Deadly FPSO explosion hits BW Offshore results

The FPSO has been offhire since the incident, which caused nine deaths and left 26 injured. The financial consequences of the incident, including the offhire, will be covered to a large extent by insurance policies, BW Offshore stated in its Q1 earnings release.

The company's operating revenues for the quarter were $236.8m, 11% lower than in Q4 2014 and profit was also down at $5.8m, compared to $12.7m in the preceding quarter.

Despite the lower oil price and depressed state of the offshore market, BW Offshore is seeing an improvement in project activity and expects it to pick up further into the second half of the year. It sees oil majors continuing to outsource production, as contractors remain a cost-competitive solution.

"The majority of BW Offshore’s fleet remain on long term contracts with national and independent oil companies. The fleet will continue to generate a healthy cash flow in the time ahead," the company stated.