EBITDA for the first quarter amounted to USD 97.4 million, a decrease of USD 68.1 million (USD 165.5 million)  . EBITDA for fourth quarter 2015 was positively impacted by an insurance recoverable of USD 85 million recorded for repairs to FPSO Cidade de São Mateus.
Operating profit for the quarter amounted to USD 36.2 million (operating loss USD 223.0 million). Net loss for the quarter amounted to USD 2.9 million (USD 234.5 million). Total equity at 31 March 2016 amounted to USD 948.7 million, an increase of USD 4.3 million (USD 944.4 million at 31 December 2015). The equity ratio was 28.0% at the end of the quarter, up from 27.5%.
Petrobras Americas has exercised the option to extend the fixed term of the lease contract for FPSO BW Pioneer from first quarter 2017 to first quarter 2020. As part of the contract extension the Company has agreed to certain amendments to the charter rate.
The Catcher project remains within budget with expected first oil in second half of 2017.
The oil price has recovered from the 12-year low point in January 2016. Uncertainty about future oil prices continues to drive cost cutting and reduction in E&P spending. BW Offshore still expects outsourcing of production to be a cost effective solution for oil and gas companies, but still believes it is prudent to expect a prolonged downturn in contract awards. The staff reduction program is expected to reduce the company's annual cost base by around USD 30 million and further cost cutting processes will be implemented.
As per end of first quarter 2016, the Company is in compliance with all financial covenants. As announced in relation to the 4Q 2015 reporting, the Company has been evaluating measures to address potential future liquidity challenges and to secure a credible long-term financial platform. The Company has in recent weeks carried out discussions with its bank facility providers, selected bondholders in the bond issues and largest shareholders in order to find a long-term financial platform. The financing plan which has been discussed is expected to contribute with more than USD 500m in improved liquidity in the period throughout 2020 and thereby give the Company a significant runway until an expected market recovery. The plan is a balanced solution where banks, bondholders and shareholders contribute. The solution requires a raising of USD 100 million in new equity capital and the Company contemplates to raise this amount via a fully underwritten rights issue, which is subject to customary conditions. The Company's main shareholder BW Group Limited and the CEO of the Company Carl Krogh Arnet have pre-committed to subscribe for their pro rata share of the rights issue. The remaining shares to be issued in the rights issue are underwritten by a syndicate of banks.
The contemplated rights issue is subject to a special general meeting of the Company having resolved to increase the authorised share capital of the Company (expected to be held on or around 15 June 2016) and the Board of Directors resolving to implement the rights issue. A separate notice of the special general meeting will be distributed later today.
The subscription price and exact share capital increase amount will be determined by the Board of Directors and announced through a stock exchange notice (such announcement date being the last day of trading in the shares inclusive of subscription rights (the Cut-off Date)). Shareholders in the Company as of the expiry of the Cut-off Date (as recorded in VPS on the end of the second trading date thereafter (the Record Date)), other than shareholders who are excluded from participating in the rights issue due to applicable securities laws, will receive tradable and preferential subscription rights in proportion to their shareholding in the Company at such time. The record date is expected to occur mid-June. Oversubscription and subscription without subscription rights will be permitted.
The subscription period in the rights issue will be two weeks. The subscription period is expected to commence on or around mid-June (following approval by the Financial Supervisory Authority of Norway of a prospectus prepared in connection with the rights issue).
Please see attachments for the full quarterly report and presentation.
BW Offshore hosts a webcasted presentation of the financial results at 09:00 (CET) today. The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre. The presentation will also be available for replay. Please visit www.bwoffshore.com for link and login details.
For further information, please contact:
Knut R. Sæthre, CFO, +47 9111 7876
About BW Offshore:
BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore is the world's second largest contractor with a fleet of 14 FPSOs represented in all major oil regions world-wide. The company also operates additional 2 FPSOs. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on www.bwoffshore.com
 Figures presented are compared to previous quarter (fourth quarter of 2015 in brackets)