or low decline after 2030. A second question, that is on the financials. Thomas, you mentioned the $125 million change for capital, which definitely hit that cash flow this quarter. How much of that is related to the late lifting? And how much should we expect to reverse next quarter? And final question, that is on dividends. You previously talked about dividends after Maromba first oil. You didn't say anything about that now. Can you just comment on how you think around potential dividends or buybacks in the future?

Maybe I could start in the reverse order perhaps. So I think on the dividend side, we mentioned it in our capital allocation framework. Post Maromba first oil, we have a framework to do up to 50% of net profit as dividends. That's something we intend to do as long as we don't have an abundance of 50% IRR projects to deliver on. So that follows the plan. And we've been consistent on that since the IPO really. It's just taken a bit longer than planned to get Maromba going. On the working capital adjustment, I need to get back to you on the exact split, but it's -- it will mostly be reversed due to the lifting and due also to the unlift position in Brazil. I'll get back to you on the exact split. Carl, do you want to take the question about delivering 100,000 barrels long term?

Well, I think what we try to illustrate is the quality of our assets is -- well, Dussafu or offshore Gabon is an extremely oily area. And I think we have managed through the appraisal activity we've done to unlock or to understand -- of course, you don't always find oil, but we now know that if we have a fix hole player, we have oil as long as we have a 4-way closure. So we do see significant upside. So this has revised our understanding of the Bourdon, Greater Bourdon area, where we see a lot of opportunity, and we now install an asset there, which then will allow us to appraise and put in production consecutively. So the next -- and that's why we have reworked our drilling schedule is to step out to Walt Whitman. Again, we know there's a discovery. It's already been done a long time ago, but nobody could unlock the area. Now we can unlock that area. And we reshot the seismic, we're reprocessing it. Again, we are very, very confident about the outcomes. It doesn't mean that every drilling we'll make will be a success, but there are so many targets that -- and there's -- we now understand the subsurface. So we are very confident about Dussafu. We see a little bit the same happening on Golfinho. And I tried to mention when you take over something like Golfinho with 20-year plus of history, there's a lot of data to digest. And it's taken our team quite a bit of time to go through everything and catalog everything and get a full perspective. We knew there were other discoveries with DSTs, with everything. But now we have had the time and opportunity to step through everything, rank it and structure it. So what we see is extremely promising from our way of thinking. So we see potential and don't take that as plus 1 billion barrels, but we see a 1 billion barrel potential as -- that's the potential price of Golfinho. So it's a huge potential. It doesn't mean everything will come in. But with the discoveries already made, we're looking at 200 million, 300 million barrels, and then we can kind of go from there. So when you are in an oil area, you find more oil. That's -- the more you drill, the more you understand, the more oil you find. That's what we're seeing. So we are extremely pleased with our assets.

So for me that Namibia is maybe not the key to sustain production above 100,000 barrels per day.

We are keen to try to unlock Namibia in the same way. But we do realize that the exploration game or the appraisal game, if you like, because technically, we're doing appraisal in Namibia as well because there is a discovery. And we have a production license. It's a bigger game than we prefer to play because every well is about $100 million. And if you want to do a drill stem test, you're talking $100 million plus. So in Namibia, we are thinking more, could there be potential partnerships. The other reason is there's a great potential for associated gas. Associated gas is complicated to monetize unless you have gas in addition. If you have pure gas deals, that's easy to monetize because you can produce gas and monetize gas. Associated gas, you don't like to try to monetize the gas. It's well known from the North Sea because you really want to run it on oil, not on gas. And that's complicated because anything you do with gas is commitments. It's either power station commitments or LNG commitments. So having a swing producer in a big associated gas play could be very valuable. So we're kind of looking to see if other operators in the region could have similar ideas. We -- well, we know from the press that there's been discoveries. We know they're very gassy. I mean I think it's a reasonable punt that it will be a gas play in Namibia at some point. And we think we could have -- we could play a part in it. But we think maybe this is an area where it's partnerships. That's why we're doing a data room to see if we could get dialogues going.

Steffen from DNB Carnegie. Three questions. On Dussafu and Adolo, could you remind me just the production capacity on the FPSO? And what's your ambition there for sustaining plateau now with Bourdon Phase 1 and 2 and Walt Whitman? My second question on Golfinho seems to be some more gas coming out there. I wondered what the offtake agreements are and what kind of gas prices you could realize there? And on the long-term sort of 100,000 barrels per day plus, could you provide some color on the CapEx required to sustain that level, normalized CapEx, if we assume BW is going to some sort of normalized territory within that time?

Would you like to take that?

So on the first question on the -- maybe I go there. On the nameplate of Adolo, there is -- we've done some study, and we can produce more than 50 actually would be the nameplate so far. We can produce more than 450, and we think we can reach a plateau at 500. All the technical study have been done. So no limitation on the top side of Adolo so far. Bourdon first phase will be between 12,000 and 15,000 barrels a day with the 3 initial wells. But we will maintain the plateau with the Phase 2. We want to start Phase 2 in '29. And we have more than 10 wells in the pipeline of the Greater Bourdon area, 10 targets on top of the 3 wells that we will put online in '28. So we hope that by the end of '29, early 2030, we will have the 12 slots producing from the Bourdon area if the appraisal happen to be successful. What was the last question?

Question on gas offtake.

Yes, gas offtake. So we own the pipeline, which is a great value in Brazil because we can sell gas onshore. We are actually working on the gas purchase -- sale and purchase agreement with companies on the market in Brazil. And we cannot communicate today the terms, but we are working on it at the moment.

On the long-term CapEx...

Yes, just to kind of cover that. I mean just to -- I think we've said this before, what we import that is about 10% of Brent. So you can kind of assume what we'd export that is roughly around the same price for the gas in Brazil. In terms of CapEx, it's a good question. We haven't done the exercise yet. So we've been focused on our projects. So -- and having a mix of subsea developments as well as exploration as well as drive, it's hard to kind of pin it down to a specific number to achieve an exact production. Was the question specifically on the company? Or was CapEx to keep that production level -- at Dussafu or B2B...

Total.

Total. So sort of just some sort of normalized cash flow number is what I'm trying to get at.

Yes. I will have to get back to you now.

But basically, to maintain the production, actually in Brazil, we will have the Phase 1 of Maromba with 6 wells and Phase 1 of Golfinho with 3 wells, then Phase 2 of Maromba with 6 identified wells, and we'll have Phase 2 of Golfinho that we already identified with 3 additional wells. and that will continue like that. After Phase 2 of Maromba, we will appraise the carbonates of Maromba that we will penetrate actually in Phase 1. So we'll have a flavor of it. And it's going to be the same process in Gabon. The good thing in Gabon is we have already the infrastructure and in Brazil as well. So the additional cost would be more drilling costs than infrastructure cost because the infrastructure we have in Gabon in Brazil can accommodate more production.

I think you can take a look at the slide with the investment outlook that obviously reflects then the project that's been sanctioned and then beyond that, we'll have to add some investments, I think, to keep it going.

[indiscernible]. It's been a thorough walk-through. I appreciate that. I wanted to touch upon the Maromba and potential execution risk there. You mentioned Strait of Hormuz is clearly closed. You want to have a sailaway of the platform there in late 2026. You're talking about with the heavy lift contractors to mitigate that risk, but how can you mitigate it if it's closed? Surely, if we get to late Q4 and Strait of Hormuz is still closed, we have bigger problems in the world. But how long before -- how much time do you have to contract that before you're starting.

Yes I will remember one thing. We're Chinese. Our rig is owned by the Chinese. -- and our heavy lift will be owned by the Chinese. So we're going to be Chinese when we go out to Hormuz.

Excellent point. But if there is a delay, you have a lot of CapEx on Maromba. How should we think about potential CapEx of runs if there is a delay into 2027 for that sail away?

Well, I think the biggest risk of delay, I agree we shouldn't just laugh Hormuz away, but we do think that we should be able to transit Hormuz because of our somewhat peculiar nationality. We think the bigger risk is in actually getting started and getting all approvals in Brazil. That's traditionally the risk. We have spent a long time reviewing every FPSO project and every other project that we have been able to get data on and what has been their issues, why have there been delays in approvals. So of course, we try to cover everything we can. Our sensitivity, we have run a sensitivity of 6 months, we can easily sustain. If we get more than 6 months, then we will be, I wouldn't say, in trouble because it depends again on oil price, et cetera, going forward, of course. So it becomes tighter if it's more than 6 months to put it that way. So our sensitivity is 6 months is kind of in our plan already up to 6 months.

Just if I may add, we want to start the drilling in 2027 to make first oil in September. So even though we will have the rig to come a bit later, we could still manage to do first oil next year, but maybe only with one well. So basically, yes, we may have a bit of delayed production, but not fully project.

Thank you. That concludes the questions from the audience. We have received some questions online, too. So perhaps, Bruce, could you just go through the plateau production at Bourdon Phase 1 and talk a bit about Bourdon Phase 2, how we anticipate taking FID on that?

Yes. So plateau production, 3 wells from 12,000 to 15,000, as I said. And then we will trigger Phase 2 in '29. And we have 10 additional opportunities in the pipeline for the Greater Bourdon area. So all these wells will come online as we appraise the Greater Bourdon area.

What makes the Bourdon development simpler compared to MaBoMo? And why did you go down this road?

Yes. So we try to leverage the asset that we have in Gabon. We have additional power capacity on Adolo. So it was cheaper to send the power from Adolo. If you want to generate power on Bourdon, you need to have a process to separate the oil, the water and the gas, take the gas, use the gas to produce electricity. So then it comes with a very expensive platform. The idea is to use the existing facility that we have. So we will send the gas directly to Adolo, process the gas and produce electricity and send the electricity directly on the platform of Bourdon. It's not very expensive to pull an additional subsea cable to MaBoMo -- and actually, it's going to be quite a good saving in diesel consumption, and we will reduce as well the greenhouse gas emission of the whole field. And on the manning, we have quite a strong platform on MaBoMo with people to -- enough people to operate the platform of Bourdon. So the idea is to install boatings and use crew boats to transfer the crew of MaBoMo to operate the Bourdon wet platform. So every morning, the team will go there to operate the platform, but we will use the existing team we have already on site and optimize the OpEx of the fields.

Good. And maybe just to round off the Sfu area. There's a question regarding the option exercise of the Adolo FPSO in 2028. Is that included in the CapEx guidance?

So it's not included. We have a purchase option of 100 million.

2026. So we have not included books in 2028. And it's subject to agreement with BW Offshore. But logically, if the field delivers this trajectory, then it will likely be more profitable for us to take the purchase option relative to paying a tariff and the rate.

Yes. We'll come back to that later. And some M&A questions. On M&A and greenfield versus brownfield, you've taken a contrarian approach by leaning into greenfield projects, while most of the market has gravitated toward brownfield opportunities. Has that gap in appetite started to narrow? I'm sure you got a finger on the pulse when it comes to most recent developments in the M&A market.

Gap narrowed. I didn't quite.

Gap between the brownfield and the greenfield market.

I don't know. I mean it's an interesting question. But I would say we're pretty -- we're kind of alone in the greenfield space, while we see that the brownfield is getting increasingly crowded. And in particular, I would say brownfield is now also the arena for local indigenous companies. So -- but these days get financing from the traders at a totally unprecedented level. And the traders have a lot of money. They've obviously made a killing in the market lately. And they are very active supporting local indigenous companies. So we see the brownfield market as crowded. And the greenfield market is very open. But there is not that many greenfields in the market. That's true. You have to find them.

Perhaps also allude a bit to what is the vision for BW Energy for the future regarding exploring other countries and also give a status on the Angola acquisition.

I think we can say that, yes, we have a strategy, but we also have other strategies. So we're not really -- I mean, we are participating in land drilling in Namibia. So we are not bound by a particular strategy. But we're cognizant of what we're good at. So of course, if it is offshore, if it's some involves assets that we are very familiar with, we are good. We know what we know. We are not particularly good at operating on land because we don't operate on land. But I think strategically, if we saw an opportunity, we would still go there. We're not -- we're more driven by the opportunity and then we're really driven by a set strategy, I would say. So we are -- yes, we would look at anything with interest. We have also looked at other areas of the world like Far East, but we just haven't found the right opportunity. We're picky about the opportunity, but we're not really picky about where...

Yes. Good. One final question on hedging. To what extent will you hedge the Maromba production?

I can take that one. We will not hedge Maromba production until we get the first oil because that would be speculation. So once Maromba is producing, we may follow our current company policy, which is to hedge about 40% of our net entitlement in the next 12 months and then 25% the following 12 months, plus/minus.

All right. Thank you. That concludes -- one more question here.

A very quick one on M&A. Is it a prerequisite that assets would have to be operated? Or could you be partner as well?

Yes, we could be a partner as well. But we prefer to be operator. But of course, given the right opportunity, if we saw a pipeline of development opportunities where we could play a role, active role, we could also consider to be a partner. Again, we're quite flexible on the strategy. We're not hung off -- we're okay to be opportunistic.

All right. That concludes the presentation. So thank you for showing up here today, and thank you for attending online.

Yes. Thank you so much for your participation and interesting questions. always enjoyable to do this face-to-face. So have a very nice day.

Hello, and welcome to the BW Energy Q4 Presentation Conference Call hosted today by Carl Arnet, CEO; Thomas Young, CFO; and Brice Morlot, COO. Please note, this call is being recorded. [Operator Instructions]

I will now hand you over to your host, Carl Arnet, CEO, to begin today's conference. Thank you.

Thank you, operator, and thank you all for joining BW Energy's Fourth Quarter and Full Year 2025 presentation. My name is Carl Arnet. I'm the Chief Executive Officer of BW Energy. I will take you through some of the highlights for 2025 and the fourth quarter and some of our developments.

Then you will have some more granularity on the operations from our Chief Operating Officer, Brice Morlot. And of course, as usual, some granularity on the financials by our Chief Financial Officer, Thomas Young. 2025 was a strong year for BW Energy with a record annual production, another record I'm pleased to say. And of course, with record production comes reduced unit OpEx.

Our project portfolio is on schedule and cost, and we are very pleased to have raised a total of USD 1 billion, approximately USD 1 billion of low-cost financing related to our developments. We are also pleased that our discovery last year, Bourdon is moving towards FID and that will be more to come very soon in future reporting.

So for 2025, we had a total EBITDA of $414 million with a net profit of $133 million. Our cash at the end of '25 was $150 million. Fourth quarter figures. Our net production for the quarter was 25,200 barrels per day with an EBITDA of $37.1 million. Our key projects are progressing into 2026. Maromba development is on track, and I will take a little bit more detail on that. And then we have MaBoMo Phase 2 with first oil in '26. This is of course, addressing low-risk and high profitability infill drilling opportunities we have on Dussafu. We hope to sanction Bourdon very soon, which will give us another cluster on Dussafu.

And last but not least, we are still progressing very well on the Golfinho Boost project. So some more details on the growth projects. We have the Dussafu, which will have, of course, a pivotal year in '26 with the MaBoMo Phase 2, where we will address about 2P reserves of 14 million barrels, and we have 4 development wells planned, where we have in planning 2 Hibiscus appraisals.

Golfinho Boost is, again, addressing about 12 million barrels of 2P reserves. We are converting gas lift wells to seabed ESPs. And the project is going very well. And again, a very accretive project, better than 30% IRR, and we are progressing, as I said well. Maromba, that's, of course, the big 123 million barrels 2P reserves, and we expect to drill a total of 12 production wells where we start with 6 in the first phase and then another phase of 6 that will follow. That's more drilling execution phases we're talking about.

And again, a very high IRR for the Maromba project. And Bourdon discovery, we expect to have on this list very shortly. The Maromba execution is on track. We have reported extensively on the FPSO refurbishment and so you showed you pictures of that. It's going well, and there's full activities in Dalian at the China yard. The wellhead platform had an initial stay late or second half of last year in Singapore, where we did, let's say, an extensive assessment of work scope, and she's now been transported to the conversion yard. For the SURF, the main activity is engineering and procurement to prepare for the installation towards late '26.

The other main focus of the whole Maromba execution is to prepare for the regulatory approval process, and we are spending a lot of effort in our engineering and preparations and, of course, also yard supervision to prepare for meeting all the regulatory requirements when we mobilize into Brazil.

Next picture, very cool picture, shows the scale of our jack-up, our jack-up acquisition as she is being towed into the yard in Dubai. We have -- you can see it's a very large unit, and we have -- we are well underway now with the engineering and the initial mostly demolition work, but preparatory work for the conversion and the -- all the upgrades that we will do to have her serving as a drilling and wellhead platform. And the planned sail away to Brazil is end '26.

Then on to update on our appraisal and exploration activities. We have just completed our 3D seismic campaign, the seismic shoot on Niosi Guduma and the corner of Dussafu and we will now, of course, enter a fairly extensive period of analyzing this seismic data.

We are planning for 2 appraisal targets at Dussafu in the MaBoMo Phase 2 campaign, and we also have further targets. We are still planning the MaBoMo Phase 2 drilling campaign in its totality. So we may come back with further news later on.

In Namibia, as you know, we have completed our Kharas-1A. We are now working on a preparation of a data room for our findings in -- on that well. The other activity we have in Namibia is, of course, the non-operated PEL-73, where our partner is undertaking onshore exploration campaign with, let's say, some initial good news on the drilling that has taken place there.

Then we have announced some progress in Angola. Angola is a country of interest in our West Africa strategy. We have agreed with Azule Energy to acquire net 10% of Block 14 and 5% of Block 14K. I remind everybody that this is fairly extensive processes where you have regulatory approvals, there's closing conditions and also preemption rights. So we are not declaring in any form or fashion, victory today, but we have agreed with Azule Energy, and we see this as a very interesting opportunity to get a foothold in a mature hydrocarbon basin where we see a lot of future potential with the BW Energy strategy.

So all in, we are very much on track to deliver industry-leading growth. We have given a 20 year '25 with a new record production, our guidance for '26 is flattish. We have activities to fight back on depletion, which you always have, and we expect to keep our production at very healthy levels in '26. But of course, as we have -- as we complete our developments and get the production from Maromba, we will see a significant threefold increase in production.

So with that, I will leave the word to Brice that will take you through the operational update.

Thank you, Carl, and good afternoon, everyone. 2025 marked another step forward for BW Energy with a new annual production record of around 30,000 barrels per day. This reflects the continued focus on safe and reliable operation across our assets. And it is encouraging to see our targeted work translating into a steady year-on-year improvement in production.

Let me take you through the key operational developments during the year. Dussafu delivered another strong year, marked by high uptime and a rapid recovery following the planned maintenance in the third quarter. During Q4, production was impacted by a mechanical failure on one of our ESP. This was budgeted and planned for as part of the ESP maintenance, and we have a hydraulic workover unit that is already in Gabon ready to perform the workover. The workover will be performed without a drilling rig. The well should be back online mid-March 2026.

Golfinho experienced some challenges in Q4 with maintenance being extended due to a lifeboat integrity issues. The well maintenance program will be -- will involve several optimization measures, also took longer than expected, but we successfully managed to resolve the issues and ramp up production towards the end of the year.

In total, the full year production came in at 10.9 million barrels, so very close to our original guidance of 11 million barrel net to BW Energy.

Let us have a look at the quarterly OpEx development now. On operating cost, I'm pleased to report that we ended the year comfortably within our guidance range at around $20 per barrel. This reflects high facility uptime, stable operating performance and continued cost discipline across our assets, particularly at Dussafu.

Now let me take you through the operational outlook for 2026. We have an active year ahead 2026 with several important operational milestones to be delivered. So at Dussafu, first, we will commence drilling under the MaBoMo Phase 2 program during the summer. And base case -- our base case is that 2 wells will be completed and ready to come on stream late in the year. This well will be ramped up following the seasonal maintenance period in the third quarter with a contribution to fourth quarter production, while you will see the full production impact realized in 2027.

As in the previous year, we will carry out our planned 3 weeks maintenance at Dussafu during the third quarter. And in addition, we have identified 1 ESP that requires replacement. This work is already underway and is expected to be completed by mid-March with only muted and temporary impact on production. Overall, for Dussafu in 2026, we expect a natural decline from the existing wells to be partially offset by the initial production from MaBoMo Phase 2. However, full production is expected to be somewhat lower than 2025 as most of the new volumes will contribute next year in 2027.

At Golfinho now, we recently completed a substantial well optimization program as part of the Q1 maintenance. And we are already seeing positive effects across several wells. So with this improved well performance and reduced maintenance activity compared to last year, we expect production at Golfinho to increase in 2026. Taken together this support, full year production guidance will be between 9 million and 11 million barrels net to BW Energy, corresponding to 25,000 to 30,000 barrel per day operating cost.

The operating costs are estimating around $20 to $24 per barrel in 2026. So OpEx remained under control. We expect to capture efficiencies gained on Adolo, including onshore support, repairs and maintenance crew as well and the removal of third-party markups, which should reduce operating costs while natural production decline across the portfolio offset some of these benefits on a per year basis.

The operating cost guidance range primarily reflects the range of production outcomes. With that, I conclude the operational section and hand it over to Thomas for the financials.

Thank you, Brice, and good afternoon, everyone. 2025 marked another strong year for BW Energy, both operationally and on the financial side. We delivered in line with guidance across our key cost parameters and secured further important financing supporting our ongoing field development projects.

A good illustration of our approach to ensuring efficient financing is the latest lease arrangement concluded in the fourth quarter. By entering into the $275 million long-term lease for the wellhead platform, we have further optimized our liquidity profile during the key investment years in '26 and '27 ahead of Maromba coming on stream. Whilst the total Maromba CapEx remains unchanged, the revised structure shifts all wellhead platform-related costs past first oil.

Overall, our value creation plan remains firmly on track. With the CapEx estimates unchanged and continued strong cash flow contributions from our producing assets, we have taken another solid step towards the company's next phase of growth across our key assets.

I will come back to our updated financial outlook, but let's first take a closer look at the key developments for the quarter. Production for the quarter amounted to 2.3 million barrels. During Q4, production was impacted largely by 2 key operational events at Dussafu and Golfinho that were covered by Brice. If we were to adjust for these impacts, Q4 net production would have been about 1,700 barrels higher per day net, which would correspond to roughly 200,000 barrels for the quarter.

Sales volumes were impacted in particular by Dussafu lifting that slipped into the following quarter. All in all, this resulted in 1.8 million barrels sold net to the company. The slight delay in the final lifting that was planned for year-end led to Q4 having 1 less lifting compared to Q3 with a resulting inventory at year-end of 900,000 barrels. Timing effects such as this are normal and will, of course, even out over time.

During the fourth quarter, continued macroeconomic uncertainty weighed on all markets with Brent prices averaging about $64 per barrel compared to $69 in the previous quarter. BW Energy continued to realize prices close to Brent with an average realized price of $62 per barrel for the quarter. It's worth pointing out we had one cargo sold in December when Brent prices were at the lowest point during the quarter as our liftings are based on monthly averages rather than quarterly averages, the realized prices show a larger discount relative to the quarterly average Brent price. These same factors also impacted operating cash flow.

Let me, therefore, turn to the key drivers behind our cash flow development this quarter. We entered the fourth quarter with a relatively high cash balance of $259 million given that we're in a period of elevated investment activity, a reduction in cash and liquidity was expected. Please keep in mind that although it doesn't show up on the liquidity definition, there is effectively about $375 million remaining undrawn project funding on the FPSO project finance facility and the Wellhead Platform lease.

Operating cash flow came in somewhat lower than anticipated, mainly due to the extended maintenance in Brazil and the timing of the Dussafu lifting. This was largely offset by lower investment spending, reflecting the conversion of CapEx to lease for the Wellhead Platform project, which defers these cash outflows beyond 2028. The change in working capital primarily reflects the release of trade receivables following the receipt of sale proceeds from a lifting achieved at the very end of Q3.

Beyond Maromba, we continue to invest in Golfinho Boost project with the rest of the spending related to Kudu facility upgrades and early planning costs for MaBoMo Phase 2 at Dussafu. Financing cash flows reflect debt repayments made in Q4. This included the termination of the Shell prepayment facility on Golfinho and partial repayment of the corporate revolving credit facility, aiming at reducing interest costs while maintaining a comfortable cash balance.

I'd like to point out that the repayment of the Shell facility now leaves both Maromba and Golfinho field licenses unencumbered and available to facilitate further potential financing to fund our growth. Overall, the net cash movements were broadly in line with expectation. We ended the fourth quarter with $151 million in cash and a strong liquidity position of $366 million, including undrawn facilities, but as mentioned, excluding undrawn project finance facilities.

Let's now look at how this is reflected in our overall financial position. Starting from the left-hand side, the net debt increased in line with the ramp-up of our investment program. The increase in net debt was primarily driven by lower cash balance with cash decreasing by roughly $110 million compared with the prior quarter. The increase in net debt to EBITDA also reflects a reduction in Q4 EBITDA of $105 million relative to the fourth quarter of 2024. This was the result of natural production decline as well as timing of the lifting that slipped into 2026.

As a result, the leverage ratio increased from 0.9 to 1.5. This remains at a comfortable level with the quarter-on-quarter movement partly amplified by the temporary impact on EBITDA from the slightly delayed lifting and the planned reduction of cash on hand to manage interest costs. As expected, net debt to EBITDA will continue to increase during this growth phase as we move forward to first oil in Maromba. Our equity ratio remains strong at 40%. And overall, we exited the quarter with a robust balance sheet, well positioned to progress into the next phases of our development program.

With the new Wellhead Platform lease in place, we have materially improved the phasing of cash outflows while keeping the total project budget unchanged. The lease structure means the payment commences at first oil and extends over a 10-year period thereafter. As a result, pre-first oil cash outflows has been reduced by $274 million, improving liquidity during the most capital-intensive years of the Maromba project in particular. You can see this reflected in the investment plan where pre-first oil spend now totals approximately $725 million, with the remaining CapEx phase post first oil.

The overall underlying Maromba CapEx envelope remains around $1.5 billion, with the majority allocated to infrastructure and initial development wells followed by additional sanctioned wells after first oil. The key takeaway is that we have not reduced scope, delayed execution or increased total cost. Rather, we have, during the quarter, strengthened liquidity, eliminated near-term funding requirements and further derisk the path to first oil.

Together with the existing financing arrangements put in place earlier in '25 and strong operating cash flow, this latest financing optimization further reinforces our ability to efficiently fund greenfield developments through key production infrastructure.

Capital deployment remains firmly on track towards first oil with our value creation plan progressing as intended. On the sources side, we are supported by strong underlying operating cash flow from Dussafu and Golfinho, combined with secured FPSO and rig financing on highly competitive long-term terms. Together with our existing liquidity, this gives us ample financial flexibility through the peak investment period.

On the user side, the majority of capital is directed towards Maromba pre-first oil CapEx alongside continued investment across the portfolio. Even on the conservative oil price assumptions, we do generate excess cash flows that provide a further liquidity buffer and supports our debt service.

In total, our CapEx outlook remains unchanged. The investment program is progressing as planned, and the overall funding structure remains robust. We continue to maintain a strong balance sheet with more than $350 million in cash and undrawn facilities and leverage at comfortable levels. Overall, this leaves us well positioned as we close in on Maromba cash flows with less than 2 years remaining to first oil.

On to the 2026 guidance. We have another active and exciting year ahead with several key activities shaping our guidance. Our production guidance for the year is 9 million to 11 million barrels, equal to 25,000 to 30,000 barrels per day. The range reflects some remaining uncertainty related to the impact of MaBoMo Phase 2 drilling program at Dussafu. While new wells are planned to come on stream before year-end, any delay to the drilling schedule could result in production being deferred into 2027.

In terms of phasing, we expect stronger production in the first half of the year, while the third quarter will be impacted by approximately 3 weeks of planned seasonal maintenance in Dussafu. We expect higher production in Golfinho following well optimization activities related to the Boost project as well as no planned major maintenance for the year.

As highlighted earlier, operating cost guidance for '26 is $20 to $24 per barrel, reflecting continued cost control and updated production outlook. Capital expenditure for the year is guided in the range of $500 million to $600 million. The increase in CapEx guidance for '26 relative to '25 reflects the ramp-up of the Maromba development, including the FPSO and long lead items for drilling and SURF, start of Dussafu MaBoMo Phase 2 campaign and the Golfinho Boost project.

As a reminder, CapEx related to Wellhead platform is no longer included in this guidance as no cash outflows will occur before lease payments commence following first production at Maromba.

Finally, we expect G&A expenses to decline to between $12 million to $14 million for the year. This is a significant drop from last year, not due to big cuts in administration, but rather more of the cost being allocated to the project spend as we have increased our product activities.

Before opening the floor to questions, I would like to share a few concluding remarks. Our investment proposition remains compelling. We are executing on our strategy to deliver long-term value as a fast-growing E&P company, supported by a diversified asset base, strong cash flow generation, efficient financing and a robust balance sheet. We're actively progressing our key development projects, which underpin a meaningful growth and support our ambition to reach production of around 90,000 barrels per day by 2028. This growth is underpinned by a solid financial capacity, disciplined capital allocation, resilient balance sheet and the completion of key Maromba financing milestones.

Overall, BWE is well positioned to fund its growth and deliver sustained value for shareholders.

With that, I'll hand it back to the operator to open the line for questions. Thank you.

[Operator Instructions]

The first question comes from the line of Teodor Sveen-Nilsen calling from SB1 M.

First, on Golfinho, you explained that you expect higher Golfinho production in 2026. I just wonder how much higher you should expect than the Q4 level? Is it like a doubling or even more compared to the Q4 level?

Second question that is on liftings in Q1 2026. You said that slipped in -- or one of liftings slipped into Q1. So if you can give an indication of the liftings for the next quarter, that will be useful.

Thank you, Teodor. I can cover the first one. The line wasn't great. So I didn't -- wasn't sure if I fully heard you. In terms of the lifting, we had planned for the end of the year. It was slightly more than 600,000 barrels. But because of the tanker delay from the trader, it slipped into effectively Q1, so which meant that we didn't receive the cash nor do we take the profit from that lifting. The first question, Teodor, I didn't catch.

Yes. The first question was regarding expected Golfinho production in 2026. But I also have a follow-up on the lifting. So I assume you expect an overlift for Q1. Is that right?

On Golfinho, no, we exited the quarter with a bit extra inventory, aligning with the fact that we would had that lifting coming up, which we then took in Q1.

I was actually referring to the total company, the overall lifting for BW Energy, if you expect an overlift in Q1 2026?

Yes. Well, an overlift in the sense of the exit of the quarter.

Yes. So lifting will be more than production in Q1, right?

Yes, correct, because of that lifting at the end of the year basically very, very start of this year.

Understood. And then expected production for Golfinho in 2026?

Brice, can you cover that?

Yes. So production should be better from -- on Golfinho compared to last year. We've already seen some improvement at the end of the year, but we hope that we are -- we have done some good optimization on the wells, and we are confident that the production will be stronger this year compared to last year.

We currently have no questions coming through.

[Operator Instructions]

There are no further questions coming from the telephone line. Therefore, we're going to take now the question coming from the webcast, written question. The floor is yours.

Yes. We have a question from the web here concerning the Gabon CapEx budget as well as the contribution from Gabon into our production.

So about 50% of our CapEx is Maromba, 20% Dussafu, 20% Golfinho, 10% Kudu in '26 and roughly 70% of the production will be coming from Dussafu in terms of the guidance.

We have another question here. What is the status in Q2? How should we interpret the opening of the data room?

Yes. Maybe I should take that. Well, we have not fully completed our analysis yet of the Kharas-1 well. But -- well, as of today, we have 95% ownership in the license. What we see is that it's interesting, but it will also require extensive additional appraisal/exploration to unlock the potential of Kudu. And I think it's prudent that we open a data room and invite potential partners to have a look and see if they share our excitement and want to cooperate on continuing the work on Kudu.

I think that's the main reason for a data room. We see -- we're still of the opinion that the Orange Basin is very early in its development. And -- there's -- even though there's quite a few wells drilled lately, it's very few wells if you look at historic data, how many wells were needed to unlock basins, et cetera, et cetera. So we found liquid hydrocarbons. That's interesting. But we also found that much more work is needed, hence, better room.

Thank you. We have the next question that you may be able to cover too. Is Angola included in guidance?

The answer to that is no, but what can we expect from Angola contribution in 2026?

I don't think one should hold one 's breath waiting for Angola to be coming into our books. It is -- again, it's a new entry into a new country. We are extremely, of course, pleased that we have managed to make a deal with the seller. But as you all know, there's government approvals, there are partner approvals, et cetera, that you have to pass before you can access the assets.

So yes, we see Angola is very interesting, but we are not there to declare victory today. Hopefully, we will have victory sometime in the future. But I don't want to start speculating on when we can have this all concluded one way or the other.

Thank you, Carl. That concludes -- I think that concludes the call. Thank you very much.

Okay. Well, thank you to everybody for listening in and participating. Always great to have good questions from participants. And well, see you next time.

Welcome to BW Energy's Third Quarter 2025 Presentation. [Operator Instructions] This call is being recorded. I'll now turn the call over to you, Carl. Please begin your presentation.

Thank you, operator, and a warm welcome to this third quarter presentation by BW Energy. This presentation will be hosted by Thomas Young, our new CFO; and Brice Morlot, our COO, also in a new position. And of course, myself, Carl Arnet.

The third quarter highlights, the broad picture is that everything is on schedule, and we are on track to meet full year production guidance. Our project portfolio is going very well and on both cost and schedule. And the Maromba financing has been completed, and you will have more details on this later. The Bourdon is moving towards FID, the recently made discovery, and we are drilling our Kudu appraisal well.

So the EBITDA of the third quarter was $96 million. Net profit at $20 million and our cash position at around $260 million. The operational performance in the quarter was affected by the Dussafu annual maintenance campaign, and this reduced the availability of Dussafu to about 80% if we account for the downtime. The Golfinho production was at 92% availability, which is good and improvement over last quarters. The Golfinho production will be affected though, in the fourth quarter with their annual maintenance, and that will be a 5 weeks campaign. So the overall is that the guidance for 2025 is maintained and stands at 11 million barrels to 12 million barrels, which is an average of 30,000 to 32,000 barrels per day. The year-to-date production is 8.5 million barrels.

And just to clarify that the -- if you look at the average production in the quarter, that was affected then obviously by the decline and the shutdown for maintenance. So again, just to reiterate what we have said previously, the quarterly decline is about 1,000 barrels net per quarter. This gives a competitive OpEx per barrel and year-to-date is shy of $20, so $19.5 per barrel. And we are -- have an updated guidance of $19 to $21. We previously guided that guidance a bit wider of $18 to $22.

The annual maintenance on Dussafu was completed on schedule, and we had a net production in the quarter of 20,000 barrels per day. Maromba execution, project is very much on track. The FPSO refurbishment is going very well in China, and we have taken delivery of the rig in Singapore, and we have inspections going on to prepare work scope, and we plan to take the rig to Dubai for the conversion. The project engineering or the engineering effort is going well, and we have placed all the orders for long lead items. So very much on track with the Maromba project.

So in terms of projects, we are executing the Maromba project, the Golfinho Boost project and the MaBoMo Phase 2. And you will see that this will add significantly to our 2P reserves, $123 million for Maromba and $12 million for Golfinho Boost and $14 million for the MaBoMo Phase 2. We also work on the Bourdon FID, and we expect to mature that within the fourth quarter and add an additional 18 million barrels net of Bourdon reserves.

So this will take us to an industry-leading growth. We expect to go from 30,000 or north of 30,000 barrels per day in '25 to more than 90,000 barrels per day in 2028.

So we maintain our track record of expanding our high-quality portfolio, and we have shown consistent growth in our 2P reserves. With the addition of Maromba, that will stand at 252 million barrels. And of course, we have significant remaining potential in the further 2C reserves of 388 million barrels or close to 400 million barrels.

With that, I will leave the word to Thomas Young that will take you through the financial highlights.

Thank you for the introduction, Carl, and good afternoon to you all. It's a pleasure to take over the financial leadership from Brice and to continue strengthening our financial position, which I see as an important foundation for the ongoing growth journey, which is BW Energy.

As we enter a period of increased productivity, I'm pleased to report that BW Energy maintains a strong financial position. Our producing assets continue to generate a very solid underlying cash flow. The balance sheet is robust, and we currently have ample liquidity headroom. This quarter has been particularly active, at least from a financing perspective with several key financing transactions successfully completed, including, firstly, the approximately $365 million Maromba FPSO ECA-backed financing, the $108 million short-term lease financing for the purchase of the Maromba rig and lastly, the $250 million corporate RCF. In closing these transactions, we've established some important new banking relationships in the Middle East and Asia that has given us access to low cost and efficient financing.

Let's now take a look at the financial developments for the quarter. From a lifting or sales perspective, this quarter is nearly identical to the previous quarter. We had 2 liftings from Dussafu at about 950,000 barrels a piece and a 500,000 barrel lifting from Golfinho. Realized prices were also quite similar to the second quarter, which then naturally means that the revenue this quarter is nearly the same. In terms of production, this quarter, the production was a little lower due to the planned downtime on Dussafu, which was part of our annual maintenance cycle on the Dussafu FPSO. We've seen this planned maintenance effect come as a surprise to some of you in previous years. So probably helpful to note that this happens every year around Q2, Q3 and should be taken into account in any forecast is similar. The same goes for Golfinho really. Altogether, stable volumes and firm pricing delivered us a total revenue of approximately $200 million.

Let's move on to cash flow and breakdown of recent quarterly development. We began the quarter with a cash position of $193 million. Operating cash flow reached -- sorry, operating cash flows reached $81 million, a notable increase compared to the previous quarter despite similar lifting volumes. Just to comment on that, this increase was primarily due to timing. When we sell our oil to the oil market, they have a few days to pay us. As the last second quarter lifting took place at the very end of June, it meant that the proceeds from that particular lifting, even though it was booked P&L-wise in the second quarter, wasn't received until July, which explains the increase.

As planned, we ramped up our investment spend this quarter in line with increasing productivity. While reported investment cash flow was around $120 million, actual spend exceeded $200 million. The reason why the investment cash flow shown here is lower than our actual spend is because we converted the Maromba rig purchase or the VALARIS 247 to a lease. The rig investment, therefore, does not show up in our investment activity cash flow, but rather as a right-of-use asset with a corresponding lease liability.

Beyond Maromba, we invested approximately $30 million in the Kudu well with the residual spending at Golfinho Boost and some early planning costs for Maromba Phase 2 at Dussafu. I'd like to point out that our intention is not to exit quarters with this level of cash on hand. Between the corporate RCF and the Dussafu RBL, both being revolving credit facilities, we have the ability to repay and redraw when needed. Again, this highlights the flexibility and efficiency of our current debt capital structure.

Looking ahead, I'd expect to see less cash on our balance sheet going forward as we would rather regulate down the RCF debt to reduce interest costs and rather keep more available liquidity. In addition to our liquidity position, our balance sheet metrics also remain strong. We ended the third quarter with a conservative leverage ratio of 0.9, which is a strong starting position as we move into a high activity growth phase. This growth phase is funded to a degree by operating cash flow, where excess spend is funded primarily by additional debt. Naturally, that means that we will see an increase in net debt as we move closer to Maromba first oil and as we draw on the various project financings we have in place today. Equity continues to grow steadily, but as we're investing in a lot of high-value activities, we see that total assets are also increasing, which will maintain the equity ratio going forward, at least until we see the fruits of our labor.

Moving to liquidity. This is a very important part of what makes the current B2B capital structure efficient. When undrawn, we only pay a fraction of the drawn cost, the best example of this being the corporate RCF. When undrawn, we pay 60 basis points or 0.6% for the liquidity on the corporate RCF, which makes this a very efficient source of liquidity. The makeup of the additional liquidity in the third quarter is $70 million available on the Dussafu RBL and $200 million available on the corporate RCF.

Although it is not, by definition, classified as liquidity in the presentation like this, it is important to note that the project financing on the FPSO and the planned Maromba wellhead platform project lease is available to be drawn as we spend. We have slightly north of $200 million remaining on the Maromba FPSO project finance that will effectively offset against our CapEx guidance. And we expect that when we close the long-term project lease for the Wellhead platform, it will offset most of the $250 million Wellhead platform CapEx. In other words, there's about $200 million of undrawn debt in relation to the FPSO and about $250 million that we expect for the Wellhead platform lease that per definition is not part of the $529 million liquidity shown here. But for all practical purposes, it's available subject to spending on the respective products.

In total, these items give us significant headroom in the years before Maromba first oil. The chart illustrates our capital strategy through 2027. On the left, you'll see our available liquidity and expected cash flow generation from existing projects. On the right, how we plan to invest it. The key takeaway is even in the lower than $60 per barrel oil price scenario through 2025, 2026 and '27, a rather unlikely scenario, if you ask me, but regardless, we'll have more than enough capital to fund our growth until Maromba is online. The majority of our debt maturities fall after Maromba comes on stream at the end of 2027, which, of course, marks a key inflection point for the company where we expect to transition from drawing on facilities to being funded by cash from operations.

Since the second quarter presentation, we have made excellent progress and completed several attractive financing agreements, a project finance facility for the FPSO, a short-term lease to cover the purchase of the jack-up rig and secured a corporate RCF facility as additional liquidity buffer should it be needed. These solutions have been enabled through strong relations in the Middle East and Asia to strike deals with reliable long-term financial partners and very attractive terms and conditions.

With that, let me give you an update on how we are tracking against our targets for 2025. We are pleased to present an updated outlook for 2025. Year-to-date production has averaged 31,500 barrels per day, including completed maintenance at Dussafu. While we still have some remaining downtime at Golfinho in Q4, we maintain our full year guidance of 30,000 to 32,000 barrels per day. Operating costs have been strong, allowing us to narrow our guidance to $19 to $21 per barrel from the previous $18 to $22. Capital expenditure for the first 9 months totaled $304 million, below expectation due to the $108 million platform CapEx being converted to a lease financing. We, therefore, now revise our full year CapEx guidance to $475 million to $525 million, with the spending expected to increase going forward as project activity ramps up. General and administrative expenses remain in line with expectation, and we continue to guide as previously communicated. Overall, our year-to-date performance remains strong, and we have momentum heading into year-end.

Before we open the floor to Q&A, I'd like to share a few concluding remarks. We're delivering on our strategy to create long-term value as a fast-growing E&P company, supported by a diversified portfolio, strong cash flow and a robust balance sheet. We're actively advancing key development projects that will drive significant growth, targeting production of around 90,000 barrels per day by 2028. Our financial capacity underpins this journey with disciplined capital allocation, a resilient balance sheet and key Maromba financing milestones completed. In sum, the company is well positioned to fund our growth and deliver sustained value for shareholders. With that, I'll hand it back to the operator to the floor to open for questions. Thank you.

[Operator Instructions] Our first question comes from the line of Teodor Nilsen from SB1 Markets.

A few questions from me. First, on the Kharas well in Namibia, the ongoing well. As far as I understand, the log activity has been going on for at least a week or so. Just wondering what you can share about what you found there or if there's any resource estimate that you can disclose today? Second question, that is on CapEx and the changes to CapEx guidance this year. I understand that the major part of the change in CapEx guidance that relates to the lease. But still, I wonder how does that change impact 2026 CapEx? Could we expect some of the previously guided 2025 CapEx go over to 2026? And then my last question that is on the Dussafu production for 2026. Should we expect some minor decline going into the year compared to the average 2025 production? Or will that remain at the current level?

Okay. I suppose I'll take the first. The Kharas question. We have not been logging for a week. We have -- we're actually a little bit ahead of schedule. We reached target depth last night and the logging activities are just getting started as we speak. So we will be back with news from Kharas shortly. But it's a little bit early days. So we will come back when we have completed the logging activities. And then CapEx guiding, I guess you take that, TY.

I can take that. Thanks, Teodor. Yes. I mean, firstly, you asked about, I think with the impact of the lease on the CapEx guidance. Just to kind of clarify this first lease is obviously the short-term lease that we've done for the rig acquisition in anticipation of the longer-term lease. So that's done a full offset basically of that CapEx, which was an acquisition cost of $107.5 million to be specific.

In terms of kind of as we move forward into the longer-term lease, which is -- will hopefully be in place by year-end. That's at least the plan. We expect to see roughly $100 million offset in 2026 and with the remainder of the Wellhead platform cost in '27. In terms of the remainder of the delayed phasing, we see this as quite natural couple of reasons. There's no change to the budget. There's no change to schedule. When we do our planning, we see cash flows can be a bit delayed, reflecting really the difference between committed costs and actual cash out, which has elements of payment terms with suppliers, et cetera. And it's generally considered a prudent approach to cash flow planning. And further, we actively manage cash out. So we see some extension of [indiscernible].

I can take the third question about the production guidance. So our production guidance are unchanged for '25. Golfinho production is -- so today, the installation are shut down due to planned maintenance. We decided to extend the scope this year with a couple of weeks to accelerate some of the improvements we want to do for the Boost project. This longer maintenance will avoid the shutdown next year. So therefore, there will be no shutdown in '26 in Brazil.

On Dussafu, the production is in line with the budget. In terms of decline going forward, you can take in account approximately between 10% and 15% per year. While some well will experience steeper declines, the new wells are also coming online. We have the MaBoMo Phase 2 project. So it's 4 new wells in Gabon with appraisals. They will come online end '26. It's quite a highly profitable project with fast payback 2 to 4 months. So basically, by the time the drilling begins on the new well, the initial wells is paid off. So in terms of cash flow, it means that the Dussafu projects are repaid by Maromba [indiscernible].

And for the 2026 guidance, we will share this during the next quarterly communication.

[Operator Instructions] As no one else has lined up for questions in this call, I'll now hand it over to Thomas for any written questions.

Thank you, operator. We have a question from Jakob in SB1 Markets asking about the breakdown of the debt structure. So I can jump into that. We have today a $400 million RBL. That's an RCF facility sitting at Dussafu level. We have currently drawn $330 million, which leaves $70 million outstanding. On Dussafu, we also have a sale and leaseback platform that's producing there today. We have roughly $131 million outstanding there at the end of the quarter. On Golfinho, we have a small prepayment left over that was there for covering the working capital of the acquisition. It's been extended once. At the moment, we plan to fully repay it by the end of the year, and that's currently sitting at $40 million. That is repaid with liftings. On the bond, we have a Nordic IO bond, VO1 sitting at $100 million. We also have the Maromba Wellhead platform short-term lease that we've covered. We have a corporate RCF. That's a $250 million RCF sitting at a corporate level with $50 million drawn at the moment. And we have the Maromba FPSO ECA-backed financing, which is a construction plus 6.5 years term with project finance facility, so it's draw as you spend, and it's for $365 million, of which we have drawn roughly $130 million.

Moving on. We have some questions on queue, I think that's already been covered by Carl. We have a question on the rationale for the onshore investments in Namibia. Carl, perhaps you could cover that.

Yes, I can cover that. We -- well, this is a little bit outside our normal what we normally are interested in. But as it is Namibia, and we have a good relationship with Recon, we decided to participate in their onshore exploration program. And I think one reason is that we want to be a good corporate citizen in Namibia, and this is something that Namibia wants done. And it's locally -- has good local support. The other thing is, of course, it's a good hedge for us with interests in gas to power in Namibia in the longer picture. So those are the main reasons for being interested in this exploration program. And we have a 20% stake in the asset.

Thanks Carl. Moving on, we have a question on Bourdon. We could comment on FID time line and how it compares to MaBoMo. Brice, perhaps you could cover that one.

Yes. So Bourdon is a new major discovery in Gabon, very important for the country and for us. We are working on the field development plan. It's a great project with strong economics because the FPSO infrastructures are there already, and we have a lot of synergies, electricity production, living quarters, logistics. So we want to go ahead with the project. It will add 2 years of reserves replacement on the license and it will contribute to material extension of the plateau production. And also installing an infrastructure in this region of the field will unlock the potential of this region with other prospects to appraise. We see significant near field development with a proven potential. We have Bourdon Southeast, Bourdon Southwest, Bourdon deep, Abay, Green. So very good prospect there. The appraisal of Bourdon already confirmed the best reservoir and fluid quality in Dussafu. So we are working on making an optimal solution, which also fits the overall company development schedule. In terms of development, we are working on a CapEx-efficient concept, leveraging the existing infrastructure. Basically, it's a blueprint of MaBoMo. We will use the sister rig Jasmine in Dubai, but it's going to be a more efficient development later. For Phase 1, 3 producing wells. Tieback to the existing pipeline between MaBoMo and Adolo and 1 or 2 appraisal. We will have the well to accommodate 12 slots for future development. And the good thing is the rig is in Dubai, and we have Maromba Wellhead platform conversion at the same time in Dubai. So there will be synergies with ongoing jack-up conversion project for the Maromba development. And we plan to FID in the coming months. I hope it answers the question.

Thank you, Brice. We have another question here asking about the 90,000 barrel per day target by 2028. With a 10% to 15% decline for the current portfolio, Dussafu and Golfinho currently producing 32,000 and Maromba adding 60,000 on plateau, which other projects together with Golfinho Boost will contribute to reaching 90,000 barrels a day by '28. I think I can cover that one quickly. We do not include Bourdon there. So it's MaBoMo Phase 2 primarily.

We have another question from Jakob. When can we expect the announcement of long-term lease facility for Maromba as the jack-up conversion commenced or later?

We -- as mentioned, I expect that we will be able to announce something there by the end of the year. And I think that concludes it for questions online.

Okay. So I guess we -- the only thing that remains is that we thank everybody for listening in and participating in our third quarter presentation. Thank you very much.