OB:BWO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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). More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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

-13.8%

BWO

-6.3%

NO Energy Services

-2.3%

NO Market


1 Year Return

-65.4%

BWO

-53.6%

NO Energy Services

-7.7%

NO Market

Return vs Industry: BWO underperformed the Norwegian Energy Services industry which returned -53.3% over the past year.

Return vs Market: BWO underperformed the Norwegian Market which returned -11.6% over the past year.


Shareholder returns

BWOIndustryMarket
7 Day-13.8%-6.3%-2.3%
30 Day-11.1%2.6%0.8%
90 Day-26.6%-9.6%1.6%
1 Year-61.0%-65.4%-51.7%-53.6%-4.5%-7.7%
3 Year6.6%-5.5%-68.9%-70.9%-0.04%-11.3%
5 Year-33.4%-86.2%-42.1%-61.7%42.1%13.2%

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 (NOK24.56) is trading below our estimate of fair value (NOK81.58)

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


Price To Earnings Ratio

PE vs Industry: BWO is unprofitable, so we can't compare its PE Ratio to the XE Energy Services industry average.

PE vs Market: BWO is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BWO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BWO is overvalued based on its PB Ratio (0.6x) compared to the NO Energy Services industry average (0.3x).


Next Steps

Future Growth

How is BW Offshore forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

97.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: BWO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BWO's is expected to become profitable in the next 3 years.

Revenue vs Market: BWO's revenue is expected to decline over the next 3 years (-13.7% per year).

High Growth Revenue: BWO's revenue is forecast to decline over the next 3 years (-13.7% 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 (12.1%).


Next Steps

Past Performance

How has BW Offshore performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWO is currently unprofitable.

Growing Profit Margin: BWO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BWO is unprofitable, but has reduced losses over the past 5 years at a rate of 18.4% per year.

Accelerating Growth: Unable to compare BWO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BWO is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-28.6%).


Return on Equity

High ROE: BWO has a negative Return on Equity (-20.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is BW Offshore's financial position?


Financial Position Analysis

Short Term Liabilities: BWO's short term assets ($445.3M) exceed its short term liabilities ($359.1M).

Long Term Liabilities: BWO's short term assets ($445.3M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: BWO's debt to equity ratio (121.6%) is considered high.

Reducing Debt: BWO's debt to equity ratio has reduced from 158% to 121.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BWO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BWO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 15.5% per year.


Next Steps

Dividend

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

5.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWO's dividend (5.1%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: BWO's dividend (5.1%) is low compared to the top 25% of dividend payers in the Norwegian market (6.54%).


Stability and Growth of Payments

Stable Dividend: BWO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWO has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: BWO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BWO's dividends in 3 years are forecast to be well covered by earnings (23.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Marco Beenen (50 yo)

1.25yrs

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 Officer1.25yrsno data0.026%
$ 1.2m
Ståle Andreassen
Chief Financial Officer1.25yrsno datano data
Kei Ikeda
Chief Operating Officer1.25yrsno data0.011%
$ 498.4k
Anders Platou
Head of Corporate Financeno datano datano data
Magda Vakil
General Counselno datano datano data
Pia Schnitler
Head of Human Capital2.83yrsno 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 data0.088%
$ 3.9m
Hans Langsrud
Head of Asset Engineering & Maintenance4.58yrsno datano data
Lin Espey
Chief Exploration & Production Officer1.92yrsno datano data
Lucy McCabe
Head of Corporate Integrityno datano datano data

1.6yrs

Average Tenure

50yo

Average Age

Experienced Management: BWO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Carl Arnet
Director1.42yrsno data1.28%
$ 57.0m
Andreas Sohmen-Pao
Chairman5.92yrsno datano data
Rebekka Herlofsen
Director0.42yrno datano data
Maarten Scholten
Non Executive Director10.33yrsno datano data
René Kofod-Olsen
Director1.42yrsno datano data

1.4yrs

Average Tenure

50yo

Average Age

Experienced Board: BWO's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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: kr4.462b
  • Shares outstanding: 180.80m
  • 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). It also offers engineering, pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 22:09
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.