OB:BWO

Stock Analysis Report

Executive Summary

BW Offshore Limited builds, owns, and operates oil and gas floating production, storage, and offloading vessels (FPSOs); and floating, storage, and offloading vessels (FSOs) to the oil and gas industries in the Asia Pacific, the Americas, the European Union, and West Africa.

Snowflake

Fundamentals

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has BW Offshore's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

BWO

1.0%

NO Energy Services

0.07%

NO Market


1 Year Return

29.0%

BWO

-31.5%

NO Energy Services

-8.7%

NO Market

Return vs Industry: BWO exceeded the Norwegian Energy Services industry which returned -31.5% over the past year.

Return vs Market: BWO exceeded the Norwegian Market which returned -8.7% over the past year.


Shareholder returns

BWOIndustryMarket
7 Day5.8%1.0%0.07%
30 Day11.3%-4.6%-1.9%
90 Day47.4%-3.2%2.1%
1 Year29.0%29.0%-30.2%-31.5%-3.9%-8.7%
3 Year294.6%294.6%2.5%-4.4%40.2%21.9%
5 Year-12.7%-81.5%-29.6%-51.1%59.2%22.5%

Price Volatility Vs. Market

How volatile is BW Offshore's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BW Offshore undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BWO (NOK73) is trading below our estimate of fair value (NOK147.8)

Significantly Undervalued: BWO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BWO is poor value based on its PE Ratio (18.9x) compared to the Energy Services industry average (17.1x).

PE vs Market: BWO is poor value based on its PE Ratio (18.9x) compared to the Norwegian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: BWO is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BWO is overvalued based on its PB Ratio (1.4x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is BW Offshore forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWO's forecast earnings growth (19.3% per year) is above the savings rate (1.8%).

Earnings vs Market: BWO's earnings (19.3% per year) are forecast to grow faster than the Norwegian market (15.1% per year).

High Growth Earnings: BWO's earnings are forecast to grow, but not significantly.

Revenue vs Market: BWO's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: BWO's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BWO's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has BW Offshore performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BWO's earnings have declined by -9.4% per year over the past 5 years.

Accelerating Growth: BWO's earnings growth over the past year (33.5%) exceeds its 5-year average (-9.4% per year).

Earnings vs Industry: BWO earnings growth over the past year (33.5%) exceeded the Energy Services industry 5%.


Return on Equity

High ROE: BWO's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: BWO has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: BWO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is BW Offshore's financial position?


Financial Position Analysis

Short Term Liabilities: BWO's short term assets ($552.8M) exceeds its short term liabilities ($517.6M)

Long Term Liabilities: BWO's short term assets (552.8M) do not cover its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: BWO's debt to equity ratio (95.5%) is considered high

Reducing Debt: BWO's debt to equity ratio has reduced from 145.8% to 95.5% over the past 5 years.

Debt Coverage: BWO's debt is well covered by operating cash flow (33.9%).

Interest Coverage: BWO's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: BWO has a high level of physical assets or inventory.

Debt Coverage by Assets: BWO's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is BW Offshore's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.6%markettop25%6.2%industryaverage4.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate BWO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BWO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if BWO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BWO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BWO is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BWO's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

What is the CEO of BW Offshore's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Marco Beenen (49yo)

0.3yrs

Tenure

0

Mr. Marco Beenen has been Chief Executive Officer of BW Offshore Limited since July 1, 2019 and served as its Chief Operating Officer since March 4, 2016 until July 1, 2019. Mr. Beenen joined BW Offshore i ...


Management Age and Tenure

0.3yrs

Average Tenure

49yo

Average Age

Experienced Management: BWO's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

65yo

Average Age

Experienced Board: BWO's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rune Bjorbekk (49yo)

    Chief Commercial Officer

    • Tenure: 0yrs
  • Magda Vakil (51yo)

    General Counsel

    • Tenure: 0yrs
  • Ketil Eik

    Senior Vice President Treasury

    • Tenure: 0yrs
  • Marco Beenen (49yo)

    Chief Executive Officer

    • Tenure: 0.3yrs
  • Kei Ikeda (48yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
  • Lin Espey (51yo)

    Chief Exploration & Production Officer of BW Offshore

    • Tenure: 0.9yrs
  • Ståle Andreassen

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Christophe Pettenati-Auzière (67yo)

    Vice Chairman

    • Tenure: 0yrs
  • Clare Mary Spottiswoode (66yo)

    Director

    • Tenure: 6.2yrs
  • Andreas Sohmen-Pao (48yo)

    Chairman

    • Tenure: 4.9yrs
  • Maarten Scholten (65yo)

    Non Executive Director

    • Tenure: 9.3yrs
  • René Kofod-Olsen (46yo)

    Director

    • Tenure: 0.4yrs

Company Information

BW Offshore Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BW Offshore Limited
  • Ticker: BWO
  • Exchange: OB
  • Founded: 1982
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr13.502b
  • Shares outstanding: 184.95m
  • Website: https://www.bwoffshore.com

Number of Employees


Location

  • BW Offshore Limited
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWOOB (Oslo Bors)YesOrdinary SharesNONOKMay 2006
XY81DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2006
0RKHLSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 2006
BGSW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2006
BWOOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 2006

Biography

BW Offshore Limited builds, owns, and operates oil and gas floating production, storage, and offloading vessels (FPSOs); and floating, storage, and offloading vessels (FSOs) to the oil and gas industries i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:47
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.