In its second quarter results statement BW Offshore said the oil and gas markets “remain challenging”.
“While the company is experiencing increased market activity, it still expects a low number of awards in the medium-term. A more positive view on long-term activity levels is maintained as offshore developments will remain an important part of the oil and gas supply to meet future energy demand,” the company said.
“In this market environment, the strength of the lease and operate business model enables a commercially disciplined approach for new investments.” The company said it still expected the outsourcing of production to remain cost effective oil and gas companies in the future.
In terms of its current business BW Offshore commented: “The majority of BW Offshore’s fleet remains on long-term contracts with national and independent oil companies, and the fleet should continue to generate a significant cash flow in the time ahead.”
However, it also warned that although current oil prices had reduced the likelihood of customers delaying or defaulting on their obligations it had not been eliminated.
In May Addax Petroleum Exploration Nigeria gave notice for the FPSO Sendje Berge with termination from 6 November this year. It said it had received payment for outstanding day rates from Addax.
Meanwhile the BW Catcher left Singapore on 26 August and is now in transit to the UK.
"The Catcher yard-completion within time and budget, and the subsequent sail-away, were important milestones for us and a reflection of good execution on a complex and challenging project. Catcher remains on track for first oil later this year," said Carl K. Arnet, cep of BW Offshore.
"We successfully addressed overdues on Sendje Berge, and maintained good operational performance across the fleet and organisation," he added.
BW Offshore reported a net profit of $5.1m in Q2 compared to $15.1m loss in Q1 2017.