Note 1\tBasis of preparation
REPORTING ENTITY
BW Offshore Limited (\u2018BW Offshore\u2019 or \u2018the Company\u2019) was incorporated in Bermuda in 2005 and is domiciled in Bermuda, with its registered address at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.
BW Offshore Limited and its subsidiaries are referred to as the \u2018Group\u2018. The Group builds, owns and operates Floating, Production, Storage and Offloading (FPSO) assets. The Group also does strategic investments to capture energy transition opportunities. The Company is listed on Oslo Stock Exchange, a stock exchange operated by Euronext.
Basis of accounting
The consolidated financial statements of the Group have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS). The consolidated financial statements have been prepared in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies set out in the relevant notes to the consolidated financial statements.
The consolidated financial statements were approved by the Board of Directors on 26 February 2026.
Functional and presentation currency
These consolidated financial statements are presented in United States Dollars (USD). This is also the functional currency of the parent company and most of its subsidiaries. The functional currency is determined in each entity of the Group based on the currency within the entity's primary economic environment. All figures are in USD million unless otherwise stated. Due to rounding differences, numbers and or percentages may not add up to the total. Figures in brackets refer to corresponding figures for 2024.
Use of judgements and estimates
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of complying with the Group\u2019s accounting policies. Actual results may differ from these estimates. Estimates and judgements are reviewed on an ongoing basis based on historical experience and expectations of future events.
Information about judgements and estimates made in applying accounting policies that have the most significant impact on the amounts recognised in the financial statements is included in the following notes:
\u2022Note 7: Uncertain tax treatments
\u2022Note 10: Depreciation: useful life and residual value
\u2022Note 10: Impairment test of PP&E: key assumption underlying recoverable amounts
\u2022Note 11: Impairment test of goodwill and technology: key assumption underlying recoverable amounts
\u2022Note 19: Lease classification
Foreign currency
Foreign currency transactions
Transactions in foreign currency are translated to functional currency using the exchange rate at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate, non-monetary items that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction, and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Foreign currency differences are generally recognised in profit or loss and presented within finance costs.
Foreign operations
The assets and liabilities of entities whose functional currencies are other than USD, are translated into USD at the exchange rates at the balance sheet date. The revenues and expenses of such entities are translated into USD using the monthly average exchange rates. The Group has a material subsidiary BW Ideol AS whose functional currency is EUR.
Exchange differences are recognised in OCI and accumulated in the currency translation reserve in other equity, except to the extent that the translation difference is allocated to NCI.
Material accounting policies
Accounting policies are included in the relevant notes to the consolidated financial statements as follows:
\u2022Note 3: Revenue
\u2022Note 7: Income taxes
\u2022Note 8: Trade, other current assets and other non-current assets
\u2022Note 10: Property, plant and equipment
\u2022Note 11: Intangible assets and goodwill
\u2022Note 12: Equity Accounted Investees
\u2022Note 13: Capital and Reserves
\u2022Note 14: Loans and borrowings
\u2022Note 15: Trade, other payables and other non-current liabilities
\u2022Note 16: Financial Instruments \u2013 fair value and risk management
\u2022Note 17: List of subsidiaries, associates and joint ventures
\u2022Note 18: Non-Controlling Interests
\u2022Note 19: Leases
Changes in Material Accounting Policies
No new standards effective from 1 January 2025 have had a material impact on the Group\u2019s financial statements.
Standards issued but not yet effective
A number of new standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted; however, the Group has not early adopted the new and amended standards in preparing these consolidated financial statements. The following new and amended standards are not expected to have a significant impact on the Group\u2019s consolidated financial statements.
\u2022Classification Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)
\u2022Classification and measurement of financial instruments (Amendments to IFRS 9 and IFRS 7)
\u2022IFRS 19 Subsidiaries without public accountability: disclosures
IFRS 18 Presentation and disclosure in financial statements, effective from 1 January 2027, will have an impact of the Group\u2019s presentation of consolidated statement of income and consolidated statement of cash flows. The Group is in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the Group\u2019s statement of income, the statement of cash flows and the additional disclosures required for Management Performance Measures (\u2018MPMs\u2019).
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__12": { "value": "REPORTING ENTITYBW Offshore Limited (\u2018BW Offshore\u2019 or \u2018the Company\u2019) was incorporated in Bermuda in 2005 and is domiciled in Bermuda, with its registered address at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.BW Offshore Limited and its subsidiaries are referred to as the \u2018Group\u2018. The Group builds, owns and operates Floating, Production, Storage and Offloading (FPSO) assets. The Group also does strategic investments to capture energy transition opportunities. The Company is listed on Oslo Stock Exchange, a stock exchange operated by Euronext.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__15-1": { "value": "REPORTING ENTITY
BW Offshore Limited (\u2018BW Offshore\u2019 or \u2018the Company\u2019) was incorporated in Bermuda in 2005 and is domiciled in Bermuda, with its registered address at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.
BW Offshore Limited and its subsidiaries are referred to as the \u2018Group\u2018. The Group builds, owns and operates Floating, Production, Storage and Offloading (FPSO) assets. The Group also does strategic investments to capture energy transition opportunities. The Company is listed on Oslo Stock Exchange, a stock exchange operated by Euronext.
Basis of accounting
The consolidated financial statements of the Group have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS). The consolidated financial statements have been prepared in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies set out in the relevant notes to the consolidated financial statements.
The consolidated financial statements were approved by the Board of Directors on 26 February 2026.
Functional and presentation currency
These consolidated financial statements are presented in United States Dollars (USD). This is also the functional currency of the parent company and most of its subsidiaries. The functional currency is determined in each entity of the Group based on the currency within the entity's primary economic environment. All figures are in USD million unless otherwise stated. Due to rounding differences, numbers and or percentages may not add up to the total. Figures in brackets refer to corresponding figures for 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__6": { "value": "BW Offshore Limited ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__13": { "value": "BW Offshore Limited ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__14": { "value": "BW Offshore Limited ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__8": { "value": "Limited ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__7": { "value": "Bermuda ", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__9": { "value": "Bermuda ", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__11": { "value": "Bermuda ", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__10": { "value": "Bermuda, with its registered address at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__17": { "value": "Basis of accounting
The consolidated financial statements of the Group have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU (IFRS). The consolidated financial statements have been prepared in accordance with the historical cost convention with some exceptions, as detailed in the accounting policies set out in the relevant notes to the consolidated financial statements.
The consolidated financial statements were approved by the Board of Directors on 26 February 2026.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__18": { "value": "The consolidated financial statements were approved by the Board of Directors on 26 February 2026.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__20": { "value": "Functional and presentation currency
These consolidated financial statements are presented in United States Dollars (USD). This is also the functional currency of the parent company and most of its subsidiaries. The functional currency is determined in each entity of the Group based on the currency within the entity's primary economic environment. All figures are in USD million unless otherwise stated. Due to rounding differences, numbers and or percentages may not add up to the total. Figures in brackets refer to corresponding figures for 2024.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__21": { "value": "Use of judgements and estimates
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of complying with the Group\u2019s accounting policies. Actual results may differ from these estimates. Estimates and judgements are reviewed on an ongoing basis based on historical experience and expectations of future events.
Information about judgements and estimates made in applying accounting policies that have the most significant impact on the amounts recognised in the financial statements is included in the following notes:
\u2022Note 7: Uncertain tax treatments
\u2022Note 10: Depreciation: useful life and residual value
\u2022Note 10: Impairment test of PP&E: key assumption underlying recoverable amounts
\u2022Note 11: Impairment test of goodwill and technology: key assumption underlying recoverable amounts
\u2022Note 19: Lease classification
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__22": { "value": "Foreign currency
Foreign currency transactions
Transactions in foreign currency are translated to functional currency using the exchange rate at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate, non-monetary items that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction, and non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Foreign currency differences are generally recognised in profit or loss and presented within finance costs.
Foreign operations
The assets and liabilities of entities whose functional currencies are other than USD, are translated into USD at the exchange rates at the balance sheet date. The revenues and expenses of such entities are translated into USD using the monthly average exchange rates. The Group has a material subsidiary BW Ideol AS whose functional currency is EUR.
Exchange differences are recognised in OCI and accumulated in the currency translation reserve in other equity, except to the extent that the translation difference is allocated to NCI.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__23": { "value": "Material accounting policies
Accounting policies are included in the relevant notes to the consolidated financial statements as follows:
\u2022Note 3: Revenue
\u2022Note 7: Income taxes
\u2022Note 8: Trade, other current assets and other non-current assets
\u2022Note 10: Property, plant and equipment
\u2022Note 11: Intangible assets and goodwill
\u2022Note 12: Equity Accounted Investees
\u2022Note 13: Capital and Reserves
\u2022Note 14: Loans and borrowings
\u2022Note 15: Trade, other payables and other non-current liabilities
\u2022Note 16: Financial Instruments \u2013 fair value and risk management
\u2022Note 17: List of subsidiaries, associates and joint ventures
\u2022Note 18: Non-Controlling Interests
\u2022Note 19: Leases
Changes in Material Accounting Policies
No new standards effective from 1 January 2025 have had a material impact on the Group\u2019s financial statements.
Standards issued but not yet effective
A number of new standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted; however, the Group has not early adopted the new and amended standards in preparing these consolidated financial statements. The following new and amended standards are not expected to have a significant impact on the Group\u2019s consolidated financial statements.
\u2022Classification Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)
\u2022Classification and measurement of financial instruments (Amendments to IFRS 9 and IFRS 7)
\u2022IFRS 19 Subsidiaries without public accountability: disclosures
IFRS 18 Presentation and disclosure in financial statements, effective from 1 January 2027, will have an impact of the Group\u2019s presentation of consolidated statement of income and consolidated statement of cash flows. The Group is in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the Group\u2019s statement of income, the statement of cash flows and the additional disclosures required for Management Performance Measures (\u2018MPMs\u2019).
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__24-1": { "value": "Changes in Material Accounting Policies
No new standards effective from 1 January 2025 have had a material impact on the Group\u2019s financial statements.
Standards issued but not yet effective
A number of new standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted; however, the Group has not early adopted the new and amended standards in preparing these consolidated financial statements. The following new and amended standards are not expected to have a significant impact on the Group\u2019s consolidated financial statements.
\u2022Classification Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)
\u2022Classification and measurement of financial instruments (Amendments to IFRS 9 and IFRS 7)
\u2022IFRS 19 Subsidiaries without public accountability: disclosures
IFRS 18 Presentation and disclosure in financial statements, effective from 1 January 2027, will have an impact of the Group\u2019s presentation of consolidated statement of income and consolidated statement of cash flows. The Group is in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the Group\u2019s statement of income, the statement of cash flows and the additional disclosures required for Management Performance Measures (\u2018MPMs\u2019).
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__26": { "value": "Note 2\tOperating segments
The Group\u2019s activities are construction, lease and operation of FPSOs, as well as floating offshore wind.
The Group identifies segments on the basis of those components of the Group that are regularly reviewed by the chief operating decision-maker (\u2018CODM\u2019). The Group identified its Senior Management team as the CODM, reference to Note 22for definition of Senior Management team. The reported measure of segment profit is operating profit/(loss). Deferred tax assets and non-current financial assets are not allocated to the segments. Operating segment disclosures are consistent with the information reviewed by the CODM.
Segment performance for 2025 and 2024 is presented below:
2025
USD MILLION | FPSO | Floating wind | Eliminations | Total |
Revenues | 501.1 | 4.9 | - | 506.0 |
Other revenue | 3.4 | 0.1 | - | 3.5 |
Revenues inter-segment | - | - | - | - |
Total revenues | 504.5 | 5.0 | - | 509.5 |
Operating expenses | (207.3) | (11.7) | - | (219.0) |
Administrative expenses | (50.4) | - | - | (50.4) |
Operating profit before depreciation, amortisation, impairment and sale of assets | 246.8 | (6.7) | - | 240.1 |
Depreciation, amortisation and impairment | (104.0) | (6.0) | - | (110.0) |
Profit/(loss) sale of fixed assets | 14.8 | 14.8 | ||
Operating profit/(loss) | 157.6 | (12.7) | - | 144.9 |
Capital expenditure | 442.7 | 1.7 | - | 444.4 |
Balance sheet information | ||||
Equity-accounted investees | 174.9 | 35.9 | - | 210.8 |
Non-current segment assets | 3\u00a0382.4 | 93.1 | - | 3\u00a0475.5 |
Non-current assets, not allocated to segments | 84.3 | |||
Total non-current assets | 3\u00a0770.6 | |||
Total assets for reportable segments | 4\u00a0053.0 | 145.0 | (1.3) | 4\u00a0196.7 |
Assets not allocated to segments | 84.3 | |||
Consolidated total assets | 4\u00a0281.0 | |||
Total liabilities for reportable segments | 2\u00a0944.3 | 13.6 | (1.3) | 2\u00a0956.6 |
Liabilities not allocated to segments | 31.4 | |||
Consolidated total liabilities | 2\u00a0988.0 |
2024
USD MILLION | FPSO | Floating wind | Eliminations | Total |
Revenues | 603.6 | 2.6 | - | 606.2 |
Other revenue | - | 0.5 | - | 0.5 |
Revenues inter-segment | 0.1 | - | (0.1) | - |
Total revenues | 603.7 | 3.1 | (0.1) | 606.7 |
Operating expenses | (248.1) | (12.4) | 0.1 | (260.4) |
Administrative expenses | (28.3) | - | - | (28.3) |
Operating profit before depreciation, amortisation, impairment and sale of assets | 327.3 | (9.3) | - | 318.0 |
Depreciation, amortisation and impairment | (169.5) | (7.3) | - | (176.8) |
Profit/(loss) sale of fixed assets | - | |||
Operating profit/(loss) | 157.8 | (16.6) | - | 141.2 |
Capital expenditure | 494.5 | 2.6 | - | 497.1 |
Balance sheet information | ||||
Equity-accounted investees | 198.8 | 27.6 | - | 226.4 |
Non-current segment assets | 3\u00a0167.2 | 83.9 | - | 3\u00a0251.1 |
Non-current assets, not allocated to segments | - | 88.7 | ||
Total non-current assets | 3\u00a0566.2 | |||
Total assets for reportable segments | 3\u00a0847.1 | 121.6 | (12.0) | 3\u00a0956.7 |
Assets not allocated to segments | 88.7 | |||
Consolidated total assets | 4\u00a0045.4 | |||
Total liabilities for reportable segments | 2\u00a0752.3 | 26.9 | (12.0) | 2\u00a0767.2 |
Liabilities not allocated to segments | 31.6 | |||
Consolidated total liabilities | 2\u00a0798.8 |
Geographic information
Revenue
For the FPSO segment, the classification of revenue per region is determined by the final destination of the FPSO, while the classification in the floating offshore wind segment is based on the geographic location of the customer.
USD MILLION | 2025 | 2024 |
Americas | 131.4 | 106.2 |
Europe/Africa | 354.2 | 497.8 |
Asia and the Pacific | 23.9 | 2.7 |
Total revenues from continuing operations | 509.5 | 606.7 |
USD 5.0 million (USD 3.1 million) of revenues in the Europe/Africa region is related to the floating offshore wind segment. Revenues in the other regions are related to the FPSO segment.
Non-current assets
USD MILLION | 2025 | 2024 |
Americas | 2.4 | 129.7 |
Europe/Africa | 744.6 | 811.5 |
Asia and the Pacific | 2\u00a0735.0 | 2\u00a0301.3 |
3\u00a0482.0 | 3\u00a0242.5 |
Non-current assets exclude deferred tax assets, derivatives, equity accounted investees and other non-current assets.
Major customer
The Group has a limited number of customers (see also section regarding credit risk in Note 16). In accordance with IFRS 8.34, the Group has evaluated whether any single customers amount to 10 per cent or more of the total revenue.
In 2025, the Group has identified three such customers. For these, the revenue was USD 414.1 million related to the FPSO segment. In 2024, the Group has identified four such customers. For these, the revenue was USD 582.2 million related to the FPSO segment.
Note 3\tRevenue
Accounting policies
The Group\u2019s revenues derive from chartering of FPSO\u2019s, rendering of operational services related to FPSO\u2019s, and engineering services.
Revenue from contracts with customers
Revenue from contracts with customers is recognised upon satisfaction of the performance obligations for the transfer of services in each such contract. A perfor-mance obligation is satisfied when or as the customer obtains control of the goods or services delivered. It is recognised at an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. Revenues are presented net of indirect sales taxes. The Group\u2019s performance obligations are to operate and lease FPSOs.
Operational services
Income from the rendering of operational services related to FPSOs and other services are recognised as revenue over time in the period when the services are rendered.
Variable consideration
Certain lease contracts contain variable elements, which include production incentive-, KPI- and main-tenance bonuses. If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled. The variable consideration is only recognised when it is highly probable that it would not be subject to significant reversal in the future.
FEED (Front-End Engineering Design)
A FEED study is a preliminary step taken before basic engineering-level work and is undertaken to confirm the technical and economic feasibility of a prospective field development. When determined to be a separate performance obligation, income from FEED contracts is recognised as revenue from contracts with customers when a certain milestone is reached and control transfers to the customer.
Lease Revenue
Chartering of vessels
Revenue from chartering of FPSOs is based on whether the contract is considered an operating lease or a finance lease.
Operating Leases
Leases, in which a significant portion of the risks and rewards of ownership are retained by the lessor, are classified as operating leases. Payments received under operating leases are recognised as revenue on a straight-line basis over the lease term. The lease term period for each lease contract is the non-cancellable period for which the lessee has contracted the asset together with an assessment of any further terms that the lessee has the option to continue the lease, when Management considers it reasonably certain that the lessee will exercise the option. This judgement is based on a combination of information about the field, the market and the client. As lease rates can vary over the lease term, this implies that there might be significant timing differences between cash flow and recognised revenue from a particular lease.
The Group has no financial leases.
Revenue streams
The Group generates revenue primarily from rendering of services on operating FPSOs and chartering of FPSOs to its customers. The Group recognises most of its revenue over time.
USD MILLION | 2025 | 2024 |
Revenue from contracts with customers | 252.2 | 255.4 |
Leasing revenue | 253.8 | 350.8 |
Other revenue | 3.5 | 0.5 |
Total revenue | 509.5 | 606.7 |
Contract balances
The following table provides information about receivables and contract assets.
USD MILLION | 31 Dec 2025 | 31 Dec 2024 |
Receivables included in trade and other current assets | 84.5 | 133.9 |
Contract assets included in trade and other current assets | 12.9 | 19.0 |
Contract liabilities - included in trade and other payables | 19.2 | 22.9 |
The majority of the Group\u2019s contracts consist of a lease for the FPSO as well as an operating agreement. The Group has assessed the underlying risk profile to be equal.
The contract assets primarily relate to the Group\u2019s rights to consideration for work completed but not billed at the reporting date.
The contract liabilities primarily relate to advance consideration received from customers or advance billing where the Group has an unconditional right receive payment and the customer contract is non-cancellable.
The remaining unsatisfied performance obligations to be recognised as revenues from contracts with customers over the remaining firm contract period is USD 2 456.5 million (USD 1 398.7 million).
Note 3\tRevenue
Accounting policies
The Group\u2019s revenues derive from chartering of FPSO\u2019s, rendering of operational services related to FPSO\u2019s, and engineering services.
Revenue from contracts with customers
Revenue from contracts with customers is recognised upon satisfaction of the performance obligations for the transfer of services in each such contract. A perfor-mance obligation is satisfied when or as the customer obtains control of the goods or services delivered. It is recognised at an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. Revenues are presented net of indirect sales taxes. The Group\u2019s performance obligations are to operate and lease FPSOs.
Operational services
Income from the rendering of operational services related to FPSOs and other services are recognised as revenue over time in the period when the services are rendered.
Variable consideration
Certain lease contracts contain variable elements, which include production incentive-, KPI- and main-tenance bonuses. If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled. The variable consideration is only recognised when it is highly probable that it would not be subject to significant reversal in the future.
FEED (Front-End Engineering Design)
A FEED study is a preliminary step taken before basic engineering-level work and is undertaken to confirm the technical and economic feasibility of a prospective field development. When determined to be a separate performance obligation, income from FEED contracts is recognised as revenue from contracts with customers when a certain milestone is reached and control transfers to the customer.
Lease Revenue
Chartering of vessels
Revenue from chartering of FPSOs is based on whether the contract is considered an operating lease or a finance lease.
Operating Leases
Leases, in which a significant portion of the risks and rewards of ownership are retained by the lessor, are classified as operating leases. Payments received under operating leases are recognised as revenue on a straight-line basis over the lease term. The lease term period for each lease contract is the non-cancellable period for which the lessee has contracted the asset together with an assessment of any further terms that the lessee has the option to continue the lease, when Management considers it reasonably certain that the lessee will exercise the option. This judgement is based on a combination of information about the field, the market and the client. As lease rates can vary over the lease term, this implies that there might be significant timing differences between cash flow and recognised revenue from a particular lease.
The Group has no financial leases.
Revenue streams
The Group generates revenue primarily from rendering of services on operating FPSOs and chartering of FPSOs to its customers. The Group recognises most of its revenue over time.
USD MILLION | 2025 | 2024 |
Revenue from contracts with customers | 252.2 | 255.4 |
Leasing revenue | 253.8 | 350.8 |
Other revenue | 3.5 | 0.5 |
Total revenue | 509.5 | 606.7 |
Contract balances
The following table provides information about receivables and contract assets.
USD MILLION | 31 Dec 2025 | 31 Dec 2024 |
Receivables included in trade and other current assets | 84.5 | 133.9 |
Contract assets included in trade and other current assets | 12.9 | 19.0 |
Contract liabilities - included in trade and other payables | 19.2 | 22.9 |
The majority of the Group\u2019s contracts consist of a lease for the FPSO as well as an operating agreement. The Group has assessed the underlying risk profile to be equal.
The contract assets primarily relate to the Group\u2019s rights to consideration for work completed but not billed at the reporting date.
The contract liabilities primarily relate to advance consideration received from customers or advance billing where the Group has an unconditional right receive payment and the customer contract is non-cancellable.
The remaining unsatisfied performance obligations to be recognised as revenues from contracts with customers over the remaining firm contract period is USD 2 456.5 million (USD 1 398.7 million).
Note 3\tRevenue
Accounting policies
The Group\u2019s revenues derive from chartering of FPSO\u2019s, rendering of operational services related to FPSO\u2019s, and engineering services.
Revenue from contracts with customers
Revenue from contracts with customers is recognised upon satisfaction of the performance obligations for the transfer of services in each such contract. A perfor-mance obligation is satisfied when or as the customer obtains control of the goods or services delivered. It is recognised at an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. Revenues are presented net of indirect sales taxes. The Group\u2019s performance obligations are to operate and lease FPSOs.
Operational services
Income from the rendering of operational services related to FPSOs and other services are recognised as revenue over time in the period when the services are rendered.
Variable consideration
Certain lease contracts contain variable elements, which include production incentive-, KPI- and main-tenance bonuses. If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled. The variable consideration is only recognised when it is highly probable that it would not be subject to significant reversal in the future.
FEED (Front-End Engineering Design)
A FEED study is a preliminary step taken before basic engineering-level work and is undertaken to confirm the technical and economic feasibility of a prospective field development. When determined to be a separate performance obligation, income from FEED contracts is recognised as revenue from contracts with customers when a certain milestone is reached and control transfers to the customer.
Lease Revenue
Chartering of vessels
Revenue from chartering of FPSOs is based on whether the contract is considered an operating lease or a finance lease.
Operating Leases
Leases, in which a significant portion of the risks and rewards of ownership are retained by the lessor, are classified as operating leases. Payments received under operating leases are recognised as revenue on a straight-line basis over the lease term. The lease term period for each lease contract is the non-cancellable period for which the lessee has contracted the asset together with an assessment of any further terms that the lessee has the option to continue the lease, when Management considers it reasonably certain that the lessee will exercise the option. This judgement is based on a combination of information about the field, the market and the client. As lease rates can vary over the lease term, this implies that there might be significant timing differences between cash flow and recognised revenue from a particular lease.
The Group has no financial leases.
Revenue streams
The Group generates revenue primarily from rendering of services on operating FPSOs and chartering of FPSOs to its customers. The Group recognises most of its revenue over time.
USD MILLION | 2025 | 2024 |
Revenue from contracts with customers | 252.2 | 255.4 |
Leasing revenue | 253.8 | 350.8 |
Other revenue | 3.5 | 0.5 |
Total revenue | 509.5 | 606.7 |
Contract balances
The following table provides information about receivables and contract assets.
USD MILLION | 31 Dec 2025 | 31 Dec 2024 |
Receivables included in trade and other current assets | 84.5 | 133.9 |
Contract assets included in trade and other current assets | 12.9 | 19.0 |
Contract liabilities - included in trade and other payables | 19.2 | 22.9 |
The majority of the Group\u2019s contracts consist of a lease for the FPSO as well as an operating agreement. The Group has assessed the underlying risk profile to be equal.
The contract assets primarily relate to the Group\u2019s rights to consideration for work completed but not billed at the reporting date.
The contract liabilities primarily relate to advance consideration received from customers or advance billing where the Group has an unconditional right receive payment and the customer contract is non-cancellable.
The remaining unsatisfied performance obligations to be recognised as revenues from contracts with customers over the remaining firm contract period is USD 2 456.5 million (USD 1 398.7 million).
Accounting policies
The Group\u2019s revenues derive from chartering of FPSO\u2019s, rendering of operational services related to FPSO\u2019s, and engineering services.
Revenue from contracts with customers
Revenue from contracts with customers is recognised upon satisfaction of the performance obligations for the transfer of services in each such contract. A perfor-mance obligation is satisfied when or as the customer obtains control of the goods or services delivered. It is recognised at an amount that reflects the consideration which the Group expects to receive in exchange for those goods or services. Revenues are presented net of indirect sales taxes. The Group\u2019s performance obligations are to operate and lease FPSOs.
Operational services
Income from the rendering of operational services related to FPSOs and other services are recognised as revenue over time in the period when the services are rendered.
Variable consideration
Certain lease contracts contain variable elements, which include production incentive-, KPI- and main-tenance bonuses. If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled. The variable consideration is only recognised when it is highly probable that it would not be subject to significant reversal in the future.
FEED (Front-End Engineering Design)
A FEED study is a preliminary step taken before basic engineering-level work and is undertaken to confirm the technical and economic feasibility of a prospective field development. When determined to be a separate performance obligation, income from FEED contracts is recognised as revenue from contracts with customers when a certain milestone is reached and control transfers to the customer.
Lease Revenue
Chartering of vessels
Revenue from chartering of FPSOs is based on whether the contract is considered an operating lease or a finance lease.
Operating Leases
Leases, in which a significant portion of the risks and rewards of ownership are retained by the lessor, are classified as operating leases. Payments received under operating leases are recognised as revenue on a straight-line basis over the lease term. The lease term period for each lease contract is the non-cancellable period for which the lessee has contracted the asset together with an assessment of any further terms that the lessee has the option to continue the lease, when Management considers it reasonably certain that the lessee will exercise the option. This judgement is based on a combination of information about the field, the market and the client. As lease rates can vary over the lease term, this implies that there might be significant timing differences between cash flow and recognised revenue from a particular lease.
The Group has no financial leases.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__31-1": { "value": "Lease Revenue
Chartering of vessels
Revenue from chartering of FPSOs is based on whether the contract is considered an operating lease or a finance lease.
Operating Leases
Leases, in which a significant portion of the risks and rewards of ownership are retained by the lessor, are classified as operating leases. Payments received under operating leases are recognised as revenue on a straight-line basis over the lease term. The lease term period for each lease contract is the non-cancellable period for which the lessee has contracted the asset together with an assessment of any further terms that the lessee has the option to continue the lease, when Management considers it reasonably certain that the lessee will exercise the option. This judgement is based on a combination of information about the field, the market and the client. As lease rates can vary over the lease term, this implies that there might be significant timing differences between cash flow and recognised revenue from a particular lease.
Accounting policies
The group as a lessee
The Group leases office premises. Leases of office premises generally have lease terms between one and ten years. The Group has leases of certain office equipment (i.e., personal computers, printing- and photocopying machines, coffee machines) that are considered of low value.
The Group applies the short-term lease recognition exemption to its short-term leases. A short-term lease is a lease that has a lease term of 12 months or less from the commencement date. It also applies the low-value exemption to leases of office equipment that are considered to be low value.
The Group has elected to not separate non-lease components and account for the lease and the non-lease components as a single lease component.
The Group recognises a right-of-use asset and a lease liability at the commencement date of the lease. This is the date the underlying asset is available for use.
Right-of-use assets are measured at cost and depreciated using the straight-line method from the commencement date to the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. In calculating the present
value, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. The Group determines its incremental borrowing rate by obtaining interest rates from the external bank financing.
The group as a lessor
When the Group acts as a lessor, it assesses whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease. If not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset, including the existence and terms of any extension or purchase options.
Lease classification
When the Group enters into a new or amended lease arrangement with customers, the terms and conditions of the contract are analysed in order to assess whether or not the Group retains the significant risks and rewards of ownership of the asset subject of the lease contract. To identify whether risks and rewards are retained, the Group considers the indicators listed by IFRS 16 on a contract-by-contract basis. By performing such assessments, the Group makes significant judgement to determine whether the arrangement results in a finance lease or an operating lease. This judgement can have a significant effect on the amounts recognised in the consolidated financial statements and its recognition of profits in the future.
The group as a lessee
Right-of-use assets and lease liabilities
USD MILLION | Right-of-use assets\u200c1 | Lease liabilities |
Balance at 1 January 2025 | 21.4 | 19.3 |
Additions | 1.6 | 1.6 |
Adjustments | 0.3 | 0.3 |
Depreciation expense | (5.2) | n/a |
Interest expense | n/a | 1.1 |
Lease payments | n/a | (5.8) |
Foreign currency translation gain/(loss) | 0.2 | 1.8 |
Balance at 31 December 2025 | 18.3 | 18.3 |
1Right-of-use assets relates to property, plant and equipment
Right-of-use assets\u200c1 | Lease liabilities | |
Balance at 1 January 2024 | 13.8 | 12.0 |
Additions | 16.1 | 14.3 |
Adjustments | (0.9) | (0.9) |
Depreciation expense | (7.4) | n/a |
Interest expense | n/a | 1.2 |
Lease payments | n/a | (6.4) |
Foreign currency translation gain/(loss) | (0.2) | (0.9) |
Balance at 31 December 2024 | 21.4 | 19.3 |
1Right-of-use assets relates to property, plant and equipment
USD MILLION | 2025 | 2024 |
Maturity analysis - contractual undiscounted cash flows | ||
Not later than one year | 6.1 | 5.2 |
Later than one year and not later than five years | 13.7 | 16.1 |
Later than five years | 0.1 | 0.3 |
Total undiscounted lease liabilities at 31 December | 19.9 | 21.6 |
Lease liabilities included in the statement of financial position at 31 December | 18.3 | 19.3 |
Current | 5.2 | 4.2 |
Non-current | 13.1 | 15.1 |
Total cash outflow for leases included in the statement of cash flows is USD 5.8 million (USD 6.4 million).
Amounts recognised in profit or loss
USD MILLION | 2025 | 2024 |
Interest on lease liabilities | 1.1 | 1.2 |
Depreciation expense | 5.2 | 7.4 |
Extension options
Some office leases contain contractual rights and options, such as extension and cancellation options, exercisable only by the Group and not by the lessors. These options may impact the estimated lease term. The Group assesses at lease commencement, and subsequently when facts and circumstances under the control of the Group require it, whether it is reasonably certain to exercise these options and reflects this in the lease term.
The group as a lessor
Operating leases
BW Hurra is currently in lay-up. All other FPSOs owned by year-end 2025 are on firm operating lease contracts.
The lease contract for BW Adolo with BW Energy was amended in May 2025. The only change to the key terms of the lease contract is that the Group will have a put option from September 2028. In addition, the operations and maintenance contract was transferred to BW Energy. The contract amendment was assessed to be a lease modification, resulting in a reassessment of the lease classification that concluded the new lease to be an operating lease.
Future minimum payments receivable under non-cancellable operating lease contracts as at 31 December are as follows:
USD MILLION | 2025 | 2024 |
Not later than one year | 334.8 | 204.1 |
Later than one year and not later than five years | 742.7 | 775.5 |
Later than five years | 1\u00a0764.0 | 1\u00a0850.3 |
Total amount | 2\u00a0841.5 | 2\u00a0829.9 |
Note 4\tOperating, administrative and other expenses
The table below sets out expenses by nature for items included in operating expenses, other expenses and administrative expenses.
USD MILLION | 2025 | 2024 |
Employee benefit expenses (Note 6) | 152.1 | 134.4 |
Vessel operating expenses | 85.3 | 113.3 |
Other expenses | 32.0 | 41.0 |
Total operating expenses | 269.4 | 288.7 |
Note 4\tOperating, administrative and other expenses
The table below sets out expenses by nature for items included in operating expenses, other expenses and administrative expenses.
USD MILLION | 2025 | 2024 |
Employee benefit expenses (Note 6) | 152.1 | 134.4 |
Vessel operating expenses | 85.3 | 113.3 |
Other expenses | 32.0 | 41.0 |
Total operating expenses | 269.4 | 288.7 |
Note 4\tOperating, administrative and other expenses
The table below sets out expenses by nature for items included in operating expenses, other expenses and administrative expenses.
USD MILLION | 2025 | 2024 |
Employee benefit expenses (Note 6) | 152.1 | 134.4 |
Vessel operating expenses | 85.3 | 113.3 |
Other expenses | 32.0 | 41.0 |
Total operating expenses | 269.4 | 288.7 |
Note 5\tEarnings per share
Basic earnings per share
The calculation of basic EPS has been based on the following profit attributable to ordinary shareholders are the weighted-average number of ordinary shares outstanding.
Profit/(loss) attributable to ordinary shareholders (basic)
USD MILLION | 2025 | 2024 |
Profit/(loss) attributable to ordinary shareholders | 134.3 | 120.6 |
Weighted-average number of ordinary shares (basic)
IN THOUSAND | 2025 | 2024 |
Issued ordinary shares at 1 January | 184\u00a0956 | 184\u00a0956 |
Effect of treasury shares held | (3\u00a0741) | (4\u00a0141) |
Weighted-average number of ordinary shares at 31 December | 181\u00a0215 | 180\u00a0815 |
Diluted earnings per share
The calculation of diluted EPS has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.
Profit/(loss) attributable to ordinary shareholders (diluted)
USD MILLION | 2025 | 2024 |
Profit/(loss) attributable to ordinary shareholders | 134.3 | 120.6 |
Interest expense on convertible notes | - | 6.5 |
Profit/(loss) attributable to ordinary shareholders (diluted) | 134.3 | 127.1 |
Weighted-average number of ordinary shares (diluted)
IN THOUSAND | 2025 | 2024 |
Weighted-average number of ordinary shares (basic) | 181\u00a0215 | 180\u00a0815 |
Effect of conversion of convertible bonds | - | 20\u00a0737 |
Weighted-average number of ordinary shares (diluted) at 31 December | 181\u00a0215 | 201\u00a0552 |
Earnings per share
USD MILLION | 2025 | 2024 |
Basic earnings / (loss) per share net | 0.74 | 0.67 |
Diluted earnings / (loss) per share net | 0.74 | 0.63 |
At 31 December 2025, 4 032 604 (8 684 983 in 2024) options were excluded from the diluted weighted-average number of ordinary shares because their effect would have been anti-dilutive.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__36": { "value": "Note 6\tEmployee benefit expenses
Employee benefit expenses
USD MILLION | 2025 | 2024 |
Wages, crew | 57.0 | 50.2 |
Wages, administrative personnel | 78.0 | 70.8 |
Social security contributions | 7.6 | 7.5 |
Expenses related to defined contribution scheme | 5.2 | 5.5 |
Expenses related to defined benefit scheme | 0.1 | (1.0) |
Share-based payment | 4.2 | 1.4 |
Total employee benefit expenses | 152.1 | 134.4 |
Average number of employees | 1\u00a0051 | 1\u00a0216 |
Employee remuneration
Variable Compensation Scheme
The Variable Compensation Scheme (VCS) is a system for rewarding employees if and when the Group reaches set goals for the Group\u2019s performance. The VCS plan is established on a year-to-year basis guided from the Board of Directors. The VCS for the performance year 2025 is based on the following parameters:
1.\tOverall company results defined by targeted return on equity
2.\tHealth, Safety, Environment and Quality (HSEQ) performance of Zero Harm
The Board of Directors are assessing the achievements, including applying discretionary evaluations, to determine the Group pay-out pool for the VCS accordingly.
Full pay-out is capped at three months\u2019 base salary for eligible employees. The maximum potential pay-out of the VCS for the Senior Management team, excluding the CEO, is set at six months\u2019 base salary. The maximum potential pay-out of the VCS for the CEO is determined by the Board of Directors and shall not exceed 12 months\u2019 base salary. Individual assessment of VCS pay-out is applied on a discretionary basis evaluating individual contributions, performance and key accomplishments.
Long-term share option programme
In 2019, the Board approved the establishment of a long-term share option programme (LTIP) where key personnel were granted options to purchase shares in the Company. The programme is approved for five years, with annual grants, each grant corresponding to 1 per cent of the total outstanding shares in the Company. The first grant was in 2019, with the last grant in 2023. The programme is discretionary, and participants are invited on an annual basis. The purpose of the programme is to further align the interests of the Group and its shareholders by providing incentives to employees to motivate them to contribute materially to the success and long-term profitability of the Group.
Each option will give the holder the right to acquire one BW Offshore share. The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76 per cent which is corresponding to a 5 per cent increase annually over three years.
In 2024, the Board approved a new Long-Term Incentive Programme (LTIP). The programme is a combination of Share Options and Restricted Share Unit (RSUs).
The total number of options awarded under the LTIP for 2025 was 800 000 (800 000) where each option will give the holder the right to acquire one BW Offshore share.
The strike price is calculated as the volume-weighted average share price five trading days prior to the grant date, plus a premium of 15.76 per cent (corresponding to a 5 per cent increase annually over 3 years). The options have a vesting period of three years, followed by a three-year exercise period. The options will expire 6 years after the award date.
The key terms and conditions related to the grants under these programmes are as follows;
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 8 April 2019 | 1\u00a0732\u00a0000 | Vesting period of three years, followed by a three-years exercise period | 6 years |
On 6 March 2020 | 1\u00a0832\u00a0250 | Same as above | 6 years |
On 26 February 2021 | 1\u00a0849\u00a0600 | Same as above | 6 years |
On 7 March 2022 | 1\u00a0849\u00a0575 | Same as above | 6 years |
On 7 March 2023 | 1\u00a0849\u00a0567 | Same as above | 6 years |
On 8 March 2024 | 800\u00a0000 | Same as above | 6 years |
0n 7 March 2025 | 800\u00a0000 | Same as above | 6 years |
Total share options | 10\u00a0712\u00a0992 |
During 2025, the Group modified the share option plan from equity settled to cash settled. Under the revised terms, employees will receive a cash payout equivalent to the Volume Weight Average Price of the shares over a five-day trading day period following each quarterly financial release, net of the strike price. The modification did not change the number of options, vesting conditions or service requirements. In accordance with IFRS 2, the modifications resulted in a reclassification of USD 5.2 million from equity to a recognition of a cash settled liability. As of 31 December 2025, the cash settled liability was USD 6.6 million included in Other non-current liabilities.
For 2025, a total of 108 104 RSUs (115 534) has been awarded to 18 employees (19). The RSUs will be settled in shares following a three-year vesting period from the grant date.
Measurement of fair values
The fair value of the employee share options has been measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows.
2025 | 2024 | |
Fair value at grant date (NOK) | 8.42 | 10.84 |
Share price at grant date (NOK) | 27.7 | 25.5 |
Exercise price (NOK) | 32.19 | 29.85 |
Expected volatility (weighted average) | 39% | 55% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.72% | 3.76% |
Expected volatility has been based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for unusual movements when appropriate. The expected term of the instruments has been based on historical experience and general option holder behaviour.
Reconciliation of outstanding share options and RSUs
The number and weighted-average exercise prices of share options under the share option programmes were as follows:
2025 | 2024 | |||
Options | Number of options | |||
Weighted -average exercise price (NOK) | Number of options | |||
Weighted -average exercise price (NOK) | ||||
Outstanding at 1 January | 8\u00a0568\u00a0338 | 31.48 | 8\u00a0486\u00a0513 | 34.88 |
Terminated during the year | (929\u00a0822) | 29.70 | (718\u00a0175) | 32.60 |
Exercised | (3\u00a0150\u00a0912) | 27.87 | - | - |
Expired | (1\u00a0255\u00a0000) | 36.49 | - | - |
Granted during the year | 800\u00a0000 | 30.29 | 800\u00a0000 | 26.91 |
Outstanding at 31 December | 4\u00a0032\u00a0604 | 26.21 | 8\u00a0568\u00a0338 | 31.48 |
Exercisable at 31 December | 1\u00a0226\u00a0637 | 26.67 | 4\u00a0579\u00a0755 | 35.29 |
2025 | 2024 | |||
RSUs | Number of options | Number of options | ||
Outstanding at 1 January | 116\u00a0645 | - | ||
Terminated during the year | (14\u00a0507) | (11\u00a0524) | ||
Expired | - | - | ||
Granted during the year | 108\u00a0104 | 128\u00a0169 | ||
Outstanding at 31 December | 210\u00a0242 | 116\u00a0645 | ||
Exercisable at 31 December | - | - |
Expense recognised in profit or loss
For details of the related employee benefit expenses, see the employee benefit expenses table.
Loans to other employees
(IN USD) | 2025 | 2024 |
Loans to other employees | - | 1\u00a0902\u00a0316 |
Employee benefit expenses
USD MILLION | 2025 | 2024 |
Wages, crew | 57.0 | 50.2 |
Wages, administrative personnel | 78.0 | 70.8 |
Social security contributions | 7.6 | 7.5 |
Expenses related to defined contribution scheme | 5.2 | 5.5 |
Expenses related to defined benefit scheme | 0.1 | (1.0) |
Share-based payment | 4.2 | 1.4 |
Total employee benefit expenses | 152.1 | 134.4 |
Average number of employees | 1\u00a0051 | 1\u00a0216 |
Long-term share option programme
In 2019, the Board approved the establishment of a long-term share option programme (LTIP) where key personnel were granted options to purchase shares in the Company. The programme is approved for five years, with annual grants, each grant corresponding to 1 per cent of the total outstanding shares in the Company. The first grant was in 2019, with the last grant in 2023. The programme is discretionary, and participants are invited on an annual basis. The purpose of the programme is to further align the interests of the Group and its shareholders by providing incentives to employees to motivate them to contribute materially to the success and long-term profitability of the Group.
Each option will give the holder the right to acquire one BW Offshore share. The strike price of the options is calculated based on the volume weighted average share price five trading days prior to grant date, plus a premium of 15.76 per cent which is corresponding to a 5 per cent increase annually over three years.
In 2024, the Board approved a new Long-Term Incentive Programme (LTIP). The programme is a combination of Share Options and Restricted Share Unit (RSUs).
The total number of options awarded under the LTIP for 2025 was 800 000 (800 000) where each option will give the holder the right to acquire one BW Offshore share.
The strike price is calculated as the volume-weighted average share price five trading days prior to the grant date, plus a premium of 15.76 per cent (corresponding to a 5 per cent increase annually over 3 years). The options have a vesting period of three years, followed by a three-year exercise period. The options will expire 6 years after the award date.
The key terms and conditions related to the grants under these programmes are as follows;
Grant date | Number of instruments | Vesting conditions | Contractual life of options |
On 8 April 2019 | 1\u00a0732\u00a0000 | Vesting period of three years, followed by a three-years exercise period | 6 years |
On 6 March 2020 | 1\u00a0832\u00a0250 | Same as above | 6 years |
On 26 February 2021 | 1\u00a0849\u00a0600 | Same as above | 6 years |
On 7 March 2022 | 1\u00a0849\u00a0575 | Same as above | 6 years |
On 7 March 2023 | 1\u00a0849\u00a0567 | Same as above | 6 years |
On 8 March 2024 | 800\u00a0000 | Same as above | 6 years |
0n 7 March 2025 | 800\u00a0000 | Same as above | 6 years |
Total share options | 10\u00a0712\u00a0992 |
During 2025, the Group modified the share option plan from equity settled to cash settled. Under the revised terms, employees will receive a cash payout equivalent to the Volume Weight Average Price of the shares over a five-day trading day period following each quarterly financial release, net of the strike price. The modification did not change the number of options, vesting conditions or service requirements. In accordance with IFRS 2, the modifications resulted in a reclassification of USD 5.2 million from equity to a recognition of a cash settled liability. As of 31 December 2025, the cash settled liability was USD 6.6 million included in Other non-current liabilities.
For 2025, a total of 108 104 RSUs (115 534) has been awarded to 18 employees (19). The RSUs will be settled in shares following a three-year vesting period from the grant date.
Measurement of fair values
The fair value of the employee share options has been measured using the Black-Scholes formula. The inputs used in the measurement of the fair value at grant date were as follows.
2025 | 2024 | |
Fair value at grant date (NOK) | 8.42 | 10.84 |
Share price at grant date (NOK) | 27.7 | 25.5 |
Exercise price (NOK) | 32.19 | 29.85 |
Expected volatility (weighted average) | 39% | 55% |
Expected life | 4 years | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.72% | 3.76% |
Expected volatility has been based on an evaluation of the historical volatility of the Company\u2019s share price particularly over the historical period equal to the expected term, adjusted for unusual movements when appropriate. The expected term of the instruments has been based on historical experience and general option holder behaviour.
Reconciliation of outstanding share options and RSUs
The number and weighted-average exercise prices of share options under the share option programmes were as follows:
2025 | 2024 | |||
Options | Number of options | |||
Weighted -average exercise price (NOK) | Number of options | |||
Weighted -average exercise price (NOK) | ||||
Outstanding at 1 January | 8\u00a0568\u00a0338 | 31.48 | 8\u00a0486\u00a0513 | 34.88 |
Terminated during the year | (929\u00a0822) | 29.70 | (718\u00a0175) | 32.60 |
Exercised | (3\u00a0150\u00a0912) | 27.87 | - | - |
Expired | (1\u00a0255\u00a0000) | 36.49 | - | - |
Granted during the year | 800\u00a0000 | 30.29 | 800\u00a0000 | 26.91 |
Outstanding at 31 December | 4\u00a0032\u00a0604 | 26.21 | 8\u00a0568\u00a0338 | 31.48 |
Exercisable at 31 December | 1\u00a0226\u00a0637 | 26.67 | 4\u00a0579\u00a0755 | 35.29 |
2025 | 2024 | |||
RSUs | Number of options | Number of options | ||
Outstanding at 1 January | 116\u00a0645 | - | ||
Terminated during the year | (14\u00a0507) | (11\u00a0524) | ||
Expired | - | - | ||
Granted during the year | 108\u00a0104 | 128\u00a0169 | ||
Outstanding at 31 December | 210\u00a0242 | 116\u00a0645 | ||
Exercisable at 31 December | - | - |
Expense recognised in profit or loss
For details of the related employee benefit expenses, see the employee benefit expenses table.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__39": { "value": "Note 7\tIncome taxes
Accounting policies
The Company is not subject to any income taxes in Bermuda, but the Company and its subsidiaries may be subject to income tax in the countries in which they operate. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable, changes in deferred tax liabilities and deferred tax assets, and withholding tax on charter hire and financial items. Charter hire and financial items are presented gross including withholding taxes payable where applicable.
The income tax expenses for the period comprise corporate income tax, withholding tax and deferred tax.
Depending on the jurisdiction, corporate income tax is due on the subsidiary\u2019s actual profits. Deferred tax is calculated on temporary differences in jurisdictions where actual profits are the basis for taxation.
The Group\u2019s operational activities are subject to taxation rates which range from 0 per cent to 35 per cent.
As the Group\u2019s operations are subject to different methods of taxation, income tax expenses will not necessarily change proportionally with changes in the overall net profit before tax. As a consequence of this, a reduction in net profit will often lead to a higher effective tax rate, while an increase in net profit can lead to a reduction in the effective tax rate.
Tax expense for the year
USD MILLION | 2025 | 2024 |
Deferred tax effect of changes in temporary differences | 2.1 | (6.6) |
Taxes payable current year | 19.9 | 14.9 |
Taxes payable prior years | (0.3) | (1.7) |
Withholding taxes | (0.6) | 0.8 |
Total tax expense continuing operations recognised in statement of income | 21.1 | 7.4 |
Effective tax rate
USD MILLION | 2025 | 2024 |
Profit/ (loss) before tax | 155.3 | 127.2 |
Effect on permanent differences | (40.6) | (18.6) |
Deferred tax effect of unrecognised deferred tax asset | - | 1.9 |
Income tax at Bermuda statutory income tax rate of 0% | - | - |
Withholding taxes | (0.6) | 0.8 |
Taxes payable current year, non-Bermuda jurisdictions | 19.9 | 14.9 |
Taxes payable prior years, non-Bermuda jurisdictions | (0.3) | (1.7) |
Deferred tax effect of changes in temporary differences | 2.1 | (6.6) |
Total income tax expense continuing operations at the effective income tax rate | 21.1 | 7.4 |
Effective tax rate | 13.6% | 5.8% |
Tax assets and liabilities
USD MILLION | 2025 | 2024 |
Tax assets at 31 December (included in trade and other current assets) | 0.1 | - |
Tax payable at 31 December | 9.4 | 13.8 |
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income becomes taxable.
Deferred tax liabilities and deferred tax assets are specified as follows:
USD MILLION | 2025 | 2024 |
Deferred tax assets | ||
Vessels | - | 2.1 |
Losses and unabsorbed capital allowances | 61.1 | 61.1 |
Other | 0.4 | 0.9 |
Deferred tax assets - gross | 61.5 | 64.1 |
Deferred tax liabilities | ||
Other | (11.1) | (10.5) |
Deferred tax liabilities - gross | (11.1) | (10.5) |
Net recognised deferred tax assets / (deferred tax liabilities) | 50.4 | 53.6 |
Net recognised deferred tax assets are expected to be recovered or settled after more than 12 months. The Group has tax losses carried forward in Australia as a result of a previous operation linked to the acquisition of Prosafe Production. With the signing of the BW Opal contract in 2021, it is probable that this tax loss can be utilised and consequently a deferred tax asset of USD 60.7 million was recognised in 2021.
The Group also has tax losses carried forward in several jurisdictions which are not recognised. The losses carried forward are USD 475.0 million (USD 447.7 million). These losses are not recognised as it is not possible to predict with reasonable certainty whether adequate taxable profit will be available in the future against which losses can be utilised. The tax losses have no expiry date.
Judgements and estimates
The Group is subject to income taxes payable to various jurisdictions across the globe. Significant judgement is required in some jurisdictions to determine the provision for income taxes. There are many transactions and calculations for which the final tax determination is uncertain during the ordinary course of business. The Group monitors each issue around uncertain tax treatments across the Group in order to ensure that the Group applies sufficient judgement to the resolution of tax disputes that might arise.
The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The income tax liabilities include any penalties and interest that could be associated with a tax audit issue. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will influence the income tax and deferred tax amounts in the period in which such determination is made.
Note 7\tIncome taxes
Accounting policies
The Company is not subject to any income taxes in Bermuda, but the Company and its subsidiaries may be subject to income tax in the countries in which they operate. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable, changes in deferred tax liabilities and deferred tax assets, and withholding tax on charter hire and financial items. Charter hire and financial items are presented gross including withholding taxes payable where applicable.
The income tax expenses for the period comprise corporate income tax, withholding tax and deferred tax.
Depending on the jurisdiction, corporate income tax is due on the subsidiary\u2019s actual profits. Deferred tax is calculated on temporary differences in jurisdictions where actual profits are the basis for taxation.
The Group\u2019s operational activities are subject to taxation rates which range from 0 per cent to 35 per cent.
As the Group\u2019s operations are subject to different methods of taxation, income tax expenses will not necessarily change proportionally with changes in the overall net profit before tax. As a consequence of this, a reduction in net profit will often lead to a higher effective tax rate, while an increase in net profit can lead to a reduction in the effective tax rate.
Tax expense for the year
USD MILLION | 2025 | 2024 |
Deferred tax effect of changes in temporary differences | 2.1 | (6.6) |
Taxes payable current year | 19.9 | 14.9 |
Taxes payable prior years | (0.3) | (1.7) |
Withholding taxes | (0.6) | 0.8 |
Total tax expense continuing operations recognised in statement of income | 21.1 | 7.4 |
Effective tax rate
USD MILLION | 2025 | 2024 |
Profit/ (loss) before tax | 155.3 | 127.2 |
Effect on permanent differences | (40.6) | (18.6) |
Deferred tax effect of unrecognised deferred tax asset | - | 1.9 |
Income tax at Bermuda statutory income tax rate of 0% | - | - |
Withholding taxes | (0.6) | 0.8 |
Taxes payable current year, non-Bermuda jurisdictions | 19.9 | 14.9 |
Taxes payable prior years, non-Bermuda jurisdictions | (0.3) | (1.7) |
Deferred tax effect of changes in temporary differences | 2.1 | (6.6) |
Total income tax expense continuing operations at the effective income tax rate | 21.1 | 7.4 |
Effective tax rate | 13.6% | 5.8% |
Tax assets and liabilities
USD MILLION | 2025 | 2024 |
Tax assets at 31 December (included in trade and other current assets) | 0.1 | - |
Tax payable at 31 December | 9.4 | 13.8 |
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income becomes taxable.
Deferred tax liabilities and deferred tax assets are specified as follows:
USD MILLION | 2025 | 2024 |
Deferred tax assets | ||
Vessels | - | 2.1 |
Losses and unabsorbed capital allowances | 61.1 | 61.1 |
Other | 0.4 | 0.9 |
Deferred tax assets - gross | 61.5 | 64.1 |
Deferred tax liabilities | ||
Other | (11.1) | (10.5) |
Deferred tax liabilities - gross | (11.1) | (10.5) |
Net recognised deferred tax assets / (deferred tax liabilities) | 50.4 | 53.6 |
Net recognised deferred tax assets are expected to be recovered or settled after more than 12 months. The Group has tax losses carried forward in Australia as a result of a previous operation linked to the acquisition of Prosafe Production. With the signing of the BW Opal contract in 2021, it is probable that this tax loss can be utilised and consequently a deferred tax asset of USD 60.7 million was recognised in 2021.
The Group also has tax losses carried forward in several jurisdictions which are not recognised. The losses carried forward are USD 475.0 million (USD 447.7 million). These losses are not recognised as it is not possible to predict with reasonable certainty whether adequate taxable profit will be available in the future against which losses can be utilised. The tax losses have no expiry date.
Judgements and estimates
The Group is subject to income taxes payable to various jurisdictions across the globe. Significant judgement is required in some jurisdictions to determine the provision for income taxes. There are many transactions and calculations for which the final tax determination is uncertain during the ordinary course of business. The Group monitors each issue around uncertain tax treatments across the Group in order to ensure that the Group applies sufficient judgement to the resolution of tax disputes that might arise.
The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The income tax liabilities include any penalties and interest that could be associated with a tax audit issue. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will influence the income tax and deferred tax amounts in the period in which such determination is made.
Note 7\tIncome taxes
Accounting policies
The Company is not subject to any income taxes in Bermuda, but the Company and its subsidiaries may be subject to income tax in the countries in which they operate. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable, changes in deferred tax liabilities and deferred tax assets, and withholding tax on charter hire and financial items. Charter hire and financial items are presented gross including withholding taxes payable where applicable.
The income tax expenses for the period comprise corporate income tax, withholding tax and deferred tax.
Depending on the jurisdiction, corporate income tax is due on the subsidiary\u2019s actual profits. Deferred tax is calculated on temporary differences in jurisdictions where actual profits are the basis for taxation.
The Group\u2019s operational activities are subject to taxation rates which range from 0 per cent to 35 per cent.
As the Group\u2019s operations are subject to different methods of taxation, income tax expenses will not necessarily change proportionally with changes in the overall net profit before tax. As a consequence of this, a reduction in net profit will often lead to a higher effective tax rate, while an increase in net profit can lead to a reduction in the effective tax rate.
Tax expense for the year
USD MILLION | 2025 | 2024 |
Deferred tax effect of changes in temporary differences | 2.1 | (6.6) |
Taxes payable current year | 19.9 | 14.9 |
Taxes payable prior years | (0.3) | (1.7) |
Withholding taxes | (0.6) | 0.8 |
Total tax expense continuing operations recognised in statement of income | 21.1 | 7.4 |
Effective tax rate
USD MILLION | 2025 | 2024 |
Profit/ (loss) before tax | 155.3 | 127.2 |
Effect on permanent differences | (40.6) | (18.6) |
Deferred tax effect of unrecognised deferred tax asset | - | 1.9 |
Income tax at Bermuda statutory income tax rate of 0% | - | - |
Withholding taxes | (0.6) | 0.8 |
Taxes payable current year, non-Bermuda jurisdictions | 19.9 | 14.9 |
Taxes payable prior years, non-Bermuda jurisdictions | (0.3) | (1.7) |
Deferred tax effect of changes in temporary differences | 2.1 | (6.6) |
Total income tax expense continuing operations at the effective income tax rate | 21.1 | 7.4 |
Effective tax rate | 13.6% | 5.8% |
Tax assets and liabilities
USD MILLION | 2025 | 2024 |
Tax assets at 31 December (included in trade and other current assets) | 0.1 | - |
Tax payable at 31 December | 9.4 | 13.8 |
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income becomes taxable.
Deferred tax liabilities and deferred tax assets are specified as follows:
USD MILLION | 2025 | 2024 |
Deferred tax assets | ||
Vessels | - | 2.1 |
Losses and unabsorbed capital allowances | 61.1 | 61.1 |
Other | 0.4 | 0.9 |
Deferred tax assets - gross | 61.5 | 64.1 |
Deferred tax liabilities | ||
Other | (11.1) | (10.5) |
Deferred tax liabilities - gross | (11.1) | (10.5) |
Net recognised deferred tax assets / (deferred tax liabilities) | 50.4 | 53.6 |
Net recognised deferred tax assets are expected to be recovered or settled after more than 12 months. The Group has tax losses carried forward in Australia as a result of a previous operation linked to the acquisition of Prosafe Production. With the signing of the BW Opal contract in 2021, it is probable that this tax loss can be utilised and consequently a deferred tax asset of USD 60.7 million was recognised in 2021.
The Group also has tax losses carried forward in several jurisdictions which are not recognised. The losses carried forward are USD 475.0 million (USD 447.7 million). These losses are not recognised as it is not possible to predict with reasonable certainty whether adequate taxable profit will be available in the future against which losses can be utilised. The tax losses have no expiry date.
Judgements and estimates
The Group is subject to income taxes payable to various jurisdictions across the globe. Significant judgement is required in some jurisdictions to determine the provision for income taxes. There are many transactions and calculations for which the final tax determination is uncertain during the ordinary course of business. The Group monitors each issue around uncertain tax treatments across the Group in order to ensure that the Group applies sufficient judgement to the resolution of tax disputes that might arise.
The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The income tax liabilities include any penalties and interest that could be associated with a tax audit issue. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will influence the income tax and deferred tax amounts in the period in which such determination is made.
Accounting policies
The Company is not subject to any income taxes in Bermuda, but the Company and its subsidiaries may be subject to income tax in the countries in which they operate. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable, changes in deferred tax liabilities and deferred tax assets, and withholding tax on charter hire and financial items. Charter hire and financial items are presented gross including withholding taxes payable where applicable.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__43": { "value": "Accounting policies
The Company is not subject to any income taxes in Bermuda, but the Company and its subsidiaries may be subject to income tax in the countries in which they operate. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable, changes in deferred tax liabilities and deferred tax assets, and withholding tax on charter hire and financial items. Charter hire and financial items are presented gross including withholding taxes payable where applicable.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__44": { "value": "Accounting policies
The Company is not subject to any income taxes in Bermuda, but the Company and its subsidiaries may be subject to income tax in the countries in which they operate. The Group provides for tax on profit based on the profit for financial reporting purposes, adjusted for non-taxable revenue and expenses.
Income tax expense represents the sum of tax currently payable, changes in deferred tax liabilities and deferred tax assets, and withholding tax on charter hire and financial items. Charter hire and financial items are presented gross including withholding taxes payable where applicable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__45": { "value": "Note 8\tTrade, other current assets and other non-current assets
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
USD MILLION | 2025 | 2024 |
Loan to employees | - | 1.9 |
Other receivables | 9.2 | 6.1 |
Other non-current assets | 9.2 | 8.0 |
USD MILLION | 2025 | 2024 |
Trade receivables | 84.5 | 133.9 |
Contract assets | 12.9 | 19.0 |
Other receivables | 11.3 | 11.5 |
Tax assets - current | 0.1 | - |
Prepayments | 4.8 | 5.3 |
Trade and other current assets | 113.6 | 169.7 |
The fair value of trade and other current assets is the same as the carrying amount. | ||
The ageing analysis of trade receivables are as follows: | ||
USD MILLION | 2025 | 2024 |
Not past due | 78.6 | 89.7 |
Up to 3 months | 4.5 | 31.0 |
3\u20136 months | 1.2 | - |
6\u201312 months | 0.2 | 1.8 |
12 - > months | - | 11.4 |
Trade receivables - net | 84.5 | 133.9 |
As of 31 December 2025 and 2024, the expected credit loss for the Group related to customers was immaterial. | ||
The carrying amount of the Group\u2019s trade and other receivables are mainly denominated in USD. |
The Group had no provision for expected credit loss of trade receivable on 31 December 2025 (USD 0.8 million in 2024). Refer to Note 21for further information. Expected credit loss for other classes within trade and other receivables are immaterial.
Note 8\tTrade, other current assets and other non-current assets
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
USD MILLION | 2025 | 2024 |
Loan to employees | - | 1.9 |
Other receivables | 9.2 | 6.1 |
Other non-current assets | 9.2 | 8.0 |
USD MILLION | 2025 | 2024 |
Trade receivables | 84.5 | 133.9 |
Contract assets | 12.9 | 19.0 |
Other receivables | 11.3 | 11.5 |
Tax assets - current | 0.1 | - |
Prepayments | 4.8 | 5.3 |
Trade and other current assets | 113.6 | 169.7 |
The fair value of trade and other current assets is the same as the carrying amount. | ||
The ageing analysis of trade receivables are as follows: | ||
USD MILLION | 2025 | 2024 |
Not past due | 78.6 | 89.7 |
Up to 3 months | 4.5 | 31.0 |
3\u20136 months | 1.2 | - |
6\u201312 months | 0.2 | 1.8 |
12 - > months | - | 11.4 |
Trade receivables - net | 84.5 | 133.9 |
As of 31 December 2025 and 2024, the expected credit loss for the Group related to customers was immaterial. | ||
The carrying amount of the Group\u2019s trade and other receivables are mainly denominated in USD. |
The Group had no provision for expected credit loss of trade receivable on 31 December 2025 (USD 0.8 million in 2024). Refer to Note 21for further information. Expected credit loss for other classes within trade and other receivables are immaterial.
Note 8\tTrade, other current assets and other non-current assets
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
USD MILLION | 2025 | 2024 |
Loan to employees | - | 1.9 |
Other receivables | 9.2 | 6.1 |
Other non-current assets | 9.2 | 8.0 |
USD MILLION | 2025 | 2024 |
Trade receivables | 84.5 | 133.9 |
Contract assets | 12.9 | 19.0 |
Other receivables | 11.3 | 11.5 |
Tax assets - current | 0.1 | - |
Prepayments | 4.8 | 5.3 |
Trade and other current assets | 113.6 | 169.7 |
The fair value of trade and other current assets is the same as the carrying amount. | ||
The ageing analysis of trade receivables are as follows: | ||
USD MILLION | 2025 | 2024 |
Not past due | 78.6 | 89.7 |
Up to 3 months | 4.5 | 31.0 |
3\u20136 months | 1.2 | - |
6\u201312 months | 0.2 | 1.8 |
12 - > months | - | 11.4 |
Trade receivables - net | 84.5 | 133.9 |
As of 31 December 2025 and 2024, the expected credit loss for the Group related to customers was immaterial. | ||
The carrying amount of the Group\u2019s trade and other receivables are mainly denominated in USD. |
The Group had no provision for expected credit loss of trade receivable on 31 December 2025 (USD 0.8 million in 2024). Refer to Note 21for further information. Expected credit loss for other classes within trade and other receivables are immaterial.
Note 8\tTrade, other current assets and other non-current assets
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
USD MILLION | 2025 | 2024 |
Loan to employees | - | 1.9 |
Other receivables | 9.2 | 6.1 |
Other non-current assets | 9.2 | 8.0 |
USD MILLION | 2025 | 2024 |
Trade receivables | 84.5 | 133.9 |
Contract assets | 12.9 | 19.0 |
Other receivables | 11.3 | 11.5 |
Tax assets - current | 0.1 | - |
Prepayments | 4.8 | 5.3 |
Trade and other current assets | 113.6 | 169.7 |
The fair value of trade and other current assets is the same as the carrying amount. | ||
The ageing analysis of trade receivables are as follows: | ||
USD MILLION | 2025 | 2024 |
Not past due | 78.6 | 89.7 |
Up to 3 months | 4.5 | 31.0 |
3\u20136 months | 1.2 | - |
6\u201312 months | 0.2 | 1.8 |
12 - > months | - | 11.4 |
Trade receivables - net | 84.5 | 133.9 |
As of 31 December 2025 and 2024, the expected credit loss for the Group related to customers was immaterial. | ||
The carrying amount of the Group\u2019s trade and other receivables are mainly denominated in USD. |
The Group had no provision for expected credit loss of trade receivable on 31 December 2025 (USD 0.8 million in 2024). Refer to Note 21for further information. Expected credit loss for other classes within trade and other receivables are immaterial.
Note 8\tTrade, other current assets and other non-current assets
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
USD MILLION | 2025 | 2024 |
Loan to employees | - | 1.9 |
Other receivables | 9.2 | 6.1 |
Other non-current assets | 9.2 | 8.0 |
USD MILLION | 2025 | 2024 |
Trade receivables | 84.5 | 133.9 |
Contract assets | 12.9 | 19.0 |
Other receivables | 11.3 | 11.5 |
Tax assets - current | 0.1 | - |
Prepayments | 4.8 | 5.3 |
Trade and other current assets | 113.6 | 169.7 |
The fair value of trade and other current assets is the same as the carrying amount. | ||
The ageing analysis of trade receivables are as follows: | ||
USD MILLION | 2025 | 2024 |
Not past due | 78.6 | 89.7 |
Up to 3 months | 4.5 | 31.0 |
3\u20136 months | 1.2 | - |
6\u201312 months | 0.2 | 1.8 |
12 - > months | - | 11.4 |
Trade receivables - net | 84.5 | 133.9 |
As of 31 December 2025 and 2024, the expected credit loss for the Group related to customers was immaterial. | ||
The carrying amount of the Group\u2019s trade and other receivables are mainly denominated in USD. |
The Group had no provision for expected credit loss of trade receivable on 31 December 2025 (USD 0.8 million in 2024). Refer to Note 21for further information. Expected credit loss for other classes within trade and other receivables are immaterial.
Note 8\tTrade, other current assets and other non-current assets
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
USD MILLION | 2025 | 2024 |
Loan to employees | - | 1.9 |
Other receivables | 9.2 | 6.1 |
Other non-current assets | 9.2 | 8.0 |
USD MILLION | 2025 | 2024 |
Trade receivables | 84.5 | 133.9 |
Contract assets | 12.9 | 19.0 |
Other receivables | 11.3 | 11.5 |
Tax assets - current | 0.1 | - |
Prepayments | 4.8 | 5.3 |
Trade and other current assets | 113.6 | 169.7 |
The fair value of trade and other current assets is the same as the carrying amount. | ||
The ageing analysis of trade receivables are as follows: | ||
USD MILLION | 2025 | 2024 |
Not past due | 78.6 | 89.7 |
Up to 3 months | 4.5 | 31.0 |
3\u20136 months | 1.2 | - |
6\u201312 months | 0.2 | 1.8 |
12 - > months | - | 11.4 |
Trade receivables - net | 84.5 | 133.9 |
As of 31 December 2025 and 2024, the expected credit loss for the Group related to customers was immaterial. | ||
The carrying amount of the Group\u2019s trade and other receivables are mainly denominated in USD. |
The Group had no provision for expected credit loss of trade receivable on 31 December 2025 (USD 0.8 million in 2024). Refer to Note 21for further information. Expected credit loss for other classes within trade and other receivables are immaterial.
Accounting policies
Trade, other current assets and non-current assets are measured at amortised cost using the effective interest method and are subject to impairment.
The Group measures financial assets at amortised cost if both of the following conditions are met:
\u2022The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.
\u2022The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
Financial assets
The Group\u2019s financial assets are derivatives, trade and financial lease receivables and cash and cash equivalents.
The Group classifies its financial assets in two categories:
\u2022Financial assets at amortised cost. Refer to accounting policies in Note 8.
\u2022Financial assets at fair value through profit or loss (FVTPL).
Financial assets at fair value through profit or loss
Derivatives at fair value are carried in the statement of financial position at fair value with net changes in fair value through the profit or loss. The category includes foreign exchange contracts and interest rate swaps.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__52": { "value": "Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
\u2022The rights to receive cash flows from the asset have expired, or
\u2022The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement; and either:
a.\tthe Group has transferred substantially all the risks and rewards of the asset, or
b.\tthe Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__53": { "value": "Impairment of financial assets
For trade and other receivables and other non-current assets, the Group applies a simplified approach in calculating Estimated Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date, based on its historical credit loss experience.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when the Group has no reasonable expectations of recovering the contractual cash flows. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. This assessment is based on historical experience of recoveries of similar assets. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group\u2019s procedures for recovery of amounts due.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__54": { "value": "Note 9\tCash and cash equivalents
Cash and cash equivalents are denominated primarily in USD, SGD, EUR, GBP and NOK. Restricted bank deposits at 31 December 2025 amounted to USD 0.9 million (USD 0.9 million). This relates to taxes withheld from employees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__55": { "value": "Note 9\tCash and cash equivalents
Cash and cash equivalents are denominated primarily in USD, SGD, EUR, GBP and NOK. Restricted bank deposits at 31 December 2025 amounted to USD 0.9 million (USD 0.9 million). This relates to taxes withheld from employees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__56": { "value": "Note 10\tProperty, plant and equipment
Accounting policies
Measurement
PP&E are recognised at cost and subsequently measured at cost less accumulated depreciation and impairment charges. This includes costs of material, direct labour and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management, including attributable overheads and estimate of costs of demobilising the asset.
Borrowing costs directly attributable to an acquisition or construction of an asset, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the assets are ready for their intended use. Borrowing cost consists of interest and other cost, which the entity incurs in connection with the borrowing of funds.
Subsequent costs such as life extension activities and repairs are included in the asset\u2019s carrying amount, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Depreciation
Depreciation will start when an item of PP&E is ready for intended use. For FPSOs this will be when the unit is successfully installed on the field.
When significant parts of an item of PP&E have different useful lives, those components are accounted for as separate items of PP&E. The different components are depreciated by using a straight-line method over their expected useful life, taking into account the residual value.
The estimated useful lives of the categories of PP&E are as follows:
FPSOs:
\u2022Hull and Marine scope, including associated investments like refurbishment: 15\u201325 years.
\u2022Field-specific equipment and associated investment costs which are incurred for a specific project, e.g. installation costs and transport costs: 3\u201325 years.
\u2022Process equipment and associated investment. (In case of long-term contracts these items can be fully depreciated over the contract duration.): 10\u201325 years.
Other PP&Es, like IT equipment and office equipment, 3\u201310 years.
The assets\u2019 useful life and residual values are reviewed, and if necessary adjusted, at each reporting date.
Impairment
Assets including vessels, vessels under construction and other PP&Es, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s net selling price and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separate identifiable cash flows (cash-generating units). Each FPSO is identified as a cash-generating unit.
At the end of each reporting period the Group will assess whether there is any indication that an impairment recognised in previous periods may no longer exist or may have decreased. If any such indication exists, the Group will estimate the recoverable amount of the asset. Previously recognised impairments should be reversed if there are significant changes with a favourable effect in the indicators.
Vessels and other property, plant and equipment
The owned fleet at 31 December 2025 included the following vessels: BW Adolo, BW Catcher, BW Opal and BW Hurra.
In September 2025, the Group acquired BW Hurra (former Nganhurra) for USD 15 million. The vessel is a suitable candidate for redeployment and is currently in layup.
Disposals
In March 2025, BW Pioneer was sold for USD 125 million to a subsidiary of Murphy Oil Corporation. The two parties also signed a five-year reimbursable O&M contract, under which BW Offshore will continue to provide operations and maintenance services. The impact from the sale was USD 14.8 million and is included in Net gain/ (loss) on sale of tangible fixed assets in the consolidated statement of income.
Impairment of USD 14.5 million in 2025 relates to previously capitalised cost for engineering work on Repsol\u2019s Block 29 development in Mexico. The FEED for the FPSO to Repsol\u2019s Block 29 in the Gulf of Mexico was completed without progressing to a contract award. The client paid for FEED efforts and the Group consequently made an impairment of capitalised investment cost.
In April 2024, Petr\u00f3leo Nautipa was sold for USD 9.9 million. As the consideration was higher than the current net book value, the Group consequently recorded a reversal of impairment loss of USD 1.1 million.
In April 2022, the Group signed an agreement for the sale of the FPSO Polvo to BW Energy. In May 2024, the Group received the remaining USD 20 million plus interest for the sale of FPSO Polvo to BW Energy, thereby completing the transaction.
2025 USD MILLION | Vessels in operation | Vessels under construction | Vessels available for projects | Other property, plant & equipment | Total |
Cost at 1 January 2025 | 2\u00a0482.7 | 2\u00a0300.4 | - | 38.5 | 4\u00a0821.6 |
Additions | - | 424.0 | 15.0 | 1.0 | 440.0 |
Disposal | (807.0) | - | - | (2.3) | (809.3) |
Exchange differences | - | - | - | 0.2 | 0.2 |
Derecognition | - | (14.5) | - | - | (14.5) |
Cost at 31 December 2025 | 1\u00a0675.7 | 2\u00a0709.9 | 15.0 | 37.4 | 4\u00a0438.0 |
Accumulated depreciation and impairment charge at 1 January 2025 | (1\u00a0644.5) | - | - | (36.4) | (1\u00a0680.9) |
Current year depreciation | (84.0) | - | - | (0.8) | (84.8) |
Disposal | 701.1 | - | - | 2.3 | 703.4 |
Impairment | - | (14.5) | - | - | (14.5) |
Exchange differences | - | - | - | - | - |
Derecognition | - | 14.5 | - | - | 14.5 |
Accumulated depreciation and impairment charge at 31 December 2025 | (1\u00a0027.4) | - | - | (34.9) | (1\u00a0062.3) |
Book value at 31 December 2025 | 648.3 | 2\u00a0709.9 | 15.0 | 2.5 | 3\u00a0375.7 |
Useful life | Up to 25 years | ||||
Capitalised interest cost for vessels under construction | 109.1 | ||||
2024 USD MILLION | Vessels in operation | Vessels under construction | Other property, plant & equipment | Total | |
Cost at 1 January 2024 | 2\u00a0640.0 | 1\u00a0823.3 | 38.7 | 4\u00a0502.0 | |
Additions | 0.2 | 477.1 | 0.3 | 477.6 | |
Disposal | (157.5) | - | (0.3) | (157.8) | |
Exchange differences | - | - | (0.2) | (0.2) | |
Cost at 31 December 2024 | 2\u00a0482.7 | 2\u00a0300.4 | 38.5 | 4\u00a0821.6 | |
Accumulated depreciation and impairment charge at 1 January 2024 | (1\u00a0629.8) | - | (35.9) | (1\u00a0665.7) | |
Current year depreciation | (164.2) | - | (0.8) | (165.0) | |
Disposal | 148.4 | - | 0.3 | 148.7 | |
Impairment | 1.1 | - | - | 1.1 | |
Exchange differences | - | - | - | - | |
Accumulated depreciation and impairment charge at 31 December 2024 | (1\u00a0644.5) | - | (36.4) | (1\u00a0680.9) | |
Book value at 31 December 2024 | 838.2 | 2\u00a0300.4 | 2.1 | 3\u00a0140.7 | |
Useful life | Up to 25 years | ||||
Capitalised interest cost for vessels under construction | 92.8 |
The FPSO capital expenditure in 2025 was mainly related to investments in BW Opal for the Barossa project, the acquisition of BW Hurra and capitalised cost for engineering work on Repsol\u2019s Block 29 development in Mexico.
The BW Opal contract is assessed to be an operating lease. The contract has a firm period of 15 years plus 10 years of options. BW Offshore are responsible for engineering, procurement, construction, installation and operation of the FPSO. The FPSO achieved first gas in September 2025. Practical completion, expected in Q2 2026, will mark the commencement of the 15-year firm contract period.
FPSO\u2019s capital expenditure in 2024 was mainly related to investments in BW Opal.
Refer to Note 20for information of committed cost relating to construction of FPSO.
Each vessel is regarded as a cash-generating unit for impairment testing. The recoverable amount is based on a value-in-use calculation for each of the vessels in the fleet. To estimate the recoverable amount, the Group makes assumptions on contracted net cash flows as well as uncontracted cash flows over the useful life for each vessel. Uncontracted cash flows have been estimated based on experience, expectations on future market conditions and return on invested capital. The assumptions made are built into different scenarios with different cash flows for each unit.
The Group has performed an impairment trigger assessment for the fleet thereby considering, amongst others, the outlook for each vessel including the effects of climate change and associated energy transition (refer
to Note 23). The Group further considered the remaining fixed contract period, option clauses in the contracts and commerciality of the various fields on which the vessels operate. The impairment trigger assessment performed at 31 December 2025 did not identify any triggers.
Judgements and estimates
Depreciation
The level of depreciation depends on the estimated useful life of the different components of the assets and residual value at the end of its useful life. The estimated useful life is based on experience and knowledge of the vessels owned by the Group. Management will have to make assessments as to the expected useful life of the hull and marine scope as well as the process equipment for an FPSO. Assumptions will also have to be made about the expected contract period for non-recoverable components for the assets, which can deviate significantly from the useful life of hull and process equipment.
Assumptions on residual value are based on knowledge of current scrap values, which in turn depend on steel prices in the world market and demobilisation costs, together with an expected inflation.
Impairment
The Group periodically reviews whether vessels and other property, plant and equipment, for potential impairment indicators when circumstances indicate and at least on an annual basis.
The recoverable amounts of each vessel, being defined as a cash-generating unit, is the higher of its fair value less cost of disposal and its value in use. Value in use calculations are based on contracted cash flows and estimates of uncontracted cash flows for the useful lives
of each vessel, including residual values discounted by an estimated discount rate.
All impairment assessment calculations demand a high degree of estimation. Management must make complex assessment of the expected cash flows arising from such assets and the selection of discount rates. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to reversals of recognised impairments.
Note 10\tProperty, plant and equipment
Accounting policies
Measurement
PP&E are recognised at cost and subsequently measured at cost less accumulated depreciation and impairment charges. This includes costs of material, direct labour and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management, including attributable overheads and estimate of costs of demobilising the asset.
Borrowing costs directly attributable to an acquisition or construction of an asset, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the assets are ready for their intended use. Borrowing cost consists of interest and other cost, which the entity incurs in connection with the borrowing of funds.
Subsequent costs such as life extension activities and repairs are included in the asset\u2019s carrying amount, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Depreciation
Depreciation will start when an item of PP&E is ready for intended use. For FPSOs this will be when the unit is successfully installed on the field.
When significant parts of an item of PP&E have different useful lives, those components are accounted for as separate items of PP&E. The different components are depreciated by using a straight-line method over their expected useful life, taking into account the residual value.
The estimated useful lives of the categories of PP&E are as follows:
FPSOs:
\u2022Hull and Marine scope, including associated investments like refurbishment: 15\u201325 years.
\u2022Field-specific equipment and associated investment costs which are incurred for a specific project, e.g. installation costs and transport costs: 3\u201325 years.
\u2022Process equipment and associated investment. (In case of long-term contracts these items can be fully depreciated over the contract duration.): 10\u201325 years.
Other PP&Es, like IT equipment and office equipment, 3\u201310 years.
The assets\u2019 useful life and residual values are reviewed, and if necessary adjusted, at each reporting date.
Impairment
Assets including vessels, vessels under construction and other PP&Es, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s net selling price and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separate identifiable cash flows (cash-generating units). Each FPSO is identified as a cash-generating unit.
At the end of each reporting period the Group will assess whether there is any indication that an impairment recognised in previous periods may no longer exist or may have decreased. If any such indication exists, the Group will estimate the recoverable amount of the asset. Previously recognised impairments should be reversed if there are significant changes with a favourable effect in the indicators.
Vessels and other property, plant and equipment
The owned fleet at 31 December 2025 included the following vessels: BW Adolo, BW Catcher, BW Opal and BW Hurra.
In September 2025, the Group acquired BW Hurra (former Nganhurra) for USD 15 million. The vessel is a suitable candidate for redeployment and is currently in layup.
Disposals
In March 2025, BW Pioneer was sold for USD 125 million to a subsidiary of Murphy Oil Corporation. The two parties also signed a five-year reimbursable O&M contract, under which BW Offshore will continue to provide operations and maintenance services. The impact from the sale was USD 14.8 million and is included in Net gain/ (loss) on sale of tangible fixed assets in the consolidated statement of income.
Impairment of USD 14.5 million in 2025 relates to previously capitalised cost for engineering work on Repsol\u2019s Block 29 development in Mexico. The FEED for the FPSO to Repsol\u2019s Block 29 in the Gulf of Mexico was completed without progressing to a contract award. The client paid for FEED efforts and the Group consequently made an impairment of capitalised investment cost.
In April 2024, Petr\u00f3leo Nautipa was sold for USD 9.9 million. As the consideration was higher than the current net book value, the Group consequently recorded a reversal of impairment loss of USD 1.1 million.
In April 2022, the Group signed an agreement for the sale of the FPSO Polvo to BW Energy. In May 2024, the Group received the remaining USD 20 million plus interest for the sale of FPSO Polvo to BW Energy, thereby completing the transaction.
2025 USD MILLION | Vessels in operation | Vessels under construction | Vessels available for projects | Other property, plant & equipment | Total |
Cost at 1 January 2025 | 2\u00a0482.7 | 2\u00a0300.4 | - | 38.5 | 4\u00a0821.6 |
Additions | - | 424.0 | 15.0 | 1.0 | 440.0 |
Disposal | (807.0) | - | - | (2.3) | (809.3) |
Exchange differences | - | - | - | 0.2 | 0.2 |
Derecognition | - | (14.5) | - | - | (14.5) |
Cost at 31 December 2025 | 1\u00a0675.7 | 2\u00a0709.9 | 15.0 | 37.4 | 4\u00a0438.0 |
Accumulated depreciation and impairment charge at 1 January 2025 | (1\u00a0644.5) | - | - | (36.4) | (1\u00a0680.9) |
Current year depreciation | (84.0) | - | - | (0.8) | (84.8) |
Disposal | 701.1 | - | - | 2.3 | 703.4 |
Impairment | - | (14.5) | - | - | (14.5) |
Exchange differences | - | - | - | - | - |
Derecognition | - | 14.5 | - | - | 14.5 |
Accumulated depreciation and impairment charge at 31 December 2025 | (1\u00a0027.4) | - | - | (34.9) | (1\u00a0062.3) |
Book value at 31 December 2025 | 648.3 | 2\u00a0709.9 | 15.0 | 2.5 | 3\u00a0375.7 |
Useful life | Up to 25 years | ||||
Capitalised interest cost for vessels under construction | 109.1 | ||||
2024 USD MILLION | Vessels in operation | Vessels under construction | Other property, plant & equipment | Total | |
Cost at 1 January 2024 | 2\u00a0640.0 | 1\u00a0823.3 | 38.7 | 4\u00a0502.0 | |
Additions | 0.2 | 477.1 | 0.3 | 477.6 | |
Disposal | (157.5) | - | (0.3) | (157.8) | |
Exchange differences | - | - | (0.2) | (0.2) | |
Cost at 31 December 2024 | 2\u00a0482.7 | 2\u00a0300.4 | 38.5 | 4\u00a0821.6 | |
Accumulated depreciation and impairment charge at 1 January 2024 | (1\u00a0629.8) | - | (35.9) | (1\u00a0665.7) | |
Current year depreciation | (164.2) | - | (0.8) | (165.0) | |
Disposal | 148.4 | - | 0.3 | 148.7 | |
Impairment | 1.1 | - | - | 1.1 | |
Exchange differences | - | - | - | - | |
Accumulated depreciation and impairment charge at 31 December 2024 | (1\u00a0644.5) | - | (36.4) | (1\u00a0680.9) | |
Book value at 31 December 2024 | 838.2 | 2\u00a0300.4 | 2.1 | 3\u00a0140.7 | |
Useful life | Up to 25 years | ||||
Capitalised interest cost for vessels under construction | 92.8 |
The FPSO capital expenditure in 2025 was mainly related to investments in BW Opal for the Barossa project, the acquisition of BW Hurra and capitalised cost for engineering work on Repsol\u2019s Block 29 development in Mexico.
The BW Opal contract is assessed to be an operating lease. The contract has a firm period of 15 years plus 10 years of options. BW Offshore are responsible for engineering, procurement, construction, installation and operation of the FPSO. The FPSO achieved first gas in September 2025. Practical completion, expected in Q2 2026, will mark the commencement of the 15-year firm contract period.
FPSO\u2019s capital expenditure in 2024 was mainly related to investments in BW Opal.
Refer to Note 20for information of committed cost relating to construction of FPSO.
Each vessel is regarded as a cash-generating unit for impairment testing. The recoverable amount is based on a value-in-use calculation for each of the vessels in the fleet. To estimate the recoverable amount, the Group makes assumptions on contracted net cash flows as well as uncontracted cash flows over the useful life for each vessel. Uncontracted cash flows have been estimated based on experience, expectations on future market conditions and return on invested capital. The assumptions made are built into different scenarios with different cash flows for each unit.
The Group has performed an impairment trigger assessment for the fleet thereby considering, amongst others, the outlook for each vessel including the effects of climate change and associated energy transition (refer
to Note 23). The Group further considered the remaining fixed contract period, option clauses in the contracts and commerciality of the various fields on which the vessels operate. The impairment trigger assessment performed at 31 December 2025 did not identify any triggers.
Judgements and estimates
Depreciation
The level of depreciation depends on the estimated useful life of the different components of the assets and residual value at the end of its useful life. The estimated useful life is based on experience and knowledge of the vessels owned by the Group. Management will have to make assessments as to the expected useful life of the hull and marine scope as well as the process equipment for an FPSO. Assumptions will also have to be made about the expected contract period for non-recoverable components for the assets, which can deviate significantly from the useful life of hull and process equipment.
Assumptions on residual value are based on knowledge of current scrap values, which in turn depend on steel prices in the world market and demobilisation costs, together with an expected inflation.
Impairment
The Group periodically reviews whether vessels and other property, plant and equipment, for potential impairment indicators when circumstances indicate and at least on an annual basis.
The recoverable amounts of each vessel, being defined as a cash-generating unit, is the higher of its fair value less cost of disposal and its value in use. Value in use calculations are based on contracted cash flows and estimates of uncontracted cash flows for the useful lives
of each vessel, including residual values discounted by an estimated discount rate.
All impairment assessment calculations demand a high degree of estimation. Management must make complex assessment of the expected cash flows arising from such assets and the selection of discount rates. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to reversals of recognised impairments.
Note 11\tIntangible assets and goodwill
Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Cost at 1 January 2025 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Additions | 1.2 | 1.6 | - | - | 2.8 |
Exchange differences | - | 1.1 | 8.3 | 3.6 | 13.0 |
Carrying amount at 31 December 2025 | 3.7 | 11.3 | 70.2 | 30.1 | 115.3 |
Amortisation and impairment at 1 January 2025 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Current year amortisation | (0.1) | (0.9) | (4.5) | - | (5.5) |
Exchange differences | - | (0.4) | (2.3) | - | (2.7) |
At 31 December 2025 | (1.3) | (3.5) | (22.5) | - | (27.3) |
Net book value at 31 December 2025 | 2.4 | 7.8 | 47.7 | 30.1 | 88.0 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear | ||
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Carrying amount at 31 December 2024 | 4.8 | 6.8 | 65.9 | 28.2 | 105.7 |
Additions | 1.0 | 2.4 | - | - | 3.4 |
Exchange differences | - | (0.6) | (4.0) | (1.7) | (6.3) |
Disposal | (3.3) | - | - | - | (3.3) |
Carrying amount at 31 December 2024 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Amortisation and impairment at 1 January 2024 | (4.3) | (1.3) | (12.3) | - | (17.9) |
Current year amortisation | (0.2) | (1.1) | (4.2) | - | (5.5) |
Exchange differences | - | 0.2 | 0.8 | - | 1.0 |
Disposal | 3.3 | - | - | - | 3.3 |
At 31 December 2024 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Net book value at 31 December 2024 | 1.3 | 6.4 | 46.2 | 26.5 | 80.4 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear |
Goodwill, Technology and R&D (Research & Development) were initially recognised in March 2021 as part of the acquisition of Ideol SA. R&D assets represent the accumulated capitalised development projects. BW Ideol is pursuing a number of initiatives around its Damping Pool\u00ae patented foundation technology including research and development of innovative building materials, mooring systems and construction methods.
Goodwill has an indefinite useful life and is tested for impairment at least annually.
Goodwill was tested for impairment as of 31 December 2025 and the impairment test also included the technology assets and equity accounted investments. A discounted cash flow model was used to determine the value in use for the CGU. The projected cash flows were based on the most up-to-date forecast by management which includes probability weighted cash flows for prospective offshore wind projects using end-of life cash flows for projects identified. The impairment calculation demonstrated that the value in use exceeded the carrying amount of the CGU, thus no impairment loss was recognised.
KEY ASSUMPTIONS USED IN THE IMPAIRMENT CALCULATION INCLUDE:
Cash flows, project IRR, price of electricity
For the co-development activity, cash flows related to the estimated projects in portfolio include: (i) development expenses, including expenses related to engineering services provided by BW Ideol to each project during this phase, (ii) capital expenditures during construction phase, including royalties derived from BW Ideol\u2019s technology licensing, (iii) wind farm operating expenses and (iv) reimbursement of project finance debt. The tariff applied to the electricity sold is being determined
by using a target IRR of 11 per cent estimated at the start of the development phase and takes into account the project financial structure and expenses profiles. An additional probability to successfully develop the project is also applied, ranging from 25 per cent to 100 per cent, depending on the maturity of the opportunity (identified project, tender phase, development phase). To reflect the commercial terms reached with ADEME Investissement, all projects under co-development-are targeted to be sold at the end of the development period (\"FID\"). An exit price is therefore being determined using a target IRR for the acquirer ranging from 6.73 per cent to 9.86 per cent and benchmarked with known sectorial transactions. This approach implies that BW Ideol is essentially involved as a co-developer during the effective development phase of a project, phase that needs to be financed with equity, and does not necessarily intend to remain an investor during construction and operation phases.
For the Fabrication Lines activity, cash flows related to potential floating foundations construction and sale contracts include engineering services during the development phase, capital expenditures \u2013 partly financed by non-recourse debt, and equity - , procurement and workforce expenses for building the floating foundations, including payment of royalties to BW Ideol as part of technology licencing, and revenues from disposal of built floating foundations to co-EPCI activity. Please note that probabilities of success for contracts are also applicable for Fabrication projects of which BW Ideol is co-developer and external projects.
For the co-EPCI activity, cash flows are related to procurement to offshore wind farm developers of floating foundations, complete with designed and procured mooring systems, and potential storage, transportation and installation services. They include
all expenses linked to the performance of above-mentioned studies and procurement, including insurance and subcontracting of engineering activities, including to BW Ideol. Please note that probabilities of success for contracts are also applicable for co-EPCI projects of which BW Ideol is co-developer and external projects.
Discount rate and sectorial WACC
For the co-development activity, each project has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 7.5 per cent to 8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Banque de France), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.48. The equity to total capital ratio was 71.7 per cent. A 25.8 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Country risk premium, inflation differential and project specific risk premiums, ranging from 3 per cent to 4 per cent in order to capture the maturity of the opportunities, have been integrated.
For the co-EPCI, fabrication lines, and top company (BW Ideol) activities, each business has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 11.5 per cent to 13.8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average
Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Capital IQ), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.58. The equity to total capital ratio was 38.6 per cent. A 25 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Finally, a company size / specific risk premium of 10.6 per cent has been taken into account to reflect the unsecured aspect of EPCI/Fabrication future projects.
Testing procedures of BW Ideol\u2019s single CGU related goodwill as of 31 December 2025 are conducted to meet IFRS requirements, and especially IAS 36. In compliance with IAS 36, BW Ideol\u2019s recoverable value was based on the estimation of its value in use derived from a discounted cash flow approach and is equivalent to BW Ideol\u2019s enterprise value as of 31 December 2025. To determine the recoverable value of assets, the value in use derived from future cash flows was considered.
Sensitivities
Sensitivity to IRR at exit for co-development projects
An increase of 2.0 per cent of the target IRR used to derive project exit value at FID would not result in any impairment charge, as it would lead to a decrease of USD 62.2 million in impairment test, but still with a positive headroom of USD 36.4 million.
Discount rate
A 2.0 per cent increase in the discount rates would not result in an impairment of goodwill and technology assets.
Judgements and estimates
Valuations performed in light of the impairment test of goodwill and technology assets demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising and discount rates used in the valuation models. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to additional impairments.
The financial forecasts used in the goodwill and technology asset impairment test reflect management's judgement on the probability of realising projects, and for those projects expected to be developed, the development and capital expenditures, operating expenses and the tariff applied to the electricity sold, which is being determined using a target internal rate of return as well as the discount rate. This judgement is based on present circumstances at the valuation date, as to the most likely set of conditions and the course of action it is most likely to take. It is usually the case that some events and circumstances do not occur as expected or are not anticipated. Therefore, actual results during the forecast period will almost always differ from the forecasts and, as such, differences may be material. In addition, floating offshore wind is a new industry with no commercial projects yet established globally, resulting in a high degree of estimation uncertainty related to the identification of prospective projects and chances of acquiring such projects.
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Accounting policies
Measurement
PP&E are recognised at cost and subsequently measured at cost less accumulated depreciation and impairment charges. This includes costs of material, direct labour and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management, including attributable overheads and estimate of costs of demobilising the asset.
Borrowing costs directly attributable to an acquisition or construction of an asset, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the assets are ready for their intended use. Borrowing cost consists of interest and other cost, which the entity incurs in connection with the borrowing of funds.
Subsequent costs such as life extension activities and repairs are included in the asset\u2019s carrying amount, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Depreciation
Depreciation will start when an item of PP&E is ready for intended use. For FPSOs this will be when the unit is successfully installed on the field.
When significant parts of an item of PP&E have different useful lives, those components are accounted for as separate items of PP&E. The different components are depreciated by using a straight-line method over their expected useful life, taking into account the residual value.
The estimated useful lives of the categories of PP&E are as follows:
FPSOs:
\u2022Hull and Marine scope, including associated investments like refurbishment: 15\u201325 years.
\u2022Field-specific equipment and associated investment costs which are incurred for a specific project, e.g. installation costs and transport costs: 3\u201325 years.
\u2022Process equipment and associated investment. (In case of long-term contracts these items can be fully depreciated over the contract duration.): 10\u201325 years.
Other PP&Es, like IT equipment and office equipment, 3\u201310 years.
The assets\u2019 useful life and residual values are reviewed, and if necessary adjusted, at each reporting date.
Impairment
Assets including vessels, vessels under construction and other PP&Es, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s net selling price and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separate identifiable cash flows (cash-generating units). Each FPSO is identified as a cash-generating unit.
At the end of each reporting period the Group will assess whether there is any indication that an impairment recognised in previous periods may no longer exist or may have decreased. If any such indication exists, the Group will estimate the recoverable amount of the asset. Previously recognised impairments should be reversed if there are significant changes with a favourable effect in the indicators.
Vessels and other property, plant and equipment
The owned fleet at 31 December 2025 included the following vessels: BW Adolo, BW Catcher, BW Opal and BW Hurra.
In September 2025, the Group acquired BW Hurra (former Nganhurra) for USD 15 million. The vessel is a suitable candidate for redeployment and is currently in layup.
Disposals
In March 2025, BW Pioneer was sold for USD 125 million to a subsidiary of Murphy Oil Corporation. The two parties also signed a five-year reimbursable O&M contract, under which BW Offshore will continue to provide operations and maintenance services. The impact from the sale was USD 14.8 million and is included in Net gain/ (loss) on sale of tangible fixed assets in the consolidated statement of income.
Impairment of USD 14.5 million in 2025 relates to previously capitalised cost for engineering work on Repsol\u2019s Block 29 development in Mexico. The FEED for the FPSO to Repsol\u2019s Block 29 in the Gulf of Mexico was completed without progressing to a contract award. The client paid for FEED efforts and the Group consequently made an impairment of capitalised investment cost.
In April 2024, Petr\u00f3leo Nautipa was sold for USD 9.9 million. As the consideration was higher than the current net book value, the Group consequently recorded a reversal of impairment loss of USD 1.1 million.
In April 2022, the Group signed an agreement for the sale of the FPSO Polvo to BW Energy. In May 2024, the Group received the remaining USD 20 million plus interest for the sale of FPSO Polvo to BW Energy, thereby completing the transaction.
2025 USD MILLION | Vessels in operation | Vessels under construction | Vessels available for projects | Other property, plant & equipment | Total |
Cost at 1 January 2025 | 2\u00a0482.7 | 2\u00a0300.4 | - | 38.5 | 4\u00a0821.6 |
Additions | - | 424.0 | 15.0 | 1.0 | 440.0 |
Disposal | (807.0) | - | - | (2.3) | (809.3) |
Exchange differences | - | - | - | 0.2 | 0.2 |
Derecognition | - | (14.5) | - | - | (14.5) |
Cost at 31 December 2025 | 1\u00a0675.7 | 2\u00a0709.9 | 15.0 | 37.4 | 4\u00a0438.0 |
Accumulated depreciation and impairment charge at 1 January 2025 | (1\u00a0644.5) | - | - | (36.4) | (1\u00a0680.9) |
Current year depreciation | (84.0) | - | - | (0.8) | (84.8) |
Disposal | 701.1 | - | - | 2.3 | 703.4 |
Impairment | - | (14.5) | - | - | (14.5) |
Exchange differences | - | - | - | - | - |
Derecognition | - | 14.5 | - | - | 14.5 |
Accumulated depreciation and impairment charge at 31 December 2025 | (1\u00a0027.4) | - | - | (34.9) | (1\u00a0062.3) |
Book value at 31 December 2025 | 648.3 | 2\u00a0709.9 | 15.0 | 2.5 | 3\u00a0375.7 |
Useful life | Up to 25 years | ||||
Capitalised interest cost for vessels under construction | 109.1 | ||||
2024 USD MILLION | Vessels in operation | Vessels under construction | Other property, plant & equipment | Total | |
Cost at 1 January 2024 | 2\u00a0640.0 | 1\u00a0823.3 | 38.7 | 4\u00a0502.0 | |
Additions | 0.2 | 477.1 | 0.3 | 477.6 | |
Disposal | (157.5) | - | (0.3) | (157.8) | |
Exchange differences | - | - | (0.2) | (0.2) | |
Cost at 31 December 2024 | 2\u00a0482.7 | 2\u00a0300.4 | 38.5 | 4\u00a0821.6 | |
Accumulated depreciation and impairment charge at 1 January 2024 | (1\u00a0629.8) | - | (35.9) | (1\u00a0665.7) | |
Current year depreciation | (164.2) | - | (0.8) | (165.0) | |
Disposal | 148.4 | - | 0.3 | 148.7 | |
Impairment | 1.1 | - | - | 1.1 | |
Exchange differences | - | - | - | - | |
Accumulated depreciation and impairment charge at 31 December 2024 | (1\u00a0644.5) | - | (36.4) | (1\u00a0680.9) | |
Book value at 31 December 2024 | 838.2 | 2\u00a0300.4 | 2.1 | 3\u00a0140.7 | |
Useful life | Up to 25 years | ||||
Capitalised interest cost for vessels under construction | 92.8 |
The FPSO capital expenditure in 2025 was mainly related to investments in BW Opal for the Barossa project, the acquisition of BW Hurra and capitalised cost for engineering work on Repsol\u2019s Block 29 development in Mexico.
The BW Opal contract is assessed to be an operating lease. The contract has a firm period of 15 years plus 10 years of options. BW Offshore are responsible for engineering, procurement, construction, installation and operation of the FPSO. The FPSO achieved first gas in September 2025. Practical completion, expected in Q2 2026, will mark the commencement of the 15-year firm contract period.
FPSO\u2019s capital expenditure in 2024 was mainly related to investments in BW Opal.
Refer to Note 20for information of committed cost relating to construction of FPSO.
Each vessel is regarded as a cash-generating unit for impairment testing. The recoverable amount is based on a value-in-use calculation for each of the vessels in the fleet. To estimate the recoverable amount, the Group makes assumptions on contracted net cash flows as well as uncontracted cash flows over the useful life for each vessel. Uncontracted cash flows have been estimated based on experience, expectations on future market conditions and return on invested capital. The assumptions made are built into different scenarios with different cash flows for each unit.
The Group has performed an impairment trigger assessment for the fleet thereby considering, amongst others, the outlook for each vessel including the effects of climate change and associated energy transition (refer
to Note 23). The Group further considered the remaining fixed contract period, option clauses in the contracts and commerciality of the various fields on which the vessels operate. The impairment trigger assessment performed at 31 December 2025 did not identify any triggers.
Judgements and estimates
Depreciation
The level of depreciation depends on the estimated useful life of the different components of the assets and residual value at the end of its useful life. The estimated useful life is based on experience and knowledge of the vessels owned by the Group. Management will have to make assessments as to the expected useful life of the hull and marine scope as well as the process equipment for an FPSO. Assumptions will also have to be made about the expected contract period for non-recoverable components for the assets, which can deviate significantly from the useful life of hull and process equipment.
Assumptions on residual value are based on knowledge of current scrap values, which in turn depend on steel prices in the world market and demobilisation costs, together with an expected inflation.
Impairment
The Group periodically reviews whether vessels and other property, plant and equipment, for potential impairment indicators when circumstances indicate and at least on an annual basis.
The recoverable amounts of each vessel, being defined as a cash-generating unit, is the higher of its fair value less cost of disposal and its value in use. Value in use calculations are based on contracted cash flows and estimates of uncontracted cash flows for the useful lives
of each vessel, including residual values discounted by an estimated discount rate.
All impairment assessment calculations demand a high degree of estimation. Management must make complex assessment of the expected cash flows arising from such assets and the selection of discount rates. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to reversals of recognised impairments.
Note 11\tIntangible assets and goodwill
Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Cost at 1 January 2025 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Additions | 1.2 | 1.6 | - | - | 2.8 |
Exchange differences | - | 1.1 | 8.3 | 3.6 | 13.0 |
Carrying amount at 31 December 2025 | 3.7 | 11.3 | 70.2 | 30.1 | 115.3 |
Amortisation and impairment at 1 January 2025 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Current year amortisation | (0.1) | (0.9) | (4.5) | - | (5.5) |
Exchange differences | - | (0.4) | (2.3) | - | (2.7) |
At 31 December 2025 | (1.3) | (3.5) | (22.5) | - | (27.3) |
Net book value at 31 December 2025 | 2.4 | 7.8 | 47.7 | 30.1 | 88.0 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear | ||
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Carrying amount at 31 December 2024 | 4.8 | 6.8 | 65.9 | 28.2 | 105.7 |
Additions | 1.0 | 2.4 | - | - | 3.4 |
Exchange differences | - | (0.6) | (4.0) | (1.7) | (6.3) |
Disposal | (3.3) | - | - | - | (3.3) |
Carrying amount at 31 December 2024 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Amortisation and impairment at 1 January 2024 | (4.3) | (1.3) | (12.3) | - | (17.9) |
Current year amortisation | (0.2) | (1.1) | (4.2) | - | (5.5) |
Exchange differences | - | 0.2 | 0.8 | - | 1.0 |
Disposal | 3.3 | - | - | - | 3.3 |
At 31 December 2024 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Net book value at 31 December 2024 | 1.3 | 6.4 | 46.2 | 26.5 | 80.4 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear |
Goodwill, Technology and R&D (Research & Development) were initially recognised in March 2021 as part of the acquisition of Ideol SA. R&D assets represent the accumulated capitalised development projects. BW Ideol is pursuing a number of initiatives around its Damping Pool\u00ae patented foundation technology including research and development of innovative building materials, mooring systems and construction methods.
Goodwill has an indefinite useful life and is tested for impairment at least annually.
Goodwill was tested for impairment as of 31 December 2025 and the impairment test also included the technology assets and equity accounted investments. A discounted cash flow model was used to determine the value in use for the CGU. The projected cash flows were based on the most up-to-date forecast by management which includes probability weighted cash flows for prospective offshore wind projects using end-of life cash flows for projects identified. The impairment calculation demonstrated that the value in use exceeded the carrying amount of the CGU, thus no impairment loss was recognised.
KEY ASSUMPTIONS USED IN THE IMPAIRMENT CALCULATION INCLUDE:
Cash flows, project IRR, price of electricity
For the co-development activity, cash flows related to the estimated projects in portfolio include: (i) development expenses, including expenses related to engineering services provided by BW Ideol to each project during this phase, (ii) capital expenditures during construction phase, including royalties derived from BW Ideol\u2019s technology licensing, (iii) wind farm operating expenses and (iv) reimbursement of project finance debt. The tariff applied to the electricity sold is being determined
by using a target IRR of 11 per cent estimated at the start of the development phase and takes into account the project financial structure and expenses profiles. An additional probability to successfully develop the project is also applied, ranging from 25 per cent to 100 per cent, depending on the maturity of the opportunity (identified project, tender phase, development phase). To reflect the commercial terms reached with ADEME Investissement, all projects under co-development-are targeted to be sold at the end of the development period (\"FID\"). An exit price is therefore being determined using a target IRR for the acquirer ranging from 6.73 per cent to 9.86 per cent and benchmarked with known sectorial transactions. This approach implies that BW Ideol is essentially involved as a co-developer during the effective development phase of a project, phase that needs to be financed with equity, and does not necessarily intend to remain an investor during construction and operation phases.
For the Fabrication Lines activity, cash flows related to potential floating foundations construction and sale contracts include engineering services during the development phase, capital expenditures \u2013 partly financed by non-recourse debt, and equity - , procurement and workforce expenses for building the floating foundations, including payment of royalties to BW Ideol as part of technology licencing, and revenues from disposal of built floating foundations to co-EPCI activity. Please note that probabilities of success for contracts are also applicable for Fabrication projects of which BW Ideol is co-developer and external projects.
For the co-EPCI activity, cash flows are related to procurement to offshore wind farm developers of floating foundations, complete with designed and procured mooring systems, and potential storage, transportation and installation services. They include
all expenses linked to the performance of above-mentioned studies and procurement, including insurance and subcontracting of engineering activities, including to BW Ideol. Please note that probabilities of success for contracts are also applicable for co-EPCI projects of which BW Ideol is co-developer and external projects.
Discount rate and sectorial WACC
For the co-development activity, each project has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 7.5 per cent to 8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Banque de France), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.48. The equity to total capital ratio was 71.7 per cent. A 25.8 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Country risk premium, inflation differential and project specific risk premiums, ranging from 3 per cent to 4 per cent in order to capture the maturity of the opportunities, have been integrated.
For the co-EPCI, fabrication lines, and top company (BW Ideol) activities, each business has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 11.5 per cent to 13.8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average
Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Capital IQ), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.58. The equity to total capital ratio was 38.6 per cent. A 25 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Finally, a company size / specific risk premium of 10.6 per cent has been taken into account to reflect the unsecured aspect of EPCI/Fabrication future projects.
Testing procedures of BW Ideol\u2019s single CGU related goodwill as of 31 December 2025 are conducted to meet IFRS requirements, and especially IAS 36. In compliance with IAS 36, BW Ideol\u2019s recoverable value was based on the estimation of its value in use derived from a discounted cash flow approach and is equivalent to BW Ideol\u2019s enterprise value as of 31 December 2025. To determine the recoverable value of assets, the value in use derived from future cash flows was considered.
Sensitivities
Sensitivity to IRR at exit for co-development projects
An increase of 2.0 per cent of the target IRR used to derive project exit value at FID would not result in any impairment charge, as it would lead to a decrease of USD 62.2 million in impairment test, but still with a positive headroom of USD 36.4 million.
Discount rate
A 2.0 per cent increase in the discount rates would not result in an impairment of goodwill and technology assets.
Judgements and estimates
Valuations performed in light of the impairment test of goodwill and technology assets demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising and discount rates used in the valuation models. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to additional impairments.
The financial forecasts used in the goodwill and technology asset impairment test reflect management's judgement on the probability of realising projects, and for those projects expected to be developed, the development and capital expenditures, operating expenses and the tariff applied to the electricity sold, which is being determined using a target internal rate of return as well as the discount rate. This judgement is based on present circumstances at the valuation date, as to the most likely set of conditions and the course of action it is most likely to take. It is usually the case that some events and circumstances do not occur as expected or are not anticipated. Therefore, actual results during the forecast period will almost always differ from the forecasts and, as such, differences may be material. In addition, floating offshore wind is a new industry with no commercial projects yet established globally, resulting in a high degree of estimation uncertainty related to the identification of prospective projects and chances of acquiring such projects.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__59": { "value": "Accounting policies
Measurement
PP&E are recognised at cost and subsequently measured at cost less accumulated depreciation and impairment charges. This includes costs of material, direct labour and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management, including attributable overheads and estimate of costs of demobilising the asset.
Borrowing costs directly attributable to an acquisition or construction of an asset, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the assets are ready for their intended use. Borrowing cost consists of interest and other cost, which the entity incurs in connection with the borrowing of funds.
Subsequent costs such as life extension activities and repairs are included in the asset\u2019s carrying amount, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
Depreciation
Depreciation will start when an item of PP&E is ready for intended use. For FPSOs this will be when the unit is successfully installed on the field.
When significant parts of an item of PP&E have different useful lives, those components are accounted for as separate items of PP&E. The different components are depreciated by using a straight-line method over their expected useful life, taking into account the residual value.
The estimated useful lives of the categories of PP&E are as follows:
FPSOs:
\u2022Hull and Marine scope, including associated investments like refurbishment: 15\u201325 years.
\u2022Field-specific equipment and associated investment costs which are incurred for a specific project, e.g. installation costs and transport costs: 3\u201325 years.
\u2022Process equipment and associated investment. (In case of long-term contracts these items can be fully depreciated over the contract duration.): 10\u201325 years.
Other PP&Es, like IT equipment and office equipment, 3\u201310 years.
The assets\u2019 useful life and residual values are reviewed, and if necessary adjusted, at each reporting date.
Impairment
Assets including vessels, vessels under construction and other PP&Es, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s net selling price and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separate identifiable cash flows (cash-generating units). Each FPSO is identified as a cash-generating unit.
At the end of each reporting period the Group will assess whether there is any indication that an impairment recognised in previous periods may no longer exist or may have decreased. If any such indication exists, the Group will estimate the recoverable amount of the asset. Previously recognised impairments should be reversed if there are significant changes with a favourable effect in the indicators.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__60": { "value": "Depreciation
Depreciation will start when an item of PP&E is ready for intended use. For FPSOs this will be when the unit is successfully installed on the field.
When significant parts of an item of PP&E have different useful lives, those components are accounted for as separate items of PP&E. The different components are depreciated by using a straight-line method over their expected useful life, taking into account the residual value.
The estimated useful lives of the categories of PP&E are as follows:
FPSOs:
\u2022Hull and Marine scope, including associated investments like refurbishment: 15\u201325 years.
\u2022Field-specific equipment and associated investment costs which are incurred for a specific project, e.g. installation costs and transport costs: 3\u201325 years.
\u2022Process equipment and associated investment. (In case of long-term contracts these items can be fully depreciated over the contract duration.): 10\u201325 years.
Other PP&Es, like IT equipment and office equipment, 3\u201310 years.
The assets\u2019 useful life and residual values are reviewed, and if necessary adjusted, at each reporting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__61-1": { "value": "Impairment
Assets including vessels, vessels under construction and other PP&Es, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s net selling price and its value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separate identifiable cash flows (cash-generating units). Each FPSO is identified as a cash-generating unit.
At the end of each reporting period the Group will assess whether there is any indication that an impairment recognised in previous periods may no longer exist or may have decreased. If any such indication exists, the Group will estimate the recoverable amount of the asset. Previously recognised impairments should be reversed if there are significant changes with a favourable effect in the indicators.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__62": { "value": "Note 11\tIntangible assets and goodwill
Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Cost at 1 January 2025 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Additions | 1.2 | 1.6 | - | - | 2.8 |
Exchange differences | - | 1.1 | 8.3 | 3.6 | 13.0 |
Carrying amount at 31 December 2025 | 3.7 | 11.3 | 70.2 | 30.1 | 115.3 |
Amortisation and impairment at 1 January 2025 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Current year amortisation | (0.1) | (0.9) | (4.5) | - | (5.5) |
Exchange differences | - | (0.4) | (2.3) | - | (2.7) |
At 31 December 2025 | (1.3) | (3.5) | (22.5) | - | (27.3) |
Net book value at 31 December 2025 | 2.4 | 7.8 | 47.7 | 30.1 | 88.0 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear | ||
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Carrying amount at 31 December 2024 | 4.8 | 6.8 | 65.9 | 28.2 | 105.7 |
Additions | 1.0 | 2.4 | - | - | 3.4 |
Exchange differences | - | (0.6) | (4.0) | (1.7) | (6.3) |
Disposal | (3.3) | - | - | - | (3.3) |
Carrying amount at 31 December 2024 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Amortisation and impairment at 1 January 2024 | (4.3) | (1.3) | (12.3) | - | (17.9) |
Current year amortisation | (0.2) | (1.1) | (4.2) | - | (5.5) |
Exchange differences | - | 0.2 | 0.8 | - | 1.0 |
Disposal | 3.3 | - | - | - | 3.3 |
At 31 December 2024 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Net book value at 31 December 2024 | 1.3 | 6.4 | 46.2 | 26.5 | 80.4 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear |
Goodwill, Technology and R&D (Research & Development) were initially recognised in March 2021 as part of the acquisition of Ideol SA. R&D assets represent the accumulated capitalised development projects. BW Ideol is pursuing a number of initiatives around its Damping Pool\u00ae patented foundation technology including research and development of innovative building materials, mooring systems and construction methods.
Goodwill has an indefinite useful life and is tested for impairment at least annually.
Goodwill was tested for impairment as of 31 December 2025 and the impairment test also included the technology assets and equity accounted investments. A discounted cash flow model was used to determine the value in use for the CGU. The projected cash flows were based on the most up-to-date forecast by management which includes probability weighted cash flows for prospective offshore wind projects using end-of life cash flows for projects identified. The impairment calculation demonstrated that the value in use exceeded the carrying amount of the CGU, thus no impairment loss was recognised.
KEY ASSUMPTIONS USED IN THE IMPAIRMENT CALCULATION INCLUDE:
Cash flows, project IRR, price of electricity
For the co-development activity, cash flows related to the estimated projects in portfolio include: (i) development expenses, including expenses related to engineering services provided by BW Ideol to each project during this phase, (ii) capital expenditures during construction phase, including royalties derived from BW Ideol\u2019s technology licensing, (iii) wind farm operating expenses and (iv) reimbursement of project finance debt. The tariff applied to the electricity sold is being determined
by using a target IRR of 11 per cent estimated at the start of the development phase and takes into account the project financial structure and expenses profiles. An additional probability to successfully develop the project is also applied, ranging from 25 per cent to 100 per cent, depending on the maturity of the opportunity (identified project, tender phase, development phase). To reflect the commercial terms reached with ADEME Investissement, all projects under co-development-are targeted to be sold at the end of the development period (\"FID\"). An exit price is therefore being determined using a target IRR for the acquirer ranging from 6.73 per cent to 9.86 per cent and benchmarked with known sectorial transactions. This approach implies that BW Ideol is essentially involved as a co-developer during the effective development phase of a project, phase that needs to be financed with equity, and does not necessarily intend to remain an investor during construction and operation phases.
For the Fabrication Lines activity, cash flows related to potential floating foundations construction and sale contracts include engineering services during the development phase, capital expenditures \u2013 partly financed by non-recourse debt, and equity - , procurement and workforce expenses for building the floating foundations, including payment of royalties to BW Ideol as part of technology licencing, and revenues from disposal of built floating foundations to co-EPCI activity. Please note that probabilities of success for contracts are also applicable for Fabrication projects of which BW Ideol is co-developer and external projects.
For the co-EPCI activity, cash flows are related to procurement to offshore wind farm developers of floating foundations, complete with designed and procured mooring systems, and potential storage, transportation and installation services. They include
all expenses linked to the performance of above-mentioned studies and procurement, including insurance and subcontracting of engineering activities, including to BW Ideol. Please note that probabilities of success for contracts are also applicable for co-EPCI projects of which BW Ideol is co-developer and external projects.
Discount rate and sectorial WACC
For the co-development activity, each project has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 7.5 per cent to 8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Banque de France), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.48. The equity to total capital ratio was 71.7 per cent. A 25.8 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Country risk premium, inflation differential and project specific risk premiums, ranging from 3 per cent to 4 per cent in order to capture the maturity of the opportunities, have been integrated.
For the co-EPCI, fabrication lines, and top company (BW Ideol) activities, each business has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 11.5 per cent to 13.8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average
Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Capital IQ), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.58. The equity to total capital ratio was 38.6 per cent. A 25 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Finally, a company size / specific risk premium of 10.6 per cent has been taken into account to reflect the unsecured aspect of EPCI/Fabrication future projects.
Testing procedures of BW Ideol\u2019s single CGU related goodwill as of 31 December 2025 are conducted to meet IFRS requirements, and especially IAS 36. In compliance with IAS 36, BW Ideol\u2019s recoverable value was based on the estimation of its value in use derived from a discounted cash flow approach and is equivalent to BW Ideol\u2019s enterprise value as of 31 December 2025. To determine the recoverable value of assets, the value in use derived from future cash flows was considered.
Sensitivities
Sensitivity to IRR at exit for co-development projects
An increase of 2.0 per cent of the target IRR used to derive project exit value at FID would not result in any impairment charge, as it would lead to a decrease of USD 62.2 million in impairment test, but still with a positive headroom of USD 36.4 million.
Discount rate
A 2.0 per cent increase in the discount rates would not result in an impairment of goodwill and technology assets.
Judgements and estimates
Valuations performed in light of the impairment test of goodwill and technology assets demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising and discount rates used in the valuation models. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to additional impairments.
The financial forecasts used in the goodwill and technology asset impairment test reflect management's judgement on the probability of realising projects, and for those projects expected to be developed, the development and capital expenditures, operating expenses and the tariff applied to the electricity sold, which is being determined using a target internal rate of return as well as the discount rate. This judgement is based on present circumstances at the valuation date, as to the most likely set of conditions and the course of action it is most likely to take. It is usually the case that some events and circumstances do not occur as expected or are not anticipated. Therefore, actual results during the forecast period will almost always differ from the forecasts and, as such, differences may be material. In addition, floating offshore wind is a new industry with no commercial projects yet established globally, resulting in a high degree of estimation uncertainty related to the identification of prospective projects and chances of acquiring such projects.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__63": { "value": "Note 11\tIntangible assets and goodwill
Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Cost at 1 January 2025 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Additions | 1.2 | 1.6 | - | - | 2.8 |
Exchange differences | - | 1.1 | 8.3 | 3.6 | 13.0 |
Carrying amount at 31 December 2025 | 3.7 | 11.3 | 70.2 | 30.1 | 115.3 |
Amortisation and impairment at 1 January 2025 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Current year amortisation | (0.1) | (0.9) | (4.5) | - | (5.5) |
Exchange differences | - | (0.4) | (2.3) | - | (2.7) |
At 31 December 2025 | (1.3) | (3.5) | (22.5) | - | (27.3) |
Net book value at 31 December 2025 | 2.4 | 7.8 | 47.7 | 30.1 | 88.0 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear | ||
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Carrying amount at 31 December 2024 | 4.8 | 6.8 | 65.9 | 28.2 | 105.7 |
Additions | 1.0 | 2.4 | - | - | 3.4 |
Exchange differences | - | (0.6) | (4.0) | (1.7) | (6.3) |
Disposal | (3.3) | - | - | - | (3.3) |
Carrying amount at 31 December 2024 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Amortisation and impairment at 1 January 2024 | (4.3) | (1.3) | (12.3) | - | (17.9) |
Current year amortisation | (0.2) | (1.1) | (4.2) | - | (5.5) |
Exchange differences | - | 0.2 | 0.8 | - | 1.0 |
Disposal | 3.3 | - | - | - | 3.3 |
At 31 December 2024 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Net book value at 31 December 2024 | 1.3 | 6.4 | 46.2 | 26.5 | 80.4 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear |
Goodwill, Technology and R&D (Research & Development) were initially recognised in March 2021 as part of the acquisition of Ideol SA. R&D assets represent the accumulated capitalised development projects. BW Ideol is pursuing a number of initiatives around its Damping Pool\u00ae patented foundation technology including research and development of innovative building materials, mooring systems and construction methods.
Goodwill has an indefinite useful life and is tested for impairment at least annually.
Goodwill was tested for impairment as of 31 December 2025 and the impairment test also included the technology assets and equity accounted investments. A discounted cash flow model was used to determine the value in use for the CGU. The projected cash flows were based on the most up-to-date forecast by management which includes probability weighted cash flows for prospective offshore wind projects using end-of life cash flows for projects identified. The impairment calculation demonstrated that the value in use exceeded the carrying amount of the CGU, thus no impairment loss was recognised.
KEY ASSUMPTIONS USED IN THE IMPAIRMENT CALCULATION INCLUDE:
Cash flows, project IRR, price of electricity
For the co-development activity, cash flows related to the estimated projects in portfolio include: (i) development expenses, including expenses related to engineering services provided by BW Ideol to each project during this phase, (ii) capital expenditures during construction phase, including royalties derived from BW Ideol\u2019s technology licensing, (iii) wind farm operating expenses and (iv) reimbursement of project finance debt. The tariff applied to the electricity sold is being determined
by using a target IRR of 11 per cent estimated at the start of the development phase and takes into account the project financial structure and expenses profiles. An additional probability to successfully develop the project is also applied, ranging from 25 per cent to 100 per cent, depending on the maturity of the opportunity (identified project, tender phase, development phase). To reflect the commercial terms reached with ADEME Investissement, all projects under co-development-are targeted to be sold at the end of the development period (\"FID\"). An exit price is therefore being determined using a target IRR for the acquirer ranging from 6.73 per cent to 9.86 per cent and benchmarked with known sectorial transactions. This approach implies that BW Ideol is essentially involved as a co-developer during the effective development phase of a project, phase that needs to be financed with equity, and does not necessarily intend to remain an investor during construction and operation phases.
For the Fabrication Lines activity, cash flows related to potential floating foundations construction and sale contracts include engineering services during the development phase, capital expenditures \u2013 partly financed by non-recourse debt, and equity - , procurement and workforce expenses for building the floating foundations, including payment of royalties to BW Ideol as part of technology licencing, and revenues from disposal of built floating foundations to co-EPCI activity. Please note that probabilities of success for contracts are also applicable for Fabrication projects of which BW Ideol is co-developer and external projects.
For the co-EPCI activity, cash flows are related to procurement to offshore wind farm developers of floating foundations, complete with designed and procured mooring systems, and potential storage, transportation and installation services. They include
all expenses linked to the performance of above-mentioned studies and procurement, including insurance and subcontracting of engineering activities, including to BW Ideol. Please note that probabilities of success for contracts are also applicable for co-EPCI projects of which BW Ideol is co-developer and external projects.
Discount rate and sectorial WACC
For the co-development activity, each project has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 7.5 per cent to 8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Banque de France), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.48. The equity to total capital ratio was 71.7 per cent. A 25.8 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Country risk premium, inflation differential and project specific risk premiums, ranging from 3 per cent to 4 per cent in order to capture the maturity of the opportunities, have been integrated.
For the co-EPCI, fabrication lines, and top company (BW Ideol) activities, each business has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 11.5 per cent to 13.8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average
Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Capital IQ), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.58. The equity to total capital ratio was 38.6 per cent. A 25 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Finally, a company size / specific risk premium of 10.6 per cent has been taken into account to reflect the unsecured aspect of EPCI/Fabrication future projects.
Testing procedures of BW Ideol\u2019s single CGU related goodwill as of 31 December 2025 are conducted to meet IFRS requirements, and especially IAS 36. In compliance with IAS 36, BW Ideol\u2019s recoverable value was based on the estimation of its value in use derived from a discounted cash flow approach and is equivalent to BW Ideol\u2019s enterprise value as of 31 December 2025. To determine the recoverable value of assets, the value in use derived from future cash flows was considered.
Sensitivities
Sensitivity to IRR at exit for co-development projects
An increase of 2.0 per cent of the target IRR used to derive project exit value at FID would not result in any impairment charge, as it would lead to a decrease of USD 62.2 million in impairment test, but still with a positive headroom of USD 36.4 million.
Discount rate
A 2.0 per cent increase in the discount rates would not result in an impairment of goodwill and technology assets.
Judgements and estimates
Valuations performed in light of the impairment test of goodwill and technology assets demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising and discount rates used in the valuation models. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to additional impairments.
The financial forecasts used in the goodwill and technology asset impairment test reflect management's judgement on the probability of realising projects, and for those projects expected to be developed, the development and capital expenditures, operating expenses and the tariff applied to the electricity sold, which is being determined using a target internal rate of return as well as the discount rate. This judgement is based on present circumstances at the valuation date, as to the most likely set of conditions and the course of action it is most likely to take. It is usually the case that some events and circumstances do not occur as expected or are not anticipated. Therefore, actual results during the forecast period will almost always differ from the forecasts and, as such, differences may be material. In addition, floating offshore wind is a new industry with no commercial projects yet established globally, resulting in a high degree of estimation uncertainty related to the identification of prospective projects and chances of acquiring such projects.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__64": { "value": "Note 11\tIntangible assets and goodwill
Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Cost at 1 January 2025 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Additions | 1.2 | 1.6 | - | - | 2.8 |
Exchange differences | - | 1.1 | 8.3 | 3.6 | 13.0 |
Carrying amount at 31 December 2025 | 3.7 | 11.3 | 70.2 | 30.1 | 115.3 |
Amortisation and impairment at 1 January 2025 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Current year amortisation | (0.1) | (0.9) | (4.5) | - | (5.5) |
Exchange differences | - | (0.4) | (2.3) | - | (2.7) |
At 31 December 2025 | (1.3) | (3.5) | (22.5) | - | (27.3) |
Net book value at 31 December 2025 | 2.4 | 7.8 | 47.7 | 30.1 | 88.0 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear | ||
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Carrying amount at 31 December 2024 | 4.8 | 6.8 | 65.9 | 28.2 | 105.7 |
Additions | 1.0 | 2.4 | - | - | 3.4 |
Exchange differences | - | (0.6) | (4.0) | (1.7) | (6.3) |
Disposal | (3.3) | - | - | - | (3.3) |
Carrying amount at 31 December 2024 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Amortisation and impairment at 1 January 2024 | (4.3) | (1.3) | (12.3) | - | (17.9) |
Current year amortisation | (0.2) | (1.1) | (4.2) | - | (5.5) |
Exchange differences | - | 0.2 | 0.8 | - | 1.0 |
Disposal | 3.3 | - | - | - | 3.3 |
At 31 December 2024 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Net book value at 31 December 2024 | 1.3 | 6.4 | 46.2 | 26.5 | 80.4 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear |
Goodwill, Technology and R&D (Research & Development) were initially recognised in March 2021 as part of the acquisition of Ideol SA. R&D assets represent the accumulated capitalised development projects. BW Ideol is pursuing a number of initiatives around its Damping Pool\u00ae patented foundation technology including research and development of innovative building materials, mooring systems and construction methods.
Goodwill has an indefinite useful life and is tested for impairment at least annually.
Goodwill was tested for impairment as of 31 December 2025 and the impairment test also included the technology assets and equity accounted investments. A discounted cash flow model was used to determine the value in use for the CGU. The projected cash flows were based on the most up-to-date forecast by management which includes probability weighted cash flows for prospective offshore wind projects using end-of life cash flows for projects identified. The impairment calculation demonstrated that the value in use exceeded the carrying amount of the CGU, thus no impairment loss was recognised.
KEY ASSUMPTIONS USED IN THE IMPAIRMENT CALCULATION INCLUDE:
Cash flows, project IRR, price of electricity
For the co-development activity, cash flows related to the estimated projects in portfolio include: (i) development expenses, including expenses related to engineering services provided by BW Ideol to each project during this phase, (ii) capital expenditures during construction phase, including royalties derived from BW Ideol\u2019s technology licensing, (iii) wind farm operating expenses and (iv) reimbursement of project finance debt. The tariff applied to the electricity sold is being determined
by using a target IRR of 11 per cent estimated at the start of the development phase and takes into account the project financial structure and expenses profiles. An additional probability to successfully develop the project is also applied, ranging from 25 per cent to 100 per cent, depending on the maturity of the opportunity (identified project, tender phase, development phase). To reflect the commercial terms reached with ADEME Investissement, all projects under co-development-are targeted to be sold at the end of the development period (\"FID\"). An exit price is therefore being determined using a target IRR for the acquirer ranging from 6.73 per cent to 9.86 per cent and benchmarked with known sectorial transactions. This approach implies that BW Ideol is essentially involved as a co-developer during the effective development phase of a project, phase that needs to be financed with equity, and does not necessarily intend to remain an investor during construction and operation phases.
For the Fabrication Lines activity, cash flows related to potential floating foundations construction and sale contracts include engineering services during the development phase, capital expenditures \u2013 partly financed by non-recourse debt, and equity - , procurement and workforce expenses for building the floating foundations, including payment of royalties to BW Ideol as part of technology licencing, and revenues from disposal of built floating foundations to co-EPCI activity. Please note that probabilities of success for contracts are also applicable for Fabrication projects of which BW Ideol is co-developer and external projects.
For the co-EPCI activity, cash flows are related to procurement to offshore wind farm developers of floating foundations, complete with designed and procured mooring systems, and potential storage, transportation and installation services. They include
all expenses linked to the performance of above-mentioned studies and procurement, including insurance and subcontracting of engineering activities, including to BW Ideol. Please note that probabilities of success for contracts are also applicable for co-EPCI projects of which BW Ideol is co-developer and external projects.
Discount rate and sectorial WACC
For the co-development activity, each project has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 7.5 per cent to 8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Banque de France), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.48. The equity to total capital ratio was 71.7 per cent. A 25.8 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Country risk premium, inflation differential and project specific risk premiums, ranging from 3 per cent to 4 per cent in order to capture the maturity of the opportunities, have been integrated.
For the co-EPCI, fabrication lines, and top company (BW Ideol) activities, each business has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 11.5 per cent to 13.8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average
Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Capital IQ), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.58. The equity to total capital ratio was 38.6 per cent. A 25 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Finally, a company size / specific risk premium of 10.6 per cent has been taken into account to reflect the unsecured aspect of EPCI/Fabrication future projects.
Testing procedures of BW Ideol\u2019s single CGU related goodwill as of 31 December 2025 are conducted to meet IFRS requirements, and especially IAS 36. In compliance with IAS 36, BW Ideol\u2019s recoverable value was based on the estimation of its value in use derived from a discounted cash flow approach and is equivalent to BW Ideol\u2019s enterprise value as of 31 December 2025. To determine the recoverable value of assets, the value in use derived from future cash flows was considered.
Sensitivities
Sensitivity to IRR at exit for co-development projects
An increase of 2.0 per cent of the target IRR used to derive project exit value at FID would not result in any impairment charge, as it would lead to a decrease of USD 62.2 million in impairment test, but still with a positive headroom of USD 36.4 million.
Discount rate
A 2.0 per cent increase in the discount rates would not result in an impairment of goodwill and technology assets.
Judgements and estimates
Valuations performed in light of the impairment test of goodwill and technology assets demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising and discount rates used in the valuation models. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to additional impairments.
The financial forecasts used in the goodwill and technology asset impairment test reflect management's judgement on the probability of realising projects, and for those projects expected to be developed, the development and capital expenditures, operating expenses and the tariff applied to the electricity sold, which is being determined using a target internal rate of return as well as the discount rate. This judgement is based on present circumstances at the valuation date, as to the most likely set of conditions and the course of action it is most likely to take. It is usually the case that some events and circumstances do not occur as expected or are not anticipated. Therefore, actual results during the forecast period will almost always differ from the forecasts and, as such, differences may be material. In addition, floating offshore wind is a new industry with no commercial projects yet established globally, resulting in a high degree of estimation uncertainty related to the identification of prospective projects and chances of acquiring such projects.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__65": { "value": "Note 11\tIntangible assets and goodwill
Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Cost at 1 January 2025 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Additions | 1.2 | 1.6 | - | - | 2.8 |
Exchange differences | - | 1.1 | 8.3 | 3.6 | 13.0 |
Carrying amount at 31 December 2025 | 3.7 | 11.3 | 70.2 | 30.1 | 115.3 |
Amortisation and impairment at 1 January 2025 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Current year amortisation | (0.1) | (0.9) | (4.5) | - | (5.5) |
Exchange differences | - | (0.4) | (2.3) | - | (2.7) |
At 31 December 2025 | (1.3) | (3.5) | (22.5) | - | (27.3) |
Net book value at 31 December 2025 | 2.4 | 7.8 | 47.7 | 30.1 | 88.0 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear | ||
USD MILLION | Software | R&D | Technology | Goodwill | Total intangible assets |
Carrying amount at 31 December 2024 | 4.8 | 6.8 | 65.9 | 28.2 | 105.7 |
Additions | 1.0 | 2.4 | - | - | 3.4 |
Exchange differences | - | (0.6) | (4.0) | (1.7) | (6.3) |
Disposal | (3.3) | - | - | - | (3.3) |
Carrying amount at 31 December 2024 | 2.5 | 8.6 | 61.9 | 26.5 | 99.5 |
Amortisation and impairment at 1 January 2024 | (4.3) | (1.3) | (12.3) | - | (17.9) |
Current year amortisation | (0.2) | (1.1) | (4.2) | - | (5.5) |
Exchange differences | - | 0.2 | 0.8 | - | 1.0 |
Disposal | 3.3 | - | - | - | 3.3 |
At 31 December 2024 | (1.2) | (2.2) | (15.7) | - | (19.1) |
Net book value at 31 December 2024 | 1.3 | 6.4 | 46.2 | 26.5 | 80.4 |
Useful life | 3 years | 5 years | 15 years | ||
Amortisation method | linear | linear | linear |
Goodwill, Technology and R&D (Research & Development) were initially recognised in March 2021 as part of the acquisition of Ideol SA. R&D assets represent the accumulated capitalised development projects. BW Ideol is pursuing a number of initiatives around its Damping Pool\u00ae patented foundation technology including research and development of innovative building materials, mooring systems and construction methods.
Goodwill has an indefinite useful life and is tested for impairment at least annually.
Goodwill was tested for impairment as of 31 December 2025 and the impairment test also included the technology assets and equity accounted investments. A discounted cash flow model was used to determine the value in use for the CGU. The projected cash flows were based on the most up-to-date forecast by management which includes probability weighted cash flows for prospective offshore wind projects using end-of life cash flows for projects identified. The impairment calculation demonstrated that the value in use exceeded the carrying amount of the CGU, thus no impairment loss was recognised.
KEY ASSUMPTIONS USED IN THE IMPAIRMENT CALCULATION INCLUDE:
Cash flows, project IRR, price of electricity
For the co-development activity, cash flows related to the estimated projects in portfolio include: (i) development expenses, including expenses related to engineering services provided by BW Ideol to each project during this phase, (ii) capital expenditures during construction phase, including royalties derived from BW Ideol\u2019s technology licensing, (iii) wind farm operating expenses and (iv) reimbursement of project finance debt. The tariff applied to the electricity sold is being determined
by using a target IRR of 11 per cent estimated at the start of the development phase and takes into account the project financial structure and expenses profiles. An additional probability to successfully develop the project is also applied, ranging from 25 per cent to 100 per cent, depending on the maturity of the opportunity (identified project, tender phase, development phase). To reflect the commercial terms reached with ADEME Investissement, all projects under co-development-are targeted to be sold at the end of the development period (\"FID\"). An exit price is therefore being determined using a target IRR for the acquirer ranging from 6.73 per cent to 9.86 per cent and benchmarked with known sectorial transactions. This approach implies that BW Ideol is essentially involved as a co-developer during the effective development phase of a project, phase that needs to be financed with equity, and does not necessarily intend to remain an investor during construction and operation phases.
For the Fabrication Lines activity, cash flows related to potential floating foundations construction and sale contracts include engineering services during the development phase, capital expenditures \u2013 partly financed by non-recourse debt, and equity - , procurement and workforce expenses for building the floating foundations, including payment of royalties to BW Ideol as part of technology licencing, and revenues from disposal of built floating foundations to co-EPCI activity. Please note that probabilities of success for contracts are also applicable for Fabrication projects of which BW Ideol is co-developer and external projects.
For the co-EPCI activity, cash flows are related to procurement to offshore wind farm developers of floating foundations, complete with designed and procured mooring systems, and potential storage, transportation and installation services. They include
all expenses linked to the performance of above-mentioned studies and procurement, including insurance and subcontracting of engineering activities, including to BW Ideol. Please note that probabilities of success for contracts are also applicable for co-EPCI projects of which BW Ideol is co-developer and external projects.
Discount rate and sectorial WACC
For the co-development activity, each project has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 7.5 per cent to 8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Banque de France), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.48. The equity to total capital ratio was 71.7 per cent. A 25.8 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Country risk premium, inflation differential and project specific risk premiums, ranging from 3 per cent to 4 per cent in order to capture the maturity of the opportunities, have been integrated.
For the co-EPCI, fabrication lines, and top company (BW Ideol) activities, each business has been valued using a different discount rate to reflect the maturity of the opportunity, with WACC ranging from 11.5 per cent to 13.8 per cent. In order to assess the relevance of our implied discount rate-based approach to valuation, we have determined a sectorial post-tax Weighted Average
Cost of Capital (WACC) derived from the Capital Asset Pricing Model (CAPM) methodology and incremental borrowing rate, assuming cash flows in Euro. A selected sample of comparable companies active in the renewable power sector was established. The WACC is based on a risk-free rate of 3.3 per cent based on the trailing six-month average yield maturity in France (source: Capital IQ), and a market risk premium of 5.2 per cent. The estimated unlevered beta for equity was 0.58. The equity to total capital ratio was 38.6 per cent. A 25 per cent generic tax rate on corporate, irrespective of the specificities of the countries in activity. Finally, a company size / specific risk premium of 10.6 per cent has been taken into account to reflect the unsecured aspect of EPCI/Fabrication future projects.
Testing procedures of BW Ideol\u2019s single CGU related goodwill as of 31 December 2025 are conducted to meet IFRS requirements, and especially IAS 36. In compliance with IAS 36, BW Ideol\u2019s recoverable value was based on the estimation of its value in use derived from a discounted cash flow approach and is equivalent to BW Ideol\u2019s enterprise value as of 31 December 2025. To determine the recoverable value of assets, the value in use derived from future cash flows was considered.
Sensitivities
Sensitivity to IRR at exit for co-development projects
An increase of 2.0 per cent of the target IRR used to derive project exit value at FID would not result in any impairment charge, as it would lead to a decrease of USD 62.2 million in impairment test, but still with a positive headroom of USD 36.4 million.
Discount rate
A 2.0 per cent increase in the discount rates would not result in an impairment of goodwill and technology assets.
Judgements and estimates
Valuations performed in light of the impairment test of goodwill and technology assets demand a high degree of estimation. Management must make complex assessments of the expected cash flows arising and discount rates used in the valuation models. Changes to these estimates could have significant impact on the impairments recognised and future changes may lead to additional impairments.
The financial forecasts used in the goodwill and technology asset impairment test reflect management's judgement on the probability of realising projects, and for those projects expected to be developed, the development and capital expenditures, operating expenses and the tariff applied to the electricity sold, which is being determined using a target internal rate of return as well as the discount rate. This judgement is based on present circumstances at the valuation date, as to the most likely set of conditions and the course of action it is most likely to take. It is usually the case that some events and circumstances do not occur as expected or are not anticipated. Therefore, actual results during the forecast period will almost always differ from the forecasts and, as such, differences may be material. In addition, floating offshore wind is a new industry with no commercial projects yet established globally, resulting in a high degree of estimation uncertainty related to the identification of prospective projects and chances of acquiring such projects.
", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__68": { "value": "Accounting policies
Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
Technology
Technology acquired in a business combination is recognised at fair value at the acquisition date when intangible assets criteria are met and amortised on a straight-line basis over the useful life of 15 years.
Impairment
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount that the asset\u2019s carrying amount exceeds its recoverable amount, being the higher of an asset\u2019s fair value less cost of disposal and its value in use.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__69": { "value": "Goodwill
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (CGUs) for the purpose of the annual impairment testing.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__71": { "value": "Note 12\tEquity-accounted investees
Accounting policies
The Group\u2019s interests in equity-accounted investees comprise interests in associates and joint ventures.
Associates are those entities in which the Group has a significant influence, but not control, or has joint control, over the financial and operating policies, generally accompanying a shareholding of between 20 per cent and 50 per cent of the voting rights. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement, rather than rights to its assets and obligation for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are initially measured at cost, including transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.
USD MILLION | 2025 | 2024 |
Interest in joint ventures | 192.1 | 209.6 |
Interest in associates | 18.7 | 16.8 |
Balance at 31 December | 210.8 | 226.4 |
As at 31 December 2025 and 2024, Equity-accounted investees relates mainly to the investment in BW Offshore AUS-JV Pte Ltd. In January 2024, the Group sold all of its shares in BW Energy Limited, total of 58 111 461 shares at a price of NOK 32 per share, resulting in total proceeds to BWO Offshore of NOK 1 860 million or approximately USD 176 million. Due to currency fluctuations, a loss of USD 4.8 million related to the sale was recognised in 2024.
For BW Offshore AUS-JV Pte. Ltd., the shareholders agreements between the Group and the external investors resulted in the Group and the external investors having joint control over this company. The Group\u2019s interest in BW Offshore AUS-JV Pte. Ltd. is accounted for using the equity method in the consolidated financial statements.
Refer to Note 7for information about deferred tax asset, Note 14for information about lending agreements and Note 20for information about guarantees.
Summarised financial information of the joint venture and reconciliation with the carrying amount of the investment in the consolidated financial statements are set out below.
USD MILLION | 2025 | 2024 |
Percentage ownership interest | 51.0% | 51.0% |
Non-current assets | 1\u00a0501.6 | 1\u00a0505.5 |
Current assets | 81.4 | 20.0 |
Non-current financial liabilities | 1\u00a0081.6 | 1\u00a0042.1 |
Current liabilities | 76.0 | 61.5 |
Net assets (100%) | 425.4 | 421.9 |
Group's share of net assets | 216.9 | 215.2 |
Elimination of internal net interest | (61.1) | (33.7) |
Carrying amount of interest in joint venture | 155.8 | 181.5 |
Net interest income/(expense) | 30.1 | 26.8 |
Profit for the year (100%) | 26.1 | 24.7 |
Other comprehensive income (100%) | (41.8) | 29.3 |
Total comprehensive income for the year (100%) | (15.7) | 54.0 |
Total comprehensive income for the year (51%) | (8.0) | 27.5 |
Elimination of internal net interest | (27.4) | (19.4) |
Group's share of total comprehensive income for the year | (35.4) | 8.1 |
Additionally, the Group has interests in three individually immaterial joint venture/associates, Buchan Offshore Wind Limited, OCS Services Limited and Fram Wind Solutions AS. During 2025, the Group sold its share in Euro Techniques Industries.
For OCS Services Limited (OCS), the Group owns 50 per cent but does not have joint control over this investment. The partner oversees the daily operation of the company while the Group act as an investment partner. The Group does not have power over more than half of the voting rights in OCS. Further, the Group does not have the power to cast the majority of votes at meetings of the Board of Directors or equivalent governing body. As the Group only acts as an investment partner, OCS is considered an associate. The Group\u2019s interest in OCS is accounted for using the equity method in the consolidated financial statements.
The Group acquired 33.5 per cent ownership interest in Buchan Offshore Wind Limited in April 2022. The carrying amount of interests in Buchan Offshore Wind Limited was USD 35.8 million at 31 December 2025 (USD 27.6 million).
The following table analyses the carrying amount and share of profit and OCI of these associates.
USD MILLION | 2025 | 2024 |
Carrying amount of interests in associates | 18.7 | 16.8 |
Share of: | ||
Profit/(loss) | 2.3 | (6.6) |
An equity accounted investment may be impaired and the investor required to test the carrying amount for impairment if objective evidence of impairment exists. Judgements are made in determining if there is objective evidence of impairment exist. Impairment testing for associates and joint ventures also requires significant judgements and estimates to be made.
Note 12\tEquity-accounted investees
Accounting policies
The Group\u2019s interests in equity-accounted investees comprise interests in associates and joint ventures.
Associates are those entities in which the Group has a significant influence, but not control, or has joint control, over the financial and operating policies, generally accompanying a shareholding of between 20 per cent and 50 per cent of the voting rights. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement, rather than rights to its assets and obligation for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are initially measured at cost, including transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.
USD MILLION | 2025 | 2024 |
Interest in joint ventures | 192.1 | 209.6 |
Interest in associates | 18.7 | 16.8 |
Balance at 31 December | 210.8 | 226.4 |
As at 31 December 2025 and 2024, Equity-accounted investees relates mainly to the investment in BW Offshore AUS-JV Pte Ltd. In January 2024, the Group sold all of its shares in BW Energy Limited, total of 58 111 461 shares at a price of NOK 32 per share, resulting in total proceeds to BWO Offshore of NOK 1 860 million or approximately USD 176 million. Due to currency fluctuations, a loss of USD 4.8 million related to the sale was recognised in 2024.
For BW Offshore AUS-JV Pte. Ltd., the shareholders agreements between the Group and the external investors resulted in the Group and the external investors having joint control over this company. The Group\u2019s interest in BW Offshore AUS-JV Pte. Ltd. is accounted for using the equity method in the consolidated financial statements.
Refer to Note 7for information about deferred tax asset, Note 14for information about lending agreements and Note 20for information about guarantees.
Summarised financial information of the joint venture and reconciliation with the carrying amount of the investment in the consolidated financial statements are set out below.
USD MILLION | 2025 | 2024 |
Percentage ownership interest | 51.0% | 51.0% |
Non-current assets | 1\u00a0501.6 | 1\u00a0505.5 |
Current assets | 81.4 | 20.0 |
Non-current financial liabilities | 1\u00a0081.6 | 1\u00a0042.1 |
Current liabilities | 76.0 | 61.5 |
Net assets (100%) | 425.4 | 421.9 |
Group's share of net assets | 216.9 | 215.2 |
Elimination of internal net interest | (61.1) | (33.7) |
Carrying amount of interest in joint venture | 155.8 | 181.5 |
Net interest income/(expense) | 30.1 | 26.8 |
Profit for the year (100%) | 26.1 | 24.7 |
Other comprehensive income (100%) | (41.8) | 29.3 |
Total comprehensive income for the year (100%) | (15.7) | 54.0 |
Total comprehensive income for the year (51%) | (8.0) | 27.5 |
Elimination of internal net interest | (27.4) | (19.4) |
Group's share of total comprehensive income for the year | (35.4) | 8.1 |
Additionally, the Group has interests in three individually immaterial joint venture/associates, Buchan Offshore Wind Limited, OCS Services Limited and Fram Wind Solutions AS. During 2025, the Group sold its share in Euro Techniques Industries.
For OCS Services Limited (OCS), the Group owns 50 per cent but does not have joint control over this investment. The partner oversees the daily operation of the company while the Group act as an investment partner. The Group does not have power over more than half of the voting rights in OCS. Further, the Group does not have the power to cast the majority of votes at meetings of the Board of Directors or equivalent governing body. As the Group only acts as an investment partner, OCS is considered an associate. The Group\u2019s interest in OCS is accounted for using the equity method in the consolidated financial statements.
The Group acquired 33.5 per cent ownership interest in Buchan Offshore Wind Limited in April 2022. The carrying amount of interests in Buchan Offshore Wind Limited was USD 35.8 million at 31 December 2025 (USD 27.6 million).
The following table analyses the carrying amount and share of profit and OCI of these associates.
USD MILLION | 2025 | 2024 |
Carrying amount of interests in associates | 18.7 | 16.8 |
Share of: | ||
Profit/(loss) | 2.3 | (6.6) |
An equity accounted investment may be impaired and the investor required to test the carrying amount for impairment if objective evidence of impairment exists. Judgements are made in determining if there is objective evidence of impairment exist. Impairment testing for associates and joint ventures also requires significant judgements and estimates to be made.
Note 12\tEquity-accounted investees
Accounting policies
The Group\u2019s interests in equity-accounted investees comprise interests in associates and joint ventures.
Associates are those entities in which the Group has a significant influence, but not control, or has joint control, over the financial and operating policies, generally accompanying a shareholding of between 20 per cent and 50 per cent of the voting rights. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement, rather than rights to its assets and obligation for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are initially measured at cost, including transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.
USD MILLION | 2025 | 2024 |
Interest in joint ventures | 192.1 | 209.6 |
Interest in associates | 18.7 | 16.8 |
Balance at 31 December | 210.8 | 226.4 |
As at 31 December 2025 and 2024, Equity-accounted investees relates mainly to the investment in BW Offshore AUS-JV Pte Ltd. In January 2024, the Group sold all of its shares in BW Energy Limited, total of 58 111 461 shares at a price of NOK 32 per share, resulting in total proceeds to BWO Offshore of NOK 1 860 million or approximately USD 176 million. Due to currency fluctuations, a loss of USD 4.8 million related to the sale was recognised in 2024.
For BW Offshore AUS-JV Pte. Ltd., the shareholders agreements between the Group and the external investors resulted in the Group and the external investors having joint control over this company. The Group\u2019s interest in BW Offshore AUS-JV Pte. Ltd. is accounted for using the equity method in the consolidated financial statements.
Refer to Note 7for information about deferred tax asset, Note 14for information about lending agreements and Note 20for information about guarantees.
Summarised financial information of the joint venture and reconciliation with the carrying amount of the investment in the consolidated financial statements are set out below.
USD MILLION | 2025 | 2024 |
Percentage ownership interest | 51.0% | 51.0% |
Non-current assets | 1\u00a0501.6 | 1\u00a0505.5 |
Current assets | 81.4 | 20.0 |
Non-current financial liabilities | 1\u00a0081.6 | 1\u00a0042.1 |
Current liabilities | 76.0 | 61.5 |
Net assets (100%) | 425.4 | 421.9 |
Group's share of net assets | 216.9 | 215.2 |
Elimination of internal net interest | (61.1) | (33.7) |
Carrying amount of interest in joint venture | 155.8 | 181.5 |
Net interest income/(expense) | 30.1 | 26.8 |
Profit for the year (100%) | 26.1 | 24.7 |
Other comprehensive income (100%) | (41.8) | 29.3 |
Total comprehensive income for the year (100%) | (15.7) | 54.0 |
Total comprehensive income for the year (51%) | (8.0) | 27.5 |
Elimination of internal net interest | (27.4) | (19.4) |
Group's share of total comprehensive income for the year | (35.4) | 8.1 |
Additionally, the Group has interests in three individually immaterial joint venture/associates, Buchan Offshore Wind Limited, OCS Services Limited and Fram Wind Solutions AS. During 2025, the Group sold its share in Euro Techniques Industries.
For OCS Services Limited (OCS), the Group owns 50 per cent but does not have joint control over this investment. The partner oversees the daily operation of the company while the Group act as an investment partner. The Group does not have power over more than half of the voting rights in OCS. Further, the Group does not have the power to cast the majority of votes at meetings of the Board of Directors or equivalent governing body. As the Group only acts as an investment partner, OCS is considered an associate. The Group\u2019s interest in OCS is accounted for using the equity method in the consolidated financial statements.
The Group acquired 33.5 per cent ownership interest in Buchan Offshore Wind Limited in April 2022. The carrying amount of interests in Buchan Offshore Wind Limited was USD 35.8 million at 31 December 2025 (USD 27.6 million).
The following table analyses the carrying amount and share of profit and OCI of these associates.
USD MILLION | 2025 | 2024 |
Carrying amount of interests in associates | 18.7 | 16.8 |
Share of: | ||
Profit/(loss) | 2.3 | (6.6) |
An equity accounted investment may be impaired and the investor required to test the carrying amount for impairment if objective evidence of impairment exists. Judgements are made in determining if there is objective evidence of impairment exist. Impairment testing for associates and joint ventures also requires significant judgements and estimates to be made.
Note 17\tList of subsidiaries, associates and joint ventures
Accounitng policies
Subsidiaries are legal entities (including special purpose entities) controlled by the Group. The Group \u2018controls\u2019 an entity when it is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
Ardersier3F Limited | United Kingdom | 100% | - |
Bergesen Worldwide Mexico, S.A. de C.V. | Mexico | 100% | 100% |
Bergesen Worldwide Offshore Mexico S. de RL de CV | Mexico | 100% | 100% |
BW Abo Pte Ltd | Singapore | 100% | 100% |
BW Adolo Pte Ltd | Singapore | 100% | 100% |
BW Bergesen Worldwide Pte Ltd | Singapore | 100% | 100% |
BW Catcher Limited 1 | Bermuda | 100% | 100% |
BW Espoir Ivoirien Pte Ltd | Singapore | - | 100% |
BW Ideol AS 2 | Norway | 68% | 64% |
BW Ideol Projects Company SAS 3 | France | 76% | 76% |
BW Offshore Australia Management Pty Ltd | Australia | 100% | 100% |
BW Offshore Bidco Pte Ltd | Singapore | 100% | 100% |
BW Offshore Catcher (UK) Limited | United Kingdom | 100% | 100% |
BW Offshore China Ltd | China | - | 100% |
BW Offshore Cyprus Limited | Cyprus | 100% | 100% |
BW Offshore do Brazil Ltda | Brazil | 100% | 100% |
BW Offshore do Brazil Servicos Maritimos Ltda | Brazil | 100% | 100% |
BW Offshore EPC FZCO 4 | United Arab Emirates | 90% | 90% |
BW Offshore France SAS | France | 100% | 100% |
BW Offshore (Ghana) Pte Ltd | Singapore | 100% | 100% |
BW Offshore Global Manning Pte Ltd | Singapore | 100% | 100% |
BW Offshore Holdings Pte Ltd | Singapore | 100% | 100% |
BW Offshore Management B.V. | Netherlands | 100% | 100% |
BW Offshore Netherlands B.V. | Netherlands | 100% | 100% |
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
BW Offshore Nigeria Limited | Nigeria | 100% | 49% |
BW Offshore Norway AS | Norway | 100% | 100% |
BW Offshore Poland sp z o.o. | Poland | 100% | 100% |
BW Offshore Project Management FZE | United Arab Emirates | 100% | 100% |
BW Offshore Shipholding Pte Ltd | Singapore | 100% | 100% |
BW Offshore Singapore Pte Ltd | Singapore | 100% | 100% |
BW Offshore TSB Invest Pte Ltd | Singapore | - | 100% |
BW Offshore (UK) Limited | United Kingdom | 100% | 100% |
BW Offshore USA Management LLC | USA | 100% | 100% |
BW Offshore USA, LLC | USA | 100% | 100% |
BW Offshore USA Manning, LLC | USA | 100% | - |
BW Pioneer (UK) Limited | United Kingdom | 100% | 100% |
BW Polvo Pte Ltd | Singapore | - | 100% |
BW Sendje Berge Pte Ltd | Singapore | 100% | 100% |
BWO-Premier Ghana Limited | Ghana | 70% | 70% |
FOS3F SAS | France | 100% | - |
Ideol Japan, LLC 3 | Japan | 100% | 100% |
BW Ideol SAS. 3 | France | 100% | 100% |
Ideol USA, Inc. 3 | USA | - | 100% |
Prosafe Production B.V. | Netherlands | - | 100% |
Prosafe Services Cote d\u2019Ivoire Pte Ltd | Singapore | 100% | 100% |
Tinworth France SAS | France | 100% | 100% |
Tinworth Gabon SA | Gabon | 100% | 100% |
Associates and joint ventures
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
OCS Services Limited | British Virgin Islands | 50% | 50% |
Euro Techniques Industries | France | - | 40% |
BW Offshore AUS-JV Pte Ltd 5 | Singapore | 51% | 51% |
Buchan Offshore Wind Limited | United Kingdom | 33% | 33% |
Fram Wind Solutions AS | Norway | 50% | 50% |
BW Elara Pte Ltd | Singapore | 50% | - |
1Preference shares are issued with a preferential dividend right to ICBCL. The preferential dividend is a fixed percentage of outstanding preference shares, and accordingly the result allocated to non-controlling interest is independent of underlying result in the subsidiary.
2BW Ideol was owned 100% by BW Sirocco Holdings AS of 31 December 2023. In 2024, the two companies merged and renamed to BW Ideol AS
3Owned by BW Ideol AS of 31 December 2025, ownership effectively 68% per cent.
4Macquarie Bank Limited holds 10 per cent from 2022
5Joint control due to shareholders agreements between the Group and external investors.
Note 12\tEquity-accounted investees
Accounting policies
The Group\u2019s interests in equity-accounted investees comprise interests in associates and joint ventures.
Associates are those entities in which the Group has a significant influence, but not control, or has joint control, over the financial and operating policies, generally accompanying a shareholding of between 20 per cent and 50 per cent of the voting rights. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement, rather than rights to its assets and obligation for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are initially measured at cost, including transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.
USD MILLION | 2025 | 2024 |
Interest in joint ventures | 192.1 | 209.6 |
Interest in associates | 18.7 | 16.8 |
Balance at 31 December | 210.8 | 226.4 |
As at 31 December 2025 and 2024, Equity-accounted investees relates mainly to the investment in BW Offshore AUS-JV Pte Ltd. In January 2024, the Group sold all of its shares in BW Energy Limited, total of 58 111 461 shares at a price of NOK 32 per share, resulting in total proceeds to BWO Offshore of NOK 1 860 million or approximately USD 176 million. Due to currency fluctuations, a loss of USD 4.8 million related to the sale was recognised in 2024.
For BW Offshore AUS-JV Pte. Ltd., the shareholders agreements between the Group and the external investors resulted in the Group and the external investors having joint control over this company. The Group\u2019s interest in BW Offshore AUS-JV Pte. Ltd. is accounted for using the equity method in the consolidated financial statements.
Refer to Note 7for information about deferred tax asset, Note 14for information about lending agreements and Note 20for information about guarantees.
Summarised financial information of the joint venture and reconciliation with the carrying amount of the investment in the consolidated financial statements are set out below.
USD MILLION | 2025 | 2024 |
Percentage ownership interest | 51.0% | 51.0% |
Non-current assets | 1\u00a0501.6 | 1\u00a0505.5 |
Current assets | 81.4 | 20.0 |
Non-current financial liabilities | 1\u00a0081.6 | 1\u00a0042.1 |
Current liabilities | 76.0 | 61.5 |
Net assets (100%) | 425.4 | 421.9 |
Group's share of net assets | 216.9 | 215.2 |
Elimination of internal net interest | (61.1) | (33.7) |
Carrying amount of interest in joint venture | 155.8 | 181.5 |
Net interest income/(expense) | 30.1 | 26.8 |
Profit for the year (100%) | 26.1 | 24.7 |
Other comprehensive income (100%) | (41.8) | 29.3 |
Total comprehensive income for the year (100%) | (15.7) | 54.0 |
Total comprehensive income for the year (51%) | (8.0) | 27.5 |
Elimination of internal net interest | (27.4) | (19.4) |
Group's share of total comprehensive income for the year | (35.4) | 8.1 |
Additionally, the Group has interests in three individually immaterial joint venture/associates, Buchan Offshore Wind Limited, OCS Services Limited and Fram Wind Solutions AS. During 2025, the Group sold its share in Euro Techniques Industries.
For OCS Services Limited (OCS), the Group owns 50 per cent but does not have joint control over this investment. The partner oversees the daily operation of the company while the Group act as an investment partner. The Group does not have power over more than half of the voting rights in OCS. Further, the Group does not have the power to cast the majority of votes at meetings of the Board of Directors or equivalent governing body. As the Group only acts as an investment partner, OCS is considered an associate. The Group\u2019s interest in OCS is accounted for using the equity method in the consolidated financial statements.
The Group acquired 33.5 per cent ownership interest in Buchan Offshore Wind Limited in April 2022. The carrying amount of interests in Buchan Offshore Wind Limited was USD 35.8 million at 31 December 2025 (USD 27.6 million).
The following table analyses the carrying amount and share of profit and OCI of these associates.
USD MILLION | 2025 | 2024 |
Carrying amount of interests in associates | 18.7 | 16.8 |
Share of: | ||
Profit/(loss) | 2.3 | (6.6) |
An equity accounted investment may be impaired and the investor required to test the carrying amount for impairment if objective evidence of impairment exists. Judgements are made in determining if there is objective evidence of impairment exist. Impairment testing for associates and joint ventures also requires significant judgements and estimates to be made.
Note 17\tList of subsidiaries, associates and joint ventures
Accounitng policies
Subsidiaries are legal entities (including special purpose entities) controlled by the Group. The Group \u2018controls\u2019 an entity when it is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
Ardersier3F Limited | United Kingdom | 100% | - |
Bergesen Worldwide Mexico, S.A. de C.V. | Mexico | 100% | 100% |
Bergesen Worldwide Offshore Mexico S. de RL de CV | Mexico | 100% | 100% |
BW Abo Pte Ltd | Singapore | 100% | 100% |
BW Adolo Pte Ltd | Singapore | 100% | 100% |
BW Bergesen Worldwide Pte Ltd | Singapore | 100% | 100% |
BW Catcher Limited 1 | Bermuda | 100% | 100% |
BW Espoir Ivoirien Pte Ltd | Singapore | - | 100% |
BW Ideol AS 2 | Norway | 68% | 64% |
BW Ideol Projects Company SAS 3 | France | 76% | 76% |
BW Offshore Australia Management Pty Ltd | Australia | 100% | 100% |
BW Offshore Bidco Pte Ltd | Singapore | 100% | 100% |
BW Offshore Catcher (UK) Limited | United Kingdom | 100% | 100% |
BW Offshore China Ltd | China | - | 100% |
BW Offshore Cyprus Limited | Cyprus | 100% | 100% |
BW Offshore do Brazil Ltda | Brazil | 100% | 100% |
BW Offshore do Brazil Servicos Maritimos Ltda | Brazil | 100% | 100% |
BW Offshore EPC FZCO 4 | United Arab Emirates | 90% | 90% |
BW Offshore France SAS | France | 100% | 100% |
BW Offshore (Ghana) Pte Ltd | Singapore | 100% | 100% |
BW Offshore Global Manning Pte Ltd | Singapore | 100% | 100% |
BW Offshore Holdings Pte Ltd | Singapore | 100% | 100% |
BW Offshore Management B.V. | Netherlands | 100% | 100% |
BW Offshore Netherlands B.V. | Netherlands | 100% | 100% |
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
BW Offshore Nigeria Limited | Nigeria | 100% | 49% |
BW Offshore Norway AS | Norway | 100% | 100% |
BW Offshore Poland sp z o.o. | Poland | 100% | 100% |
BW Offshore Project Management FZE | United Arab Emirates | 100% | 100% |
BW Offshore Shipholding Pte Ltd | Singapore | 100% | 100% |
BW Offshore Singapore Pte Ltd | Singapore | 100% | 100% |
BW Offshore TSB Invest Pte Ltd | Singapore | - | 100% |
BW Offshore (UK) Limited | United Kingdom | 100% | 100% |
BW Offshore USA Management LLC | USA | 100% | 100% |
BW Offshore USA, LLC | USA | 100% | 100% |
BW Offshore USA Manning, LLC | USA | 100% | - |
BW Pioneer (UK) Limited | United Kingdom | 100% | 100% |
BW Polvo Pte Ltd | Singapore | - | 100% |
BW Sendje Berge Pte Ltd | Singapore | 100% | 100% |
BWO-Premier Ghana Limited | Ghana | 70% | 70% |
FOS3F SAS | France | 100% | - |
Ideol Japan, LLC 3 | Japan | 100% | 100% |
BW Ideol SAS. 3 | France | 100% | 100% |
Ideol USA, Inc. 3 | USA | - | 100% |
Prosafe Production B.V. | Netherlands | - | 100% |
Prosafe Services Cote d\u2019Ivoire Pte Ltd | Singapore | 100% | 100% |
Tinworth France SAS | France | 100% | 100% |
Tinworth Gabon SA | Gabon | 100% | 100% |
Associates and joint ventures
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
OCS Services Limited | British Virgin Islands | 50% | 50% |
Euro Techniques Industries | France | - | 40% |
BW Offshore AUS-JV Pte Ltd 5 | Singapore | 51% | 51% |
Buchan Offshore Wind Limited | United Kingdom | 33% | 33% |
Fram Wind Solutions AS | Norway | 50% | 50% |
BW Elara Pte Ltd | Singapore | 50% | - |
1Preference shares are issued with a preferential dividend right to ICBCL. The preferential dividend is a fixed percentage of outstanding preference shares, and accordingly the result allocated to non-controlling interest is independent of underlying result in the subsidiary.
2BW Ideol was owned 100% by BW Sirocco Holdings AS of 31 December 2023. In 2024, the two companies merged and renamed to BW Ideol AS
3Owned by BW Ideol AS of 31 December 2025, ownership effectively 68% per cent.
4Macquarie Bank Limited holds 10 per cent from 2022
5Joint control due to shareholders agreements between the Group and external investors.
Accounting policies
The Group\u2019s interests in equity-accounted investees comprise interests in associates and joint ventures.
Associates are those entities in which the Group has a significant influence, but not control, or has joint control, over the financial and operating policies, generally accompanying a shareholding of between 20 per cent and 50 per cent of the voting rights. Joint ventures are joint arrangements in which the parties that share control have rights to the net assets of the arrangement, rather than rights to its assets and obligation for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are initially measured at cost, including transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence or joint control ceases.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__76": { "value": "Note 13\tCapital and reserves
Accounting policies
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in the equity as a deduction, net of tax, from the proceeds.
Treasury shares
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognised as a reduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.
Preference shares
Preference shares in subsidiaries are presented as shareholders\u2019 equity. As these preference shares in subsidiaries are not held by the Group directly, these are presented as non-controlling interest and the result to those preference shares, equivalent to the preference dividend, is presented as the non-controlling interests share of the result regardless of whether dividends have been paid or accumulated. Refer to Note19.
Share capital
Authorised share capital:
At 1 January 2025: | 214 000 000 ordinary shares at par value USD 0.50 each |
At 31 December 2025: | 214 000 000 ordinary shares at par value USD 0.50 each |
Issued and fully paid | USD THOUSAND |
At 1 January 2025 | 92\u00a0478.2 |
At 31 December 2025 | 92\u00a0478.2 |
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss.
Treasury share reserve
The reserve for the Company\u2019s treasury shares comprises the cost of the Company\u2019s shares held by the Group. At 31 December 2025, the Group held 3 740 585 of the Company\u2019s shares (4 141 437). Book value of the treasury shares was USD 9.1 million at 31 December 2025 (USD 10.1 million).
Dividends
The following dividends were declared and paid by the Company for the year.
USD MILLION | 2025 |
Fourth quarter 2024: USD 0.14 per qualifying ordinary share | 25.3 |
First, second and third quarter: USD 0.0625 per qualifying ordinary share | 33.9 |
59.2 | |
USD MILLION | 2024 |
Fourth quarter 2023: USD 0.088 per qualifying ordinary share | 15.9 |
First, second and third quarter: USD 0.0625 per qualifying ordinary share | 33.9 |
49.8 |
Refer to \u2018Shareholder information\u2019 section for information on the 17 largest shareholders at 31 December 2025.
Refer to Note 18, Non-controlling interests, for information on preferred dividends.
Accounting policies
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in the equity as a deduction, net of tax, from the proceeds.
Treasury shares
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognised as a reduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.
Preference shares
Preference shares in subsidiaries are presented as shareholders\u2019 equity. As these preference shares in subsidiaries are not held by the Group directly, these are presented as non-controlling interest and the result to those preference shares, equivalent to the preference dividend, is presented as the non-controlling interests share of the result regardless of whether dividends have been paid or accumulated. Refer to Note19", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__78": { "value": "Treasury shares
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognised as a reduction from equity. Repurchased shares are classified as treasury shares and are presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the transaction is presented within share premium.
Preference shares
Preference shares in subsidiaries are presented as shareholders\u2019 equity. As these preference shares in subsidiaries are not held by the Group directly, these are presented as non-controlling interest and the result to those preference shares, equivalent to the preference dividend, is presented as the non-controlling interests share of the result regardless of whether dividends have been paid or accumulated. Refer to Note19.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__79": { "value": "Share capital
Authorised share capital:
At 1 January 2025: | 214 000 000 ordinary shares at par value USD 0.50 each |
At 31 December 2025: | 214 000 000 ordinary shares at par value USD 0.50 each |
Issued and fully paid | USD THOUSAND |
At 1 January 2025 | 92\u00a0478.2 |
At 31 December 2025 | 92\u00a0478.2 |
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__81": { "value": "Treasury share reserve
The reserve for the Company\u2019s treasury shares comprises the cost of the Company\u2019s shares held by the Group. At 31 December 2025, the Group held 3 740 585 of the Company\u2019s shares (4 141 437). Book value of the treasury shares was USD 9.1 million at 31 December 2025 (USD 10.1 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__82": { "value": "Dividends
The following dividends were declared and paid by the Company for the year.
USD MILLION | 2025 |
Fourth quarter 2024: USD 0.14 per qualifying ordinary share | 25.3 |
First, second and third quarter: USD 0.0625 per qualifying ordinary share | 33.9 |
59.2 | |
USD MILLION | 2024 |
Fourth quarter 2023: USD 0.088 per qualifying ordinary share | 15.9 |
First, second and third quarter: USD 0.0625 per qualifying ordinary share | 33.9 |
49.8 |
Refer to \u2018Shareholder information\u2019 section for information on the 17 largest shareholders at 31 December 2025.
Refer to Note 18, Non-controlling interests, for information on preferred dividends.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__83": { "value": "Note 14\tLoans and borrowings
Accounting policies
Loans and borrowings are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Carrying amount long term | Carrying amount short term | Total interest-bearing debt | ||||||
USD MILLION | Effective interest rate | Maturity date | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
USD 220 million Corporate Facility\u200c1 | USD SOFR + 2.50% | 10-Nov-28 | (0.7) | (1.4) | (0.4) | (0.6) | (1.1) | (2.0) |
USD 200 million Catcher Facility | USD SOFR + 2.25% | 17-Feb-27 | 28.3 | 84.8 | 56.5 | 56.6 | 84.8 | 141.4 |
Other facilities | 3.50% | 30-Jun-26 | - | 3.2 | 0.9 | 1.7 | 0.9 | 4.9 |
BWO06 \u2013 NOK 1\u00a0000 million Bond | NIBOR + 5.00% | 29-Nov-28 | 99.0 | 87.3 | (0.2) | (0.2) | 98.8 | 87.1 |
Total long-term debt | 126.6 | 173.9 | 56.8 | 57.5 | 183.4 | 231.4 |
12024 relates to the 295 million Corporate Facility
In September 2025, the Group refinanced the Corporate Facility. The refinancing was assessed to be a substantial modification under IFRS 9. Accordingly, the original financial liability was derecognised and replaced with the new liability under the revised terms.
The Group is in compliance with all covenants on 31 December 2025. Covenants are calculated and reported on consolidated financials.
USD 220 MILLION CORPORATE FACILITY
In September 2025, the Group refinanced the previous USD 295 million revolving credit facility (RCF) into a new senior secured USD 220 million RCF. The facility was extended by four months to 10 November 2028. The new facility is priced at a margin of 250 basis points above USD SOFR and is provided by a consortium of
nine international banks at year end 2025. The Group had USD 220 million undrawn under the revolving credit facility at 31 December 2025.
The USD 220 million Corporate Facility is subject to certain covenants, including minimum book equity of at least 25 per cent of total assets, debt to EBITDA of maximum 5.5, minimum USD 75 million available liquidity including undrawn amounts and interest coverage ratio of minimum 3.0.
CATCHER USD 200 MILLION FACILITY
In November 2023, the Group refinanced the previous USD 800 million senior secured pre- and post-delivery term loan facility into a new USD 200 million three-and-a-half-year facility. The new facility is priced at a margin of 225 basis points above USD SOFR and is
provided by a consortium of seven international banks. The facility is subject to financial covenants similar to the covenants under the USD 220 million Corporate Facility.
BWO06 \u2013 NOK 1 000 MILLION BOND
In November 2023, BW Offshore Limited successfully completed the placement of a NOK 1 000 million senior unsecured bond with maturity 29 November 2028. The proceeds from the bond loan were used to partly repay the existing bond loan. The bond loan is subject to certain covenants, including minimum book equity of at least 25 per cent of total assets and minimum USD 75 million available liquidity including undrawn amounts available for utilisation by the Group.
Other facilities
Other facilities comprise interest-bearing debt in BW Ideol Group. All debt is in EUR.
The financial liability related to the BW Opal lease has a carrying amount of USD 1 426.2 million (USD 1 347.4 million) and implicit interest of 7.87 per cent (7.87 per cent) at 31 December 2025. The financial liability is accounted for under IFRS 9 and any changes to expected future cash flows are recognised in profit and loss. In 2025 the Group recorded a financial gain of USD 24.6 million caused by changes in the expected future net cash flows including timing of the cashflows. The joint venture recognised a corresponding loss, of which a portion is included in Share of profit/(loss) of equity-accounted investees. Reference to Note 16Financial instruments \u2013 Fair values and risk management for information on BW Opal finance liability.
RECONCILIATION OF MOVEMENTS OF LIABILITIES AND EQUITY TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES
Interest payable | Other liabilities | Liabilities | Equity | Total | ||
USD MILLION | Interest-bearing short-term debt | Interest-bearing long-term debt\u200c1 | ||||
Balance at 1 January 2025 | 19.3 | 57.5 | 1\u00a0521.3 | 1\u00a0245.9 | ||
- | ||||||
Proceeds from loans and borrowings | - | - | - | 76.2 | - | 76.2 |
Proceeds from issuance of shares by subsidiary to non-controlling interest | - | - | - | - | 9.3 | 9.3 |
Proceeds from sale of treasury shares | - | - | - | - | 1.0 | 1.0 |
Paid dividend and redemption to non-controlling interest | - | - | - | - | (28.2) | (28.2) |
Interest paid and settlement of interest rates swaps | 2.1 | - | - | - | - | 2.1 |
Repayment of loans and borrowings | - | - | (0.9) | (107.1) | - | (108.0) |
Payment of lease liabilities | - | (5.8) | - | - | - | (5.8) |
Dividends paid | - | - | - | - | (59.2) | (59.2) |
Total changes from financing cash flows | 2.1 | (5.8) | (0.9) | (30.9) | (77.1) | (112.6) |
Effects of changes in foreign exchange rate | (1.6) | 0.1 | 12.2 | - | (13.9) | |
Liability-related: | ||||||
Expensed and capitalised borrowing costs | - | 0.5 | 1.3 | - | 1.8 | |
New leases/adjustments | 2.1 | - | - | - | 2.1 | |
Interest expense | 1.1 | - | - | - | 1.1 | |
Non-cash movements | - | 40.5 | 8.0 | - | 48.5 | |
Total liability-related other changes | 3.2 | 41.0 | 9.3 | - | 53.5 | |
Total equity-related other changes | - | - | - | 124.2 | 124.2 | |
Balance at 31 December 2025 | 18.3 | 97.7 | 1\u00a0511.9 | 1\u00a0293.0 |
1Inclusive finance liability relating to BW Opal lease
Interest payable | Other liabilities | Liabilities | Equity | Total | ||
USD MILLION | Interest-bearing short-term debt | Interest-bearing long-term debt\u200c1 | ||||
Balance at 1 January 2024 | 12.0 | 242.5 | 1\u00a0312.8 | 1\u00a0195.3 | ||
Proceeds from loans and borrowings | - | - | - | 163.0 | - | 163.0 |
Paid dividend and redemption to non-controlling interest | - | - | - | - | (28.8) | (28.8) |
Interest paid | (13.6) | - | - | - | - | (13.6) |
Repayment of loans and borrowings | - | - | - | (118.6) | - | (118.6) |
Repurchase of convertible notes | - | - | (191.9) | - | - | (191.9) |
Payment of lease liabilities | - | (6.4) | - | - | - | (6.4) |
Dividends paid | - | - | - | - | (49.8) | (49.8) |
Total changes from financing cash flows | (13.6) | (6.4) | (191.9) | 44.4 | (78.6) | (246.1) |
Effects of changes in foreign exchange rate and interest rate swaps | (0.9) | (0.2) | (10.3) | - | (11.4) | |
Liability-related: | ||||||
Expensed and capitalised borrowing costs | - | 0.6 | 1.3 | - | 1.9 | |
New leases/adjustments | 13.4 | - | - | - | 13.4 | |
Interest expense | 1.2 | - | - | - | 1.2 | |
Accrued interest | - | 6.5 | - | - | 6.5 | |
Non-cash movements | - | - | 173.1 | - | 173.1 | |
Total liability-related other changes | 14.6 | 7.1 | 174.4 | - | 196.1 | |
Total equity-related other changes | - | - | - | 129.2 | 129.2 | |
Balance at 31 December 2024 | 19.3 | 57.5 | 1\u00a0521.3 | 1\u00a0245.9 |
1Inclusive finance liability relating to BW Opal lease
Accounting policies
Loans and borrowings are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Accounting policies
Trade, other payables and other non-current liabilities are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. Trade and other payables are normally not discounted.
Financial liabilities
Financial liabilities are classified as measured at amortised cost except for financial liabilities held for trading or designated at fair value through profit or loss (FVTPL). Refer to accounting policies in Note15.
The Group\u2019s financial liabilities at FVTPL is Derivative liabilities. Derivatives are financial liabilities when the fair value is negative, accounted for similarly as derivative assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__85": { "value": "Accounting policies
Loans and borrowings are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__86": { "value": "Note 15\tTrade, other payables and other non-current liabilities
Accounting policies
Trade, other payables and other non-current liabilities are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. Trade and other payables are normally not discounted.
USD MILLION | 2025 | 2024 |
Trade payables | 17.1 | 13.9 |
Accrued vessel expenses | 9.2 | 13.2 |
Accrued other expenses | 32.2 | 30.3 |
Accrued construction expenses | 19.1 | 29.6 |
Public duties payables | 7.7 | 6.1 |
Contract liabilities | 19.2 | 22.9 |
Deferred revenues | 74.8 | 21.6 |
Total trade and other payables | 179.3 | 137.6 |
USD MILLION | 2025 | 2024 |
Deferred revenues | 1\u00a0142.7 | 1\u00a0021.0 |
Other long-term liabilities | 10.1 | 10.5 |
Liability for cash-settled share-based payments | 6.6 | - |
Total other non-current liabilities | 1\u00a0159.4 | 1\u00a0031.5 |
Deferred revenues primarily relate to the advance consideration received from customers for which revenue is recognised over time, mainly over the remaining contract period. The increase in deferred revenues mainly relates to the BW Opal contract. Refer to Note 3for further information of contract liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__87": { "value": "Note 15\tTrade, other payables and other non-current liabilities
Accounting policies
Trade, other payables and other non-current liabilities are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. Trade and other payables are normally not discounted.
USD MILLION | 2025 | 2024 |
Trade payables | 17.1 | 13.9 |
Accrued vessel expenses | 9.2 | 13.2 |
Accrued other expenses | 32.2 | 30.3 |
Accrued construction expenses | 19.1 | 29.6 |
Public duties payables | 7.7 | 6.1 |
Contract liabilities | 19.2 | 22.9 |
Deferred revenues | 74.8 | 21.6 |
Total trade and other payables | 179.3 | 137.6 |
USD MILLION | 2025 | 2024 |
Deferred revenues | 1\u00a0142.7 | 1\u00a0021.0 |
Other long-term liabilities | 10.1 | 10.5 |
Liability for cash-settled share-based payments | 6.6 | - |
Total other non-current liabilities | 1\u00a0159.4 | 1\u00a0031.5 |
Deferred revenues primarily relate to the advance consideration received from customers for which revenue is recognised over time, mainly over the remaining contract period. The increase in deferred revenues mainly relates to the BW Opal contract. Refer to Note 3for further information of contract liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__88": { "value": "Note 15\tTrade, other payables and other non-current liabilities
Accounting policies
Trade, other payables and other non-current liabilities are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. Trade and other payables are normally not discounted.
USD MILLION | 2025 | 2024 |
Trade payables | 17.1 | 13.9 |
Accrued vessel expenses | 9.2 | 13.2 |
Accrued other expenses | 32.2 | 30.3 |
Accrued construction expenses | 19.1 | 29.6 |
Public duties payables | 7.7 | 6.1 |
Contract liabilities | 19.2 | 22.9 |
Deferred revenues | 74.8 | 21.6 |
Total trade and other payables | 179.3 | 137.6 |
USD MILLION | 2025 | 2024 |
Deferred revenues | 1\u00a0142.7 | 1\u00a0021.0 |
Other long-term liabilities | 10.1 | 10.5 |
Liability for cash-settled share-based payments | 6.6 | - |
Total other non-current liabilities | 1\u00a0159.4 | 1\u00a0031.5 |
Deferred revenues primarily relate to the advance consideration received from customers for which revenue is recognised over time, mainly over the remaining contract period. The increase in deferred revenues mainly relates to the BW Opal contract. Refer to Note 3for further information of contract liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__89": { "value": "Note 15\tTrade, other payables and other non-current liabilities
Accounting policies
Trade, other payables and other non-current liabilities are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. Trade and other payables are normally not discounted.
USD MILLION | 2025 | 2024 |
Trade payables | 17.1 | 13.9 |
Accrued vessel expenses | 9.2 | 13.2 |
Accrued other expenses | 32.2 | 30.3 |
Accrued construction expenses | 19.1 | 29.6 |
Public duties payables | 7.7 | 6.1 |
Contract liabilities | 19.2 | 22.9 |
Deferred revenues | 74.8 | 21.6 |
Total trade and other payables | 179.3 | 137.6 |
USD MILLION | 2025 | 2024 |
Deferred revenues | 1\u00a0142.7 | 1\u00a0021.0 |
Other long-term liabilities | 10.1 | 10.5 |
Liability for cash-settled share-based payments | 6.6 | - |
Total other non-current liabilities | 1\u00a0159.4 | 1\u00a0031.5 |
Deferred revenues primarily relate to the advance consideration received from customers for which revenue is recognised over time, mainly over the remaining contract period. The increase in deferred revenues mainly relates to the BW Opal contract. Refer to Note 3for further information of contract liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__90": { "value": "Note 15\tTrade, other payables and other non-current liabilities
Accounting policies
Trade, other payables and other non-current liabilities are measured at amortised cost using the effective interest rate method and are derecognised when the obligation under the liability is discharged or cancelled or expires. Trade and other payables are normally not discounted.
USD MILLION | 2025 | 2024 |
Trade payables | 17.1 | 13.9 |
Accrued vessel expenses | 9.2 | 13.2 |
Accrued other expenses | 32.2 | 30.3 |
Accrued construction expenses | 19.1 | 29.6 |
Public duties payables | 7.7 | 6.1 |
Contract liabilities | 19.2 | 22.9 |
Deferred revenues | 74.8 | 21.6 |
Total trade and other payables | 179.3 | 137.6 |
USD MILLION | 2025 | 2024 |
Deferred revenues | 1\u00a0142.7 | 1\u00a0021.0 |
Other long-term liabilities | 10.1 | 10.5 |
Liability for cash-settled share-based payments | 6.6 | - |
Total other non-current liabilities | 1\u00a0159.4 | 1\u00a0031.5 |
Deferred revenues primarily relate to the advance consideration received from customers for which revenue is recognised over time, mainly over the remaining contract period. The increase in deferred revenues mainly relates to the BW Opal contract. Refer to Note 3for further information of contract liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__92": { "value": "Note 16\tFinancial instruments \u2013 fair values and risk management
Accounitng policies
Financial assets
The Group\u2019s financial assets are derivatives, trade and financial lease receivables and cash and cash equivalents.
The Group classifies its financial assets in two categories:
\u2022Financial assets at amortised cost. Refer to accounting policies in Note 8.
\u2022Financial assets at fair value through profit or loss (FVTPL).
Financial assets at fair value through profit or loss
Derivatives at fair value are carried in the statement of financial position at fair value with net changes in fair value through the profit or loss. The category includes foreign exchange contracts and interest rate swaps.
Financial liabilities
Financial liabilities are classified as measured at amortised cost except for financial liabilities held for trading or designated at fair value through profit or loss (FVTPL). Refer to accounting policies in Note15.
The Group\u2019s financial liabilities at FVTPL is Derivative liabilities. Derivatives are financial liabilities when the fair value is negative, accounted for similarly as derivative assets.
Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are initially measured at fair value and changes are generally recognised in profit and loss unless the derivative is designated in a hedging relationship.
The Group\u2019s finance function has the responsibility for financing, treasury management and financial risk management.
Financial risk factors
Its activities expose the Group to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk, liquidity risk and climate risk (refer to Note 23).
The Group\u2019s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group\u2019s financial performance. A finance management team led by the Chief Financial Officer identifies and evaluates financial risks in close co-operation with the Group\u2019s operating units. The finance management team\u2019s activities are governed by policies approved by the Board of Directors for overall risk management, as well as policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk and investing excess liquidity. The finance management team report to the Group\u2019s Senior Management team, the Audit Committee and the Board of Directors on the status of activities on a regular basis.
The Group observes a trend of capital being reallocated from hydrocarbons towards electrification and low carbon emission energy projects. The effect is an increasing cost of capital for the oil and gas sector. However, the Group has been successful in financing projects by keeping an open dialogue on ESG performance with key lenders and partners. The Group is committed to contributing to the energy transition by developing clean energy production solutions as part of its strategy, applying its offshore engineering and operations capabilities to drive future value creation.
The Group does not use financial instruments, including financial derivatives, for trading purposes.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, and will affect the Group\u2019s income or the value of its holding of financial instruments. The Group has international operations and therefore a combination of natural and financial hedging. The Group uses derivatives like FX forwards and interest rate swaps to manage market risk.
Foreign currency risk
The functional currency of the Company and most of its subsidiaries is USD. In general, most operating revenues and a significant portion of operating expenses as well as most interest-bearing debt are denominated in USD. The Group is exposed to expenses and investments incurred in currencies other than USD (\u2018foreign currencies\u2019); the major currencies being Norwegian Kroner (\u2018NOK\u2019), Singapore Dollars (\u2018SGD\u2019), Euro (\u2018EUR\u2019) and British Pounds (\u2018GBP\u2019). Operating expenses denominated in NOK, SGD, GBP and EUR constitute a part of the Group\u2019s total operating expenses. Capital expenditures related to construction projects, repair and upgrade activities on FPSOs would also to some extent be denominated in other currencies than USD. Consequently, fluctuations in the exchange rate on NOK, SGD, GBP, and EUR may have significant impact on the financial statements of the Group.
The Group enters into forward contracts to reduce the exchange rate risk on cash flows nominated in foreign currencies, both related to construction projects and to operating and administrative expenses. The Group does not apply hedge accounting for hedging of its operational and administrative expenses in foreign currencies and the changes in valuation are taken over the profit and
loss statement. The exchange rate risk is calculated for each foreign currency and takes into account assets and liabilities, liabilities not recognised in the balance sheet and expected purchases and sales in the currency in question. Currency hedges and other currency effects include changes in fair value of currency hedges, effects of settlement of these hedges, and other currency effects related to operating cash flows.
The Group had no foreign currency contracts at 31 December 2025.
The Group is exposed to foreign currency risk on bonds issued in NOK. The foreign currency exposure of BWO06 is hedged through cross-currency swaps with a nominal value of USD 93.1 million. The market value of the cross-currency swaps was positive by USD 6.4 million at 31 December 2025 (negative USD 6.7 million).
Interest rate risk
The Group is exposed to interest rate risk through its funding activities. Most of the Group\u2019s interest-bearing debt has floating interest rate conditions, making the Group subject
to influence of changes in the market rates. The Group aims to hedge at least 50 per cent of its interest rate exposure.
As of 31 December 2025, the Group\u2019s floating rate debt amounted to USD 185.5 million (USD 230.8 million).
The Group holds interest rate swaps with a nominal value of USD 243.1 million with maturity during 2026\u20132028. The weighted average interest swap rate was 2.8 per cent on 31 December 2025. The swaps are held to hedge the quarterly cash flows from floating rate interest payments on the Corporate Facility, the Catcher facility and BWO06. The market value of the interest swaps was positive by USD 1.5 million on 31 December 2025 (2024: positive USD 24.6 million) and the changes in fair value have been recognised as a fair value gain on financial instruments.
A reasonable possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown in the table below. The analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Profit or loss | Equity, net of tax | |||
USD MILLION | 100 bp increase | 100 bp decrease | 100 bp increase | 100 bp decrease |
31 December 2025 | ||||
Debt | (1.8) | 1.8 | (1.8) | 1.8 |
Interest rate swaps | 2.4 | (2.4) | 2.4 | (2.4) |
Cash flow sensitivity | 0.6 | (0.6) | 0.6 | (0.6) |
31 December 2024 | ||||
Debt | (2.3) | 2.3 | (2.3) | 2.3 |
Interest rate swaps | 3.9 | (3.9) | 3.9 | (3.9) |
Cash flow sensitivity | 1.6 | (1.6) | 1.6 | (1.6) |
Credit risk
Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations.
Loans, credit facilities, financial guarantees and derivatives are only conducted with approved counterparties and predominantly with investment grade financial institutions, and are governed by standard agreements (ISDA, Nordic Trustee and LMA documentation). The Group has policies in place limiting the amount of credit exposure against any financial institution. The maximum risk exposure is represented by the carrying amount of the financial assets in the balance sheet except for financial guarantees.
The Group assesses the credit quality of its customers on a regular basis, considering their financial position, credit ratings from international credit rating agencies if available, experience and other factors. New projects and clients will similarly be assessed by reviewing financial statements and external credit ratings, in addition to country-risk, which will be evaluated in relation to potential financing and legal impact of agreements. Parent company guarantees are negotiated with customers and the Group will normally have contractual clauses to prevent a customer from novating the lease contract to counterparts with credit rating lower than investment grade (or comparable proxy), without consent. Given the limited number of major customers of the Group and the significant portion these represent to the Group\u2019s revenue, the inability of one or more of them to make full payment on any of the Group\u2019s contracted units may have a significant adverse impact on the financial position.
As most of the Group\u2019s portfolio is with financially solid counterparties, the Group believes that the credit risk related to counterparties is at an acceptable level.
Overdue trade receivables were USD 5.9 million at the end of 2025. Overdue trade receivables were USD 44.2 million at the end of 2024. The overdue trade receivable in 2024 included outstanding balance towards Petro Rio Explora\u00e7\u00e3o e Produ\u00e7\u00e3o de Petr\u00f3leo Ltda. Refer to Note 21for further information.
The Group is also exposed to certain credit risk related to agreements entered into with suppliers such as yards used for construction projects. The Group manages its exposure to such risks through a thorough evaluation of the counterparty\u2019s financial position, external credit rating if available, and its backlog and ability to deliver on time, and subsequently by continuous monitoring of larger counterparties.
The Group regards its maximum credit risk exposure to the carrying amount of trade receivables (refer to Note 8) and other current assets.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions in order to meet obligations of finance liabilities when they become due. Due to the dynamic nature of the underlying businesses, the Group maintains sufficient cash for its daily operations and its investment programme via short-term cash deposits at banks and a commitment to make available funds from the unutilised portion of revolving facilities offered by financial institutions to the Group.
In 2021, the Group completed the debt financing and the equity joint venture partnership for the Barossa project. The Barossa project is financed by a 14-year combined construction and long-term debt facility of USD 1.150 billion with a syndicate of nine international banks and by USD 240.0 million from the equity joint venture, consisting of BW Offshore (51 per cent) and ICMK Offshore Investment Pte Ltd (a 50:50 JV of ITOCHU Corporation and a subsidiary of Meiji Shipping Co Ltd) (25 per cent) and Macquarie Bank Limited (24 per cent). In addition, approximately USD 1 billion in pre-payments will be paid by the Barossa Upstream Joint Venture Partners during the construction period. These pre-payments are linked to progress and milestones of the project. By end of 2025, a total of USD 1 118.0 million had been received as per plan, USD 240.0 million was injected in total by equity partners and USD 1 150.0 million was drawn under the loan facility.
The Group monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term.
The refinancing of the USD 220 million Corporate Facility in 2025, cashflows from continuing operations and sale of BW Energy shares in January 2024 are sufficient to fulfil short-term financial obligations. Production from BW Catcher throughout 2025 has been a significant contributor to the cash flow of the Group together with Pioneer, BW Adolo, in addition to the divestments of non-core assets. BW Opal is expected to reach practical completion in Q2 2026, triggering 100 per cent of the contractual day-rates under the charter. The Group expects that the fleet will continue to generate significant cashflow in the time ahead, supported by the firm contract backlog.
The following table sets out the maturity profile of the Group\u2019s financial liabilities based on contractual undiscounted payments. When counterparties have a choice of when to settle an amount, the liability is included based on the earliest date of which the counterparty can require settlement.
Maturity profile \u2013 financial liabilities, Year ended 2025
USD MILLION | Carrying amount | Q1 26 | Q2 26 | Q3 26 | Q4 26 | 2026 | 2027\u20132030 | 2031 and beyond | Total |
USD 220 million Corporate Facility | (1.0) | - | - | - | - | - | - | - | - |
USD 200 million Catcher Facility | 84.8 | 14.3 | 14.3 | 14.3 | 14.3 | 57.2 | 28.4 | - | 85.6 |
BWO06 - NOK 1\u00a0000 million bond\u200c1 | 98.8 | - | - | - | - | - | 93.1 | - | 93.1 |
Other facilities | 0.9 | 0.5 | 0.4 | - | - | 0.9 | - | - | 0.9 |
Finance liability related to BW Opal lease | 1\u00a0426.2 | 10.1 | 0.2 | 23.7 | 14.1 | 48.1 | 266.6 | 1\u00a0111.5 | 1 426.2 |
Interest rate swaps\u200c2 | (7.9) | (0.9) | (0.9) | (0.2) | (0.2) | (2.1) | (1.0) | - | (3.1) |
Interest payments | 2.1 | 4.2 | 3.9 | 3.7 | 3.5 | 15.2 | 20.2 | - | 35.4 |
Lease liabilities | 18.3 | 1.5 | 1.5 | 1.5 | 1.5 | 6.0 | 13.7 | 0.2 | 19.9 |
Trade and other payable current | 179.3 | 57.7 | 40.6 | 40.5 | 40.5 | 179.3 | - | - | 179.3 |
Total | 1\u00a0801.5 | 87.4 | 60.0 | 83.5 | 73.7 | 304.6 | 421.0 | 1 111.7 | 1 837.3 |
1The cash flow presented reflects swapped USD/NOK rate.
2Interest rate swaps are positive
Maturity profile \u2013 financial liabilities, Year ended 2024
USD MILLION | Carrying amount | Q1 25 | Q2 25 | Q3 25 | Q4 25 | 2025 | 2026\u20132029 | 2030 and beyond | Total |
USD 295 million Corporate Facility | (2.0) | - | - | - | - | - | - | - | - |
USD 200 million Catcher Facility | 141.4 | 14.3 | 14.3 | 14.3 | 14.3 | 57.2 | 85.6 | - | 142.8 |
BWO06 - NOK 1\u00a0000 million bond\u200c1 | 87.1 | - | - | - | - | - | 93.1 | - | 93.1 |
Other facilities | 4.9 | 0.4 | 0.4 | 0.4 | 0.4 | 1.6 | 3.3 | - | 4.9 |
Finance liability related to BW Opal lease | 1\u00a0347.4 | - | - | 23.5 | 21.7 | 45.2 | 232.2 | 1\u00a0070.0 | 1\u00a0347.4 |
Interest rate swaps\u200c2 | (17.9) | (2.7) | (2.7) | (2.7) | (2.7) | (10.8) | (29.7) | (0.5) | (41.0) |
Interest payments | 2.7 | 5.2 | 4.7 | 4.5 | 4.3 | 18.7 | 32.4 | - | 51.1 |
Lease liabilities | 19.3 | 1.3 | 1.3 | 1.3 | 1.3 | 5.2 | 16.1 | 0.3 | 21.6 |
Trade and other payable current | 137.6 | 44.8 | 30.9 | 30.9 | 30.9 | 137.6 | - | - | 137.6 |
Total | 1\u00a0720.5 | 63.3 | 48.9 | 72.2 | 70.2 | 254.7 | 433.0 | 1\u00a0069.8 | 1\u00a0757.5 |
1The cash flow presented reflects swapped USD/NOK rate.
2Interest rate swaps are positive
The Group has the following undrawn borrowing facilities:
USD MILLION | 2025 | 2024 |
Expire within one year | 33.9 | 147.5 |
Expire beyond one year | 186.1 | 86.3 |
Fair values
IFRS 13 requires disclosures of fair value measurements by the following hierarchy:
\u2022Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
\u2022Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2)
\u2022Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)
The fair value of the Group\u2019s currency forward hedges (plain vanilla hedges) is determined using forward exchange rates at the balance sheet date, with the resulting value discounted to present value (level 2). This is presented on separate lines in the statement of financial position.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2).
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
31 December 2025 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 2.3 | - | - | 2.3 | - | 2.3 | - | 2.3 | |
Cross Currency swaps used for hedging | 6.4 | - | - | 6.4 | - | 6.4 | - | 6.4 | |
8.7 | - | - | 8.7 | - | 8.7 | - | 8.7 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 113.6 | - | 113.6 | - | - | - | - | |
Cash and cash equivalents | - | 395.2 | - | 395.2 | - | - | - | - | |
Other non-current assets | - | 9.2 | - | 9.2 | - | - | - | - | |
- | 518.0 | - | 518.0 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.9) | - | - | (0.9) | - | (0.9) | - | (0.9) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0426.2) | (1\u00a0426.2) | - | (1\u00a0426.2) | - | (1\u00a0426.2) | |
Liability for cash settled share based payments\u200c1 | - | - | (6.6) | (6.6) | - | (6.6) | - | (6.6) | |
(0.9) | - | (1\u00a0432.8) | (1\u00a0433.7) | - | (1\u00a0433.7) | - | (1\u00a0433.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (84.7) | (84.7) | - | - | (85.6) | (85.6) | |
Unsecured bond issues | - | - | (98.8) | (98.8) | - | (99.4) | - | (99.4) | |
Other non-current liabilities\u200c1 | - | - | (1\u00a0150.9) | (1\u00a0150.9) | - | - | - | - | |
Trade and other payables | - | - | (179.3) | (179.3) | - | - | - | - | |
Lease liabilities | - | - | (18.3) | (18.3) | - | - | - | - | |
- | - | (1\u00a0532.0) | (1\u00a0532.0) | - | (99.4) | (85.6) | (185.0) |
1Cash settled share options liability is included within other non-current liabilities in the consolidated statement of financial position
31 December 2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | |
25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 169.7 | - | 169.7 | - | - | - | - | |
Cash and cash equivalents | - | 305.8 | - | 305.8 | - | - | - | - | |
Other non-current assets | - | 8.0 | - | 8.0 | - | - | - | - | |
- | 483.5 | - | 483.5 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.6) | - | - | (0.6) | - | (0.6) | - | (0.6) | |
Cross Currency swaps used for hedging | (6.7) | - | - | (6.7) | - | (6.7) | - | (6.7) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0347.4) | (1\u00a0347.4) | - | (1\u00a0347.4) | - | (1\u00a0347.4) | |
(7.3) | - | (1\u00a0347.4) | (1\u00a0354.7) | - | (1\u00a0354.7) | - | (1\u00a0354.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (144.3) | (144.3) | - | - | (142.8) | (142.8) | |
Unsecured bond issues | - | - | (87.1) | (87.1) | - | (98.1) | - | (98.1) | |
Other non-current liabilities | - | - | (1\u00a0029.7) | (1\u00a0029.7) | - | - | - | - | |
Trade and other payables | - | - | (137.6) | (137.6) | - | - | - | - | |
Lease liabilities | - | - | (19.3) | (19.3) | - | - | - | - | |
- | - | (1\u00a0418.0) | (1\u00a0418.0) | - | (98.1) | (142.8) | (240.9) |
Capital structure and equity
The primary focus of the Group\u2019s financial strategy is to ensure a healthy capital structure to support its business, fulfil all financial obligations and maximise shareholder value.
The Group monitors and manages its capital structure in light of changes in the economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payments to its shareholders, return capital to shareholders or issue new shares.
Construction and conversion projects will normally be funded through current loan facilities and/or specific project loan facilities equalling 70\u201380 per cent of the cost of the project. Project loan facilities can be established either before a contract for the conversion project is signed, during the conversion phase of a project or when the FPSO commences operation.
The Group has also issued bonds in NOK and will consider continuing to do so when the market is attractive and if it provides competitive funding as an alternative to traditional bank financing.
The Company has no specific targeted equity ratio. However, the loan facilities of the Group have certain covenants related to equity and equity ratio, both closely monitored by the Company (reference to Note 14).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__93": { "value": "Note 16\tFinancial instruments \u2013 fair values and risk management
Accounitng policies
Financial assets
The Group\u2019s financial assets are derivatives, trade and financial lease receivables and cash and cash equivalents.
The Group classifies its financial assets in two categories:
\u2022Financial assets at amortised cost. Refer to accounting policies in Note 8.
\u2022Financial assets at fair value through profit or loss (FVTPL).
Financial assets at fair value through profit or loss
Derivatives at fair value are carried in the statement of financial position at fair value with net changes in fair value through the profit or loss. The category includes foreign exchange contracts and interest rate swaps.
Financial liabilities
Financial liabilities are classified as measured at amortised cost except for financial liabilities held for trading or designated at fair value through profit or loss (FVTPL). Refer to accounting policies in Note15.
The Group\u2019s financial liabilities at FVTPL is Derivative liabilities. Derivatives are financial liabilities when the fair value is negative, accounted for similarly as derivative assets.
Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are initially measured at fair value and changes are generally recognised in profit and loss unless the derivative is designated in a hedging relationship.
The Group\u2019s finance function has the responsibility for financing, treasury management and financial risk management.
Financial risk factors
Its activities expose the Group to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk, liquidity risk and climate risk (refer to Note 23).
The Group\u2019s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group\u2019s financial performance. A finance management team led by the Chief Financial Officer identifies and evaluates financial risks in close co-operation with the Group\u2019s operating units. The finance management team\u2019s activities are governed by policies approved by the Board of Directors for overall risk management, as well as policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk and investing excess liquidity. The finance management team report to the Group\u2019s Senior Management team, the Audit Committee and the Board of Directors on the status of activities on a regular basis.
The Group observes a trend of capital being reallocated from hydrocarbons towards electrification and low carbon emission energy projects. The effect is an increasing cost of capital for the oil and gas sector. However, the Group has been successful in financing projects by keeping an open dialogue on ESG performance with key lenders and partners. The Group is committed to contributing to the energy transition by developing clean energy production solutions as part of its strategy, applying its offshore engineering and operations capabilities to drive future value creation.
The Group does not use financial instruments, including financial derivatives, for trading purposes.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, and will affect the Group\u2019s income or the value of its holding of financial instruments. The Group has international operations and therefore a combination of natural and financial hedging. The Group uses derivatives like FX forwards and interest rate swaps to manage market risk.
Foreign currency risk
The functional currency of the Company and most of its subsidiaries is USD. In general, most operating revenues and a significant portion of operating expenses as well as most interest-bearing debt are denominated in USD. The Group is exposed to expenses and investments incurred in currencies other than USD (\u2018foreign currencies\u2019); the major currencies being Norwegian Kroner (\u2018NOK\u2019), Singapore Dollars (\u2018SGD\u2019), Euro (\u2018EUR\u2019) and British Pounds (\u2018GBP\u2019). Operating expenses denominated in NOK, SGD, GBP and EUR constitute a part of the Group\u2019s total operating expenses. Capital expenditures related to construction projects, repair and upgrade activities on FPSOs would also to some extent be denominated in other currencies than USD. Consequently, fluctuations in the exchange rate on NOK, SGD, GBP, and EUR may have significant impact on the financial statements of the Group.
The Group enters into forward contracts to reduce the exchange rate risk on cash flows nominated in foreign currencies, both related to construction projects and to operating and administrative expenses. The Group does not apply hedge accounting for hedging of its operational and administrative expenses in foreign currencies and the changes in valuation are taken over the profit and
loss statement. The exchange rate risk is calculated for each foreign currency and takes into account assets and liabilities, liabilities not recognised in the balance sheet and expected purchases and sales in the currency in question. Currency hedges and other currency effects include changes in fair value of currency hedges, effects of settlement of these hedges, and other currency effects related to operating cash flows.
The Group had no foreign currency contracts at 31 December 2025.
The Group is exposed to foreign currency risk on bonds issued in NOK. The foreign currency exposure of BWO06 is hedged through cross-currency swaps with a nominal value of USD 93.1 million. The market value of the cross-currency swaps was positive by USD 6.4 million at 31 December 2025 (negative USD 6.7 million).
Interest rate risk
The Group is exposed to interest rate risk through its funding activities. Most of the Group\u2019s interest-bearing debt has floating interest rate conditions, making the Group subject
to influence of changes in the market rates. The Group aims to hedge at least 50 per cent of its interest rate exposure.
As of 31 December 2025, the Group\u2019s floating rate debt amounted to USD 185.5 million (USD 230.8 million).
The Group holds interest rate swaps with a nominal value of USD 243.1 million with maturity during 2026\u20132028. The weighted average interest swap rate was 2.8 per cent on 31 December 2025. The swaps are held to hedge the quarterly cash flows from floating rate interest payments on the Corporate Facility, the Catcher facility and BWO06. The market value of the interest swaps was positive by USD 1.5 million on 31 December 2025 (2024: positive USD 24.6 million) and the changes in fair value have been recognised as a fair value gain on financial instruments.
A reasonable possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown in the table below. The analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Profit or loss | Equity, net of tax | |||
USD MILLION | 100 bp increase | 100 bp decrease | 100 bp increase | 100 bp decrease |
31 December 2025 | ||||
Debt | (1.8) | 1.8 | (1.8) | 1.8 |
Interest rate swaps | 2.4 | (2.4) | 2.4 | (2.4) |
Cash flow sensitivity | 0.6 | (0.6) | 0.6 | (0.6) |
31 December 2024 | ||||
Debt | (2.3) | 2.3 | (2.3) | 2.3 |
Interest rate swaps | 3.9 | (3.9) | 3.9 | (3.9) |
Cash flow sensitivity | 1.6 | (1.6) | 1.6 | (1.6) |
Credit risk
Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations.
Loans, credit facilities, financial guarantees and derivatives are only conducted with approved counterparties and predominantly with investment grade financial institutions, and are governed by standard agreements (ISDA, Nordic Trustee and LMA documentation). The Group has policies in place limiting the amount of credit exposure against any financial institution. The maximum risk exposure is represented by the carrying amount of the financial assets in the balance sheet except for financial guarantees.
The Group assesses the credit quality of its customers on a regular basis, considering their financial position, credit ratings from international credit rating agencies if available, experience and other factors. New projects and clients will similarly be assessed by reviewing financial statements and external credit ratings, in addition to country-risk, which will be evaluated in relation to potential financing and legal impact of agreements. Parent company guarantees are negotiated with customers and the Group will normally have contractual clauses to prevent a customer from novating the lease contract to counterparts with credit rating lower than investment grade (or comparable proxy), without consent. Given the limited number of major customers of the Group and the significant portion these represent to the Group\u2019s revenue, the inability of one or more of them to make full payment on any of the Group\u2019s contracted units may have a significant adverse impact on the financial position.
As most of the Group\u2019s portfolio is with financially solid counterparties, the Group believes that the credit risk related to counterparties is at an acceptable level.
Overdue trade receivables were USD 5.9 million at the end of 2025. Overdue trade receivables were USD 44.2 million at the end of 2024. The overdue trade receivable in 2024 included outstanding balance towards Petro Rio Explora\u00e7\u00e3o e Produ\u00e7\u00e3o de Petr\u00f3leo Ltda. Refer to Note 21for further information.
The Group is also exposed to certain credit risk related to agreements entered into with suppliers such as yards used for construction projects. The Group manages its exposure to such risks through a thorough evaluation of the counterparty\u2019s financial position, external credit rating if available, and its backlog and ability to deliver on time, and subsequently by continuous monitoring of larger counterparties.
The Group regards its maximum credit risk exposure to the carrying amount of trade receivables (refer to Note 8) and other current assets.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions in order to meet obligations of finance liabilities when they become due. Due to the dynamic nature of the underlying businesses, the Group maintains sufficient cash for its daily operations and its investment programme via short-term cash deposits at banks and a commitment to make available funds from the unutilised portion of revolving facilities offered by financial institutions to the Group.
In 2021, the Group completed the debt financing and the equity joint venture partnership for the Barossa project. The Barossa project is financed by a 14-year combined construction and long-term debt facility of USD 1.150 billion with a syndicate of nine international banks and by USD 240.0 million from the equity joint venture, consisting of BW Offshore (51 per cent) and ICMK Offshore Investment Pte Ltd (a 50:50 JV of ITOCHU Corporation and a subsidiary of Meiji Shipping Co Ltd) (25 per cent) and Macquarie Bank Limited (24 per cent). In addition, approximately USD 1 billion in pre-payments will be paid by the Barossa Upstream Joint Venture Partners during the construction period. These pre-payments are linked to progress and milestones of the project. By end of 2025, a total of USD 1 118.0 million had been received as per plan, USD 240.0 million was injected in total by equity partners and USD 1 150.0 million was drawn under the loan facility.
The Group monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term.
The refinancing of the USD 220 million Corporate Facility in 2025, cashflows from continuing operations and sale of BW Energy shares in January 2024 are sufficient to fulfil short-term financial obligations. Production from BW Catcher throughout 2025 has been a significant contributor to the cash flow of the Group together with Pioneer, BW Adolo, in addition to the divestments of non-core assets. BW Opal is expected to reach practical completion in Q2 2026, triggering 100 per cent of the contractual day-rates under the charter. The Group expects that the fleet will continue to generate significant cashflow in the time ahead, supported by the firm contract backlog.
The following table sets out the maturity profile of the Group\u2019s financial liabilities based on contractual undiscounted payments. When counterparties have a choice of when to settle an amount, the liability is included based on the earliest date of which the counterparty can require settlement.
Maturity profile \u2013 financial liabilities, Year ended 2025
USD MILLION | Carrying amount | Q1 26 | Q2 26 | Q3 26 | Q4 26 | 2026 | 2027\u20132030 | 2031 and beyond | Total |
USD 220 million Corporate Facility | (1.0) | - | - | - | - | - | - | - | - |
USD 200 million Catcher Facility | 84.8 | 14.3 | 14.3 | 14.3 | 14.3 | 57.2 | 28.4 | - | 85.6 |
BWO06 - NOK 1\u00a0000 million bond\u200c1 | 98.8 | - | - | - | - | - | 93.1 | - | 93.1 |
Other facilities | 0.9 | 0.5 | 0.4 | - | - | 0.9 | - | - | 0.9 |
Finance liability related to BW Opal lease | 1\u00a0426.2 | 10.1 | 0.2 | 23.7 | 14.1 | 48.1 | 266.6 | 1\u00a0111.5 | 1 426.2 |
Interest rate swaps\u200c2 | (7.9) | (0.9) | (0.9) | (0.2) | (0.2) | (2.1) | (1.0) | - | (3.1) |
Interest payments | 2.1 | 4.2 | 3.9 | 3.7 | 3.5 | 15.2 | 20.2 | - | 35.4 |
Lease liabilities | 18.3 | 1.5 | 1.5 | 1.5 | 1.5 | 6.0 | 13.7 | 0.2 | 19.9 |
Trade and other payable current | 179.3 | 57.7 | 40.6 | 40.5 | 40.5 | 179.3 | - | - | 179.3 |
Total | 1\u00a0801.5 | 87.4 | 60.0 | 83.5 | 73.7 | 304.6 | 421.0 | 1 111.7 | 1 837.3 |
1The cash flow presented reflects swapped USD/NOK rate.
2Interest rate swaps are positive
Maturity profile \u2013 financial liabilities, Year ended 2024
USD MILLION | Carrying amount | Q1 25 | Q2 25 | Q3 25 | Q4 25 | 2025 | 2026\u20132029 | 2030 and beyond | Total |
USD 295 million Corporate Facility | (2.0) | - | - | - | - | - | - | - | - |
USD 200 million Catcher Facility | 141.4 | 14.3 | 14.3 | 14.3 | 14.3 | 57.2 | 85.6 | - | 142.8 |
BWO06 - NOK 1\u00a0000 million bond\u200c1 | 87.1 | - | - | - | - | - | 93.1 | - | 93.1 |
Other facilities | 4.9 | 0.4 | 0.4 | 0.4 | 0.4 | 1.6 | 3.3 | - | 4.9 |
Finance liability related to BW Opal lease | 1\u00a0347.4 | - | - | 23.5 | 21.7 | 45.2 | 232.2 | 1\u00a0070.0 | 1\u00a0347.4 |
Interest rate swaps\u200c2 | (17.9) | (2.7) | (2.7) | (2.7) | (2.7) | (10.8) | (29.7) | (0.5) | (41.0) |
Interest payments | 2.7 | 5.2 | 4.7 | 4.5 | 4.3 | 18.7 | 32.4 | - | 51.1 |
Lease liabilities | 19.3 | 1.3 | 1.3 | 1.3 | 1.3 | 5.2 | 16.1 | 0.3 | 21.6 |
Trade and other payable current | 137.6 | 44.8 | 30.9 | 30.9 | 30.9 | 137.6 | - | - | 137.6 |
Total | 1\u00a0720.5 | 63.3 | 48.9 | 72.2 | 70.2 | 254.7 | 433.0 | 1\u00a0069.8 | 1\u00a0757.5 |
1The cash flow presented reflects swapped USD/NOK rate.
2Interest rate swaps are positive
The Group has the following undrawn borrowing facilities:
USD MILLION | 2025 | 2024 |
Expire within one year | 33.9 | 147.5 |
Expire beyond one year | 186.1 | 86.3 |
Fair values
IFRS 13 requires disclosures of fair value measurements by the following hierarchy:
\u2022Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
\u2022Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2)
\u2022Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)
The fair value of the Group\u2019s currency forward hedges (plain vanilla hedges) is determined using forward exchange rates at the balance sheet date, with the resulting value discounted to present value (level 2). This is presented on separate lines in the statement of financial position.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2).
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
31 December 2025 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 2.3 | - | - | 2.3 | - | 2.3 | - | 2.3 | |
Cross Currency swaps used for hedging | 6.4 | - | - | 6.4 | - | 6.4 | - | 6.4 | |
8.7 | - | - | 8.7 | - | 8.7 | - | 8.7 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 113.6 | - | 113.6 | - | - | - | - | |
Cash and cash equivalents | - | 395.2 | - | 395.2 | - | - | - | - | |
Other non-current assets | - | 9.2 | - | 9.2 | - | - | - | - | |
- | 518.0 | - | 518.0 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.9) | - | - | (0.9) | - | (0.9) | - | (0.9) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0426.2) | (1\u00a0426.2) | - | (1\u00a0426.2) | - | (1\u00a0426.2) | |
Liability for cash settled share based payments\u200c1 | - | - | (6.6) | (6.6) | - | (6.6) | - | (6.6) | |
(0.9) | - | (1\u00a0432.8) | (1\u00a0433.7) | - | (1\u00a0433.7) | - | (1\u00a0433.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (84.7) | (84.7) | - | - | (85.6) | (85.6) | |
Unsecured bond issues | - | - | (98.8) | (98.8) | - | (99.4) | - | (99.4) | |
Other non-current liabilities\u200c1 | - | - | (1\u00a0150.9) | (1\u00a0150.9) | - | - | - | - | |
Trade and other payables | - | - | (179.3) | (179.3) | - | - | - | - | |
Lease liabilities | - | - | (18.3) | (18.3) | - | - | - | - | |
- | - | (1\u00a0532.0) | (1\u00a0532.0) | - | (99.4) | (85.6) | (185.0) |
1Cash settled share options liability is included within other non-current liabilities in the consolidated statement of financial position
31 December 2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | |
25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 169.7 | - | 169.7 | - | - | - | - | |
Cash and cash equivalents | - | 305.8 | - | 305.8 | - | - | - | - | |
Other non-current assets | - | 8.0 | - | 8.0 | - | - | - | - | |
- | 483.5 | - | 483.5 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.6) | - | - | (0.6) | - | (0.6) | - | (0.6) | |
Cross Currency swaps used for hedging | (6.7) | - | - | (6.7) | - | (6.7) | - | (6.7) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0347.4) | (1\u00a0347.4) | - | (1\u00a0347.4) | - | (1\u00a0347.4) | |
(7.3) | - | (1\u00a0347.4) | (1\u00a0354.7) | - | (1\u00a0354.7) | - | (1\u00a0354.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (144.3) | (144.3) | - | - | (142.8) | (142.8) | |
Unsecured bond issues | - | - | (87.1) | (87.1) | - | (98.1) | - | (98.1) | |
Other non-current liabilities | - | - | (1\u00a0029.7) | (1\u00a0029.7) | - | - | - | - | |
Trade and other payables | - | - | (137.6) | (137.6) | - | - | - | - | |
Lease liabilities | - | - | (19.3) | (19.3) | - | - | - | - | |
- | - | (1\u00a0418.0) | (1\u00a0418.0) | - | (98.1) | (142.8) | (240.9) |
Capital structure and equity
The primary focus of the Group\u2019s financial strategy is to ensure a healthy capital structure to support its business, fulfil all financial obligations and maximise shareholder value.
The Group monitors and manages its capital structure in light of changes in the economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payments to its shareholders, return capital to shareholders or issue new shares.
Construction and conversion projects will normally be funded through current loan facilities and/or specific project loan facilities equalling 70\u201380 per cent of the cost of the project. Project loan facilities can be established either before a contract for the conversion project is signed, during the conversion phase of a project or when the FPSO commences operation.
The Group has also issued bonds in NOK and will consider continuing to do so when the market is attractive and if it provides competitive funding as an alternative to traditional bank financing.
The Company has no specific targeted equity ratio. However, the loan facilities of the Group have certain covenants related to equity and equity ratio, both closely monitored by the Company (reference to Note 14).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__94": { "value": "Accounitng policies
Financial assets
The Group\u2019s financial assets are derivatives, trade and financial lease receivables and cash and cash equivalents.
The Group classifies its financial assets in two categories:
\u2022Financial assets at amortised cost. Refer to accounting policies in Note 8.
\u2022Financial assets at fair value through profit or loss (FVTPL).
Financial assets at fair value through profit or loss
Derivatives at fair value are carried in the statement of financial position at fair value with net changes in fair value through the profit or loss. The category includes foreign exchange contracts and interest rate swaps.
Financial liabilities
Financial liabilities are classified as measured at amortised cost except for financial liabilities held for trading or designated at fair value through profit or loss (FVTPL). Refer to accounting policies in Note15.
The Group\u2019s financial liabilities at FVTPL is Derivative liabilities. Derivatives are financial liabilities when the fair value is negative, accounted for similarly as derivative assets.
Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are initially measured at fair value and changes are generally recognised in profit and loss unless the derivative is designated in a hedging relationship.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__96": { "value": "Financial assets
The Group\u2019s financial assets are derivatives, trade and financial lease receivables and cash and cash equivalents.
The Group classifies its financial assets in two categories:
\u2022Financial assets at amortised cost. Refer to accounting policies in Note 8.
\u2022Financial assets at fair value through profit or loss (FVTPL).
Financial assets at fair value through profit or loss
Derivatives at fair value are carried in the statement of financial position at fair value with net changes in fair value through the profit or loss. The category includes foreign exchange contracts and interest rate swaps.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__98": { "value": "Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are initially measured at fair value and changes are generally recognised in profit and loss unless the derivative is designated in a hedging relationship.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__99": { "value": "Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are initially measured at fair value and changes are generally recognised in profit and loss unless the derivative is designated in a hedging relationship.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__100": { "value": "Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are initially measured at fair value and changes are generally recognised in profit and loss unless the derivative is designated in a hedging relationship.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__103": { "value": "Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, and will affect the Group\u2019s income or the value of its holding of financial instruments. The Group has international operations and therefore a combination of natural and financial hedging. The Group uses derivatives like FX forwards and interest rate swaps to manage market risk.
Foreign currency risk
The functional currency of the Company and most of its subsidiaries is USD. In general, most operating revenues and a significant portion of operating expenses as well as most interest-bearing debt are denominated in USD. The Group is exposed to expenses and investments incurred in currencies other than USD (\u2018foreign currencies\u2019); the major currencies being Norwegian Kroner (\u2018NOK\u2019), Singapore Dollars (\u2018SGD\u2019), Euro (\u2018EUR\u2019) and British Pounds (\u2018GBP\u2019). Operating expenses denominated in NOK, SGD, GBP and EUR constitute a part of the Group\u2019s total operating expenses. Capital expenditures related to construction projects, repair and upgrade activities on FPSOs would also to some extent be denominated in other currencies than USD. Consequently, fluctuations in the exchange rate on NOK, SGD, GBP, and EUR may have significant impact on the financial statements of the Group.
The Group enters into forward contracts to reduce the exchange rate risk on cash flows nominated in foreign currencies, both related to construction projects and to operating and administrative expenses. The Group does not apply hedge accounting for hedging of its operational and administrative expenses in foreign currencies and the changes in valuation are taken over the profit and
loss statement. The exchange rate risk is calculated for each foreign currency and takes into account assets and liabilities, liabilities not recognised in the balance sheet and expected purchases and sales in the currency in question. Currency hedges and other currency effects include changes in fair value of currency hedges, effects of settlement of these hedges, and other currency effects related to operating cash flows.
The Group had no foreign currency contracts at 31 December 2025.
The Group is exposed to foreign currency risk on bonds issued in NOK. The foreign currency exposure of BWO06 is hedged through cross-currency swaps with a nominal value of USD 93.1 million. The market value of the cross-currency swaps was positive by USD 6.4 million at 31 December 2025 (negative USD 6.7 million).
Interest rate risk
The Group is exposed to interest rate risk through its funding activities. Most of the Group\u2019s interest-bearing debt has floating interest rate conditions, making the Group subject
to influence of changes in the market rates. The Group aims to hedge at least 50 per cent of its interest rate exposure.
As of 31 December 2025, the Group\u2019s floating rate debt amounted to USD 185.5 million (USD 230.8 million).
The Group holds interest rate swaps with a nominal value of USD 243.1 million with maturity during 2026\u20132028. The weighted average interest swap rate was 2.8 per cent on 31 December 2025. The swaps are held to hedge the quarterly cash flows from floating rate interest payments on the Corporate Facility, the Catcher facility and BWO06. The market value of the interest swaps was positive by USD 1.5 million on 31 December 2025 (2024: positive USD 24.6 million) and the changes in fair value have been recognised as a fair value gain on financial instruments.
A reasonable possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown in the table below. The analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Profit or loss | Equity, net of tax | |||
USD MILLION | 100 bp increase | 100 bp decrease | 100 bp increase | 100 bp decrease |
31 December 2025 | ||||
Debt | (1.8) | 1.8 | (1.8) | 1.8 |
Interest rate swaps | 2.4 | (2.4) | 2.4 | (2.4) |
Cash flow sensitivity | 0.6 | (0.6) | 0.6 | (0.6) |
31 December 2024 | ||||
Debt | (2.3) | 2.3 | (2.3) | 2.3 |
Interest rate swaps | 3.9 | (3.9) | 3.9 | (3.9) |
Cash flow sensitivity | 1.6 | (1.6) | 1.6 | (1.6) |
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, and will affect the Group\u2019s income or the value of its holding of financial instruments. The Group has international operations and therefore a combination of natural and financial hedging. The Group uses derivatives like FX forwards and interest rate swaps to manage market risk.
Foreign currency risk
The functional currency of the Company and most of its subsidiaries is USD. In general, most operating revenues and a significant portion of operating expenses as well as most interest-bearing debt are denominated in USD. The Group is exposed to expenses and investments incurred in currencies other than USD (\u2018foreign currencies\u2019); the major currencies being Norwegian Kroner (\u2018NOK\u2019), Singapore Dollars (\u2018SGD\u2019), Euro (\u2018EUR\u2019) and British Pounds (\u2018GBP\u2019). Operating expenses denominated in NOK, SGD, GBP and EUR constitute a part of the Group\u2019s total operating expenses. Capital expenditures related to construction projects, repair and upgrade activities on FPSOs would also to some extent be denominated in other currencies than USD. Consequently, fluctuations in the exchange rate on NOK, SGD, GBP, and EUR may have significant impact on the financial statements of the Group.
The Group enters into forward contracts to reduce the exchange rate risk on cash flows nominated in foreign currencies, both related to construction projects and to operating and administrative expenses. The Group does not apply hedge accounting for hedging of its operational and administrative expenses in foreign currencies and the changes in valuation are taken over the profit and
loss statement. The exchange rate risk is calculated for each foreign currency and takes into account assets and liabilities, liabilities not recognised in the balance sheet and expected purchases and sales in the currency in question. Currency hedges and other currency effects include changes in fair value of currency hedges, effects of settlement of these hedges, and other currency effects related to operating cash flows.
The Group had no foreign currency contracts at 31 December 2025.
The Group is exposed to foreign currency risk on bonds issued in NOK. The foreign currency exposure of BWO06 is hedged through cross-currency swaps with a nominal value of USD 93.1 million. The market value of the cross-currency swaps was positive by USD 6.4 million at 31 December 2025 (negative USD 6.7 million).
Interest rate risk
The Group is exposed to interest rate risk through its funding activities. Most of the Group\u2019s interest-bearing debt has floating interest rate conditions, making the Group subject
to influence of changes in the market rates. The Group aims to hedge at least 50 per cent of its interest rate exposure.
As of 31 December 2025, the Group\u2019s floating rate debt amounted to USD 185.5 million (USD 230.8 million).
The Group holds interest rate swaps with a nominal value of USD 243.1 million with maturity during 2026\u20132028. The weighted average interest swap rate was 2.8 per cent on 31 December 2025. The swaps are held to hedge the quarterly cash flows from floating rate interest payments on the Corporate Facility, the Catcher facility and BWO06. The market value of the interest swaps was positive by USD 1.5 million on 31 December 2025 (2024: positive USD 24.6 million) and the changes in fair value have been recognised as a fair value gain on financial instruments.
A reasonable possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown in the table below. The analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Profit or loss | Equity, net of tax | |||
USD MILLION | 100 bp increase | 100 bp decrease | 100 bp increase | 100 bp decrease |
31 December 2025 | ||||
Debt | (1.8) | 1.8 | (1.8) | 1.8 |
Interest rate swaps | 2.4 | (2.4) | 2.4 | (2.4) |
Cash flow sensitivity | 0.6 | (0.6) | 0.6 | (0.6) |
31 December 2024 | ||||
Debt | (2.3) | 2.3 | (2.3) | 2.3 |
Interest rate swaps | 3.9 | (3.9) | 3.9 | (3.9) |
Cash flow sensitivity | 1.6 | (1.6) | 1.6 | (1.6) |
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, and will affect the Group\u2019s income or the value of its holding of financial instruments. The Group has international operations and therefore a combination of natural and financial hedging. The Group uses derivatives like FX forwards and interest rate swaps to manage market risk.
Foreign currency risk
The functional currency of the Company and most of its subsidiaries is USD. In general, most operating revenues and a significant portion of operating expenses as well as most interest-bearing debt are denominated in USD. The Group is exposed to expenses and investments incurred in currencies other than USD (\u2018foreign currencies\u2019); the major currencies being Norwegian Kroner (\u2018NOK\u2019), Singapore Dollars (\u2018SGD\u2019), Euro (\u2018EUR\u2019) and British Pounds (\u2018GBP\u2019). Operating expenses denominated in NOK, SGD, GBP and EUR constitute a part of the Group\u2019s total operating expenses. Capital expenditures related to construction projects, repair and upgrade activities on FPSOs would also to some extent be denominated in other currencies than USD. Consequently, fluctuations in the exchange rate on NOK, SGD, GBP, and EUR may have significant impact on the financial statements of the Group.
The Group enters into forward contracts to reduce the exchange rate risk on cash flows nominated in foreign currencies, both related to construction projects and to operating and administrative expenses. The Group does not apply hedge accounting for hedging of its operational and administrative expenses in foreign currencies and the changes in valuation are taken over the profit and
loss statement. The exchange rate risk is calculated for each foreign currency and takes into account assets and liabilities, liabilities not recognised in the balance sheet and expected purchases and sales in the currency in question. Currency hedges and other currency effects include changes in fair value of currency hedges, effects of settlement of these hedges, and other currency effects related to operating cash flows.
The Group had no foreign currency contracts at 31 December 2025.
The Group is exposed to foreign currency risk on bonds issued in NOK. The foreign currency exposure of BWO06 is hedged through cross-currency swaps with a nominal value of USD 93.1 million. The market value of the cross-currency swaps was positive by USD 6.4 million at 31 December 2025 (negative USD 6.7 million).
Interest rate risk
The Group is exposed to interest rate risk through its funding activities. Most of the Group\u2019s interest-bearing debt has floating interest rate conditions, making the Group subject
to influence of changes in the market rates. The Group aims to hedge at least 50 per cent of its interest rate exposure.
As of 31 December 2025, the Group\u2019s floating rate debt amounted to USD 185.5 million (USD 230.8 million).
The Group holds interest rate swaps with a nominal value of USD 243.1 million with maturity during 2026\u20132028. The weighted average interest swap rate was 2.8 per cent on 31 December 2025. The swaps are held to hedge the quarterly cash flows from floating rate interest payments on the Corporate Facility, the Catcher facility and BWO06. The market value of the interest swaps was positive by USD 1.5 million on 31 December 2025 (2024: positive USD 24.6 million) and the changes in fair value have been recognised as a fair value gain on financial instruments.
A reasonable possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown in the table below. The analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Profit or loss | Equity, net of tax | |||
USD MILLION | 100 bp increase | 100 bp decrease | 100 bp increase | 100 bp decrease |
31 December 2025 | ||||
Debt | (1.8) | 1.8 | (1.8) | 1.8 |
Interest rate swaps | 2.4 | (2.4) | 2.4 | (2.4) |
Cash flow sensitivity | 0.6 | (0.6) | 0.6 | (0.6) |
31 December 2024 | ||||
Debt | (2.3) | 2.3 | (2.3) | 2.3 |
Interest rate swaps | 3.9 | (3.9) | 3.9 | (3.9) |
Cash flow sensitivity | 1.6 | (1.6) | 1.6 | (1.6) |
Credit risk
Credit risk is the risk of financial losses if a customer or counterparty to financial receivables and financial instruments fails to meet contractual obligations.
Loans, credit facilities, financial guarantees and derivatives are only conducted with approved counterparties and predominantly with investment grade financial institutions, and are governed by standard agreements (ISDA, Nordic Trustee and LMA documentation). The Group has policies in place limiting the amount of credit exposure against any financial institution. The maximum risk exposure is represented by the carrying amount of the financial assets in the balance sheet except for financial guarantees.
The Group assesses the credit quality of its customers on a regular basis, considering their financial position, credit ratings from international credit rating agencies if available, experience and other factors. New projects and clients will similarly be assessed by reviewing financial statements and external credit ratings, in addition to country-risk, which will be evaluated in relation to potential financing and legal impact of agreements. Parent company guarantees are negotiated with customers and the Group will normally have contractual clauses to prevent a customer from novating the lease contract to counterparts with credit rating lower than investment grade (or comparable proxy), without consent. Given the limited number of major customers of the Group and the significant portion these represent to the Group\u2019s revenue, the inability of one or more of them to make full payment on any of the Group\u2019s contracted units may have a significant adverse impact on the financial position.
As most of the Group\u2019s portfolio is with financially solid counterparties, the Group believes that the credit risk related to counterparties is at an acceptable level.
Overdue trade receivables were USD 5.9 million at the end of 2025. Overdue trade receivables were USD 44.2 million at the end of 2024. The overdue trade receivable in 2024 included outstanding balance towards Petro Rio Explora\u00e7\u00e3o e Produ\u00e7\u00e3o de Petr\u00f3leo Ltda. Refer to Note 21for further information.
The Group is also exposed to certain credit risk related to agreements entered into with suppliers such as yards used for construction projects. The Group manages its exposure to such risks through a thorough evaluation of the counterparty\u2019s financial position, external credit rating if available, and its backlog and ability to deliver on time, and subsequently by continuous monitoring of larger counterparties.
The Group regards its maximum credit risk exposure to the carrying amount of trade receivables (refer to Note 8) and other current assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__107": { "value": "Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions in order to meet obligations of finance liabilities when they become due. Due to the dynamic nature of the underlying businesses, the Group maintains sufficient cash for its daily operations and its investment programme via short-term cash deposits at banks and a commitment to make available funds from the unutilised portion of revolving facilities offered by financial institutions to the Group.
In 2021, the Group completed the debt financing and the equity joint venture partnership for the Barossa project. The Barossa project is financed by a 14-year combined construction and long-term debt facility of USD 1.150 billion with a syndicate of nine international banks and by USD 240.0 million from the equity joint venture, consisting of BW Offshore (51 per cent) and ICMK Offshore Investment Pte Ltd (a 50:50 JV of ITOCHU Corporation and a subsidiary of Meiji Shipping Co Ltd) (25 per cent) and Macquarie Bank Limited (24 per cent). In addition, approximately USD 1 billion in pre-payments will be paid by the Barossa Upstream Joint Venture Partners during the construction period. These pre-payments are linked to progress and milestones of the project. By end of 2025, a total of USD 1 118.0 million had been received as per plan, USD 240.0 million was injected in total by equity partners and USD 1 150.0 million was drawn under the loan facility.
The Group monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term.
The refinancing of the USD 220 million Corporate Facility in 2025, cashflows from continuing operations and sale of BW Energy shares in January 2024 are sufficient to fulfil short-term financial obligations. Production from BW Catcher throughout 2025 has been a significant contributor to the cash flow of the Group together with Pioneer, BW Adolo, in addition to the divestments of non-core assets. BW Opal is expected to reach practical completion in Q2 2026, triggering 100 per cent of the contractual day-rates under the charter. The Group expects that the fleet will continue to generate significant cashflow in the time ahead, supported by the firm contract backlog.
The following table sets out the maturity profile of the Group\u2019s financial liabilities based on contractual undiscounted payments. When counterparties have a choice of when to settle an amount, the liability is included based on the earliest date of which the counterparty can require settlement.
Maturity profile \u2013 financial liabilities, Year ended 2025
USD MILLION | Carrying amount | Q1 26 | Q2 26 | Q3 26 | Q4 26 | 2026 | 2027\u20132030 | 2031 and beyond | Total |
USD 220 million Corporate Facility | (1.0) | - | - | - | - | - | - | - | - |
USD 200 million Catcher Facility | 84.8 | 14.3 | 14.3 | 14.3 | 14.3 | 57.2 | 28.4 | - | 85.6 |
BWO06 - NOK 1\u00a0000 million bond\u200c1 | 98.8 | - | - | - | - | - | 93.1 | - | 93.1 |
Other facilities | 0.9 | 0.5 | 0.4 | - | - | 0.9 | - | - | 0.9 |
Finance liability related to BW Opal lease | 1\u00a0426.2 | 10.1 | 0.2 | 23.7 | 14.1 | 48.1 | 266.6 | 1\u00a0111.5 | 1 426.2 |
Interest rate swaps\u200c2 | (7.9) | (0.9) | (0.9) | (0.2) | (0.2) | (2.1) | (1.0) | - | (3.1) |
Interest payments | 2.1 | 4.2 | 3.9 | 3.7 | 3.5 | 15.2 | 20.2 | - | 35.4 |
Lease liabilities | 18.3 | 1.5 | 1.5 | 1.5 | 1.5 | 6.0 | 13.7 | 0.2 | 19.9 |
Trade and other payable current | 179.3 | 57.7 | 40.6 | 40.5 | 40.5 | 179.3 | - | - | 179.3 |
Total | 1\u00a0801.5 | 87.4 | 60.0 | 83.5 | 73.7 | 304.6 | 421.0 | 1 111.7 | 1 837.3 |
1The cash flow presented reflects swapped USD/NOK rate.
2Interest rate swaps are positive
Maturity profile \u2013 financial liabilities, Year ended 2024
USD MILLION | Carrying amount | Q1 25 | Q2 25 | Q3 25 | Q4 25 | 2025 | 2026\u20132029 | 2030 and beyond | Total |
USD 295 million Corporate Facility | (2.0) | - | - | - | - | - | - | - | - |
USD 200 million Catcher Facility | 141.4 | 14.3 | 14.3 | 14.3 | 14.3 | 57.2 | 85.6 | - | 142.8 |
BWO06 - NOK 1\u00a0000 million bond\u200c1 | 87.1 | - | - | - | - | - | 93.1 | - | 93.1 |
Other facilities | 4.9 | 0.4 | 0.4 | 0.4 | 0.4 | 1.6 | 3.3 | - | 4.9 |
Finance liability related to BW Opal lease | 1\u00a0347.4 | - | - | 23.5 | 21.7 | 45.2 | 232.2 | 1\u00a0070.0 | 1\u00a0347.4 |
Interest rate swaps\u200c2 | (17.9) | (2.7) | (2.7) | (2.7) | (2.7) | (10.8) | (29.7) | (0.5) | (41.0) |
Interest payments | 2.7 | 5.2 | 4.7 | 4.5 | 4.3 | 18.7 | 32.4 | - | 51.1 |
Lease liabilities | 19.3 | 1.3 | 1.3 | 1.3 | 1.3 | 5.2 | 16.1 | 0.3 | 21.6 |
Trade and other payable current | 137.6 | 44.8 | 30.9 | 30.9 | 30.9 | 137.6 | - | - | 137.6 |
Total | 1\u00a0720.5 | 63.3 | 48.9 | 72.2 | 70.2 | 254.7 | 433.0 | 1\u00a0069.8 | 1\u00a0757.5 |
1The cash flow presented reflects swapped USD/NOK rate.
2Interest rate swaps are positive
The Group has the following undrawn borrowing facilities:
USD MILLION | 2025 | 2024 |
Expire within one year | 33.9 | 147.5 |
Expire beyond one year | 186.1 | 86.3 |
Fair values
IFRS 13 requires disclosures of fair value measurements by the following hierarchy:
\u2022Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
\u2022Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2)
\u2022Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)
The fair value of the Group\u2019s currency forward hedges (plain vanilla hedges) is determined using forward exchange rates at the balance sheet date, with the resulting value discounted to present value (level 2). This is presented on separate lines in the statement of financial position.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2).
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
31 December 2025 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 2.3 | - | - | 2.3 | - | 2.3 | - | 2.3 | |
Cross Currency swaps used for hedging | 6.4 | - | - | 6.4 | - | 6.4 | - | 6.4 | |
8.7 | - | - | 8.7 | - | 8.7 | - | 8.7 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 113.6 | - | 113.6 | - | - | - | - | |
Cash and cash equivalents | - | 395.2 | - | 395.2 | - | - | - | - | |
Other non-current assets | - | 9.2 | - | 9.2 | - | - | - | - | |
- | 518.0 | - | 518.0 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.9) | - | - | (0.9) | - | (0.9) | - | (0.9) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0426.2) | (1\u00a0426.2) | - | (1\u00a0426.2) | - | (1\u00a0426.2) | |
Liability for cash settled share based payments\u200c1 | - | - | (6.6) | (6.6) | - | (6.6) | - | (6.6) | |
(0.9) | - | (1\u00a0432.8) | (1\u00a0433.7) | - | (1\u00a0433.7) | - | (1\u00a0433.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (84.7) | (84.7) | - | - | (85.6) | (85.6) | |
Unsecured bond issues | - | - | (98.8) | (98.8) | - | (99.4) | - | (99.4) | |
Other non-current liabilities\u200c1 | - | - | (1\u00a0150.9) | (1\u00a0150.9) | - | - | - | - | |
Trade and other payables | - | - | (179.3) | (179.3) | - | - | - | - | |
Lease liabilities | - | - | (18.3) | (18.3) | - | - | - | - | |
- | - | (1\u00a0532.0) | (1\u00a0532.0) | - | (99.4) | (85.6) | (185.0) |
1Cash settled share options liability is included within other non-current liabilities in the consolidated statement of financial position
31 December 2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | |
25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 169.7 | - | 169.7 | - | - | - | - | |
Cash and cash equivalents | - | 305.8 | - | 305.8 | - | - | - | - | |
Other non-current assets | - | 8.0 | - | 8.0 | - | - | - | - | |
- | 483.5 | - | 483.5 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.6) | - | - | (0.6) | - | (0.6) | - | (0.6) | |
Cross Currency swaps used for hedging | (6.7) | - | - | (6.7) | - | (6.7) | - | (6.7) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0347.4) | (1\u00a0347.4) | - | (1\u00a0347.4) | - | (1\u00a0347.4) | |
(7.3) | - | (1\u00a0347.4) | (1\u00a0354.7) | - | (1\u00a0354.7) | - | (1\u00a0354.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (144.3) | (144.3) | - | - | (142.8) | (142.8) | |
Unsecured bond issues | - | - | (87.1) | (87.1) | - | (98.1) | - | (98.1) | |
Other non-current liabilities | - | - | (1\u00a0029.7) | (1\u00a0029.7) | - | - | - | - | |
Trade and other payables | - | - | (137.6) | (137.6) | - | - | - | - | |
Lease liabilities | - | - | (19.3) | (19.3) | - | - | - | - | |
- | - | (1\u00a0418.0) | (1\u00a0418.0) | - | (98.1) | (142.8) | (240.9) |
Fair values
IFRS 13 requires disclosures of fair value measurements by the following hierarchy:
\u2022Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
\u2022Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2)
\u2022Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)
The fair value of the Group\u2019s currency forward hedges (plain vanilla hedges) is determined using forward exchange rates at the balance sheet date, with the resulting value discounted to present value (level 2). This is presented on separate lines in the statement of financial position.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves (level 2).
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
31 December 2025 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 2.3 | - | - | 2.3 | - | 2.3 | - | 2.3 | |
Cross Currency swaps used for hedging | 6.4 | - | - | 6.4 | - | 6.4 | - | 6.4 | |
8.7 | - | - | 8.7 | - | 8.7 | - | 8.7 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 113.6 | - | 113.6 | - | - | - | - | |
Cash and cash equivalents | - | 395.2 | - | 395.2 | - | - | - | - | |
Other non-current assets | - | 9.2 | - | 9.2 | - | - | - | - | |
- | 518.0 | - | 518.0 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.9) | - | - | (0.9) | - | (0.9) | - | (0.9) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0426.2) | (1\u00a0426.2) | - | (1\u00a0426.2) | - | (1\u00a0426.2) | |
Liability for cash settled share based payments\u200c1 | - | - | (6.6) | (6.6) | - | (6.6) | - | (6.6) | |
(0.9) | - | (1\u00a0432.8) | (1\u00a0433.7) | - | (1\u00a0433.7) | - | (1\u00a0433.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (84.7) | (84.7) | - | - | (85.6) | (85.6) | |
Unsecured bond issues | - | - | (98.8) | (98.8) | - | (99.4) | - | (99.4) | |
Other non-current liabilities\u200c1 | - | - | (1\u00a0150.9) | (1\u00a0150.9) | - | - | - | - | |
Trade and other payables | - | - | (179.3) | (179.3) | - | - | - | - | |
Lease liabilities | - | - | (18.3) | (18.3) | - | - | - | - | |
- | - | (1\u00a0532.0) | (1\u00a0532.0) | - | (99.4) | (85.6) | (185.0) |
1Cash settled share options liability is included within other non-current liabilities in the consolidated statement of financial position
31 December 2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | Fair value \u2013 hedging instrument | Financial assets at amortised cost | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Interest rate swaps used for hedging | 25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | |
25.2 | - | - | 25.2 | - | 25.2 | - | 25.2 | ||
Financial assets not measured at fair value | |||||||||
Trade and other receivables | - | 169.7 | - | 169.7 | - | - | - | - | |
Cash and cash equivalents | - | 305.8 | - | 305.8 | - | - | - | - | |
Other non-current assets | - | 8.0 | - | 8.0 | - | - | - | - | |
- | 483.5 | - | 483.5 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Interest rate swaps used for hedging | (0.6) | - | - | (0.6) | - | (0.6) | - | (0.6) | |
Cross Currency swaps used for hedging | (6.7) | - | - | (6.7) | - | (6.7) | - | (6.7) | |
Finance liability related to BW Opal lease | - | - | (1\u00a0347.4) | (1\u00a0347.4) | - | (1\u00a0347.4) | - | (1\u00a0347.4) | |
(7.3) | - | (1\u00a0347.4) | (1\u00a0354.7) | - | (1\u00a0354.7) | - | (1\u00a0354.7) | ||
Financial liabilities not measured at fair value | |||||||||
Secured bank loans | - | - | (144.3) | (144.3) | - | - | (142.8) | (142.8) | |
Unsecured bond issues | - | - | (87.1) | (87.1) | - | (98.1) | - | (98.1) | |
Other non-current liabilities | - | - | (1\u00a0029.7) | (1\u00a0029.7) | - | - | - | - | |
Trade and other payables | - | - | (137.6) | (137.6) | - | - | - | - | |
Lease liabilities | - | - | (19.3) | (19.3) | - | - | - | - | |
- | - | (1\u00a0418.0) | (1\u00a0418.0) | - | (98.1) | (142.8) | (240.9) |
Capital structure and equity
The primary focus of the Group\u2019s financial strategy is to ensure a healthy capital structure to support its business, fulfil all financial obligations and maximise shareholder value.
The Group monitors and manages its capital structure in light of changes in the economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payments to its shareholders, return capital to shareholders or issue new shares.
Construction and conversion projects will normally be funded through current loan facilities and/or specific project loan facilities equalling 70\u201380 per cent of the cost of the project. Project loan facilities can be established either before a contract for the conversion project is signed, during the conversion phase of a project or when the FPSO commences operation.
The Group has also issued bonds in NOK and will consider continuing to do so when the market is attractive and if it provides competitive funding as an alternative to traditional bank financing.
The Company has no specific targeted equity ratio. However, the loan facilities of the Group have certain covenants related to equity and equity ratio, both closely monitored by the Company (reference to Note 14).
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__111": { "value": "Note 17\tList of subsidiaries, associates and joint ventures
Accounitng policies
Subsidiaries are legal entities (including special purpose entities) controlled by the Group. The Group \u2018controls\u2019 an entity when it is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
Ardersier3F Limited | United Kingdom | 100% | - |
Bergesen Worldwide Mexico, S.A. de C.V. | Mexico | 100% | 100% |
Bergesen Worldwide Offshore Mexico S. de RL de CV | Mexico | 100% | 100% |
BW Abo Pte Ltd | Singapore | 100% | 100% |
BW Adolo Pte Ltd | Singapore | 100% | 100% |
BW Bergesen Worldwide Pte Ltd | Singapore | 100% | 100% |
BW Catcher Limited 1 | Bermuda | 100% | 100% |
BW Espoir Ivoirien Pte Ltd | Singapore | - | 100% |
BW Ideol AS 2 | Norway | 68% | 64% |
BW Ideol Projects Company SAS 3 | France | 76% | 76% |
BW Offshore Australia Management Pty Ltd | Australia | 100% | 100% |
BW Offshore Bidco Pte Ltd | Singapore | 100% | 100% |
BW Offshore Catcher (UK) Limited | United Kingdom | 100% | 100% |
BW Offshore China Ltd | China | - | 100% |
BW Offshore Cyprus Limited | Cyprus | 100% | 100% |
BW Offshore do Brazil Ltda | Brazil | 100% | 100% |
BW Offshore do Brazil Servicos Maritimos Ltda | Brazil | 100% | 100% |
BW Offshore EPC FZCO 4 | United Arab Emirates | 90% | 90% |
BW Offshore France SAS | France | 100% | 100% |
BW Offshore (Ghana) Pte Ltd | Singapore | 100% | 100% |
BW Offshore Global Manning Pte Ltd | Singapore | 100% | 100% |
BW Offshore Holdings Pte Ltd | Singapore | 100% | 100% |
BW Offshore Management B.V. | Netherlands | 100% | 100% |
BW Offshore Netherlands B.V. | Netherlands | 100% | 100% |
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
BW Offshore Nigeria Limited | Nigeria | 100% | 49% |
BW Offshore Norway AS | Norway | 100% | 100% |
BW Offshore Poland sp z o.o. | Poland | 100% | 100% |
BW Offshore Project Management FZE | United Arab Emirates | 100% | 100% |
BW Offshore Shipholding Pte Ltd | Singapore | 100% | 100% |
BW Offshore Singapore Pte Ltd | Singapore | 100% | 100% |
BW Offshore TSB Invest Pte Ltd | Singapore | - | 100% |
BW Offshore (UK) Limited | United Kingdom | 100% | 100% |
BW Offshore USA Management LLC | USA | 100% | 100% |
BW Offshore USA, LLC | USA | 100% | 100% |
BW Offshore USA Manning, LLC | USA | 100% | - |
BW Pioneer (UK) Limited | United Kingdom | 100% | 100% |
BW Polvo Pte Ltd | Singapore | - | 100% |
BW Sendje Berge Pte Ltd | Singapore | 100% | 100% |
BWO-Premier Ghana Limited | Ghana | 70% | 70% |
FOS3F SAS | France | 100% | - |
Ideol Japan, LLC 3 | Japan | 100% | 100% |
BW Ideol SAS. 3 | France | 100% | 100% |
Ideol USA, Inc. 3 | USA | - | 100% |
Prosafe Production B.V. | Netherlands | - | 100% |
Prosafe Services Cote d\u2019Ivoire Pte Ltd | Singapore | 100% | 100% |
Tinworth France SAS | France | 100% | 100% |
Tinworth Gabon SA | Gabon | 100% | 100% |
Associates and joint ventures
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
OCS Services Limited | British Virgin Islands | 50% | 50% |
Euro Techniques Industries | France | - | 40% |
BW Offshore AUS-JV Pte Ltd 5 | Singapore | 51% | 51% |
Buchan Offshore Wind Limited | United Kingdom | 33% | 33% |
Fram Wind Solutions AS | Norway | 50% | 50% |
BW Elara Pte Ltd | Singapore | 50% | - |
1Preference shares are issued with a preferential dividend right to ICBCL. The preferential dividend is a fixed percentage of outstanding preference shares, and accordingly the result allocated to non-controlling interest is independent of underlying result in the subsidiary.
2BW Ideol was owned 100% by BW Sirocco Holdings AS of 31 December 2023. In 2024, the two companies merged and renamed to BW Ideol AS
3Owned by BW Ideol AS of 31 December 2025, ownership effectively 68% per cent.
4Macquarie Bank Limited holds 10 per cent from 2022
5Joint control due to shareholders agreements between the Group and external investors.
Accounitng policies
Subsidiaries are legal entities (including special purpose entities) controlled by the Group. The Group \u2018controls\u2019 an entity when it is exposed or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__115": { "value": "Note 18\tNon-controlling interests
Accounting policies
Non-controlling interests (NCI) are measured initially at their proportionate share of the acquiree\u2019s identifiable net assets at the date of acquisition. Changes in the Group\u2019s interest in a subsidiary that do not result in a loss of control are accounted as equity transactions.
The following table summarises the information related to the Group\u2019s subsidiaries that has material NCI (BW Ideol).
BW Ideol AS
USD MILLION | 31 Dec 2025 | 31 Dec 2024 |
NCI percentage | 31.8% | 36.0% |
Non-current assets | 130.9 | 113.4 |
Current assets | 16.1 | 10.1 |
Non-current liabilities | 20.3 | 33.0 |
Current liabilities | 5.9 | 5.9 |
Net assets (100%) | 120.8 | 84.6 |
Net assets attributable to NCI | 38.4 | 30.5 |
Revenue | 4.9 | 3.3 |
Profit/(loss) for the year | (13.2) | (16.4) |
OCI | (1.9) | 1.2 |
Total comprehensive income (100%) | (15.1) | (15.2) |
Profit allocated to NCI | (5.1) | (6.6) |
OCI allocated to NCI | (0.6) | 0.4 |
Cash flows from operating activities | (6.4) | (4.7) |
Cash flows from investing activities | (10.0) | (5.7) |
Cash flows from financing activities (dividends to NCI: nil) | 21.0 | 5.2 |
Net increase (decrease) in cash and cash equivalents (100%) | 4.6 | (5.2) |
During 2025, BW Ideol issued new capital to the group and NCI parties. In total, the investment amounted to USD 37.8 million, of which USD 10.4 million was invested by NCI parties. This resulted in a reduction of NCI\u2019s owned share from 36.0 per cent to 31.8 per cent.
ICBCL Agreement
In November 2017, the Group closed an agreement with a nominee of the financial leasing firm, ICBC Financial Leasing Co., Ltd. (ICBCL), whereby such nominee became an equity partner in BW Catcher Limited. BW Catcher Limited has issued preference shares with a preferential dividend right to ICBCL, for an aggregate subscription price of USD 275\u00a0000\u00a0000. The aggregate redemption and dividends payments on the preference shares are estimated to reflect approximately 25\u201330 per cent of the estimated free cash flow after debt servicing in the Catcher contract over a similar term. The net proceeds from the issue of the preference shares will be used for general corporate purposes. The investment by ICBCL is presented as a non-controlling interest in the statement of financial position of the Group.
USD 5.3 million (USD 5.8 million) has been paid in dividends during 2025 and the redemption for 2025 amounts to USD 22.9 million (USD 22.9 million).
Accounting policies
Non-controlling interests (NCI) are measured initially at their proportionate share of the acquiree\u2019s identifiable net assets at the date of acquisition. Changes in the Group\u2019s interest in a subsidiary that do not result in a loss of control are accounted as equity transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__117": { "value": "Note 19\tLeases
Accounting policies
The group as a lessee
The Group leases office premises. Leases of office premises generally have lease terms between one and ten years. The Group has leases of certain office equipment (i.e., personal computers, printing- and photocopying machines, coffee machines) that are considered of low value.
The Group applies the short-term lease recognition exemption to its short-term leases. A short-term lease is a lease that has a lease term of 12 months or less from the commencement date. It also applies the low-value exemption to leases of office equipment that are considered to be low value.
The Group has elected to not separate non-lease components and account for the lease and the non-lease components as a single lease component.
The Group recognises a right-of-use asset and a lease liability at the commencement date of the lease. This is the date the underlying asset is available for use.
Right-of-use assets are measured at cost and depreciated using the straight-line method from the commencement date to the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. In calculating the present
value, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. The Group determines its incremental borrowing rate by obtaining interest rates from the external bank financing.
The group as a lessor
When the Group acts as a lessor, it assesses whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease. If not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset, including the existence and terms of any extension or purchase options.
Lease classification
When the Group enters into a new or amended lease arrangement with customers, the terms and conditions of the contract are analysed in order to assess whether or not the Group retains the significant risks and rewards of ownership of the asset subject of the lease contract. To identify whether risks and rewards are retained, the Group considers the indicators listed by IFRS 16 on a contract-by-contract basis. By performing such assessments, the Group makes significant judgement to determine whether the arrangement results in a finance lease or an operating lease. This judgement can have a significant effect on the amounts recognised in the consolidated financial statements and its recognition of profits in the future.
The group as a lessee
Right-of-use assets and lease liabilities
USD MILLION | Right-of-use assets\u200c1 | Lease liabilities |
Balance at 1 January 2025 | 21.4 | 19.3 |
Additions | 1.6 | 1.6 |
Adjustments | 0.3 | 0.3 |
Depreciation expense | (5.2) | n/a |
Interest expense | n/a | 1.1 |
Lease payments | n/a | (5.8) |
Foreign currency translation gain/(loss) | 0.2 | 1.8 |
Balance at 31 December 2025 | 18.3 | 18.3 |
1Right-of-use assets relates to property, plant and equipment
Right-of-use assets\u200c1 | Lease liabilities | |
Balance at 1 January 2024 | 13.8 | 12.0 |
Additions | 16.1 | 14.3 |
Adjustments | (0.9) | (0.9) |
Depreciation expense | (7.4) | n/a |
Interest expense | n/a | 1.2 |
Lease payments | n/a | (6.4) |
Foreign currency translation gain/(loss) | (0.2) | (0.9) |
Balance at 31 December 2024 | 21.4 | 19.3 |
1Right-of-use assets relates to property, plant and equipment
USD MILLION | 2025 | 2024 |
Maturity analysis - contractual undiscounted cash flows | ||
Not later than one year | 6.1 | 5.2 |
Later than one year and not later than five years | 13.7 | 16.1 |
Later than five years | 0.1 | 0.3 |
Total undiscounted lease liabilities at 31 December | 19.9 | 21.6 |
Lease liabilities included in the statement of financial position at 31 December | 18.3 | 19.3 |
Current | 5.2 | 4.2 |
Non-current | 13.1 | 15.1 |
Total cash outflow for leases included in the statement of cash flows is USD 5.8 million (USD 6.4 million).
Amounts recognised in profit or loss
USD MILLION | 2025 | 2024 |
Interest on lease liabilities | 1.1 | 1.2 |
Depreciation expense | 5.2 | 7.4 |
Extension options
Some office leases contain contractual rights and options, such as extension and cancellation options, exercisable only by the Group and not by the lessors. These options may impact the estimated lease term. The Group assesses at lease commencement, and subsequently when facts and circumstances under the control of the Group require it, whether it is reasonably certain to exercise these options and reflects this in the lease term.
The group as a lessor
Operating leases
BW Hurra is currently in lay-up. All other FPSOs owned by year-end 2025 are on firm operating lease contracts.
The lease contract for BW Adolo with BW Energy was amended in May 2025. The only change to the key terms of the lease contract is that the Group will have a put option from September 2028. In addition, the operations and maintenance contract was transferred to BW Energy. The contract amendment was assessed to be a lease modification, resulting in a reassessment of the lease classification that concluded the new lease to be an operating lease.
Future minimum payments receivable under non-cancellable operating lease contracts as at 31 December are as follows:
USD MILLION | 2025 | 2024 |
Not later than one year | 334.8 | 204.1 |
Later than one year and not later than five years | 742.7 | 775.5 |
Later than five years | 1\u00a0764.0 | 1\u00a0850.3 |
Total amount | 2\u00a0841.5 | 2\u00a0829.9 |
Note 20\tCommitments and guarantees
Commitments related to construction projects and operations, contracted for at the balance sheet date, but not recognised in the financial statements are as follows:
USD MILLION | 2025 | 2024 |
Nominal amount | 26.9 | 154.6 |
At 31 December 2025, the commitments mainly included ongoing operations.
At 31 December 2024, the commitments included committed contract values related to the construction of the FPSO for the Barossa gas field, as well as for ongoing operations.
The Group has issued bank guarantees in favour of various customers totalling USD 1.9 million (USD 1.7 million).
The bank debt related to the USD 220 million Corporate Facility, as referred to in Note 14, is secured by:
\u2022a parent company guarantee from BW Offshore Limited
\u2022first priority mortgages over two FPSOs
\u2022first priority secured interest in all earnings and proceeds of insurance related to the same two FPSOs.
The bank debt related to the Catcher loan facility, as referred to in Note 14, is secured by:
\u2022a parent company guarantee from BW Offshore Limited
\u2022a first priority mortgage over the FPSO BW Catcher, owned by BW Catcher Limited, Bermuda
\u2022first priority secured interest in all earnings and proceeds of insurance related to the FPSO.
The bank debt related to the USD 1 150 million BW Opal Loan Facility, as referred to in Note 16, is secured by:
\u2022a parent company guarantee from BW Offshore Limited
\u2022assignment of key construction contracts
\u2022a first priority mortgage over the FPSO, once completed, to be owned by BW Offshore AUS-JV Pte Ltd, Singapore
\u2022first priority secured interest in all earnings and proceeds of insurances related to the FPSO once contract has commenced.
In addition, the Group has provided an insurance bond of USD 100 million to Santos NA Barossa Pty Ltd related to the prepayments received during the construction period. The insurance bond expires in February 2026.
The carrying value of vessels pledged as collateral on 31 December 2025 was USD 648.4 million (USD 838.2 million). In addition, the shares in certain vessel-owning companies in the Group are pledged.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__120": { "value": "Note 21\tContingent assets and liabilities
In September 2021, Petro Rio Explora\u00e7\u00e3o e Produ\u00e7\u00e3o de Petr\u00f3leo Ltda. (\u2018PetroRio\u2019) filed a request for arbitration in relation to the FPSO Polvo against the Group under the Charter and Services Agreements. PetroRio puts forward different heads of claim in the total amount of approximately USD 31 million for overpayment of hire and arbitration costs and fees. In October 2021, BW Offshore filed their response and put forward substantial counterclaims primarily for unpaid invoices and demobilisation costs for approximately USD 30 million. The arbitration hearing commenced in December 2024 and in January 2025, the Group received the final partial award from an arbitration tribunal in the United Kingdom. A settlement agreement was signed in March and in April the Group received the full settlement of USD 36 million, of which USD 4.1 million has been recognised as interest, USD 17.2 million as revenue, USD 3 million as other revenue and USD 0.8 million as reversal of loss provision. The remaining amount was recognised as trade receivable in the statement of financial position on 31 December 2024.
During the normal course of business, the Group is involved in legal and other proceedings which are unresolved and outstanding. We have accounted for such claims and litigations based on the Group\u2019s best judgement.
In addition to the case mentioned above, the Group is also subject to occasional tax audits and other minor disputes with clients or vendors.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__121": { "value": "Note 21\tContingent assets and liabilities
In September 2021, Petro Rio Explora\u00e7\u00e3o e Produ\u00e7\u00e3o de Petr\u00f3leo Ltda. (\u2018PetroRio\u2019) filed a request for arbitration in relation to the FPSO Polvo against the Group under the Charter and Services Agreements. PetroRio puts forward different heads of claim in the total amount of approximately USD 31 million for overpayment of hire and arbitration costs and fees. In October 2021, BW Offshore filed their response and put forward substantial counterclaims primarily for unpaid invoices and demobilisation costs for approximately USD 30 million. The arbitration hearing commenced in December 2024 and in January 2025, the Group received the final partial award from an arbitration tribunal in the United Kingdom. A settlement agreement was signed in March and in April the Group received the full settlement of USD 36 million, of which USD 4.1 million has been recognised as interest, USD 17.2 million as revenue, USD 3 million as other revenue and USD 0.8 million as reversal of loss provision. The remaining amount was recognised as trade receivable in the statement of financial position on 31 December 2024.
During the normal course of business, the Group is involved in legal and other proceedings which are unresolved and outstanding. We have accounted for such claims and litigations based on the Group\u2019s best judgement.
In addition to the case mentioned above, the Group is also subject to occasional tax audits and other minor disputes with clients or vendors.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__122": { "value": "Note 22\tRelated parties transactions, remuneration to directors and auditors
The largest individual shareholder, BW Group Limited, owning 49.9 per cent, is incorporated in Bermuda and is controlled by Sohmen family interests.
Investments in subsidiaries are disclosed in Note 17and investments in associates and joint ventures are disclosed in Note12.
Other related party transactions:
Transaction values forthe year ended 31 December | Balance outstandingas at 31 December | |||
USD MILLION | 2025 | 2024 | 2025 | 2024 |
Sale of goods and services | ||||
Joint ventures | 112.4 | 349.1 | 27.8 | 62.9 |
Associates | 0.6 | 8.9 | - | - |
Other related parties | 127.3 | 117.5 | 9.2 | 23.0 |
Purchase of goods | ||||
Joint ventures | 124.1 | 103.2 | 15.0 | 9.8 |
Associates | 2.1 | 1.8 | 0.1 | 0.3 |
Other related parties | 0.4 | 1.2 | - | - |
Others | ||||
Short-term receivable | - | - | 0.1 | 0.2 |
Sale and purchase from joint ventures primarily relate to the Barossa project. These transactions are considered a sale leaseback and are eliminated at group level.
In January 2024, the Group disposed of its equity accounted investment in BW Energy. However, BW Energy is still considered to be a related party of the group as BWE Energy is controlled by an entity directly controlled by Sohmen family interests. Transactions with BW Energy after the disposal of our investment are included within other related parties in the table above.
SENIOR MANAGEMENT TEAM\u200c1REMUNERATION
(IN USD) | Salary | Bonus | Pension benefits | Share options | Other benefits | Number of shares |
2025 | 3\u00a0100\u00a0093 | 963\u00a0961 | 57\u00a0021 | 874\u00a0648 | 123 496 | 280\u00a0884 |
2024 | 2\u00a0922\u00a0574 | 1\u00a0061\u00a0787 | 153\u00a0797 | 771\u00a0857 | 75\u00a0872 | 280\u00a0884 |
1Top Management Team was revised on 1 October 2024.
- Remuneration reporting from 1 January 2024\u201331 December 2025: Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Strategy Officer (CSO)
- Remuneration reporting from 1 January 2024 \u2013 30 September 2024: Chief Operating Officer (COO), Chief Commercial Officer (CCO) and General Counsel
- Remuneration reporting of new roles from 1 October 2024 to 31 December 2025: Chief Technical Officer (CTO), Chief Commercial Officer (CCO) and General Counsel
- Remuneration in the table above excludes severance pay
Severance
Senior Management team has agreements that give them the right to compensation after termination of employment before retirement that equals 100 per cent of the salary for a maximum of 18 months. Compensation received from other employers during this period reduces this compensation, but not below 25 per cent of the compensation. There are no similar agreements with the members of the Board of Directors.
BOARD OF DIRECTORS\u2019 REMUNERATION AND SHARES HELD
The compensation for members of the Board of Directors for the period May 2025 to May 2026 will be decided at the annual general meeting in May 2026.
(IN USD) Year | Directors' fee | Number of shares | Share options |
2025 | 314\u00a0375 | 90\u00a0419\u00a0229 | - |
2024 | 396\u00a0875 | 90\u00a0419\u00a0229 | - |
AUDITORS\u2019 REMUNERATION
USD '000 | 2025 | 2024 |
Statutory audit | 996.5 | 977.4 |
Non-audit services | - | 54.0 |
Tax services | 39.1 | 37.0 |
Other attestation services | 139.4 | 222.4 |
Total fees | 1 175.0 | 1\u00a0290.8 |
KPMG is the appointed auditor of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__123": { "value": "SENIOR MANAGEMENT TEAM\u200c1REMUNERATION
(IN USD) | Salary | Bonus | Pension benefits | Share options | Other benefits | Number of shares |
2025 | 3\u00a0100\u00a0093 | 963\u00a0961 | 57\u00a0021 | 874\u00a0648 | 123 496 | 280\u00a0884 |
2024 | 2\u00a0922\u00a0574 | 1\u00a0061\u00a0787 | 153\u00a0797 | 771\u00a0857 | 75\u00a0872 | 280\u00a0884 |
1Top Management Team was revised on 1 October 2024.
- Remuneration reporting from 1 January 2024\u201331 December 2025: Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Strategy Officer (CSO)
- Remuneration reporting from 1 January 2024 \u2013 30 September 2024: Chief Operating Officer (COO), Chief Commercial Officer (CCO) and General Counsel
- Remuneration reporting of new roles from 1 October 2024 to 31 December 2025: Chief Technical Officer (CTO), Chief Commercial Officer (CCO) and General Counsel
- Remuneration in the table above excludes severance pay
Severance
Senior Management team has agreements that give them the right to compensation after termination of employment before retirement that equals 100 per cent of the salary for a maximum of 18 months. Compensation received from other employers during this period reduces this compensation, but not below 25 per cent of the compensation. There are no similar agreements with the members of the Board of Directors.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__124": { "value": "AUDITORS\u2019 REMUNERATION
USD '000 | 2025 | 2024 |
Statutory audit | 996.5 | 977.4 |
Non-audit services | - | 54.0 |
Tax services | 39.1 | 37.0 |
Other attestation services | 139.4 | 222.4 |
Total fees | 1 175.0 | 1\u00a0290.8 |
KPMG is the appointed auditor of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__125-1": { "value": "Note 23\tClimate risks
The Group evaluates climate related risks using external scenario frameworks, including IEA Net Zero, IEA STEPS, NGFS and the DNV Energy Transition Outlook. These scenarios cover a range of possible climate pathways and provide the basis for assessing transition and physical climate risks. NGFS and DNV scenarios are applied as base cases, while high emission pathways such as NGFS RCP 8.5 and IPCC AR6 are used to evaluate exposure to physical climate hazards.
The Group expects reasonably steady operational conditions in the medium-term. Across the scenarios applied, long term oil demand is projected to decline, while natural gas shows greater resilience in several outlooks. The Group assesses potential implications for asset lifespans, capital costs and financial performance, including possible effects on EBITDA and stranded asset risk.
Climate related risks relevant to the Group include changing demand conditions in the oil and gas market, regulatory developments, potential increases in the cost of capital, technology shifts and physical climate impacts on offshore operations and supply chain activities.
Transition scenarios highlight the need to diversify into low carbon energy production, electrification of FPSOs and investments in technologies such as carbon capture and offshore floating wind. The Group finalised its divestment programme in 2025. Nine units have been divested over the past years, reducing residual value risk and improving cash flow visibility. The Group also holds a 68.2 per cent interest in floating wind company BW Ideol and has established joint venture BW Elara with BW Group to develop Floating Desalination Units.
Based on reasonable and supportable information available at the reporting date, including climate scenario analysis, the Group did not identify any climate related impacts that had a material effect on impairment testing, useful life assessments or provisions in the 2025 consolidated financial statements.
Stranded assets
Demand for hydrocarbon products in the long-term is uncertain due to the global energy transition. Decreased demand for new upstream hydrocarbon developments may result in less demand for FPSOs. The Group\u2019s primary revenue stream is owning, leasing and operating such assets to oil and gas operators. Reduced market demand for upstream production in the long-term could prompt assets within the BW Offshore fleet to become stranded.
An assessment has been made as to whether the Group has assets that are exposed to significant environmental risk or climate risk (\u2018stranded assets\u2019). The Group has not identified any stranded assets at 31 December 2025.
Note 24\tMacroeconomic and geopolitical uncertainty
During the fiscal year ending 31 December 2025, global macroeconomic and geopolitical conditions continued to impact market dynamics across the energy sector, albeit with a shift in underlying drivers compared to prior year. Energy prices decreased relative to 2024 levels, while ongoing geopolitical tensions and regional supply considerations continued to influence the oil and gas markets and investment decisions. Management assesses the Group\u2019s direct exposure to the ongoing geopolitical tensions and conflicts to be limited. Against this market backdrop, energy companies continued to prioritise capital allocation towards traditional hydrocarbon-based projects.
Inflationary pressure eased during the year, however, cost pressure for labour, materials and specialised services remained elevated. Persistent supply chain and logistics constraints in certain regions contributed to elevated execution risk for large-scale energy developments. These factors continued to influence cost management and scheduling, with potential implications for project economics. In response, the Group maintained proactive risk management, with a particular focus on cost control, procurement strategies, and execution oversight in relation to the Barossa project.
The long-term structural shift in investor and regulatory focus toward energy transition activities remains an important feature of the global energy landscape, albeit less pronounced. Capital allocation toward electrification, lower-carbon fuels and decarbonisation continued in 2025, alongside evolving regulatory and policy framework. Over time, these developments may increase uncertainty related to the availability and cost of capital for new hydrocarbon-based investments, as well as compliance and reporting obligation for existing operations.
The Group\u2019s operational activities are subject to tax in various jurisdictions, exposing it to tax obligations subject to changes in legislation. Given the long-term nature of its contracts, the Group\u2019s financial results are exposed to the risk of regulatory alterations impacting taxation policies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAdditionalInformationExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__127": { "value": "Note 25\tSubsequent events
There are no significant events after the balance sheet date.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:2138008LFKH8V2EOA915", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } } } }