Norway's BW Energy Q4 production and EBITDA decline

Overview

• Norway's E&P firm's Q4 net production fell yr/yr to 2.3 mln barrels

• Q4 EBITDA declined yr/yr due to lower oil prices and sales volumes

• Company completed financing milestone for Maromba development platform

Outlook

• BW Energy forecasts 2026 production at 25-30 kbopd

• Company expects 2026 operating costs of USD 20-24 per barrel

• BW Energy plans 2026 CAPEX of USD 500-600 million

Result Drivers

• PROJECT PROGRESS - Maromba and Golfinho Boost projects in Brazil progressed on schedule, with financing milestones completed

• MAINTENANCE IMPACT - Extended maintenance in Brazil led to higher operating costs and lower production

• LOWER REALIZED PRICES - Decreased sales volumes and lower realized oil prices impacted Q4 EBITDA and net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for BW Energy Ltd is NOK45.00, about 3.1% above its February 4 closing price of NOK43.65

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nMFN3g7qLs

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