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 Analysis

Undervalued with solid 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

Stable Share Price: BWO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

33.4%

BWO

20.7%

NO Energy Services

4.0%

NO Market


1 Year Return

-50.7%

BWO

-61.4%

NO Energy Services

-21.7%

NO Market

Return vs Industry: BWO exceeded the Norwegian Energy Services industry which returned -63.7% over the past year.

Return vs Market: BWO underperformed the Norwegian Market which returned -24.1% over the past year.


Shareholder returns

BWOIndustryMarket
7 Day33.4%20.7%4.0%
30 Day-27.0%-24.8%-4.3%
90 Day-62.9%-54.7%-22.0%
1 Year-45.4%-50.7%-60.2%-61.4%-18.3%-21.7%
3 Year12.9%2.0%-58.8%-61.6%5.1%-7.9%
5 Year-59.0%-91.7%-52.5%-69.5%17.6%-8.7%

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

Below Fair Value: BWO (NOK24.18) is trading below our estimate of fair value (NOK64.06)

Significantly Below Fair Value: BWO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BWO is good value based on its PE Ratio (5.2x) compared to the Energy Services industry average (7x).

PE vs Market: BWO is good value based on its PE Ratio (5.2x) compared to the Norwegian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: BWO is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: BWO is overvalued based on its PB Ratio (0.4x) compared to the NO Energy Services industry average (0.2x).


Next Steps

Future Growth

How is BW Offshore forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWO's forecast earnings growth (19.5% per year) is above the savings rate (0.7%).

Earnings vs Market: BWO's earnings (19.5% per year) are forecast to grow slower than the Norwegian market (21% 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 (-11.2% per year).

High Growth Revenue: BWO's revenue is forecast to decline over the next 3 years (-11.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWO's Return on Equity is forecast to be low in 3 years time (3.2%).


Next Steps

Past Performance

How has BW Offshore performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWO has high quality earnings.

Growing Profit Margin: BWO's current net profit margins (7.2%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: BWO's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: BWO's earnings growth over the past year (146.6%) exceeds its 5-year average (17% per year).

Earnings vs Industry: BWO earnings growth over the past year (146.6%) exceeded the Energy Services industry -28.5%.


Return on Equity

High ROE: BWO's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is BW Offshore's financial position?


Financial Position Analysis

Short Term Liabilities: BWO's short term assets ($571.6M) do not cover its short term liabilities ($591.7M).

Long Term Liabilities: BWO's short term assets ($571.6M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: BWO's debt to equity ratio (85.5%) is considered high.

Reducing Debt: BWO's debt to equity ratio has reduced from 150.7% to 85.5% over the past 5 years.

Debt Coverage: BWO's debt is well covered by operating cash flow (48.8%).

Interest Coverage: BWO's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.36%

Forecast Dividend Yield


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Marco Beenen (49yo)

0.75

Tenure

Mr. Marco Beenen is the Director at BW Energy Limited since November 29, 2019. He has been Chief Executive Officer of BW Offshore Limited since July 1, 2019 and served as its Chief Operating Officer since  ...


Leadership Team

NamePositionTenureCompensationOwnership
Marco Beenen
Chief Executive Officer0.75yrno data0.018% $1.0m
Ståle Andreassen
Chief Financial Officer0.75yrno datano data
Kei Ikeda
Chief Operating Officer0.75yrno data0.0051% $287.4k
Anders Platou
Head of Corporate Financeno datano datano data
Magda Vakil
General Counselno datano datano data
Pia Schnitler
Head of Human Capital2.33yrsno datano data
Fritz Ekløff
Head of IT & Systemsno datano datano data
Ketil Eik
Senior Vice President Treasuryno datano datano data
Rune Bjorbekk
Chief Commercial Officerno datano data0.066% $3.7m
Hans Langsrud
Head of Asset Engineering & Maintenance4.08yrsno datano data

0.8yrs

Average Tenure

49yo

Average Age

Experienced Management: BWO's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christophe Pettenati-Auzière
Vice Chairmanno datano datano data
Clare Mary Spottiswoode
Director6.67yrsno datano data
Carl Arnet
Director0.92yrno data1.0% $55.8m
Andreas Sohmen-Pao
Chairman5.42yrsno datano data
Maarten Scholten
Non Executive Director9.83yrsno datano data
René Kofod-Olsen
Director0.92yrno datano data

5.4yrs

Average Tenure

64yo

Average Age

Experienced Board: BWO's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: kr5.602b
  • Shares outstanding: 231.66m
  • 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 in the Asia Pacific, the Americas, the European Union, and West Africa. It also offers engineering, procurement, construction, and installation services; and lease and operation services of FPSO units. As of March 8, 2016, the company had a fleet of 14 FPSOs and 1 FSO. It also operates additional two operations and maintenance contracts FPSOs and one new project FPSO. The company was founded in 1982 and is based in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 21:28
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.