Note 1\tReporting entity
BW Energy Limited (the \u2018Company\u2019) was incorporated on 22 May 2019 as an exempted company limited by shares under the laws of Bermuda and in accordance with the Bermuda Companies Act. The Company\u2019s registered office is at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.
BW Energy Limited and its consolidated subsidiaries (hereafter \u2018BW Energy\u2019 or the \u2018Group\u2019) are engaged in oil and gas exploration and production activities.
BW Energy Limited is listed on Oslo B\u00f8rs, a stock exchange that is part of Euronext.
Basis of preparation
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU, in accord-ance with the historical cost convention with some exceptions, as detailed in the accounting policies below. The consolidated financial statements were approved by the Board of Directors on 25 February 2026 and will be presented for approval at the Annual General Meeting on 11 May 2026.
BW Energy presents the expenses in the statement of income using a mixed approach, by function and nature of expenses.
Certain amounts in the comparable year have been reclassified to conform to current year presentation. Provisions related to additional acquisition consid-eration for the Golfinho field in Brazil, previously reported as part of Other non-current payables have been grouped together with Asset retirement obligations and are now reported under the new caption of Provisions in the statement of financial position. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__12": { "value": "Note 1\tReporting entityBW Energy Limited (the \u2018Company\u2019) was incorporated on 22 May 2019 as an exempted company limited by shares under the laws of Bermuda and in accordance with the Bermuda Companies Act. The Company\u2019s registered office is at Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.BW Energy Limited and its consolidated subsidiaries (hereafter \u2018BW Energy\u2019 or the \u2018Group\u2019) are engaged in oil and gas exploration and production activities.BW Energy Limited is listed on Oslo B\u00f8rs, a stock exchange that is part of Euronext.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__6": { "value": "BW Energy Limited ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__13": { "value": "BW Energy Limited ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__14": { "value": "BW Energy Limited ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "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:5493004D19CJBN3DLD40", "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:5493004D19CJBN3DLD40", "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:5493004D19CJBN3DLD40", "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:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__10": { "value": "Washington Mall Phase 2, 4thFloor, Suite 400, 22 Church Street, Hamilton HM1189, Bermuda.", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__15": { "value": "Note 2\tMaterial accounting policies
Basis of preparation
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU, in accord-ance with the historical cost convention with some exceptions, as detailed in the accounting policies below. The consolidated financial statements were approved by the Board of Directors on 25 February 2026 and will be presented for approval at the Annual General Meeting on 11 May 2026.
BW Energy presents the expenses in the statement of income using a mixed approach, by function and nature of expenses.
Certain amounts in the comparable year have been reclassified to conform to current year presentation. Provisions related to additional acquisition consid-eration for the Golfinho field in Brazil, previously reported as part of Other non-current payables have been grouped together with Asset retirement obligations and are now reported under the new caption of Provisions in the statement of financial position. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2024.
Functional and presentation currency
The consolidated financial statements are presented in United States Dollars (USD), which is the functional currency of the parent company and all its subsidiaries. The functional currency is determined for each entity based on the currency within the entity\u2019s primary economic environment. All figures are in USD million if not otherwise stated.
Changes in material accounting policies
The Group did not have any changes to its accounting policies from those applied in the consolidated financial statements as at and for the year ended 31 December 2024.
Standards issued but not yet effective
The following standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted; however, BW Energy has not early adopted them in preparing these consolidated financial statements. The following three standards are not expected to have a significant impact on the financial statements:
\u2022Classification and Measurement of Financial instruments \u2013 Amendments to IFRS 9 and IFRS 7
\u2022Annual Improvements to IFRS Accounting Standards \u2013 Volume 11
\u2022IFRS 19 Subsidiaries without Public Accountability: Disclosures
IFRS 18 issued by the IASB in April 2024 will replace IAS 1 effective from 1 January 2027. The new standard introduces several key new requirements:
\u2022To classify all income and expenses into five categories in the Consolidated statement of income: operating, investing, financing, income taxes, and discontinued operations.
\u2022To present a newly defined operating profit subtotal.
\u2022To disclose management-defined performance measures (MPMs) in a single note to the financial statements.
\u2022To apply enhanced guidance for aggregating and disaggregating informa-tion in financial statements.
In addition, entities are required to use the operating profit subtotal as the starting point for the Consolidated statement of cash flows when presenting cash flows provided by operating activities under the indirect method. IFRS 18 applies retrospectively and allows for earlier application if disclosed. BW Energy is currently assessing the impact of IFRS 18 on our financial state-ments, particularly with respect to the structure of the Group\u2019s statement of income, the statement of cash flows and the additional disclosures required for MPMs.
Basis for consolidation
Subsidiaries
The subsidiaries are legal entities (including special purpose entities) controlled by BW Energy. Control is achieved when BW Energy is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to affect its returns from this company. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
Transactions eliminated on consolidation
All intercompany balances and transactions, including unrealised profits and losses arising from transactions between Group companies are eliminated.
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 Net financial items.
Revenue
Revenue from contracts with customers
BW Energy derives its revenue from sale of crude oil. Revenue is recognised when customer obtains control, which ordinarily happens when title to crude oil passes at point of delivery. Revenue from production of oil in which BW Energy shares an interest with other companies is recognised based on actual volumes lifted and sold to customers during the period (the sales method).
Where the Group has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where the Group has lifted and sold less than the ownership interest, costs are deferred for the underlift. Overlift and underlift are valued at production cost, including depreciation and presented as an adjustment to cost. Lifting imbalances are part of the operating cycle and as such classified as other current liabilities or assets.
BW Energy is obligated to pay profit oil tax on the production of crude oil from the Dussafu licence area in Gabon. Payment of profit oil tax can either be settled in cash (where the Group sells the crude oil and pays the taxes in cash) or in kind (where the government lift the crude oil it is entitled to). Profit oil obligation has been settled in kind since commencement of production in 2018. The profit oil tax is presented in the consolidated statement of income as a tax expense with a corresponding increase in revenues.
Royalty
BW Energy has the obligation to make royalty payments in Gabon and Brazil. Royalties are paid in cash and recognised as operating expenses in the consolidated statement of income. Unpaid royalties are included in trade and other payables in the consolidated statement of financial position.
Employee benefits
Share-based payment
The grant date fair value of equity settled share-based payment arrange-ments granted to employees is recognised as an employee benefits expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance condi-tions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
Taxes
BW Energy may be subject to income tax in the countries in which it operates. 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 and changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for the future tax conse-quences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are meas-ured on the basis of the enacted or substantially enacted tax rates applicable to the respective entity of BW Energy where temporary differences exist.
A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. Previously unrecognised deferred tax asset is recognised when it has
become probable that the deferred tax asset can be utilised. Similarly, the deferred tax asset is reduced if it is no longer probable that it can be utilised.
Deferred tax assets and liabilities are recognised at their nominal value, and are presented net, where netting is legally permitted.
Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Taxation under production sharing contract (PSC)
The Dussafu PSC in Gabon provides that the income tax to which the contractor is subject is deemed to have been paid to the government as part of the payment of profit oil, which can either be settled in kind (where the government lifts the crude it is entitled to) or in cash (where the Group sells the crude oil and pays the taxes in cash). BW Energy presents this as an income tax expense with a corresponding increase classified as revenues. This accounting presentation does not have a net impact on the statement of comprehensive income.
Intangible assets
Exploration and evaluation assets
BW Energy uses the \u2018successful efforts\u2019 method of accounting for exploration and evaluation costs. Exploration and evaluation expenditures are capitalised when it is considered probable that future economic benefits will be gener-ated. Expenditures that fail to meet this criterion are generally expensed in the period they are incurred.
Licence acquisition costs, expenditures to drill and equip exploratory wells, seismic acquisition and interpretation costs, and other costs directly attrib-utable to the exploration and evaluation activities are classified as intangible assets. Exploration expenditures classified as intangible assets are assessed for impairment at regular intervals.
Exploration wells that discover potentially economic quantities of oil or natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. If, following the evaluation, the exploratory well has not found commercial quantities of hydrocarbons, the previously capitalised costs are expensed as exploration expenses in the Consolidated statement of income. Capitalised exploration and evaluation expenditures related to wells that find hydrocarbon resources, are transferred to property, plant and equipment once a development plan has been approved. Further expenditures for devel-opment of a field, such as drilling production wells, installation of platforms and other structures are capitalised as property, plant and equipment.
The purchase price allocated to licence acquisition costs in asset acquisitions remains classified as part of intangible assets. Any contingent considera-tion related to the licence acquisition is included as cost of the asset when incurred, which the Group considers to be when such payments become highly certain.
No amortisation or depreciation is charged during the exploration and eval-uation phase.
Other intangible assets
Other intangible assets include an Intellectual Property agreement acquired by BW Energy. This intangible asset is measured at present value of future cash payments, less accumulated amortisation and any accumulated impair-ment losses. It is amortised using the straight-line method over the term of the Dussafu Production Sharing Contract.
Property, plant, and equipment
Measurement
Property, plant, and equipment is measured at cost, less accumulated depre-ciation and impairment. The initial cost of an asset comprises its purchase price or development cost, any costs directly attributable to bringing the asset into operation, the estimate of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs.
Subsequent costs 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 BW Energy and the cost of the item can be measured reliably.
Depreciation
Depreciation starts when an item of property, plant and equipment is ready for use as intended by management.
Capitalised oil and gas assets including exploration expenditures trans-ferred from intangible assets, drilling of production wells, other development expenditures related to construction and installation of platforms and pipelines, and asset retirement obligations are depreciated using the units of production method (UoP) based on proved and probable reserves (2P) expected to be recovered from the area during the concession or contract period. Reserves associated with the undeveloped areas that require addi-tional capital expenditure are excluded from depreciation calculations.
Other assets, such as office equipment, furniture and fixtures, and cars are depreciated using the straight-line method over 3-5 years.
Impairment
Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recover-able. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
For exploration properties, the impairment assessment is based on whether or not the exploration rights have expired or will expire in the near future, and whether the Group has plans for future evaluation of the area.
Borrowing costs
Borrowing costs directly attributable to acquisition, construction or develop-ment of oil and gas properties, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the asset is ready for its intended use. Borrowing costs consist of loan interest expense calculated using the effective interest method and lease interest expense for qualifying assets.
Financial instruments
The Group\u2019s financial assets and liabilities comprise listed equity investment, derivatives (assets and liabilities), receivables, cash and cash equivalents, payables, other current liabilities, and non-current liabilities. The classification of financial assets and liabilities at initial recognition depends on the financial instrument\u2019s contractual cash flow characteristics and BW Energy\u2019s business model for managing them. The Group has classified its financial instruments into the following categories of financial assets and liabilities:
\u2022Financial assets measured at amortised cost
\u2022Financial assets at fair value through profit or loss (FVTPL)
\u2022Financial assets at fair value through other comprehensive income (FVOCI)
\u2022Financial liabilities at fair value through profit or loss
\u2022Financial liabilities measured at amortised cost
Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortization of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include crude oil price hedging contracts, where the fair value changes are included in Other income (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. BW Energy does not apply hedge accounting to derivative instruments. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Financial assets at fair value through other comprehensive income
BW Energy designated its investment in equity securities of ReconAfrica at fair value through other comprehensive income because these equity secu-rities represent investments that are intended to be held for the long term for strategic purposes.
Inventories
Inventories are valued at the lower of cost or net realisable value. Crude oil inventory is valued at production cost including depreciation. Cost of mate-rials and consumables is determined by the weighted average cost method, and cost of fuel oil is determined by \u2018first-in-first-out\u2019 (FIFO) method. The cost of inventories comprises the purchase price, import duties and other taxes, transport, handling, and other costs directly attributable to the acquisition of finished goods and materials.
Provisions and contingent assets and liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where BW Energy expects a provision to be reimbursed, for example under a contract with another entity, the reimburse-ment is recognised as a separate asset, but only when the reimbursement is virtually certain.
Asset retirement obligations (ARO)
Provisions for asset retirement obligations are recognised when BW Energy has an obligation to plug and abandon a well, dismantle and remove a produc-tion platform or an FPSO, and when a reliable estimate of the liability can be made.
Asset retirement obligations are recognised based on the present value of the estimated cash outflows to be incurred to conduct abandonment activities, considering relevant risks and uncertainties. The corresponding amount is recognised to the related property, plant and equipment in the consolidated statement of financial position and depreciated using the same depreciation method used for the asset.
The discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of the underlying cash flows.
Asset retirement obligations are assessed annually to incorporate any revisions to estimated retirement costs, discount rate and retirement date estimates. Changes in estimates are recognised as an adjustment to the provision and the corresponding property, plant and equipment.
When an asset has reached the end of its useful life, all subsequent changes to the ARO provision are recognised when they occur in operating expenses in the consolidated statement of income.
Other provisions
The Group recognised provisions related to additional acquisition consid-eration for the Golfinho and Maromba fields in Brazil which are contingent upon future field development and performance. These provisions are meas-ured at the present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as accretion expense. Subsequent changes in the amount of the contingent consideration resulting from remeasurement that does not reflect the passage of time is recorded as an adjustment to asset cost. Such remeasurements may result from changes in expected cash outflows due to change in the expected payment date, changes in inflation rate used to determine the contractual payment or discount rate used to determine the present value of future obligation.
Contingent assets and liabilities
Contingent assets and liabilities are not recognised in the consolidated finan-cial statements, but they are disclosed in the notes when they meet the disclosure requirements. A contingent asset is disclosed when an inflow of economic benefits is probable. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.
Leases
A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the date at which the underlying asset is made available to BW Energy, the present value of future lease payments, including extension options consid-ered reasonably certain to be exercised, is recognised as a lease liability. The present value is calculated using BW Energy\u2019s incremental borrowing rate. A corresponding right-of-use asset is recognised, including lease payments and initial direct costs incurred at the commencement date. After the commence-ment date, the lease liabilities are increased to reflect the accretion of interest and reduced for the lease payments made. All right-of-use assets are depreciated using the straight-line method from commencement date to end of lease term, with the exception of the FPSO right-of-use asset, which is depreciated using the units-of-production method.
BW Energy has elected to not separate non-lease components, such as crew cost, supplies and other items, for support vessels and helicopters. As a result, these costs are reflected as part of the lease liability and right-of-use asset.
The right-of-use asset and lease liability for the leases used in joint oper-ations, where BW Energy is the operator, are recognised on a gross basis as BW Energy is the primary obligor. The share of lease payments paid by partners through the joint interest billings is recognised as other income on the statement of income.
Lease payments for short-term leases with a term of 12 months or less and the low-value leases are expensed.
Basis of preparation
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU, in accord-ance with the historical cost convention with some exceptions, as detailed in the accounting policies below. The consolidated financial statements were approved by the Board of Directors on 25 February 2026 and will be presented for approval at the Annual General Meeting on 11 May 2026.
BW Energy presents the expenses in the statement of income using a mixed approach, by function and nature of expenses.
Certain amounts in the comparable year have been reclassified to conform to current year presentation. Provisions related to additional acquisition consid-eration for the Golfinho field in Brazil, previously reported as part of Other non-current payables have been grouped together with Asset retirement obligations and are now reported under the new caption of Provisions in the statement of financial position. Because of rounding differences, numbers and or percentages may not add up to the total of that row or column. Figures in brackets refer to corresponding figures for 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__18": { "value": "Basis of preparation
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU, in accord-ance with the historical cost convention with some exceptions, as detailed in the accounting policies below. The consolidated financial statements were approved by the Board of Directors on 25 February 2026 and will be presented for approval at the Annual General Meeting on 11 May 2026.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__19": { "value": "Basis of preparation
The consolidated financial statements of BW Energy have been prepared pursuant to IFRS \u00ae Accounting Standards as adopted by the EU, in accord-ance with the historical cost convention with some exceptions, as detailed in the accounting policies below. The consolidated financial statements were approved by the Board of Directors on 25 February 2026 and will be presented for approval at the Annual General Meeting on 11 May 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__20": { "value": "Functional and presentation currency
The consolidated financial statements are presented in United States Dollars (USD), which is the functional currency of the parent company and all its subsidiaries. The functional currency is determined for each entity based on the currency within the entity\u2019s primary economic environment. All figures are in USD million if not otherwise stated.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__21": { "value": "Changes in material accounting policies
The Group did not have any changes to its accounting policies from those applied in the consolidated financial statements as at and for the year ended 31 December 2024.
Standards issued but not yet effective
The following standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted; however, BW Energy has not early adopted them in preparing these consolidated financial statements. The following three standards are not expected to have a significant impact on the financial statements:
\u2022Classification and Measurement of Financial instruments \u2013 Amendments to IFRS 9 and IFRS 7
\u2022Annual Improvements to IFRS Accounting Standards \u2013 Volume 11
\u2022IFRS 19 Subsidiaries without Public Accountability: Disclosures
IFRS 18 issued by the IASB in April 2024 will replace IAS 1 effective from 1 January 2027. The new standard introduces several key new requirements:
\u2022To classify all income and expenses into five categories in the Consolidated statement of income: operating, investing, financing, income taxes, and discontinued operations.
\u2022To present a newly defined operating profit subtotal.
\u2022To disclose management-defined performance measures (MPMs) in a single note to the financial statements.
\u2022To apply enhanced guidance for aggregating and disaggregating informa-tion in financial statements.
In addition, entities are required to use the operating profit subtotal as the starting point for the Consolidated statement of cash flows when presenting cash flows provided by operating activities under the indirect method. IFRS 18 applies retrospectively and allows for earlier application if disclosed. BW Energy is currently assessing the impact of IFRS 18 on our financial state-ments, particularly with respect to the structure of the Group\u2019s statement of income, the statement of cash flows and the additional disclosures required for MPMs.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__22": { "value": "Basis for consolidation
Subsidiaries
The subsidiaries are legal entities (including special purpose entities) controlled by BW Energy. Control is achieved when BW Energy is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to affect its returns from this company. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
Transactions eliminated on consolidation
All intercompany balances and transactions, including unrealised profits and losses arising from transactions between Group companies are eliminated.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__23": { "value": "Subsidiaries
The subsidiaries are legal entities (including special purpose entities) controlled by BW Energy. Control is achieved when BW Energy is exposed or has rights to variable returns from its involvement with a company in which it has invested and has the ability to use its power to affect its returns from this company. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__24": { "value": "Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__25": { "value": "Interests in joint arrangements
A joint arrangement is an arrangement over which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control.
BW Energy has several joint operations involving exploration and production licences where it recognises its share of related revenues, expenses, assets, liabilities, and cash flows under the respective items in the consolidated finan-cial statements. Refer to Notes 10and 11.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__26": { "value": "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 Net financial items.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__27": { "value": "Revenue
Revenue from contracts with customers
BW Energy derives its revenue from sale of crude oil. Revenue is recognised when customer obtains control, which ordinarily happens when title to crude oil passes at point of delivery. Revenue from production of oil in which BW Energy shares an interest with other companies is recognised based on actual volumes lifted and sold to customers during the period (the sales method).
Where the Group has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where the Group has lifted and sold less than the ownership interest, costs are deferred for the underlift. Overlift and underlift are valued at production cost, including depreciation and presented as an adjustment to cost. Lifting imbalances are part of the operating cycle and as such classified as other current liabilities or assets.
BW Energy is obligated to pay profit oil tax on the production of crude oil from the Dussafu licence area in Gabon. Payment of profit oil tax can either be settled in cash (where the Group sells the crude oil and pays the taxes in cash) or in kind (where the government lift the crude oil it is entitled to). Profit oil obligation has been settled in kind since commencement of production in 2018. The profit oil tax is presented in the consolidated statement of income as a tax expense with a corresponding increase in revenues.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__28": { "value": "Employee benefits
Share-based payment
The grant date fair value of equity settled share-based payment arrange-ments granted to employees is recognised as an employee benefits expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance condi-tions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__29": { "value": "Employee benefits
Share-based payment
The grant date fair value of equity settled share-based payment arrange-ments granted to employees is recognised as an employee benefits expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance condi-tions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__30": { "value": "Taxes
BW Energy may be subject to income tax in the countries in which it operates. 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 and changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for the future tax conse-quences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are meas-ured on the basis of the enacted or substantially enacted tax rates applicable to the respective entity of BW Energy where temporary differences exist.
A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. Previously unrecognised deferred tax asset is recognised when it has
become probable that the deferred tax asset can be utilised. Similarly, the deferred tax asset is reduced if it is no longer probable that it can be utilised.
Deferred tax assets and liabilities are recognised at their nominal value, and are presented net, where netting is legally permitted.
Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Taxation under production sharing contract (PSC)
The Dussafu PSC in Gabon provides that the income tax to which the contractor is subject is deemed to have been paid to the government as part of the payment of profit oil, which can either be settled in kind (where the government lifts the crude it is entitled to) or in cash (where the Group sells the crude oil and pays the taxes in cash). BW Energy presents this as an income tax expense with a corresponding increase classified as revenues. This accounting presentation does not have a net impact on the statement of comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__31": { "value": "Taxes
BW Energy may be subject to income tax in the countries in which it operates. 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 and changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for the future tax conse-quences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are meas-ured on the basis of the enacted or substantially enacted tax rates applicable to the respective entity of BW Energy where temporary differences exist.
A deferred tax asset is recognised only to the extent that it is probable that future taxable income will be available against which the asset can be utilised. Previously unrecognised deferred tax asset is recognised when it has
become probable that the deferred tax asset can be utilised. Similarly, the deferred tax asset is reduced if it is no longer probable that it can be utilised.
Deferred tax assets and liabilities are recognised at their nominal value, and are presented net, where netting is legally permitted.
Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Taxation under production sharing contract (PSC)
The Dussafu PSC in Gabon provides that the income tax to which the contractor is subject is deemed to have been paid to the government as part of the payment of profit oil, which can either be settled in kind (where the government lifts the crude it is entitled to) or in cash (where the Group sells the crude oil and pays the taxes in cash). BW Energy presents this as an income tax expense with a corresponding increase classified as revenues. This accounting presentation does not have a net impact on the statement of comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__32": { "value": "Intangible assets
Exploration and evaluation assets
BW Energy uses the \u2018successful efforts\u2019 method of accounting for exploration and evaluation costs. Exploration and evaluation expenditures are capitalised when it is considered probable that future economic benefits will be gener-ated. Expenditures that fail to meet this criterion are generally expensed in the period they are incurred.
Licence acquisition costs, expenditures to drill and equip exploratory wells, seismic acquisition and interpretation costs, and other costs directly attrib-utable to the exploration and evaluation activities are classified as intangible assets. Exploration expenditures classified as intangible assets are assessed for impairment at regular intervals.
Exploration wells that discover potentially economic quantities of oil or natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. If, following the evaluation, the exploratory well has not found commercial quantities of hydrocarbons, the previously capitalised costs are expensed as exploration expenses in the Consolidated statement of income. Capitalised exploration and evaluation expenditures related to wells that find hydrocarbon resources, are transferred to property, plant and equipment once a development plan has been approved. Further expenditures for devel-opment of a field, such as drilling production wells, installation of platforms and other structures are capitalised as property, plant and equipment.
The purchase price allocated to licence acquisition costs in asset acquisitions remains classified as part of intangible assets. Any contingent considera-tion related to the licence acquisition is included as cost of the asset when incurred, which the Group considers to be when such payments become highly certain.
No amortisation or depreciation is charged during the exploration and eval-uation phase.
Other intangible assets
Other intangible assets include an Intellectual Property agreement acquired by BW Energy. This intangible asset is measured at present value of future cash payments, less accumulated amortisation and any accumulated impair-ment losses. It is amortised using the straight-line method over the term of the Dussafu Production Sharing Contract.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__33": { "value": "Exploration and evaluation assets
BW Energy uses the \u2018successful efforts\u2019 method of accounting for exploration and evaluation costs. Exploration and evaluation expenditures are capitalised when it is considered probable that future economic benefits will be gener-ated. Expenditures that fail to meet this criterion are generally expensed in the period they are incurred.
Licence acquisition costs, expenditures to drill and equip exploratory wells, seismic acquisition and interpretation costs, and other costs directly attrib-utable to the exploration and evaluation activities are classified as intangible assets. Exploration expenditures classified as intangible assets are assessed for impairment at regular intervals.
Exploration wells that discover potentially economic quantities of oil or natural gas remain capitalised as intangible assets during the evaluation phase of the discovery. If, following the evaluation, the exploratory well has not found commercial quantities of hydrocarbons, the previously capitalised costs are expensed as exploration expenses in the Consolidated statement of income. Capitalised exploration and evaluation expenditures related to wells that find hydrocarbon resources, are transferred to property, plant and equipment once a development plan has been approved. Further expenditures for devel-opment of a field, such as drilling production wells, installation of platforms and other structures are capitalised as property, plant and equipment.
The purchase price allocated to licence acquisition costs in asset acquisitions remains classified as part of intangible assets. Any contingent considera-tion related to the licence acquisition is included as cost of the asset when incurred, which the Group considers to be when such payments become highly certain.
No amortisation or depreciation is charged during the exploration and eval-uation phase.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExplorationAndEvaluationExpenditures", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__34": { "value": "Property, plant, and equipment
Measurement
Property, plant, and equipment is measured at cost, less accumulated depre-ciation and impairment. The initial cost of an asset comprises its purchase price or development cost, any costs directly attributable to bringing the asset into operation, the estimate of an asset retirement obligation, exploration costs transferred from intangible assets and, for qualifying assets, borrowing costs.
Subsequent costs 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 BW Energy and the cost of the item can be measured reliably.
Depreciation
Depreciation starts when an item of property, plant and equipment is ready for use as intended by management.
Capitalised oil and gas assets including exploration expenditures trans-ferred from intangible assets, drilling of production wells, other development expenditures related to construction and installation of platforms and pipelines, and asset retirement obligations are depreciated using the units of production method (UoP) based on proved and probable reserves (2P) expected to be recovered from the area during the concession or contract period. Reserves associated with the undeveloped areas that require addi-tional capital expenditure are excluded from depreciation calculations.
Other assets, such as office equipment, furniture and fixtures, and cars are depreciated using the straight-line method over 3-5 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__35": { "value": "Depreciation
Depreciation starts when an item of property, plant and equipment is ready for use as intended by management.
Capitalised oil and gas assets including exploration expenditures trans-ferred from intangible assets, drilling of production wells, other development expenditures related to construction and installation of platforms and pipelines, and asset retirement obligations are depreciated using the units of production method (UoP) based on proved and probable reserves (2P) expected to be recovered from the area during the concession or contract period. Reserves associated with the undeveloped areas that require addi-tional capital expenditure are excluded from depreciation calculations.
Other assets, such as office equipment, furniture and fixtures, and cars are depreciated using the straight-line method over 3-5 years.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__36": { "value": "Impairment
Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recover-able. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
For exploration properties, the impairment assessment is based on whether or not the exploration rights have expired or will expire in the near future, and whether the Group has plans for future evaluation of the area.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__38": { "value": "Impairment
Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recover-able. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.
For exploration properties, the impairment assessment is based on whether or not the exploration rights have expired or will expire in the near future, and whether the Group has plans for future evaluation of the area.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__37": { "value": "Non-current assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recover-able. If such indication exists, the asset\u2019s recoverable amount is estimated based on the value in use or fair value less cost of disposal. An impairment loss is recognised for the difference between the asset\u2019s carrying amount and its recoverable amount. Assets are grouped into cash-generating units at the lowest levels for which there are separate identifiable cash flows. For oil and gas assets, this is typically the licence area or a field.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__39": { "value": "Borrowing costs
Borrowing costs directly attributable to acquisition, construction or develop-ment of oil and gas properties, which take a substantial period to get ready for their intended use, are added to the cost of the asset until the asset is ready for its intended use. Borrowing costs consist of loan interest expense calculated using the effective interest method and lease interest expense for qualifying assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__40": { "value": "Financial instruments
The Group\u2019s financial assets and liabilities comprise listed equity investment, derivatives (assets and liabilities), receivables, cash and cash equivalents, payables, other current liabilities, and non-current liabilities. The classification of financial assets and liabilities at initial recognition depends on the financial instrument\u2019s contractual cash flow characteristics and BW Energy\u2019s business model for managing them. The Group has classified its financial instruments into the following categories of financial assets and liabilities:
\u2022Financial assets measured at amortised cost
\u2022Financial assets at fair value through profit or loss (FVTPL)
\u2022Financial assets at fair value through other comprehensive income (FVOCI)
\u2022Financial liabilities at fair value through profit or loss
\u2022Financial liabilities measured at amortised cost
Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortization of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include crude oil price hedging contracts, where the fair value changes are included in Other income (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. BW Energy does not apply hedge accounting to derivative instruments. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Financial assets at fair value through other comprehensive income
BW Energy designated its investment in equity securities of ReconAfrica at fair value through other comprehensive income because these equity secu-rities represent investments that are intended to be held for the long term for strategic purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__41-1": { "value": "Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortization of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include crude oil price hedging contracts, where the fair value changes are included in Other income (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. BW Energy does not apply hedge accounting to derivative instruments. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Financial assets at fair value through other comprehensive income
BW Energy designated its investment in equity securities of ReconAfrica at fair value through other comprehensive income because these equity secu-rities represent investments that are intended to be held for the long term for strategic purposes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__42-1": { "value": "Financial assets and liabilities at amortised cost
The Group\u2019s financial assets and liabilities at amortised cost include trade and other receivables, other non-current assets, trade payables and other current and non-current liabilities.
Trade receivables that do not contain a significant financing component are measured at the transaction price determined under IFRS 15 Revenue from Contracts with Customers.
All borrowings are initially recognised at transaction price, which equals the fair value of the amount received net of transaction costs directly related to the loan or issuance of debt. Subsequently, interest-bearing borrowings are valued at amortised cost using the effective interest method. Interest expense and amortization of transaction costs are recognised in the consol-idated statement of income, as well as any gain or loss on derecognition.
Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include crude oil price hedging contracts, where the fair value changes are included in Other income (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. BW Energy does not apply hedge accounting to derivative instruments. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__43": { "value": "Financial assets and liabilities at fair value through profit or loss
Derivatives are carried in the statement of financial position at fair value with net changes in fair value through profit or loss. These include crude oil price hedging contracts, where the fair value changes are included in Other income (refer to Note 4), and interest rate swaps, where the fair value changes are recognised within Net financial items. BW Energy does not apply hedge accounting to derivative instruments. Derivatives are presented as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__47": { "value": "Inventories
Inventories are valued at the lower of cost or net realisable value. Crude oil inventory is valued at production cost including depreciation. Cost of mate-rials and consumables is determined by the weighted average cost method, and cost of fuel oil is determined by \u2018first-in-first-out\u2019 (FIFO) method. The cost of inventories comprises the purchase price, import duties and other taxes, transport, handling, and other costs directly attributable to the acquisition of finished goods and materials.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__48": { "value": "Provisions and contingent assets and liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where BW Energy expects a provision to be reimbursed, for example under a contract with another entity, the reimburse-ment is recognised as a separate asset, but only when the reimbursement is virtually certain.
Asset retirement obligations (ARO)
Provisions for asset retirement obligations are recognised when BW Energy has an obligation to plug and abandon a well, dismantle and remove a produc-tion platform or an FPSO, and when a reliable estimate of the liability can be made.
Asset retirement obligations are recognised based on the present value of the estimated cash outflows to be incurred to conduct abandonment activities, considering relevant risks and uncertainties. The corresponding amount is recognised to the related property, plant and equipment in the consolidated statement of financial position and depreciated using the same depreciation method used for the asset.
The discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of the underlying cash flows.
Asset retirement obligations are assessed annually to incorporate any revisions to estimated retirement costs, discount rate and retirement date estimates. Changes in estimates are recognised as an adjustment to the provision and the corresponding property, plant and equipment.
When an asset has reached the end of its useful life, all subsequent changes to the ARO provision are recognised when they occur in operating expenses in the consolidated statement of income.
Other provisions
The Group recognised provisions related to additional acquisition consid-eration for the Golfinho and Maromba fields in Brazil which are contingent upon future field development and performance. These provisions are meas-ured at the present value of the expenditures expected to be required to settle the obligation. The increase in the provision due to passage of time is recognised as accretion expense. Subsequent changes in the amount of the contingent consideration resulting from remeasurement that does not reflect the passage of time is recorded as an adjustment to asset cost. Such remeasurements may result from changes in expected cash outflows due to change in the expected payment date, changes in inflation rate used to determine the contractual payment or discount rate used to determine the present value of future obligation.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__49": { "value": "Contingent assets and liabilities
Contingent assets and liabilities are not recognised in the consolidated finan-cial statements, but they are disclosed in the notes when they meet the disclosure requirements. A contingent asset is disclosed when an inflow of economic benefits is probable. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying economic benefits is remote.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__50": { "value": "Leases
A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the date at which the underlying asset is made available to BW Energy, the present value of future lease payments, including extension options consid-ered reasonably certain to be exercised, is recognised as a lease liability. The present value is calculated using BW Energy\u2019s incremental borrowing rate. A corresponding right-of-use asset is recognised, including lease payments and initial direct costs incurred at the commencement date. After the commence-ment date, the lease liabilities are increased to reflect the accretion of interest and reduced for the lease payments made. All right-of-use assets are depreciated using the straight-line method from commencement date to end of lease term, with the exception of the FPSO right-of-use asset, which is depreciated using the units-of-production method.
BW Energy has elected to not separate non-lease components, such as crew cost, supplies and other items, for support vessels and helicopters. As a result, these costs are reflected as part of the lease liability and right-of-use asset.
The right-of-use asset and lease liability for the leases used in joint oper-ations, where BW Energy is the operator, are recognised on a gross basis as BW Energy is the primary obligor. The share of lease payments paid by partners through the joint interest billings is recognised as other income on the statement of income.
Lease payments for short-term leases with a term of 12 months or less and the low-value leases are expensed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__51": { "value": "Note 3\tSignificant accounting estimates and judgements
In preparing these consolidated financial statements, management has made estimates about the future and judgements that affect the application of the Group\u2019s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Assumptions and estimation uncertainties
Reserves and resources estimate
Hydrocarbon reserves are estimates of the hydrocarbons that can be economically and legally extracted from the Group\u2019s oil and gas properties. BW Energy estimates its commercial reserves and resources with support from an independent third party. Commercial reserves are determined using estimates of oil and gas in place, recovery factors, and commodity prices. Forecasted oil and gas prices are based on available market data. BW Energy used oil and gas prices based on price deck from an external industry consultant. Future development costs are estimated using assumptions as to the infrastructure required to produce the commercial reserves, whether a platform is needed, number of wells, the cost of such wells, and other capital costs. The proved and probable reserves (2P) are used for depreciation of oil and gas assets by applying the units of production method. Changes to the reserves estimates might have a material impact on depreciation and impairment of non-current assets. Changes in reserve estimates might also impact economic cut-off of a field, which can significantly impact the timing of assumed decommissioning and removal activities.
Asset retirement obligations
Asset retirement costs will be incurred by BW Energy at the end of the oper-ating life of its oil and gas facilities and properties. The Group assesses its retirement obligations at each reporting date. The ultimate asset retirement
costs are uncertain, and cost estimates can vary in response to many factors, including changes to relevant legal requirements, the emergence of new restoration techniques or experience at other production sites. The expected timing, extent and amount of expenditure can also change, for example in response to changes in reserves or changes in laws and regulations or their interpretation. Therefore, significant estimates and assumptions, including estimated retirement costs and estimated retirement dates, are made in determining the provision for asset retirement obligations. As a result, there could be significant adjustments to the provisions which would affect future financial results. The provision at the reporting date represents manage-ment\u2019s best estimate of the present value of the future asset retirement costs required. The discount rate used in the calculation of the ARO is a market-based risk-free rate based on the applicable currency and time horizon of the underlying cash flows.
Judgements
Impairment triggers
The impairment trigger assessment is considered a significant judgement due to the long-lived nature of the Group\u2019s property, plant and equipment, intan-gibles and right of use assets, and the sensitivity of recoverable amounts to changes in economic assumptions. Management places particular emphasis on external indicators of forward-looking information, including medium-term demand forecasts, interest rates, market capitalisation and Brent crude oil price assumptions, when determining whether adverse conditions represent a trigger event or short-term volatility. Management also places emphasis on internal indicators which include forecasts of investments, production operating costs and exploration and evaluation activities and an estimate of recoverable reserves. BW Energy performed an impairment trigger
assessment at 31 December 2025 and 2024 and no impairment trigger indicators were identified.
Leases
Management has applied judgement in assessing whether certain contracts with the same lessor should be combined under IFRS 16. In 2025, the Group entered into a lease of a jack-up rig named BW Maromba Bthat will be used as a drilling and production unit on Maromba field. The unit was initially leased under a short-term lease that commenced and, subsequently, the lease was converted into a long-term lease agreement. Management concluded that these contracts should be combined and accounted for as a single lease contract, as they were negotiated as a package with a single commercial objective and the consideration payable under each contract was interde-pendent. Management\u2019s judgment was to recognise the lease liability and the right-of-use asset exclusive of costs for future modifications to be performed on the rig and financed by the lessor, of which a major part will be performed by the Group.
The Group has applied significant judgement in concluding that modifica-tion work performed, and to be performed, by its services subsidiary on BW Maromba B, leased by a Group entity, does not give rise to revenue under IFRS 15 in the consolidated financial statements. As BW Maromba B is controlled by the Group under the lease agreement, no distinct good or service is transferred externally from a Group perspective. Costs for the modifications performed by the Group are capitalised to property, plant and equipment. Financing received for this will be recognised as a financial liability.
Note 4\tRevenues
BW Energy\u2019s revenue from contracts with customers originates from the sale of crude oil produced in Gabon and Brazil to three customers (three customers in 2024). The Group currently operates as a single segment. The sales to two major customers, with USD 448.7 million and USD 215 million, account for 94 percent of total petroleum revenues from customers in 2025.
USD MILLION | 2025 | 2024 |
Petroleum revenues: | ||
Sales of crude oil | 663.7 | 678.6 |
Domestic market obligation deliveries\u200c1 | 39.7 | 33.6 |
Petroleum revenues from customers | 703.3 | 712.2 |
State profit oil | 74.9 | 71.6 |
Total petroleum revenues | 778.3 | 783.9 |
Other income: | ||
Realised gain on crude oil derivatives | 1.0 | 0.9 |
Unrealised gain/(loss) on crude oil derivatives | 4.3 | (0.9) |
Other income\u200c2 | 14.3 | 11.3 |
Total other income | 19.6 | 11.3 |
1Proceeds from Rabi Light crude oil delivery to Gabonese refining company Soci\u00e9t\u00e9 Gabonaise de Raffinage. Pursuant to the terms of the Dussafu PSC, BW Energy is required to deliver Rabi Light crude oil to the State of Gabon. The volume to be delivered is determined in proportion to production from the Dussafu licence relative to total production of Gabon and the country\u2019s refining capacity, subject to a cap of 10% of total annual production from the Dussafu licence. As Rabi Light crude oil is not produced in the Dussafu licence area, the required volume is purchased from a marketing company. The cost of these purchased volumes is presented separately in the statement of income as Crude oil purchases for domestic market obligations.
2Primarily comprised of the partners\u2019 share of lease payments for the right-of-use assets used in joint operations in Gabon.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__53": { "value": "Note 4\tRevenues
BW Energy\u2019s revenue from contracts with customers originates from the sale of crude oil produced in Gabon and Brazil to three customers (three customers in 2024). The Group currently operates as a single segment. The sales to two major customers, with USD 448.7 million and USD 215 million, account for 94 percent of total petroleum revenues from customers in 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__54": { "value": "Note 5\tOperating expenses
USD MILLION | 2025 | 2024 |
Production expenses | 270.1 | 248.1 |
Royalty expense | 52.4 | 50.5 |
Crude oil inventory adjustment | (3.1) | (22.9) |
General and administrative expenses | 18.6 | 22.8 |
Other expenses | 4.6 | 4.6 |
Total operating expenses | 342.6 | 303.3 |
Note 5\tOperating expenses
USD MILLION | 2025 | 2024 |
Production expenses | 270.1 | 248.1 |
Royalty expense | 52.4 | 50.5 |
Crude oil inventory adjustment | (3.1) | (22.9) |
General and administrative expenses | 18.6 | 22.8 |
Other expenses | 4.6 | 4.6 |
Total operating expenses | 342.6 | 303.3 |
Note 5\tOperating expenses
USD MILLION | 2025 | 2024 |
Production expenses | 270.1 | 248.1 |
Royalty expense | 52.4 | 50.5 |
Crude oil inventory adjustment | (3.1) | (22.9) |
General and administrative expenses | 18.6 | 22.8 |
Other expenses | 4.6 | 4.6 |
Total operating expenses | 342.6 | 303.3 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2025 | 2024 |
Payroll expenses | 47.9 | 35.5 |
Social security tax | 13.4 | 7.0 |
Retirement plans | 0.8 | 0.9 |
Other personnel costs | 3.0 | 8.9 |
Share-based payment | 1.0 | 1.5 |
Total employee benefit expenses | 66.0 | 53.7 |
Average number of employees | 369 | 251 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of shares |
2025 | 3,289,719 | 2,508,326 | 76,087 | 710,580 | 1,000,000 | 4,051,489 |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | 4,000,259 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO), and Chief Technical Officer (CTO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2025 | 460,000 |
2024 | 455,000 |
The compensation for members of the Board of Directors for the period from May 2025 to May 2026 will be decided at the annual general meeting in May 2026.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and restricted share units (RSUs) under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis. In 2025 a total of 9 (2024:10) BW Energy employees were invited to participate in the programme. At 31 December 2025, a total of 6,604,013 shares are outstanding, all of which are allocated to options that will give the holder the right to acquire one BW Energy share per option. The options have a vesting period of three years, followed by a three-year exercise period, and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2025, 71,721 RSUs were settled through share issuance (2024: 186,272 RSUs settled in cash, at the closing share price as traded on the stock exchange on the settlement date).
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% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is 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) | 11.67 | 10.41 |
Share price at grant date (NOK) | 36.00 | 30.65 |
Exercise price (NOK) | 41.56 | 36.41 |
Expected volatility (weighted average) | 42% | 46% |
Expected life | 4 | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.569% | 3.232% |
Expected volatility is 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 extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are 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 | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Granted during the year | 1,120,000 | 41.56 | 1,150,000 | 36.41 |
Terminated during the year | (186,000) | 33.78 | (150,387) | 30.74 |
Outstanding at 31 December | 6,604,013 | 33.01 | 5,670,013 | 31.34 |
Exercisable at 31 December | 3,234,973 | 29.59 | 966,000 | 30.73 |
2025 | 2024 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 71,721 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Exercised during the year | (71,721) | - | - | - |
Terminated during the year | - | - | (186,272) | - |
Outstanding at 31 December | - | - | 71,721 | - |
Exercisable at 31 December | - | 71,721 |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2025 | 2024 |
Audit | 627.0 | 542.9 |
Other services | 230.0 | 2.8 |
Total fees | 857.0 | 545.7 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2025 | 2024 |
Payroll expenses | 47.9 | 35.5 |
Social security tax | 13.4 | 7.0 |
Retirement plans | 0.8 | 0.9 |
Other personnel costs | 3.0 | 8.9 |
Share-based payment | 1.0 | 1.5 |
Total employee benefit expenses | 66.0 | 53.7 |
Average number of employees | 369 | 251 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of shares |
2025 | 3,289,719 | 2,508,326 | 76,087 | 710,580 | 1,000,000 | 4,051,489 |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | 4,000,259 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO), and Chief Technical Officer (CTO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2025 | 460,000 |
2024 | 455,000 |
The compensation for members of the Board of Directors for the period from May 2025 to May 2026 will be decided at the annual general meeting in May 2026.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and restricted share units (RSUs) under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis. In 2025 a total of 9 (2024:10) BW Energy employees were invited to participate in the programme. At 31 December 2025, a total of 6,604,013 shares are outstanding, all of which are allocated to options that will give the holder the right to acquire one BW Energy share per option. The options have a vesting period of three years, followed by a three-year exercise period, and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2025, 71,721 RSUs were settled through share issuance (2024: 186,272 RSUs settled in cash, at the closing share price as traded on the stock exchange on the settlement date).
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% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is 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) | 11.67 | 10.41 |
Share price at grant date (NOK) | 36.00 | 30.65 |
Exercise price (NOK) | 41.56 | 36.41 |
Expected volatility (weighted average) | 42% | 46% |
Expected life | 4 | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.569% | 3.232% |
Expected volatility is 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 extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are 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 | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Granted during the year | 1,120,000 | 41.56 | 1,150,000 | 36.41 |
Terminated during the year | (186,000) | 33.78 | (150,387) | 30.74 |
Outstanding at 31 December | 6,604,013 | 33.01 | 5,670,013 | 31.34 |
Exercisable at 31 December | 3,234,973 | 29.59 | 966,000 | 30.73 |
2025 | 2024 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 71,721 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Exercised during the year | (71,721) | - | - | - |
Terminated during the year | - | - | (186,272) | - |
Outstanding at 31 December | - | - | 71,721 | - |
Exercisable at 31 December | - | 71,721 |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2025 | 2024 |
Audit | 627.0 | 542.9 |
Other services | 230.0 | 2.8 |
Total fees | 857.0 | 545.7 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2025 | 2024 |
Payroll expenses | 47.9 | 35.5 |
Social security tax | 13.4 | 7.0 |
Retirement plans | 0.8 | 0.9 |
Other personnel costs | 3.0 | 8.9 |
Share-based payment | 1.0 | 1.5 |
Total employee benefit expenses | 66.0 | 53.7 |
Average number of employees | 369 | 251 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of shares |
2025 | 3,289,719 | 2,508,326 | 76,087 | 710,580 | 1,000,000 | 4,051,489 |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | 4,000,259 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO), and Chief Technical Officer (CTO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2025 | 460,000 |
2024 | 455,000 |
The compensation for members of the Board of Directors for the period from May 2025 to May 2026 will be decided at the annual general meeting in May 2026.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and restricted share units (RSUs) under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis. In 2025 a total of 9 (2024:10) BW Energy employees were invited to participate in the programme. At 31 December 2025, a total of 6,604,013 shares are outstanding, all of which are allocated to options that will give the holder the right to acquire one BW Energy share per option. The options have a vesting period of three years, followed by a three-year exercise period, and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2025, 71,721 RSUs were settled through share issuance (2024: 186,272 RSUs settled in cash, at the closing share price as traded on the stock exchange on the settlement date).
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% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is 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) | 11.67 | 10.41 |
Share price at grant date (NOK) | 36.00 | 30.65 |
Exercise price (NOK) | 41.56 | 36.41 |
Expected volatility (weighted average) | 42% | 46% |
Expected life | 4 | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.569% | 3.232% |
Expected volatility is 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 extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are 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 | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Granted during the year | 1,120,000 | 41.56 | 1,150,000 | 36.41 |
Terminated during the year | (186,000) | 33.78 | (150,387) | 30.74 |
Outstanding at 31 December | 6,604,013 | 33.01 | 5,670,013 | 31.34 |
Exercisable at 31 December | 3,234,973 | 29.59 | 966,000 | 30.73 |
2025 | 2024 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 71,721 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Exercised during the year | (71,721) | - | - | - |
Terminated during the year | - | - | (186,272) | - |
Outstanding at 31 December | - | - | 71,721 | - |
Exercisable at 31 December | - | 71,721 |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2025 | 2024 |
Audit | 627.0 | 542.9 |
Other services | 230.0 | 2.8 |
Total fees | 857.0 | 545.7 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2025 | 2024 |
Payroll expenses | 47.9 | 35.5 |
Social security tax | 13.4 | 7.0 |
Retirement plans | 0.8 | 0.9 |
Other personnel costs | 3.0 | 8.9 |
Share-based payment | 1.0 | 1.5 |
Total employee benefit expenses | 66.0 | 53.7 |
Average number of employees | 369 | 251 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of shares |
2025 | 3,289,719 | 2,508,326 | 76,087 | 710,580 | 1,000,000 | 4,051,489 |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | 4,000,259 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO), and Chief Technical Officer (CTO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2025 | 460,000 |
2024 | 455,000 |
The compensation for members of the Board of Directors for the period from May 2025 to May 2026 will be decided at the annual general meeting in May 2026.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and restricted share units (RSUs) under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis. In 2025 a total of 9 (2024:10) BW Energy employees were invited to participate in the programme. At 31 December 2025, a total of 6,604,013 shares are outstanding, all of which are allocated to options that will give the holder the right to acquire one BW Energy share per option. The options have a vesting period of three years, followed by a three-year exercise period, and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2025, 71,721 RSUs were settled through share issuance (2024: 186,272 RSUs settled in cash, at the closing share price as traded on the stock exchange on the settlement date).
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% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is 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) | 11.67 | 10.41 |
Share price at grant date (NOK) | 36.00 | 30.65 |
Exercise price (NOK) | 41.56 | 36.41 |
Expected volatility (weighted average) | 42% | 46% |
Expected life | 4 | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.569% | 3.232% |
Expected volatility is 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 extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are 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 | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Granted during the year | 1,120,000 | 41.56 | 1,150,000 | 36.41 |
Terminated during the year | (186,000) | 33.78 | (150,387) | 30.74 |
Outstanding at 31 December | 6,604,013 | 33.01 | 5,670,013 | 31.34 |
Exercisable at 31 December | 3,234,973 | 29.59 | 966,000 | 30.73 |
2025 | 2024 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 71,721 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Exercised during the year | (71,721) | - | - | - |
Terminated during the year | - | - | (186,272) | - |
Outstanding at 31 December | - | - | 71,721 | - |
Exercisable at 31 December | - | 71,721 |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2025 | 2024 |
Audit | 627.0 | 542.9 |
Other services | 230.0 | 2.8 |
Total fees | 857.0 | 545.7 |
Note 6\tEmployee benefit expenses, remuneration to directors and auditors
Employee payroll expenses
USD MILLION | 2025 | 2024 |
Payroll expenses | 47.9 | 35.5 |
Social security tax | 13.4 | 7.0 |
Retirement plans | 0.8 | 0.9 |
Other personnel costs | 3.0 | 8.9 |
Share-based payment | 1.0 | 1.5 |
Total employee benefit expenses | 66.0 | 53.7 |
Average number of employees | 369 | 251 |
Top Management remuneration
USD | Salary | Bonus | Retirement plan | Other benefits | Number of share options | Number of shares |
2025 | 3,289,719 | 2,508,326 | 76,087 | 710,580 | 1,000,000 | 4,051,489 |
2024 | 2,847,593 | 1,636,188 | 89,888 | 3,416,169 | 750,000 | 4,000,259 |
Top Management comprises of the following:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Commercial Officer (CCO), and Chief Technical Officer (CTO).
Board of Directors\u2019 remuneration
USD | Directors fee |
2025 | 460,000 |
2024 | 455,000 |
The compensation for members of the Board of Directors for the period from May 2025 to May 2026 will be decided at the annual general meeting in May 2026.
Employee remuneration
Variable compensation scheme
The Variable Compensation Scheme (VCS) is awarded in March each year if the Group reaches set goals. The aggregated bonus pool available for payment is determined with close reference to the Group\u2019s safety performance, profitability, and shareholder value creation. The overall company performance against performance targets is determined by the Board of Directors based on recommendation from the Remuneration Committee. The CEO\u2019s performance against performance targets is determined by the Board of Directors.
The potential pay-out of the Variable Compensation Scheme for the Executive Management Team is set at 6 months\u2019 salary as outlined in the Executive Remuneration Guidelines set in May 2021.
Long-term share option programme
The Board of Directors of the Company approved the award of share options and restricted share units (RSUs) under a Long-Term Incentive Program (LTIP) adopted on 19 May 2021. The LTIP is a discretionary plan where participants are invited on an annual basis. In 2025 a total of 9 (2024:10) BW Energy employees were invited to participate in the programme. At 31 December 2025, a total of 6,604,013 shares are outstanding, all of which are allocated to options that will give the holder the right to acquire one BW Energy share per option. The options have a vesting period of three years, followed by a three-year exercise period, and expire 6 years after the award date. The RSUs vest 1/3 annually over a three-year period and may be settled in shares or cash. In 2025, 71,721 RSUs were settled through share issuance (2024: 186,272 RSUs settled in cash, at the closing share price as traded on the stock exchange on the settlement date).
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% (corresponding to a 5% increase annually over 3 years).
Measurement of fair values
The fair value of the employee share options is 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) | 11.67 | 10.41 |
Share price at grant date (NOK) | 36.00 | 30.65 |
Exercise price (NOK) | 41.56 | 36.41 |
Expected volatility (weighted average) | 42% | 46% |
Expected life | 4 | 4 years |
Expected dividends | n/a | n/a |
Risk-free interest rate (based on government bonds) | 3.569% | 3.232% |
Expected volatility is 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 extreme movements. The expected term of the instruments is based on historical experience and general option holder behaviour.
The number and weighted-average exercise prices of share options and RSUs are 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 | 5,670,013 | 31.34 | 4,670,400 | 30.07 |
Granted during the year | 1,120,000 | 41.56 | 1,150,000 | 36.41 |
Terminated during the year | (186,000) | 33.78 | (150,387) | 30.74 |
Outstanding at 31 December | 6,604,013 | 33.01 | 5,670,013 | 31.34 |
Exercisable at 31 December | 3,234,973 | 29.59 | 966,000 | 30.73 |
2025 | 2024 | |||
RSUs | Number of units | Weighted -average exercise price (NOK) | Number of units | Weighted -average exercise price (NOK) |
Outstanding at 1 January | 71,721 | - | 257,993 | - |
Granted during the year | - | - | - | - |
Exercised during the year | (71,721) | - | - | - |
Terminated during the year | - | - | (186,272) | - |
Outstanding at 31 December | - | - | 71,721 | - |
Exercisable at 31 December | - | 71,721 |
For details of the related employee benefit expenses recognised in profit or loss, see the employee payroll expenses table above.
Auditor\u2019s remuneration
KPMG AS is the appointed auditor of BW Energy.
USD THOUSAND | 2025 | 2024 |
Audit | 627.0 | 542.9 |
Other services | 230.0 | 2.8 |
Total fees | 857.0 | 545.7 |
Note 7\tFinancial items
USD MILLION | 2025 | 2024 |
Total interest income | 12.3 | 13.1 |
Accretion income on discounted receivable | 1.7 | 2.8 |
Net currency gain | 3.0 | - |
Other financial income | - | 0.7 |
Total other financial income | 4.7 | 3.5 |
Interest expense | (65.7) | (62.2) |
Lease interest expense | (15.1) | (15.3) |
Amortised loan costs | (5.1) | (1.8) |
Capitalised interest cost\u200c1 | 57.1 | 28.3 |
Loss on debt modification | (4.8) | - |
Total interest expense | (33.6) | (51.0) |
Accretion expense related to abandonment provisions | (7.2) | (8.3) |
Accretion expense related to contingent payments | (3.2) | (2.7) |
Other financial expense | (1.9) | (1.0) |
Total other financial items | (12.2) | (12.0) |
Net financial items | (28.8) | (46.4) |
1The weighted average interest rate used to determine the amount of borrowing cost eligible for capitalisation is 10.3 percent (9.91 percent) for funds borrowed generally. The borrowing cost incurred under the FPSO loan facility, which is borrowed specifically for Maromba development project, is capitalised at the actual cost incurred less any investment income on temporary investments of those borrowings. Capitalised interest also includes the actual lease interest expense on the qualifying assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__63": { "value": "Note 7\tFinancial items
USD MILLION | 2025 | 2024 |
Total interest income | 12.3 | 13.1 |
Accretion income on discounted receivable | 1.7 | 2.8 |
Net currency gain | 3.0 | - |
Other financial income | - | 0.7 |
Total other financial income | 4.7 | 3.5 |
Interest expense | (65.7) | (62.2) |
Lease interest expense | (15.1) | (15.3) |
Amortised loan costs | (5.1) | (1.8) |
Capitalised interest cost\u200c1 | 57.1 | 28.3 |
Loss on debt modification | (4.8) | - |
Total interest expense | (33.6) | (51.0) |
Accretion expense related to abandonment provisions | (7.2) | (8.3) |
Accretion expense related to contingent payments | (3.2) | (2.7) |
Other financial expense | (1.9) | (1.0) |
Total other financial items | (12.2) | (12.0) |
Net financial items | (28.8) | (46.4) |
1The weighted average interest rate used to determine the amount of borrowing cost eligible for capitalisation is 10.3 percent (9.91 percent) for funds borrowed generally. The borrowing cost incurred under the FPSO loan facility, which is borrowed specifically for Maromba development project, is capitalised at the actual cost incurred less any investment income on temporary investments of those borrowings. Capitalised interest also includes the actual lease interest expense on the qualifying assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__64": { "value": "Note 7\tFinancial items
USD MILLION | 2025 | 2024 |
Total interest income | 12.3 | 13.1 |
Accretion income on discounted receivable | 1.7 | 2.8 |
Net currency gain | 3.0 | - |
Other financial income | - | 0.7 |
Total other financial income | 4.7 | 3.5 |
Interest expense | (65.7) | (62.2) |
Lease interest expense | (15.1) | (15.3) |
Amortised loan costs | (5.1) | (1.8) |
Capitalised interest cost\u200c1 | 57.1 | 28.3 |
Loss on debt modification | (4.8) | - |
Total interest expense | (33.6) | (51.0) |
Accretion expense related to abandonment provisions | (7.2) | (8.3) |
Accretion expense related to contingent payments | (3.2) | (2.7) |
Other financial expense | (1.9) | (1.0) |
Total other financial items | (12.2) | (12.0) |
Net financial items | (28.8) | (46.4) |
1The weighted average interest rate used to determine the amount of borrowing cost eligible for capitalisation is 10.3 percent (9.91 percent) for funds borrowed generally. The borrowing cost incurred under the FPSO loan facility, which is borrowed specifically for Maromba development project, is capitalised at the actual cost incurred less any investment income on temporary investments of those borrowings. Capitalised interest also includes the actual lease interest expense on the qualifying assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__65": { "value": "Note 8\tIncome taxes
The income tax expense for the period comprises profit oil tax in Gabon, corporate income tax, and deferred tax.
In Gabon, tax is paid in kind in the form of profit oil tax under the production sharing arrangement for the Dussafu licence. Under this taxation regime, a defined portion of production is allocated to the Dussafu partners as petroleum cost recovery, allowing recovery of their capital and operational expenditures. The remaining production is classified as profit oil and is shared between the Dussafu partners and the State of Gabon, with allocation percentages that vary according to monthly production levels. The majority of the Group\u2019s tax expense is related to the operations in Gabon under this production sharing contract.
The Golfinho field in Brazil and BW Energy\u2019s other subsidiaries are subject to ordinary corporate income tax regimes. Corporate income tax is assessed on the actual profits of each subsidiary, with applicable rates and regulations determined by the tax framework in the jurisdiction in which the subsidiary operates.
Deferred tax is determined based on temporary differences between the carrying amounts of existing assets and liabilities and their respective tax bases and tax losses carried forward.
The Pillar Two tax framework introduced by the Organisation for Economic Cooperation and Development is intended to establish a global minimum corporate tax rate of 15% in each jurisdiction where a company operates. In connection with this initiative, Bermuda introduced a 15% corporate income tax with effect from 1 January 2025, that is applicable to Bermuda companies that are part of multinational enterprise groups with annual revenue of EUR 750 million or more in at least two of the four preceding fiscal years. BW Energy was not subject to this tax in 2025, however, the Company may become subject to it in the future years, based on the results of its operations.
As the Group\u2019s operations are subject to different methods of taxation, income tax expense will not necessarily change proportionally with changes in the overall net profit before tax. Due to the Dussafu Production Sharing taxation arrange-ment in Gabon, where profit oil is determined based on production at varying rates, there is no direct correlation between profit before tax and tax expense, therefore, the effective tax rate may differ significantly between comparable periods.
Tax expense for the year
USD MILLION | 2025 | 2024 |
Profit oil tax | 74.9 | 71.6 |
Tax expense | 3.0 | 3.8 |
Changes in deferred tax\u200c1 | (23.3) | (11.2) |
Total tax expense | 54.6 | 64.2 |
1The difference between changes in deferred tax in statement of financial position and the statement of income is due to revaluation of deferred tax asset denominated in foreign currency. The change is presented in the statement of income as part of net financial items.
Reconciliation of effective tax rate:
USD MILLION | 2025 | 2024 |
Profit before tax | 187.7 | 230.1 |
Expected tax based on domestic tax rate in Bermuda of 0% | - | - |
Effect of profit oil tax (different taxation basis in Gabon)\u200c1 | 74.9 | 71.6 |
Effect of higher tax rates in other countries\u200c2 | 2.6 | 3.6 |
Withholding tax | 0.4 | 0.2 |
Reversal of deferred tax liability (taxable event no longer expected)\u200c3 | (13.6) | - |
Tax effect of other temporary differences (primarily in Brazil) | (9.7) | (11.2) |
Total tax expense | 54.6 | 64.2 |
Effective tax rate | 29% | 28% |
1The basis for calculating this income tax differs from accounting profit before tax as explained above.
2The taxes paid by different subsidiaries in the Netherlands, Singapore, Portugal, USA, and UAE, based on intercompany service income and other transactions resulting in taxable profits.
3The deferred tax liability of USD 13.6 million accumulated over prior years relating to unremitted foreign interest income on intercompany loans was reversed as the associated taxable event is no longer expected to occur due to an upstream dividend distribution of interest receivable.
Deferred tax assets and liabilities are as follows:
USD MILLION | 2025 | 2024 |
Deferred tax assets | ||
Tax losses and other temporary differences | 31.2 | 19.0 |
Deferred tax assets | 31.2 | 19.0 |
Deferred tax liabilities | ||
Timing difference for financing costs | - | (13.6) |
Deferred tax liabilities | - | (13.6) |
Net deferred tax assets\u00a0/ (liabilities) | 31.2 | 5.4 |
Deferred tax asset of USD 31.2 million at 31 December 2025 reflects the future benefit from tax losses carried forward and other temporary differences, primarily in Brazil. USD 11.2 million corresponds to tax loss carryforwards, which do not expire but may only offset 30% of taxable profit each year. USD 20 million corresponds to other temporary differences, with most significant being attributable to inventory (USD 14.3 million), asset retirement obligation (USD 10.9 million), and accelerated depreciation (USD -13.6 million).
At 31 December 2024, the following contributed to deferred tax benefit of USD 19 million: tax losses carried forward in Brazil (USD 3.2 million), unrealised foreign currency exchange differences (USD 10 million), inventory (USD 3.1 million), and asset retirement obligation (USD 2.8 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__66": { "value": "Note 8\tIncome taxes
The income tax expense for the period comprises profit oil tax in Gabon, corporate income tax, and deferred tax.
In Gabon, tax is paid in kind in the form of profit oil tax under the production sharing arrangement for the Dussafu licence. Under this taxation regime, a defined portion of production is allocated to the Dussafu partners as petroleum cost recovery, allowing recovery of their capital and operational expenditures. The remaining production is classified as profit oil and is shared between the Dussafu partners and the State of Gabon, with allocation percentages that vary according to monthly production levels. The majority of the Group\u2019s tax expense is related to the operations in Gabon under this production sharing contract.
The Golfinho field in Brazil and BW Energy\u2019s other subsidiaries are subject to ordinary corporate income tax regimes. Corporate income tax is assessed on the actual profits of each subsidiary, with applicable rates and regulations determined by the tax framework in the jurisdiction in which the subsidiary operates.
Deferred tax is determined based on temporary differences between the carrying amounts of existing assets and liabilities and their respective tax bases and tax losses carried forward.
The Pillar Two tax framework introduced by the Organisation for Economic Cooperation and Development is intended to establish a global minimum corporate tax rate of 15% in each jurisdiction where a company operates. In connection with this initiative, Bermuda introduced a 15% corporate income tax with effect from 1 January 2025, that is applicable to Bermuda companies that are part of multinational enterprise groups with annual revenue of EUR 750 million or more in at least two of the four preceding fiscal years. BW Energy was not subject to this tax in 2025, however, the Company may become subject to it in the future years, based on the results of its operations.
As the Group\u2019s operations are subject to different methods of taxation, income tax expense will not necessarily change proportionally with changes in the overall net profit before tax. Due to the Dussafu Production Sharing taxation arrange-ment in Gabon, where profit oil is determined based on production at varying rates, there is no direct correlation between profit before tax and tax expense, therefore, the effective tax rate may differ significantly between comparable periods.
Tax expense for the year
USD MILLION | 2025 | 2024 |
Profit oil tax | 74.9 | 71.6 |
Tax expense | 3.0 | 3.8 |
Changes in deferred tax\u200c1 | (23.3) | (11.2) |
Total tax expense | 54.6 | 64.2 |
1The difference between changes in deferred tax in statement of financial position and the statement of income is due to revaluation of deferred tax asset denominated in foreign currency. The change is presented in the statement of income as part of net financial items.
Reconciliation of effective tax rate:
USD MILLION | 2025 | 2024 |
Profit before tax | 187.7 | 230.1 |
Expected tax based on domestic tax rate in Bermuda of 0% | - | - |
Effect of profit oil tax (different taxation basis in Gabon)\u200c1 | 74.9 | 71.6 |
Effect of higher tax rates in other countries\u200c2 | 2.6 | 3.6 |
Withholding tax | 0.4 | 0.2 |
Reversal of deferred tax liability (taxable event no longer expected)\u200c3 | (13.6) | - |
Tax effect of other temporary differences (primarily in Brazil) | (9.7) | (11.2) |
Total tax expense | 54.6 | 64.2 |
Effective tax rate | 29% | 28% |
1The basis for calculating this income tax differs from accounting profit before tax as explained above.
2The taxes paid by different subsidiaries in the Netherlands, Singapore, Portugal, USA, and UAE, based on intercompany service income and other transactions resulting in taxable profits.
3The deferred tax liability of USD 13.6 million accumulated over prior years relating to unremitted foreign interest income on intercompany loans was reversed as the associated taxable event is no longer expected to occur due to an upstream dividend distribution of interest receivable.
Deferred tax assets and liabilities are as follows:
USD MILLION | 2025 | 2024 |
Deferred tax assets | ||
Tax losses and other temporary differences | 31.2 | 19.0 |
Deferred tax assets | 31.2 | 19.0 |
Deferred tax liabilities | ||
Timing difference for financing costs | - | (13.6) |
Deferred tax liabilities | - | (13.6) |
Net deferred tax assets\u00a0/ (liabilities) | 31.2 | 5.4 |
Deferred tax asset of USD 31.2 million at 31 December 2025 reflects the future benefit from tax losses carried forward and other temporary differences, primarily in Brazil. USD 11.2 million corresponds to tax loss carryforwards, which do not expire but may only offset 30% of taxable profit each year. USD 20 million corresponds to other temporary differences, with most significant being attributable to inventory (USD 14.3 million), asset retirement obligation (USD 10.9 million), and accelerated depreciation (USD -13.6 million).
At 31 December 2024, the following contributed to deferred tax benefit of USD 19 million: tax losses carried forward in Brazil (USD 3.2 million), unrealised foreign currency exchange differences (USD 10 million), inventory (USD 3.1 million), and asset retirement obligation (USD 2.8 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__67": { "value": "Note 9\tEarnings per share
Earnings per share is calculated by dividing the net result attributable to the shareholders of the parent by the weighted average number of ordinary shares in issue during the year. For diluted earnings per share, the weighted average number of shares is adjusted for dilutive effects relating to outstanding RSUs and options issued by the Company.
2025 | 2024 | |
Profit attributable to ordinary shareholders (in millions) | 133.1 | 165.9 |
Weighted-average number of ordinary shares (in thousands) | 258,052 | 257,994 |
Basic earnings per share, USD | 0.52 | 0.64 |
Weighted-average number of ordinary shares (diluted, in thousands) | 258,583 | 257,994 |
Diluted earnings per share, USD | 0.51 | 0.64 |
Note 10\tProperty, plant, and equipment
2025 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2025 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Additions and transfers | 52.4 | 277.5 | 2.0 | 331.9 |
Changes in asset retirement cost | (10.2) | - | - | (10.2) |
Acquisition cost at 31 December 2025 | 1,305.9 | 489.0 | 10.3 | 1,805.2 |
Accumulated depreciation at 1 January 2025 | (350.7) | - | (3.2) | (353.9) |
Current year depreciation | (141.7) | - | (1.2) | (142.9) |
Accumulated depreciation at 31 December 2025 | (492.4) | - | (4.4) | (496.8) |
Book value at 31 December 2025 | 813.5 | 489.0 | 5.9 | 1,308.3 |
Useful life | UoP | n/a | 3-5 years | |
2024 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2024 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Additions and transfers | 242.0 | 10.6 | 3.8 | 256.4 |
Changes in asset retirement cost | (51.3) | - | - | (51.3) |
Acquisition cost at 31 December 2024 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Accumulated depreciation at 1 January 2024 | (223.1) | - | (1.0) | (224.1) |
Current year depreciation | (127.6) | - | (2.2) | (129.8) |
Accumulated depreciation at 31 December 2024 | (350.7) | - | (3.2) | (353.9) |
Book value at 31 December 2024 | 912.9 | 211.5 | 5.1 | 1,129.5 |
Useful life | UoP | n/a | 3-5 years |
Additions to assets under development are primarily related to Maromba field, which include the historical costs reclassified from an intangible asset to PP&E, following the final investment decision declared by the Group in May 2025, and the ongoing FPSO BW Marombarefurbishment and field development expenditures.
The Dussafu licence expires in 10 years from commencement of production in 2018. At the end of this term, BW Energy has the right to file for two additional 5-year extensions. Production assets located in the Dussafu licence area are depreciated based on 2P reserves estimated to be produced over a 20-year licence period, through 2038, as BW Energy considers it probable that the licence extensions will be granted as Dussafu partners remain compliant with their obligations and commitments under the Exploration and Production Sharing Contract with the State of Gabon. The Group\u2019s ownership in this area is 73.5%.
Golfinho assets, where the Group owns 100% of working interest, are depreciated through the end of the licence period in 2042.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024 and no impairment indicators were identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__69-1": { "value": "Note 10\tProperty, plant, and equipment
2025 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2025 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Additions and transfers | 52.4 | 277.5 | 2.0 | 331.9 |
Changes in asset retirement cost | (10.2) | - | - | (10.2) |
Acquisition cost at 31 December 2025 | 1,305.9 | 489.0 | 10.3 | 1,805.2 |
Accumulated depreciation at 1 January 2025 | (350.7) | - | (3.2) | (353.9) |
Current year depreciation | (141.7) | - | (1.2) | (142.9) |
Accumulated depreciation at 31 December 2025 | (492.4) | - | (4.4) | (496.8) |
Book value at 31 December 2025 | 813.5 | 489.0 | 5.9 | 1,308.3 |
Useful life | UoP | n/a | 3-5 years | |
2024 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2024 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Additions and transfers | 242.0 | 10.6 | 3.8 | 256.4 |
Changes in asset retirement cost | (51.3) | - | - | (51.3) |
Acquisition cost at 31 December 2024 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Accumulated depreciation at 1 January 2024 | (223.1) | - | (1.0) | (224.1) |
Current year depreciation | (127.6) | - | (2.2) | (129.8) |
Accumulated depreciation at 31 December 2024 | (350.7) | - | (3.2) | (353.9) |
Book value at 31 December 2024 | 912.9 | 211.5 | 5.1 | 1,129.5 |
Useful life | UoP | n/a | 3-5 years |
Additions to assets under development are primarily related to Maromba field, which include the historical costs reclassified from an intangible asset to PP&E, following the final investment decision declared by the Group in May 2025, and the ongoing FPSO BW Marombarefurbishment and field development expenditures.
The Dussafu licence expires in 10 years from commencement of production in 2018. At the end of this term, BW Energy has the right to file for two additional 5-year extensions. Production assets located in the Dussafu licence area are depreciated based on 2P reserves estimated to be produced over a 20-year licence period, through 2038, as BW Energy considers it probable that the licence extensions will be granted as Dussafu partners remain compliant with their obligations and commitments under the Exploration and Production Sharing Contract with the State of Gabon. The Group\u2019s ownership in this area is 73.5%.
Golfinho assets, where the Group owns 100% of working interest, are depreciated through the end of the licence period in 2042.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024 and no impairment indicators were identified.
Note 11\tIntangible assets
2025 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2025 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Additions and transfers | 113.0 | 107.5 | 0.7 | - | 221.2 |
Carrying amount, 31 December 2025 | 321.8 | 111.1 | 27.5 | 71.1 | 531.5 |
Amortisation and impairment | |||||
At 1 January 2025 | - | - | (4.3) | (14.3) | (18.6) |
Amortisation | - | - | (2.0) | (4.7) | (6.7) |
At 31 December 2025 | - | - | (6.3) | (19.0) | (25.3) |
Net book value | |||||
At 31 December 2025 | 321.8 | 111.1 | 21.2 | 52.1 | 506.2 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL | |
2024 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2024 | 169.0 | 3.6 | 24.8 | 69.6 | 267.0 |
Additions and transfers | 39.8 | - | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Amortisation and impairment | |||||
At 1 January 2024 | - | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | - | (4.3) | (14.3) | (18.6) |
Net book value | |||||
At 31 December 2024 | 208.8 | 3.6 | 22.5 | 56.8 | 291.8 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL |
Additions into exploration and evaluation expenditures in 2025 mainly relate to the Kharas-1 appraisal well drilled on the Kudu licence in Namibia and Bourdon appraisal well drilled on the Dussafu licence in Gabon. The evaluation costs of USD 93.4 million related to Maromba field were reclassified from an intangible asset to property, plant and equipment, following the declaration of the final investment decision in May 2025.
Upon reaching the final investment decision in 2025, the Group recognised USD 77.5 million of previously contingent acquisition costs related to the Maromba field, reflecting the best estimate of the expenditure required to settle the present obligation. Together with the initial acquisition cost of USD 30 million, this amount is now presented as an addition/transfer to the acquired licence costs, not yet amortised. The licence costs presented in this category are related to non-producing assets, therefore, will not be amortised until the relevant area is developed and production commences.
The acquired licence costs of USD 27.5 million resulting from the acquisition of Golfinho field are amortised using the units-of-production method since the amount is related to a producing area.
Other intangible assets include the intellectual property asset (see Note 22) and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu licence area using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024, no impairment indicators were identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__70-1": { "value": "Note 10\tProperty, plant, and equipment
2025 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2025 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Additions and transfers | 52.4 | 277.5 | 2.0 | 331.9 |
Changes in asset retirement cost | (10.2) | - | - | (10.2) |
Acquisition cost at 31 December 2025 | 1,305.9 | 489.0 | 10.3 | 1,805.2 |
Accumulated depreciation at 1 January 2025 | (350.7) | - | (3.2) | (353.9) |
Current year depreciation | (141.7) | - | (1.2) | (142.9) |
Accumulated depreciation at 31 December 2025 | (492.4) | - | (4.4) | (496.8) |
Book value at 31 December 2025 | 813.5 | 489.0 | 5.9 | 1,308.3 |
Useful life | UoP | n/a | 3-5 years | |
2024 | ||||
USD MILLION | Production assets | Assets under development | Other assets | Total |
Acquisition cost at 1 January 2024 | 1,073.0 | 200.9 | 4.5 | 1,278.4 |
Additions and transfers | 242.0 | 10.6 | 3.8 | 256.4 |
Changes in asset retirement cost | (51.3) | - | - | (51.3) |
Acquisition cost at 31 December 2024 | 1,263.6 | 211.5 | 8.3 | 1,483.4 |
Accumulated depreciation at 1 January 2024 | (223.1) | - | (1.0) | (224.1) |
Current year depreciation | (127.6) | - | (2.2) | (129.8) |
Accumulated depreciation at 31 December 2024 | (350.7) | - | (3.2) | (353.9) |
Book value at 31 December 2024 | 912.9 | 211.5 | 5.1 | 1,129.5 |
Useful life | UoP | n/a | 3-5 years |
Additions to assets under development are primarily related to Maromba field, which include the historical costs reclassified from an intangible asset to PP&E, following the final investment decision declared by the Group in May 2025, and the ongoing FPSO BW Marombarefurbishment and field development expenditures.
The Dussafu licence expires in 10 years from commencement of production in 2018. At the end of this term, BW Energy has the right to file for two additional 5-year extensions. Production assets located in the Dussafu licence area are depreciated based on 2P reserves estimated to be produced over a 20-year licence period, through 2038, as BW Energy considers it probable that the licence extensions will be granted as Dussafu partners remain compliant with their obligations and commitments under the Exploration and Production Sharing Contract with the State of Gabon. The Group\u2019s ownership in this area is 73.5%.
Golfinho assets, where the Group owns 100% of working interest, are depreciated through the end of the licence period in 2042.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024 and no impairment indicators were identified.
Note 11\tIntangible assets
2025 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2025 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Additions and transfers | 113.0 | 107.5 | 0.7 | - | 221.2 |
Carrying amount, 31 December 2025 | 321.8 | 111.1 | 27.5 | 71.1 | 531.5 |
Amortisation and impairment | |||||
At 1 January 2025 | - | - | (4.3) | (14.3) | (18.6) |
Amortisation | - | - | (2.0) | (4.7) | (6.7) |
At 31 December 2025 | - | - | (6.3) | (19.0) | (25.3) |
Net book value | |||||
At 31 December 2025 | 321.8 | 111.1 | 21.2 | 52.1 | 506.2 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL | |
2024 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2024 | 169.0 | 3.6 | 24.8 | 69.6 | 267.0 |
Additions and transfers | 39.8 | - | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Amortisation and impairment | |||||
At 1 January 2024 | - | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | - | (4.3) | (14.3) | (18.6) |
Net book value | |||||
At 31 December 2024 | 208.8 | 3.6 | 22.5 | 56.8 | 291.8 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL |
Additions into exploration and evaluation expenditures in 2025 mainly relate to the Kharas-1 appraisal well drilled on the Kudu licence in Namibia and Bourdon appraisal well drilled on the Dussafu licence in Gabon. The evaluation costs of USD 93.4 million related to Maromba field were reclassified from an intangible asset to property, plant and equipment, following the declaration of the final investment decision in May 2025.
Upon reaching the final investment decision in 2025, the Group recognised USD 77.5 million of previously contingent acquisition costs related to the Maromba field, reflecting the best estimate of the expenditure required to settle the present obligation. Together with the initial acquisition cost of USD 30 million, this amount is now presented as an addition/transfer to the acquired licence costs, not yet amortised. The licence costs presented in this category are related to non-producing assets, therefore, will not be amortised until the relevant area is developed and production commences.
The acquired licence costs of USD 27.5 million resulting from the acquisition of Golfinho field are amortised using the units-of-production method since the amount is related to a producing area.
Other intangible assets include the intellectual property asset (see Note 22) and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu licence area using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024, no impairment indicators were identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__71": { "value": "Note 11\tIntangible assets
2025 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2025 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Additions and transfers | 113.0 | 107.5 | 0.7 | - | 221.2 |
Carrying amount, 31 December 2025 | 321.8 | 111.1 | 27.5 | 71.1 | 531.5 |
Amortisation and impairment | |||||
At 1 January 2025 | - | - | (4.3) | (14.3) | (18.6) |
Amortisation | - | - | (2.0) | (4.7) | (6.7) |
At 31 December 2025 | - | - | (6.3) | (19.0) | (25.3) |
Net book value | |||||
At 31 December 2025 | 321.8 | 111.1 | 21.2 | 52.1 | 506.2 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL | |
2024 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2024 | 169.0 | 3.6 | 24.8 | 69.6 | 267.0 |
Additions and transfers | 39.8 | - | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Amortisation and impairment | |||||
At 1 January 2024 | - | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | - | (4.3) | (14.3) | (18.6) |
Net book value | |||||
At 31 December 2024 | 208.8 | 3.6 | 22.5 | 56.8 | 291.8 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL |
Additions into exploration and evaluation expenditures in 2025 mainly relate to the Kharas-1 appraisal well drilled on the Kudu licence in Namibia and Bourdon appraisal well drilled on the Dussafu licence in Gabon. The evaluation costs of USD 93.4 million related to Maromba field were reclassified from an intangible asset to property, plant and equipment, following the declaration of the final investment decision in May 2025.
Upon reaching the final investment decision in 2025, the Group recognised USD 77.5 million of previously contingent acquisition costs related to the Maromba field, reflecting the best estimate of the expenditure required to settle the present obligation. Together with the initial acquisition cost of USD 30 million, this amount is now presented as an addition/transfer to the acquired licence costs, not yet amortised. The licence costs presented in this category are related to non-producing assets, therefore, will not be amortised until the relevant area is developed and production commences.
The acquired licence costs of USD 27.5 million resulting from the acquisition of Golfinho field are amortised using the units-of-production method since the amount is related to a producing area.
Other intangible assets include the intellectual property asset (see Note 22) and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu licence area using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024, no impairment indicators were identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__72": { "value": "Note 11\tIntangible assets
2025 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2025 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Additions and transfers | 113.0 | 107.5 | 0.7 | - | 221.2 |
Carrying amount, 31 December 2025 | 321.8 | 111.1 | 27.5 | 71.1 | 531.5 |
Amortisation and impairment | |||||
At 1 January 2025 | - | - | (4.3) | (14.3) | (18.6) |
Amortisation | - | - | (2.0) | (4.7) | (6.7) |
At 31 December 2025 | - | - | (6.3) | (19.0) | (25.3) |
Net book value | |||||
At 31 December 2025 | 321.8 | 111.1 | 21.2 | 52.1 | 506.2 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL | |
2024 | |||||
USD MILLION | Exploration and evaluation expenditures | Acquired license costs (not amortised) | Acquired license costs (amortised) | Other intangible assets | Total |
Acquisition cost | |||||
At 1 January 2024 | 169.0 | 3.6 | 24.8 | 69.6 | 267.0 |
Additions and transfers | 39.8 | - | 2.0 | 1.5 | 43.3 |
Carrying amount, 31 December 2024 | 208.8 | 3.6 | 26.8 | 71.1 | 310.3 |
Amortisation and impairment | |||||
At 1 January 2024 | - | - | (1.4) | (10.3) | (11.7) |
Amortisation | - | - | (2.9) | (4.0) | (6.9) |
At 31 December 2024 | - | - | (4.3) | (14.3) | (18.6) |
Net book value | |||||
At 31 December 2024 | 208.8 | 3.6 | 22.5 | 56.8 | 291.8 |
Useful life | 3/20 years | ||||
Amortisation method | n/a | n/a | UoP | SL |
Additions into exploration and evaluation expenditures in 2025 mainly relate to the Kharas-1 appraisal well drilled on the Kudu licence in Namibia and Bourdon appraisal well drilled on the Dussafu licence in Gabon. The evaluation costs of USD 93.4 million related to Maromba field were reclassified from an intangible asset to property, plant and equipment, following the declaration of the final investment decision in May 2025.
Upon reaching the final investment decision in 2025, the Group recognised USD 77.5 million of previously contingent acquisition costs related to the Maromba field, reflecting the best estimate of the expenditure required to settle the present obligation. Together with the initial acquisition cost of USD 30 million, this amount is now presented as an addition/transfer to the acquired licence costs, not yet amortised. The licence costs presented in this category are related to non-producing assets, therefore, will not be amortised until the relevant area is developed and production commences.
The acquired licence costs of USD 27.5 million resulting from the acquisition of Golfinho field are amortised using the units-of-production method since the amount is related to a producing area.
Other intangible assets include the intellectual property asset (see Note 22) and capitalised software costs. The intellectual property asset is amortised over the life of the Dussafu licence area using the straight-line method.
BW Energy performed an impairment trigger assessment at 31 December 2025 and 2024, no impairment indicators were identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExplorationAndEvaluationAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__75": { "value": "Note 12\tOther non-current assets
USD MILLION | 2025 | 2024 |
Receivable from Dussafu partners\u200c1 | 29.9 | 34.9 |
Abandonment cost reimbursement\u200c2 | 30.6 | 28.9 |
Listed equity securities\u200c3 | 20.0 | 13.1 |
Recoverable taxes | 24.6 | - |
Other non-current assets | 4.0 | 1.2 |
Total non-current assets | 109.1 | 78.1 |
1Proceeds of MaBoMo sale-leaseback transaction distributed to Dussafu partners in 2024 (originally USD 40 million, interest and principal payments due through April 2034, current portion of USD 4 million included in trade and other current assets).
2Under terms of the purchase and sale agreement for Golfinho Cluster assets, Petrobras will reimburse USD 40 million of abandonment cost after decommissioning designated wells. Receivable is recognised at present value, with accretion income recognised in the statement of income as a financial item.
3Investment in shares of ReconAfrica (see Note 25).
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__76-1": { "value": "Note 12\tOther non-current assets
USD MILLION | 2025 | 2024 |
Receivable from Dussafu partners\u200c1 | 29.9 | 34.9 |
Abandonment cost reimbursement\u200c2 | 30.6 | 28.9 |
Listed equity securities\u200c3 | 20.0 | 13.1 |
Recoverable taxes | 24.6 | - |
Other non-current assets | 4.0 | 1.2 |
Total non-current assets | 109.1 | 78.1 |
1Proceeds of MaBoMo sale-leaseback transaction distributed to Dussafu partners in 2024 (originally USD 40 million, interest and principal payments due through April 2034, current portion of USD 4 million included in trade and other current assets).
2Under terms of the purchase and sale agreement for Golfinho Cluster assets, Petrobras will reimburse USD 40 million of abandonment cost after decommissioning designated wells. Receivable is recognised at present value, with accretion income recognised in the statement of income as a financial item.
3Investment in shares of ReconAfrica (see Note 25).
Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade and other receivables are mainly denominated in USD.
USD MILLION | 2025 | 2024 |
Trade receivables | 28.7 | 11.8 |
Partner receivables | 16.4 | 25.5 |
Prepayments | 27.9 | 10.1 |
Public duties receivables | 21.3 | 16.7 |
Other receivables | 7.3 | 4.5 |
Trade and other current assets | 101.7 | 68.6 |
Note 13\tInventories
USD MILLION | 2025 | 2024 |
Crude oil | 50.2 | 41.1 |
Materials and consumables | 18.7 | 10.8 |
Fuel oil | 3.5 | 4.7 |
Inventories | 72.4 | 56.7 |
At year-end 2025, the remaining crude oil inventory was approximately 503,500 barrels in the Golfinho field and 422,000 barrels in the Dussafu licence area due to an underlift position (2024: 440,500 barrels in Golfinho and 248,700 barrels in Dussafu).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__78": { "value": "Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade and other receivables are mainly denominated in USD.
USD MILLION | 2025 | 2024 |
Trade receivables | 28.7 | 11.8 |
Partner receivables | 16.4 | 25.5 |
Prepayments | 27.9 | 10.1 |
Public duties receivables | 21.3 | 16.7 |
Other receivables | 7.3 | 4.5 |
Trade and other current assets | 101.7 | 68.6 |
Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade and other receivables are mainly denominated in USD.
USD MILLION | 2025 | 2024 |
Trade receivables | 28.7 | 11.8 |
Partner receivables | 16.4 | 25.5 |
Prepayments | 27.9 | 10.1 |
Public duties receivables | 21.3 | 16.7 |
Other receivables | 7.3 | 4.5 |
Trade and other current assets | 101.7 | 68.6 |
Note 14\tTrade and other current assets
Trade receivables are recognised in the statement of financial position at nominal value after a deduction for the provision for credit losses. Historically there have been no significant credit losses, and BW Energy\u2019s customers are mainly large, financially sound oil companies. Trade and other receivables are mainly denominated in USD.
USD MILLION | 2025 | 2024 |
Trade receivables | 28.7 | 11.8 |
Partner receivables | 16.4 | 25.5 |
Prepayments | 27.9 | 10.1 |
Public duties receivables | 21.3 | 16.7 |
Other receivables | 7.3 | 4.5 |
Trade and other current assets | 101.7 | 68.6 |
Note 15\tCash and cash equivalents
Cash and cash equivalents are primarily denominated in USD; with certain amounts also denominated in \u200cXAF, CNY, SGD, EUR, and other currencies. USD nil (USD 30.4 million) of the total cash position at 31 December 2025 is restricted in the progressive funding account for distribution (previously termed a debt service reserve account) related to the Reserve Based Lending facility. These are demand deposit bank accounts in the Group\u2019s name that are not available for use by the Group due to legal restrictions.
Undrawn revolving credit facility at 31 December 2025 is USD 215 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__83": { "value": "Note 15\tCash and cash equivalents
Cash and cash equivalents are primarily denominated in USD; with certain amounts also denominated in \u200cXAF, CNY, SGD, EUR, and other currencies. USD nil (USD 30.4 million) of the total cash position at 31 December 2025 is restricted in the progressive funding account for distribution (previously termed a debt service reserve account) related to the Reserve Based Lending facility. These are demand deposit bank accounts in the Group\u2019s name that are not available for use by the Group due to legal restrictions.
Undrawn revolving credit facility at 31 December 2025 is USD 215 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__84": { "value": "Note 16\tShare capital
Authorised share capital:
At 1 January 2025: 300,000,000 ordinary shares at par value USD 0.01 each
At 31 December 2025:\t300,000,000 ordinary shares at par value USD 0.01 each
USD THOUSAND | Issued shares | Share capital USD |
At 1 January 2025 | 257,994 | 2,580 |
At 31 December 2025 | 258,066 | 2,581 |
The Board of Directors approved issuance of 71,721 shares during 2025 in full settlement of vested restricted stock units under the Company\u2019s employee Long Term Incentive Program.
Refer to \u2018Shareholder information\u2019 section for information of the 20 largest shareholders.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__85": { "value": "Note 16\tShare capital
Authorised share capital:
At 1 January 2025: 300,000,000 ordinary shares at par value USD 0.01 each
At 31 December 2025:\t300,000,000 ordinary shares at par value USD 0.01 each
USD THOUSAND | Issued shares | Share capital USD |
At 1 January 2025 | 257,994 | 2,580 |
At 31 December 2025 | 258,066 | 2,581 |
The Board of Directors approved issuance of 71,721 shares during 2025 in full settlement of vested restricted stock units under the Company\u2019s employee Long Term Incentive Program.
Refer to \u2018Shareholder information\u2019 section for information of the 20 largest shareholders.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__86": { "value": "Note 17\tLoans and borrowings
Carrying amount | ||||
USD MILLION | Interest rate | Maturity date | 2025 | 2024 |
Total long-term debt: | ||||
Maromba FPSO facility | 3M SOFR +2.8% | Dec-34 | 124.7 | - |
Revolving credit facility | 3M SOFR + 6% (undrawn 0.6%) | Feb-27 | 35.0 | - |
Reserve Based Lending facility | 3M SOFR + 0.25% + margin\u200c1 | Oct-30 | 400.0 | 250.0 |
Senior unsecured callable bonds | 10% | Jun-29 | 100.0 | 100.0 |
MaBoMosale-leaseback - non-current portion | 3M SOFR + 3.75% | Apr-31\u200c2 | 112.5 | 127.5 |
Unamortised transaction costs | (30.6) | (9.3) | ||
Total long-term debt | 741.7 | 468.2 | ||
Total short-term debt: | ||||
MaBoMosale-leaseback - current portion | Apr-31\u200c2 | 15.0 | 15.0 | |
Golfinho prepayment facility | 3M SOFR + 4.5% | Dec -25 | - | 80.0 |
Unamortised transaction costs | (0.4) | (0.4) | ||
Total short-term debt | 14.6 | 94.6 | ||
Total interest-bearing debt | 756.3 | 562.7 |
1Varies based on development and maturity of the field.
2Term may be extended for additional 36 months.
Maromba FPSO project finance facility
In September 2025, BW Energy completed a USD 365 million project finance facility, backed by China Export & Credit Insurance Corporation, to fund the refurbishment and redeployment of the BW MarombaFPSO to the Maromba field offshore Brazil. This project finance facility will cover approximately 80% of the total FPSO project cost and is provided by a syndicate of five banks. The facility has an interest rate of SOFR plus a margin of 2.8%, and is structured as a project finance loan with progressive drawdowns during the construction period followed by a 6.5-year amortisation period after project completion. A commitment fee of 40% of the margin applies to undrawn amounts until completion.
BW Energy entered into interest rate swaps to hedge fifty percent of the interest rate risk for this loan. The Group will receive variable interest at the current loan rate of 3-month term SOFR and will pay an average fixed rate of 3.4% over the life of the swap agreements.
Key financial covenants include:
\u2022Liquidity, measured as cash and cash equivalents, and committed credit lines available for general corporate purposes, of USD 50 million prior to project completion, and USD 75 million after project completion (at the Group level).
\u2022Equity to total assets ratio of 25% prior to project completion and 30% after project completion (at the Group level).
Revolving credit facility
In August 2025, BW Energy signed a USD 250 million corporate revolving credit facility with DNB bank. The facility provides enhanced financial flexibility to support ongoing field development activities and general corporate purposes. The facility has a tenor of 18 months with a bullet maturity and includes an option to extend by a further 18 months, subject to mutual agreement. The interest rate is Term SOFR plus 6% per annum on drawn amounts, with a commitment fee of 0.6% per annum on undrawn amounts.
Key financial covenants include:
\u2022Liquidity of USD 50 million (at the Group level) measured as cash and cash equivalents, undrawn committed credit lines available for general corporate purposes, and crude oil receivables due no more than 30 days from the customers with Baa2 or higher credit rating.
\u2022Equity to total assets ratio of 30 percent, or book equity of USD 500 million (at the Group level).
Reserve Based Lending facility
In August 2022, BW Energy signed an international Reserve Based Lending (RBL) facility of up to USD 300 million. This secured long-term debt facility was provided by a syndicate of five international banks and an offtaker and had a tenor of six years, maturing on 1 October 2028. The funds are used to finance the development of oil and gas assets. In March 2025, this facility was amended to increase the initial commitment to USD 400 million, and a USD 100 million uncommitted accordion. The maturity date was extended to 1 October 2030, with the first amortisation on 31 March 2028. The amendments to the debt terms were assessed under the guidance of IFRS 9 Financial Instruments, resulting in recognition of USD 4.8 million loss on debt modification.
Key financial covenants include:
\u2022Net debt to EBITDAX ratio not to exceed 3:1 (at the borrower group level)
\u2022A requirement to hedge a portion of annual production for up to 24 months
Senior unsecured callable bonds
In June 2024, the Company completed the private placement of USD 100 million of new five-year senior unsecured bonds with a coupon rate of 10% per annum, paid on a semi-annual basis. The bonds trade on Euronext Oslo B\u00f8rs under BWE01 symbol.
Key financial covenants include:
\u2022Liquidity of USD 50 million (at the Group level) measured as cash and cash equivalents, undrawn committed credit lines available for general corporate purposes and crude oil receivables due no more than 30 days after the relevant date from customers with Baa2 or higher credit rating.
\u2022Equity to total assets ratio of 30 percent, or book equity of USD 500 million (at the Group level).
MaBoMosale-leaseback
In April 2024, BW Energy executed a sale and leaseback agreement with a Minsheng Financial Leasing Co entity (MSFL) for the MaBoMoproduction facility on the Dussafu licence offshore Gabon. The agreement generated USD 150 million of gross sales proceeds. The initial lease term is 84 months, after which BW Energy may repurchase the asset for USD 45 million, or the parties may agree to extend the lease term for additional 36 months, in which case the purchase price will be USD 1 at the end of the term. Interest and principal are paid quarterly. The transaction did not qualify for sale accounting under IFRS 16 Leasesguidance.
The transaction provided net USD 110 million of liquidity to BW Energy, in line with the working interest in the Dussafu licence, after distributing USD 40 million to other JV participants in the Dussafu licence (refer to Note 12). The proceeds are used to finance the execution of BW Energy\u2019s growth strategy including the continuing development projects in Gabon.
Key financial covenants include:
\u2022Liquidity of USD 25 million at 30 June and 31 December, measured as cash and cash equivalents plus undrawn committed credit lines available to the Group.
\u2022Equity to total assets ratio of 25%
Golfinho prepayment facility and offtake agreement
In July 2023, BW Energy entered into an oil prepayment facility agreement for up to USD 80 million with a commodity trading company. The prepayment facility had a term of one year with an option to extend, which was exercised in March 2024 with an additional borrowing of USD 40 million. This facility was used to finance the acquisition of the oil and gas assets in Brazil. This facility was paid off in full in December 2025.
BW Energy was not in breach of any financial covenants under any of the existing debt arrangements at 31 December 2025.
Reconciliation of movements of liabilities and equity to cash flows arising from financing activities
USD MILLION | Interest bearing short-term debt | Interest bearing long-term debt | Interest payable\u200c1 | Lease liabilities | Equity | Total |
Balance at 1 January 2025 | 94.6 | 468.2 | 3.5 | 130.1 | 861.6 | 1,558.0 |
Proceeds from interest-bearing debt | - | 414.7 | - | - | - | 414.7 |
Repayment of interest-bearing debt | (80.0) | (120.0) | - | - | - | (200.0) |
Transaction costs related to borrowings | - | (31.0) | - | - | - | (31.0) |
Interest paid | - | - | (63.4) | - | - | (63.4) |
Payment of lease liabilities, principal | - | - | - | (57.2) | - | (57.2) |
Payment of lease liabilities, interest | - | - | - | (15.1) | - | (15.1) |
Total changes from financing cash flows | (80.0) | 263.7 | (63.4) | (72.3) | - | 48.0 |
Effects of changes in foreign exchange rate | - | - | - | 2.1 | - | 2.1 |
Other changes: | ||||||
New leases/adjustments | - | - | - | 154.5 | - | 154.5 |
Loan cost amortisation | - | 5.0 | - | - | - | 5.0 |
Interest expense | - | - | 65.7 | 15.1 | - | 80.9 |
Loss on debt modification | - | 4.8 | - | - | - | 4.8 |
Total liability-related other changes | - | 9.8 | 65.7 | 169.6 | - | 245.1 |
Total equity-related other changes | - | - | - | - | 139.4 | 139.4 |
Balance at 31 December 2025 | 14.6 | 741.7 | 5.8 | 229.5 | 1,001.0 | 1,992.5 |
USD MILLION | Interest bearing short-term debt | Interest bearing long-term debt | Interest payable\u200c1 | Lease liabilities | Equity | Total |
Balance at 1 January 2024 | 79.9 | 292.6 | 2.9 | 146.5 | 697.6 | 1,219.5 |
Proceeds from interest-bearing debt | 55.0 | 305.0 | - | - | - | 360.0 |
Repayment of interest-bearing debt | (40.0) | (127.5) | - | - | - | (167.5) |
Transaction costs related to borrowings | (0.5) | (3.6) | - | - | - | (4.1) |
Interest paid | - | - | (61.6) | - | - | (61.6) |
Payment of lease liabilities, principal | - | - | - | (51.0) | - | (51.0) |
Payment of lease liabilities, interest | - | - | - | (15.3) | - | (15.3) |
Total changes from financing cash flows | 14.5 | 173.9 | (61.6) | (66.3) | - | 60.5 |
Effects of changes in foreign exchange rate | - | - | - | (5.8) | - | (5.8) |
Other changes: | ||||||
New leases/adjustments | - | - | - | 40.4 | - | 40.4 |
Loan cost amortisation | 0.2 | 1.7 | - | - | - | 1.9 |
Interest expense | - | - | 62.2 | 15.3 | - | 77.5 |
Total liability-related other changes | - | 1.7 | 62.2 | 55.7 | - | 119.8 |
Total equity-related other changes | - | - | - | - | 164.0 | 164.0 |
Balance at 31 December 2024 | 94.6 | 468.2 | 3.5 | 130.1 | 861.6 | 1,558.0 |
1included in Trade and other payables
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__87": { "value": "Note 18\tProvisions and contingent liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.
USD MILLION | Asset retirement obligations | Other provisions | Total |
Provision at 1 January 2024 | 224.0 | - | 224.0 |
Change in estimates and new provisions | (59.6) | - | (59.6) |
Accretion expense | 8.3 | - | 8.3 |
Effect of change in discount rate | - | - | - |
Reclassification\u200c1 | 22.3 | 22.3 | |
Provision at 31 December 2024 | 172.7 | 22.3 | 195.0 |
Change in estimates and new provisions | - | 77.5 | 77.5 |
Accretion expense | 7.2 | 2.8 | 10.0 |
Effect of change in discount rate | (10.6) | 0.7 | (9.9) |
Provision at 31 December 2025 | 169.3 | 103.3 | 272.6 |
1Future consideration related to Golfinho field acquisition previously reported as part of Other non-current payables.
Timing and amount of expected undiscounted cash outflows
USD MILLION | Asset retirement obligations | Other provisions | Total |
2026-2030 | - | 112.4 | 112.4 |
2031-2035 | 50.1 | - | 50.1 |
2036-2040 | 57.8 | - | 57.8 |
2041-2042 | 217.2 | 217.2 | |
Undiscounted ARO at 31 December 2025 | 325.1 | 112.4 | 437.5 |
Asset retirement obligations
Asset retirement obligations relate to future demobilisation of FPSOs, removal and decommissioning umbilicals and other production assets, plugging and abandonment of wells and removal of other subsea equipment and facilities in Gabon and Brazil. The amount recognised is the present value of the estimated future expenditures determined in accordance with local regulations and technology, considering relevant risks and uncertainties. The risk-free discount rates used to determine the net present value of asset retirement obligations range from 3.97% to 4.42%. The timing of cash outflows for asset retirement obligations primarily depends on the expected cease of production, which is projected to occur in 2038 for the Dussafu licence area and 2042 for the Golfinho field. Certain Golfinho wells are currently projected to be abandoned in 2033, however, the date may be postponed, if approved by the regulator. The estimated ARO amounts could vary considerably as the removal technology and costs are constantly changing and the timing of removal activities may change. A 10% increase in the undiscounted future abandonment cost would increase the ARO liability by USD 16.2 million at 31 December 2025. An increase in the discount rate of 1.0 percentage points would reduce the discounted ARO liability by USD 19.7 million. A corresponding reduction in discount rate would increase the ARO liability by USD 24.2 million.
The changes in 2025 reflect the effect of change in the discount rate, with no revisions of the cost estimates or timing of the expected abandonments.
During 2024, the development plan for Golfinho field was revised, resulting in postponement of the expected well decommissioning date for most wells from 2034 to 2042, which consequently decreased the present value of the abandonment obligations.
Other provisions and contingent obligations
Upon reaching the final investment decision in 2025, the Group recognised all remaining the previously contingent obligations related to the acquisition of the Maromba field as it is considered highly certain that these will be incurred. The present value of the previously contingent payments recognised at 31 December 2025 is USD 79.5 million, with the next milestone payment of USD 25 million payable at the start of drilling in 2027, and the final USD 60 million at first oil or 3 years after the start of drilling activities, whichever occurs first. The accretion expense associated with the passage of time is recognised as a financial expense.
In connection with the acquisition of Golfinho and Camarupim Cluster assets in Brazil in 2023, the Group recognised provisions with the present value of USD 23.9 million at 31 December 2025, payable as additional consideration upon drilling new wells and reaching specified production targets. The remaining contingent obligation of USD 15 million has not been recognised as not considered certain to be incurred. The Group evaluates payment triggers periodically and any changes are recognised with an offset to intangible assets. The accretion expense associated with the passage of time is recognised as financial expense.
BW Energy has contingent obligations of up to USD 125 million arising from the farmout agreement between BW Energy and ReconAfrica (refer to Note 25), if certain exploration and production milestones are met. No provisions have been made related to these contingent considerations, as they are not certain to be incurred. The first USD 22.5 million is due upon successful drilling of an exploration well and declaration of commercial discovery. The next USD 27.5 million is due at different milestones after start of commercial production. Additional payments of up to USD 75 million may become due after reaching target free cash flows.
Note 18\tProvisions and contingent liabilities
Provisions are recognised when BW Energy has a legal or constructive obligation resulting from past events, when it is likely that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made.
USD MILLION | Asset retirement obligations | Other provisions | Total |
Provision at 1 January 2024 | 224.0 | - | 224.0 |
Change in estimates and new provisions | (59.6) | - | (59.6) |
Accretion expense | 8.3 | - | 8.3 |
Effect of change in discount rate | - | - | - |
Reclassification\u200c1 | 22.3 | 22.3 | |
Provision at 31 December 2024 | 172.7 | 22.3 | 195.0 |
Change in estimates and new provisions | - | 77.5 | 77.5 |
Accretion expense | 7.2 | 2.8 | 10.0 |
Effect of change in discount rate | (10.6) | 0.7 | (9.9) |
Provision at 31 December 2025 | 169.3 | 103.3 | 272.6 |
1Future consideration related to Golfinho field acquisition previously reported as part of Other non-current payables.
Timing and amount of expected undiscounted cash outflows
USD MILLION | Asset retirement obligations | Other provisions | Total |
2026-2030 | - | 112.4 | 112.4 |
2031-2035 | 50.1 | - | 50.1 |
2036-2040 | 57.8 | - | 57.8 |
2041-2042 | 217.2 | 217.2 | |
Undiscounted ARO at 31 December 2025 | 325.1 | 112.4 | 437.5 |
Asset retirement obligations
Asset retirement obligations relate to future demobilisation of FPSOs, removal and decommissioning umbilicals and other production assets, plugging and abandonment of wells and removal of other subsea equipment and facilities in Gabon and Brazil. The amount recognised is the present value of the estimated future expenditures determined in accordance with local regulations and technology, considering relevant risks and uncertainties. The risk-free discount rates used to determine the net present value of asset retirement obligations range from 3.97% to 4.42%. The timing of cash outflows for asset retirement obligations primarily depends on the expected cease of production, which is projected to occur in 2038 for the Dussafu licence area and 2042 for the Golfinho field. Certain Golfinho wells are currently projected to be abandoned in 2033, however, the date may be postponed, if approved by the regulator. The estimated ARO amounts could vary considerably as the removal technology and costs are constantly changing and the timing of removal activities may change. A 10% increase in the undiscounted future abandonment cost would increase the ARO liability by USD 16.2 million at 31 December 2025. An increase in the discount rate of 1.0 percentage points would reduce the discounted ARO liability by USD 19.7 million. A corresponding reduction in discount rate would increase the ARO liability by USD 24.2 million.
The changes in 2025 reflect the effect of change in the discount rate, with no revisions of the cost estimates or timing of the expected abandonments.
During 2024, the development plan for Golfinho field was revised, resulting in postponement of the expected well decommissioning date for most wells from 2034 to 2042, which consequently decreased the present value of the abandonment obligations.
Other provisions and contingent obligations
Upon reaching the final investment decision in 2025, the Group recognised all remaining the previously contingent obligations related to the acquisition of the Maromba field as it is considered highly certain that these will be incurred. The present value of the previously contingent payments recognised at 31 December 2025 is USD 79.5 million, with the next milestone payment of USD 25 million payable at the start of drilling in 2027, and the final USD 60 million at first oil or 3 years after the start of drilling activities, whichever occurs first. The accretion expense associated with the passage of time is recognised as a financial expense.
In connection with the acquisition of Golfinho and Camarupim Cluster assets in Brazil in 2023, the Group recognised provisions with the present value of USD 23.9 million at 31 December 2025, payable as additional consideration upon drilling new wells and reaching specified production targets. The remaining contingent obligation of USD 15 million has not been recognised as not considered certain to be incurred. The Group evaluates payment triggers periodically and any changes are recognised with an offset to intangible assets. The accretion expense associated with the passage of time is recognised as financial expense.
BW Energy has contingent obligations of up to USD 125 million arising from the farmout agreement between BW Energy and ReconAfrica (refer to Note 25), if certain exploration and production milestones are met. No provisions have been made related to these contingent considerations, as they are not certain to be incurred. The first USD 22.5 million is due upon successful drilling of an exploration well and declaration of commercial discovery. The next USD 27.5 million is due at different milestones after start of commercial production. Additional payments of up to USD 75 million may become due after reaching target free cash flows.
Other provisions and contingent obligations
Upon reaching the final investment decision in 2025, the Group recognised all remaining the previously contingent obligations related to the acquisition of the Maromba field as it is considered highly certain that these will be incurred. The present value of the previously contingent payments recognised at 31 December 2025 is USD 79.5 million, with the next milestone payment of USD 25 million payable at the start of drilling in 2027, and the final USD 60 million at first oil or 3 years after the start of drilling activities, whichever occurs first. The accretion expense associated with the passage of time is recognised as a financial expense.
In connection with the acquisition of Golfinho and Camarupim Cluster assets in Brazil in 2023, the Group recognised provisions with the present value of USD 23.9 million at 31 December 2025, payable as additional consideration upon drilling new wells and reaching specified production targets. The remaining contingent obligation of USD 15 million has not been recognised as not considered certain to be incurred. The Group evaluates payment triggers periodically and any changes are recognised with an offset to intangible assets. The accretion expense associated with the passage of time is recognised as financial expense.
BW Energy has contingent obligations of up to USD 125 million arising from the farmout agreement between BW Energy and ReconAfrica (refer to Note 25), if certain exploration and production milestones are met. No provisions have been made related to these contingent considerations, as they are not certain to be incurred. The first USD 22.5 million is due upon successful drilling of an exploration well and declaration of commercial discovery. The next USD 27.5 million is due at different milestones after start of commercial production. Additional payments of up to USD 75 million may become due after reaching target free cash flows.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__90": { "value": "Note 19\tTrade and other payables
USD MILLION | 2025 | 2024 |
Trade payables | 56.3 | 32.3 |
Accrued liabilities | 149.0 | 120.1 |
Trade and other payables to related parties | 13.8 | 44.6 |
Current trade and other payables | 219.1 | 197.0 |
Payables to related parties | 5.3 | 9.1 |
Other non-current payables | 0.5 | - |
Other non-current payables | 5.8 | 9.1 |
Note 19\tTrade and other payables
USD MILLION | 2025 | 2024 |
Trade payables | 56.3 | 32.3 |
Accrued liabilities | 149.0 | 120.1 |
Trade and other payables to related parties | 13.8 | 44.6 |
Current trade and other payables | 219.1 | 197.0 |
Payables to related parties | 5.3 | 9.1 |
Other non-current payables | 0.5 | - |
Other non-current payables | 5.8 | 9.1 |
Note 19\tTrade and other payables
USD MILLION | 2025 | 2024 |
Trade payables | 56.3 | 32.3 |
Accrued liabilities | 149.0 | 120.1 |
Trade and other payables to related parties | 13.8 | 44.6 |
Current trade and other payables | 219.1 | 197.0 |
Payables to related parties | 5.3 | 9.1 |
Other non-current payables | 0.5 | - |
Other non-current payables | 5.8 | 9.1 |
Note 19\tTrade and other payables
USD MILLION | 2025 | 2024 |
Trade payables | 56.3 | 32.3 |
Accrued liabilities | 149.0 | 120.1 |
Trade and other payables to related parties | 13.8 | 44.6 |
Current trade and other payables | 219.1 | 197.0 |
Payables to related parties | 5.3 | 9.1 |
Other non-current payables | 0.5 | - |
Other non-current payables | 5.8 | 9.1 |
Note 19\tTrade and other payables
USD MILLION | 2025 | 2024 |
Trade payables | 56.3 | 32.3 |
Accrued liabilities | 149.0 | 120.1 |
Trade and other payables to related parties | 13.8 | 44.6 |
Current trade and other payables | 219.1 | 197.0 |
Payables to related parties | 5.3 | 9.1 |
Other non-current payables | 0.5 | - |
Other non-current payables | 5.8 | 9.1 |
Note 20\tLeases
BW Energy leases a jack-up rig, an FPSO and other support vessels, and office facilities. The lease terms range between 2 to 13 years. Some leases contain extension and termination options that may impact the lease term and are exercisable only by BW Energy and not by the lessors. The Group assesses the lease term at commencement, and subsequently when facts and circumstances change.
For the FPSO BW Adolo, which has a non-cancellable contract period of 365 days, the lease term is assessed to continue through September 2028. This lease includes a mutual put-and-call option on the FPSO for USD 100 million, exercisable in 2028, which is not reflected in the lease liability as the option is avoidable through a termination clause.
BW Energy has elected to not separate non-lease components, such as crew cost, supplies and other items, for support vessels and helicopters. As a result, these costs are reflected as part of the lease liability and right-of-use asset.
The right-of-use asset and lease liability for the leases used in joint operations, where BW Energy is the operator, are recognised on a gross basis as BW Energy is the primary obligor. The share of lease payments paid by partners through the joint interest billings is recognised as other income on the statement of income.
In 2025, the Group leased a jack-up rig named BW Maromba Bthat will be used as a drilling and production unit on Maromba field after undergoing necessary modifications during 2026-2027. The unit was initially leased under a short-term lease covering USD 107.5 million purchase price of the rig and contained a purchase obligation. Subsequently, the lease was converted into a long-term lease agreement. The new lease agreement covers the rig purchase and all costs required to bring the BW Maromba Bunit to drilling and production readiness. The new lease carries a fixed daily rate of USD 66 thousand between the provisional and final delivery dates between April and October 2027, and a monthly rate of USD 3.7 million thereafter during the 10-year lease term. At 31 December 2025, the Group recognised USD 106.2 million as a right-of-use asset and USD 107.5 million as a lease liability for this asset.
Other additions in 2025 include a support vessel used for production operations in Gabon, and the adjustments relate to extension of vessel leases in Brazil.
USD MILLION | 2025 | 2024 |
Right-of-use assets: | ||
At 1 January | 101.5 | 108.9 |
Additions | 130.7 | 35.6 |
Adjustments | 24.9 | 4.8 |
Depreciation expense | (57.4) | (47.8) |
At 31 December | 199.7 | 101.5 |
Rig | 106.2 | - |
Vessels | 69.9 | 76.9 |
Office | 23.0 | 22.4 |
Other | 0.6 | 2.2 |
At 31 December | 199.7 | 101.5 |
Lease liabilities: | ||
At 1 January | 130.1 | 146.5 |
Additions | 129.4 | 35.6 |
Adjustments | 25.1 | 4.8 |
Interest expense | 15.1 | 15.3 |
Lease payments | (72.3) | (66.3) |
Currency exchange differences | 2.1 | (5.8) |
At 31 December | 229.5 | 130.1 |
Breakdown of lease liabilities: | ||
Current lease liabilities | 43.5 | 43.3 |
Non-current lease liabilities | 186.0 | 86.8 |
Maturity breakdown (undiscounted contractual cash flows due)\u200c1: | ||
2026 | 52.7 | 53.9 |
2027 | 49.8 | 28.5 |
2028 | 56.3 | 26.8 |
2029 | 27.2 | 29.2 |
2030 | 27.0 | 3.1 |
2031 and beyond | 177.4 | 19.3 |
Total undiscounted lease liabilities at 31 December | 390.4 | 160.8 |
1Reflects contractual payments forBW Maromba Brig, exclusive of the future modification work to be completed by BW Energy.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__96": { "value": "Note 21\tCommitments & guarantees
Commitments
The Group had contractual commitments of USD 484.6 million related to exploration and development of oil and gas assets, contracted for at 31 December 2025, but not recognised in the financial statements, with the majority related to the refurbishment of BW MarombaFPSO and other Maromba field development costs.
USD MILLION | 2025 |
2026 | 221.2 |
2027 | 56.8 |
2028 | 23.8 |
2029 | 22.1 |
2030 | 22.1 |
2031 and beyond | 138.6 |
Total commitments | 484.6 |
Guarantees
BW Energy Limited has provided parent company guarantees to cover certain long-term debt and lease transactions entered into by its fully owned subsidiaries.
A standard upstream security package was provided to the lenders under the Dussafu Reserve Based Lending facility, as described in Note 17. The security package consists of share pledges over certain obligors under the facility, together with security over all associated cash flows generated from production under the Dussafu licence, secured through designated bank accounts and receivables. The facility is structured as a borrowing base financing, with periodic redeterminations based on updated reserve reports and projected cash flows. The ultimate guarantor of the facility is BW Energy Holdings Pte. Ltd.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__97": { "value": "Note 22\tRelated parties
BW Energy Holdings Limited \u2013 majority shareholder
BW Energy Holdings, incorporated in Bermuda and controlled by Sohmen-Pao family interests, owns 197,343,997 shares or approximately 76.47% in the Company.
Senior unsecured callable bonds
BW Group Limited, controlled by Sohmen-Pao family interests, and Carl K. Arnet, CEO of BW Energy, own USD 40.5 million of the senior unsecured callable bonds issued in June 2024.
FPSO BW Adolo
In May 2018, BW Energy entered into a bareboat charter agreement with BW Adolo Pte. Ltd. for the FPSO BW Adolo, and an agreement with Tinworth Gabon S.A. for the operation and maintenance of this FPSO during the charter period. Both companies are subsidiaries of BW Offshore Limited, 49.91% of which is owned by BW Group. In May 2025, BW Energy took over the operations and maintenance of the FPSO BW Adoloand the O&M agreement was terminated. Under an amended bareboat charter, BW Offshore will continue to lease the FPSO BW Adoloto BW Energy on the same terms as previously agreed, without the O&M services.
FPSO BW Maromba
In November 2023, BW Energy purchased FPSO BW Marombafrom BW Offshore, with final payment of USD 21.5 million made in April 2024.
IP agreement with Seaboard LLC
In 2018, BW Energy entered into an agreement with Seaboard Production Partners, LLC (\u2018SPP\u2019) for the transfer of intellectual property, including development plans, reservoir and geological analysis related to the Dussafu licence area. The manager and a shareholder of SPP, is now a part of the management of BW Energy. The agreement entitled SPP to maximum nominal payments of USD 75 million, with USD 17.4 million paid in 2024 and the final payment of USD 18.8 million made in 2025.
In addition, BW Energy may also purchase or provide other management services to and from BW Group.
Related party transactions with the management are presented in Note 6.
Related party transactions and outstanding balances:
2025 | 2024 | |
Transaction values for the year: | ||
Other income | 0.4 | 1.5 |
Purchases of goods and services: | ||
FPSO BW Adololease and operating costs | 105.5 | 117.2 |
Management and other services | 4.5 | 6.7 |
Financial items | 5.4 | 6.3 |
Balances outstanding at 31 December | ||
Assets: | ||
Trade and other current assets | 0.1 | 0.2 |
Liabilities: | ||
Interest-bearing debt | 40.6 | 32.0 |
Long-term lease liabilities | 44.0 | 63.1 |
Other non-current liabilities | 5.3 | 9.1 |
Trade and other payables | 13.8 | 44.6 |
Short-term lease liabilities | 19.2 | 22.3 |
Note 23\tFinancial instruments \u2013 fair values and risk management
Accounting classifications and fair values
The following tables present the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and liabilities measured at amortised cost is not included if the carrying amount is a reasonable approximation of fair value.
2025 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 5.1 | - | - | 5.1 | - | 5.1 | - | 5.1 | |
Interest rate swaps used for hedging | 0.1 | - | - | 0.1 | - | 0.1 | - | 0.1 | |
Listed equity securities | - | 20.0 | - | 20.0 | 20.0 | - | - | 20.0 | |
5.3 | 20.0 | - | 25.3 | 20.0 | 5.3 | - | 25.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 89.1 | 89.1 | - | - | - | - | |
Trade and other receivables | - | - | 101.7 | 101.7 | - | - | - | - | |
Cash and cash equivalents | - | - | 150.5 | 150.5 | - | - | - | - | |
- | - | 341.3 | 341.3 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (0.1) | - | - | (0.1) | - | (0.1) | - | (0.1) | |
Interest rate swaps used for hedging | - | - | - | - | - | - | |||
(0.1) | - | - | (0.1) | - | (0.1) | - | (0.1) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (741.7) | (741.7) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (14.6) | (14.6) | - | - | - | - | |
Other non-current liabilities | - | - | (5.8) | (5.8) | - | - | - | - | |
Trade and other payables | - | - | (219.1) | (219.1) | - | - | - | - | |
- | - | (981.2) | (981.2) | - | - | - | - |
2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 2.9 | - | - | 2.9 | - | 2.9 | - | 2.9 | |
Interest rate swaps used for hedging | 0.3 | - | - | 0.3 | - | 0.3 | - | 0.3 | |
Listed equity securities | - | 13.1 | - | 13.1 | 13.1 | - | - | 13.1 | |
3.3 | 13.1 | - | 16.3 | 13.1 | 3.3 | - | 16.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 65.0 | 65.0 | - | - | - | - | |
Trade and other receivables | - | - | 68.6 | 68.6 | - | - | - | - | |
Cash and cash equivalents | - | - | 221.8 | 221.8 | - | - | - | - | |
- | - | 355.4 | 355.4 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | |
(1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (468.2) | (468.2) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (94.6) | (94.6) | - | - | - | - | |
Other non-current liabilities | - | - | (9.1) | (9.1) | - | - | - | - | |
Trade and other payables | - | - | (197.0) | (197.0) | - | - | - | - | |
- | - | (768.9) | (768.9) | - | - | - | - |
The Group classifies fair value measurements by employing a value hierarchy that reflects the significance of the input used in preparing the measurements. The fair value hierarchy consists of the following levels:
\u2022Level 1 \u2013 input in the form of quoted prices (unadjusted) in active markets for identical assets or liabilities. The value of listed equity securities is based on the trading prices of ReconAfrica\u2019s common shares and common share purchase warrants in the TSXV stock exchange.
\u2022Level 2 \u2013 input 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). The fair value of crude oil commodity derivatives is determined using the forward Brent blend curve at the end of the reporting period. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.
\u2022Level 3 \u2013 input for the asset or liability is not based on observable market data (unobservable inputs).
Financial risk factors and risk management framework
Business activities expose BW Energy to a variety of financial risks, including fluctuations in commodity prices, interest rates, liquidity risk, credit risk, and currency exchange rates. The Group\u2019s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on its financial performance. A finance management team led by the Chief Financial Officer identifies and evaluates financial risks in close co-operation with operating units. The activities of the finance management team are governed by policies approved by the Board of Directors for overall risk management, as well as policies covering specific areas such as commodity price hedging, interest rate risk, credit risk, and investing excess liquidity. The finance management team reports to Top Management, the Audit Committee, and the Board of Directors on the status of activities on a regular basis.
BW Energy does not use financial instruments, including financial derivatives, for trading purposes.
Commodity price risk
BW Energy derives its revenues from the sale of crude oil produced in Gabon and Brazil. Revenue is and will continue to be exposed to fluctuations in oil prices. The Group continuously evaluates opportunities for hedging as part of a prudent financial risk management process, utilising different derivative financial instruments. These derivative instru-ments are marked to market with changes in market value recognised in the statement of income. BW Energy does not apply hedge accounting. The net effect of crude oil derivative contracts recognised in the statement of income in 2025 is USD 5.3 million, with USD 1 million of realised gain related to closed positions and USD 4.3 million unrealised gain related to open positions (nil in 2024, USD 0.9 million realised gain offset by USD 0.9 million of unrealised loss).
BW Energy undertakes hedging through crude oil derivatives that utilise Dated Brent as the underlying, the hedging volumes are determined in compliance with the internal hedging policy and financial covenants. Currently, the Group targets hedging 40% of its year 1 production, and a maximum of 25% of year 2 production, on a rolling basis. BW Energy enters 2026 with approximately 5.1 million barrels hedged, comprising of long puts and collars with a weighted average strike price of $54.5 per barrel.
The derivative assets and liabilities related to various contracts are presented gross in the statement of financial position, as current and non-current assets and liabilities.
Commodity price sensitivity
Based on the net crude oil sales of 11.3 mmbbls (9.9 mmbbls) and the crude oil derivative instruments in place, the 10% change in the crude oil price would have the following impact on the total revenues and other income.
2025 | 2024 | |||
USD MILLION | (10%) | 10% | (10%) | 10% |
Change in crude oil price\u200c1 | (77.8) | 77.8 | (72.2) | 72.2 |
Crude oil derivatives\u200c2 | 3.3 | (0.3) | 7.7 | (4.2) |
1Calculated as -/+ 10% compared to actual realised crude oil prices on sold volumes
2Calculated based on the effect of -/+10% crude oil price changes on the derivative instruments in place during the period
Interest rate risk
BW Energy is exposed to interest rate risk through its project financing activities with most of the Group\u2019s inter-est-bearing debt carried at floating interest rates tied to SOFR rates.
During 2025, BW Energy entered into interest rate swaps to hedge the interest rate risk related to the Maromba FPSO debt facility, as required by the debt covenants. The interest rate hedges offset fifty percent of the interest rate risk
(SOFR) for the underlying agreement. The notional values for the swap instruments mimic the estimated principal amounts of the underlying construction loan for the FPSO BW Maromba. The swaps mature concurrently with the underlying debt instrument. BW Energy receives variable interest at the current loan rate of 3-month term SOFR and pays an average fixed rate of 3.4% over the life of the swap agreements. Changes in fair value of the interest rate swap instrument is reflected in the statement of income.
Currently, there are no other interest rate hedges in place.
Interest rate sensitivity
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) the interest cost by the amounts below, considering the impact on variable-rate debt facilities and the interest rate swap instrument.
USD MILLION | 100 bp increase | 100 bp decrease |
31 December 2025 | ||
Cash flow sensitivity | (6.1) | 6.1 |
31 December 2024 | ||
Cash flow sensitivity | (4.2) | 4.2 |
Liquidity risk
Liquidity risk is the risk that BW Energy will not be able to meet its financial obligations when they become due. As part of the prudent liquidity risk management, the Group maintains sufficient cash balance and ensures the availability of funding through committed credit facilities. The Group monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term. These plans are updated regularly for various scenarios and form part of the decision basis for the Group\u2019s management and the Board of Directors.
The Group generated USD 315 million in operating cashflows during 2025 from its oil and gas production operations. To ensure adequate funding for the ongoing development projects and to enhance financial flexibility, the Group entered into various loan facilities, including two new facilities in 2025: a long-term project loan facility of up to USD 365 million for the FPSO BW Marombarefurbishment, with USD 124.7 million drawn at 31 December 2025, and a revolving credit facility of up to USD 250 million, with USD 35 million drawn at 31 December 2025.
At 31 December 2025, the Group had USD 150.5 million (USD 221.8 million) in cash and cash equivalents (see Note 15) in addition to USD 455.3 million (USD 50 million) in undrawn capacity under its financing facilities (see Note 17).
The table below presents the maturity profile of the Group\u2019s financial liabilities based on undiscounted contractual payments.
2025 USD MILLION | Carrying amount | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 and beyond | Total |
Non-derivative financial liabilities | ||||||||
Maromba FPSO facility\u200c1 | 105.3 | - | - | 12.4 | 17.6 | 18.7 | 76.0 | 124.7 |
Revolving credit facility\u200c1 | 33.2 | - | 35.0 | - | - | - | - | 35.0 |
Reserve Based Lending facility\u200c1 | 393.1 | - | - | 133.3 | 133.3 | 133.3 | - | 400.0 |
Senior unsecured callable bonds\u200c1 | 99.0 | - | - | - | 100.0 | - | - | 100.0 |
MaBoMo sale-leaseback\u200c1 | 125.7 | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | 52.5 | 127.5 |
Interest payments\u200c2 | 5.8 | 72.4 | 66.8 | 57.9 | 33.1 | 17.8 | 11.6 | 259.7 |
Provisions | 272.6 | - | 75.0 | 16.6 | 13.8 | 6.9 | 325.1 | 437.5 |
Other non-current liabilities | 5.8 | - | 4.6 | 1.1 | - | - | - | 5.8 |
Lease liabilities | 229.5 | 52.7 | 49.8 | 56.3 | 27.2 | 27.0 | 177.4 | 390.4 |
Trade and other payables, less accrued interest\u200c2 | 213.3 | 218.3 | - | - | - | - | - | 218.3 |
1,483.3 | 358.4 | 246.2 | 292.7 | 340.1 | 218.8 | 642.6 | 2,098.8 | |
Derivative financial liabilities: | ||||||||
Interest rate swaps | (0.1) | - | (0.1) | - | - | - | - | (0.1) |
Crude oil hedges | (5.1) | (4.0) | (1.0) | - | - | - | - | (5.1) |
Total | (5.2) | (4.0) | (1.2) | - | - | - | - | (5.2) |
2024 USD MILLION | Carrying amount | 2025 | 2026-2029 | 2030 and beyond | Total | |||
Non-derivative financial liabilities | ||||||||
Reserve Based Lending facility\u200c1 | 243.8 | - | 250.0 | - | 250.0 | |||
Senior unsecured callable bonds\u200c1 | 98.6 | - | 100.0 | - | 100.0 | |||
MaBoMo sale-leaseback\u200c1 | 140.3 | 15.0 | 60.0 | 67.5 | 142.5 | |||
Golfinho prepayment facility | 80.0 | 80.0 | - | - | 80.0 | |||
Interest payments\u200c2 | 3.6 | 51.5 | 131.3 | 14.0 | 196.8 | |||
Provisions | 195.0 | 0.0 | 20.0 | 325.1 | 345.1 | |||
Other non-current liabilities | 9.1 | 4.6 | 10.4 | 0.0 | 15.0 | |||
Lease liabilities | 130.1 | 53.9 | 87.6 | 19.3 | 160.8 | |||
Trade and other payables, less accrued interest\u200c2 | 193.4 | 193.4 | - | - | 193.4 | |||
1,093.9 | 398.4 | 659.3 | 425.9 | 1,483.6 | ||||
Derivative financial liabilities: | ||||||||
Interest rate swaps | (0.3) | - | (0.3) | - | (0.3) | |||
Crude oil hedges | (1.9) | (2.1) | 0.2 | - | (1.9) | |||
Total | (2.2) | (2.1) | (0.1) | 0.0 | (2.2) |
1Difference between carrying amounts and total future payments for debt facilities relates to transaction costs reducing the carrying amount.
2Interest payments reflect interest on borrowings without considering the effects of interest swaps, while interest on leases is included in the payments for lease liabilities.
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. The carrying amounts of financial assets represent the maximum credit exposure.
To mitigate the credit risk, financial derivatives and cash deposit transactions are only entered with approved coun-terparties and predominantly with investment grade financial institutions and are governed by standard agreements (ISDA and LMA documentation).
The risk of not collecting the receivables is viewed to be minor as historically there have not been any losses on customer or partner receivables. The Group\u2019s customers and partners are credit worthy oil and gas companies. Crude oil was sold to three customers, with 94% of 2025 petroleum revenues from customers sold to two major international oil and gas companies.
Foreign currency risk
The functional currency of the Company and all subsidiaries is USD. In general, operating revenues and a significant portion of investments and operating expenses are denominated in USD. The Group does not have any financial instruments for currency hedging at 31 December 2025.
The following currency risk sensitivity has been calculated by assuming a 5% reasonably possible change in the main foreign currency exchange rates that impact BW Energy\u2019s financial accounts at 31 December 2025, including cash and cash equivalents, trade and other current assets, trade and other current liabilities, and an investment in equity securities.
At 31 December 2025 | ||||
USD MILLION | XAF | BRL | CAD | CNY |
Impact from a 5% strengthening of given currency vs. USD on: | ||||
Shareholders equity through P&L | (1.7) | (0.5) | (1.0) | (0.4) |
Impact from a 5% weakening of given currency vs. USD on: | ||||
Shareholders equity through P&L | 1.7 | 0.5 | 1.0 | 0.4 |
Capital structure
The Board continuously evaluates BW Energy\u2019s capital structure to ensure that the capital-to-debt ratio remains appropriate for the Group\u2019s objectives, strategy, and risk profile. This includes monitoring available funding sources and the associated cost of capital. BW Energy has access to capital markets, including bank and bond financing, and seeks to maintain an appropriate balance between the potentially higher returns associated with increased leverage and the stability and resilience provided by a sound capital position.
The Group also uses lease financing to achieve efficient capital allocation, enabling access to assets without a large initial cash outlay. This approach preserves capital for other critical investments and enhances liquidity. Overall, BW Energy seeks to optimise its capital structure by balancing returns on equity with liquidity requirements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__99": { "value": "Accounting classifications and fair values
The following tables present the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and liabilities measured at amortised cost is not included if the carrying amount is a reasonable approximation of fair value.
2025 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 5.1 | - | - | 5.1 | - | 5.1 | - | 5.1 | |
Interest rate swaps used for hedging | 0.1 | - | - | 0.1 | - | 0.1 | - | 0.1 | |
Listed equity securities | - | 20.0 | - | 20.0 | 20.0 | - | - | 20.0 | |
5.3 | 20.0 | - | 25.3 | 20.0 | 5.3 | - | 25.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 89.1 | 89.1 | - | - | - | - | |
Trade and other receivables | - | - | 101.7 | 101.7 | - | - | - | - | |
Cash and cash equivalents | - | - | 150.5 | 150.5 | - | - | - | - | |
- | - | 341.3 | 341.3 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (0.1) | - | - | (0.1) | - | (0.1) | - | (0.1) | |
Interest rate swaps used for hedging | - | - | - | - | - | - | |||
(0.1) | - | - | (0.1) | - | (0.1) | - | (0.1) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (741.7) | (741.7) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (14.6) | (14.6) | - | - | - | - | |
Other non-current liabilities | - | - | (5.8) | (5.8) | - | - | - | - | |
Trade and other payables | - | - | (219.1) | (219.1) | - | - | - | - | |
- | - | (981.2) | (981.2) | - | - | - | - |
2024 | Carrying amount | Fair value | |||||||
USD MILLION | Note | At FVTPL | At FVOCI | At amortised cost | Total | Level 1 | Level 2 | Level 3 | Total |
Financial assets measured at fair value | |||||||||
Crude oil hedges | 2.9 | - | - | 2.9 | - | 2.9 | - | 2.9 | |
Interest rate swaps used for hedging | 0.3 | - | - | 0.3 | - | 0.3 | - | 0.3 | |
Listed equity securities | - | 13.1 | - | 13.1 | 13.1 | - | - | 13.1 | |
3.3 | 13.1 | - | 16.3 | 13.1 | 3.3 | - | 16.3 | ||
Financial assets not measured at fair value | |||||||||
Other non-current assets | - | - | 65.0 | 65.0 | - | - | - | - | |
Trade and other receivables | - | - | 68.6 | 68.6 | - | - | - | - | |
Cash and cash equivalents | - | - | 221.8 | 221.8 | - | - | - | - | |
- | - | 355.4 | 355.4 | - | - | - | - | ||
Financial liabilities measured at fair value | |||||||||
Crude oil hedges | (1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | |
(1.0) | - | - | (1.0) | - | (1.0) | - | (1.0) | ||
Financial liabilities not measured at fair value | |||||||||
Interest-bearing long-term debt | - | - | (468.2) | (468.2) | - | - | - | - | |
Interest-bearing short-term debt | - | - | (94.6) | (94.6) | - | - | - | - | |
Other non-current liabilities | - | - | (9.1) | (9.1) | - | - | - | - | |
Trade and other payables | - | - | (197.0) | (197.0) | - | - | - | - | |
- | - | (768.9) | (768.9) | - | - | - | - |
The Group classifies fair value measurements by employing a value hierarchy that reflects the significance of the input used in preparing the measurements. The fair value hierarchy consists of the following levels:
\u2022Level 1 \u2013 input in the form of quoted prices (unadjusted) in active markets for identical assets or liabilities. The value of listed equity securities is based on the trading prices of ReconAfrica\u2019s common shares and common share purchase warrants in the TSXV stock exchange.
\u2022Level 2 \u2013 input 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). The fair value of crude oil commodity derivatives is determined using the forward Brent blend curve at the end of the reporting period. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.
\u2022Level 3 \u2013 input for the asset or liability is not based on observable market data (unobservable inputs).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__100": { "value": "Financial risk factors and risk management framework
Business activities expose BW Energy to a variety of financial risks, including fluctuations in commodity prices, interest rates, liquidity risk, credit risk, and currency exchange rates. The Group\u2019s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on its financial performance. A finance management team led by the Chief Financial Officer identifies and evaluates financial risks in close co-operation with operating units. The activities of the finance management team are governed by policies approved by the Board of Directors for overall risk management, as well as policies covering specific areas such as commodity price hedging, interest rate risk, credit risk, and investing excess liquidity. The finance management team reports to Top Management, the Audit Committee, and the Board of Directors on the status of activities on a regular basis.
BW Energy does not use financial instruments, including financial derivatives, for trading purposes.
Commodity price risk
BW Energy derives its revenues from the sale of crude oil produced in Gabon and Brazil. Revenue is and will continue to be exposed to fluctuations in oil prices. The Group continuously evaluates opportunities for hedging as part of a prudent financial risk management process, utilising different derivative financial instruments. These derivative instru-ments are marked to market with changes in market value recognised in the statement of income. BW Energy does not apply hedge accounting. The net effect of crude oil derivative contracts recognised in the statement of income in 2025 is USD 5.3 million, with USD 1 million of realised gain related to closed positions and USD 4.3 million unrealised gain related to open positions (nil in 2024, USD 0.9 million realised gain offset by USD 0.9 million of unrealised loss).
BW Energy undertakes hedging through crude oil derivatives that utilise Dated Brent as the underlying, the hedging volumes are determined in compliance with the internal hedging policy and financial covenants. Currently, the Group targets hedging 40% of its year 1 production, and a maximum of 25% of year 2 production, on a rolling basis. BW Energy enters 2026 with approximately 5.1 million barrels hedged, comprising of long puts and collars with a weighted average strike price of $54.5 per barrel.
The derivative assets and liabilities related to various contracts are presented gross in the statement of financial position, as current and non-current assets and liabilities.
Commodity price sensitivity
Based on the net crude oil sales of 11.3 mmbbls (9.9 mmbbls) and the crude oil derivative instruments in place, the 10% change in the crude oil price would have the following impact on the total revenues and other income.
2025 | 2024 | |||
USD MILLION | (10%) | 10% | (10%) | 10% |
Change in crude oil price\u200c1 | (77.8) | 77.8 | (72.2) | 72.2 |
Crude oil derivatives\u200c2 | 3.3 | (0.3) | 7.7 | (4.2) |
1Calculated as -/+ 10% compared to actual realised crude oil prices on sold volumes
2Calculated based on the effect of -/+10% crude oil price changes on the derivative instruments in place during the period
Interest rate risk
BW Energy is exposed to interest rate risk through its project financing activities with most of the Group\u2019s inter-est-bearing debt carried at floating interest rates tied to SOFR rates.
During 2025, BW Energy entered into interest rate swaps to hedge the interest rate risk related to the Maromba FPSO debt facility, as required by the debt covenants. The interest rate hedges offset fifty percent of the interest rate risk
(SOFR) for the underlying agreement. The notional values for the swap instruments mimic the estimated principal amounts of the underlying construction loan for the FPSO BW Maromba. The swaps mature concurrently with the underlying debt instrument. BW Energy receives variable interest at the current loan rate of 3-month term SOFR and pays an average fixed rate of 3.4% over the life of the swap agreements. Changes in fair value of the interest rate swap instrument is reflected in the statement of income.
Currently, there are no other interest rate hedges in place.
Interest rate sensitivity
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) the interest cost by the amounts below, considering the impact on variable-rate debt facilities and the interest rate swap instrument.
USD MILLION | 100 bp increase | 100 bp decrease |
31 December 2025 | ||
Cash flow sensitivity | (6.1) | 6.1 |
31 December 2024 | ||
Cash flow sensitivity | (4.2) | 4.2 |
Liquidity risk
Liquidity risk is the risk that BW Energy will not be able to meet its financial obligations when they become due. As part of the prudent liquidity risk management, the Group maintains sufficient cash balance and ensures the availability of funding through committed credit facilities. The Group monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term. These plans are updated regularly for various scenarios and form part of the decision basis for the Group\u2019s management and the Board of Directors.
The Group generated USD 315 million in operating cashflows during 2025 from its oil and gas production operations. To ensure adequate funding for the ongoing development projects and to enhance financial flexibility, the Group entered into various loan facilities, including two new facilities in 2025: a long-term project loan facility of up to USD 365 million for the FPSO BW Marombarefurbishment, with USD 124.7 million drawn at 31 December 2025, and a revolving credit facility of up to USD 250 million, with USD 35 million drawn at 31 December 2025.
At 31 December 2025, the Group had USD 150.5 million (USD 221.8 million) in cash and cash equivalents (see Note 15) in addition to USD 455.3 million (USD 50 million) in undrawn capacity under its financing facilities (see Note 17).
The table below presents the maturity profile of the Group\u2019s financial liabilities based on undiscounted contractual payments.
2025 USD MILLION | Carrying amount | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 and beyond | Total |
Non-derivative financial liabilities | ||||||||
Maromba FPSO facility\u200c1 | 105.3 | - | - | 12.4 | 17.6 | 18.7 | 76.0 | 124.7 |
Revolving credit facility\u200c1 | 33.2 | - | 35.0 | - | - | - | - | 35.0 |
Reserve Based Lending facility\u200c1 | 393.1 | - | - | 133.3 | 133.3 | 133.3 | - | 400.0 |
Senior unsecured callable bonds\u200c1 | 99.0 | - | - | - | 100.0 | - | - | 100.0 |
MaBoMo sale-leaseback\u200c1 | 125.7 | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | 52.5 | 127.5 |
Interest payments\u200c2 | 5.8 | 72.4 | 66.8 | 57.9 | 33.1 | 17.8 | 11.6 | 259.7 |
Provisions | 272.6 | - | 75.0 | 16.6 | 13.8 | 6.9 | 325.1 | 437.5 |
Other non-current liabilities | 5.8 | - | 4.6 | 1.1 | - | - | - | 5.8 |
Lease liabilities | 229.5 | 52.7 | 49.8 | 56.3 | 27.2 | 27.0 | 177.4 | 390.4 |
Trade and other payables, less accrued interest\u200c2 | 213.3 | 218.3 | - | - | - | - | - | 218.3 |
1,483.3 | 358.4 | 246.2 | 292.7 | 340.1 | 218.8 | 642.6 | 2,098.8 | |
Derivative financial liabilities: | ||||||||
Interest rate swaps | (0.1) | - | (0.1) | - | - | - | - | (0.1) |
Crude oil hedges | (5.1) | (4.0) | (1.0) | - | - | - | - | (5.1) |
Total | (5.2) | (4.0) | (1.2) | - | - | - | - | (5.2) |
2024 USD MILLION | Carrying amount | 2025 | 2026-2029 | 2030 and beyond | Total | |||
Non-derivative financial liabilities | ||||||||
Reserve Based Lending facility\u200c1 | 243.8 | - | 250.0 | - | 250.0 | |||
Senior unsecured callable bonds\u200c1 | 98.6 | - | 100.0 | - | 100.0 | |||
MaBoMo sale-leaseback\u200c1 | 140.3 | 15.0 | 60.0 | 67.5 | 142.5 | |||
Golfinho prepayment facility | 80.0 | 80.0 | - | - | 80.0 | |||
Interest payments\u200c2 | 3.6 | 51.5 | 131.3 | 14.0 | 196.8 | |||
Provisions | 195.0 | 0.0 | 20.0 | 325.1 | 345.1 | |||
Other non-current liabilities | 9.1 | 4.6 | 10.4 | 0.0 | 15.0 | |||
Lease liabilities | 130.1 | 53.9 | 87.6 | 19.3 | 160.8 | |||
Trade and other payables, less accrued interest\u200c2 | 193.4 | 193.4 | - | - | 193.4 | |||
1,093.9 | 398.4 | 659.3 | 425.9 | 1,483.6 | ||||
Derivative financial liabilities: | ||||||||
Interest rate swaps | (0.3) | - | (0.3) | - | (0.3) | |||
Crude oil hedges | (1.9) | (2.1) | 0.2 | - | (1.9) | |||
Total | (2.2) | (2.1) | (0.1) | 0.0 | (2.2) |
1Difference between carrying amounts and total future payments for debt facilities relates to transaction costs reducing the carrying amount.
2Interest payments reflect interest on borrowings without considering the effects of interest swaps, while interest on leases is included in the payments for lease liabilities.
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. The carrying amounts of financial assets represent the maximum credit exposure.
To mitigate the credit risk, financial derivatives and cash deposit transactions are only entered with approved coun-terparties and predominantly with investment grade financial institutions and are governed by standard agreements (ISDA and LMA documentation).
The risk of not collecting the receivables is viewed to be minor as historically there have not been any losses on customer or partner receivables. The Group\u2019s customers and partners are credit worthy oil and gas companies. Crude oil was sold to three customers, with 94% of 2025 petroleum revenues from customers sold to two major international oil and gas companies.
Foreign currency risk
The functional currency of the Company and all subsidiaries is USD. In general, operating revenues and a significant portion of investments and operating expenses are denominated in USD. The Group does not have any financial instruments for currency hedging at 31 December 2025.
The following currency risk sensitivity has been calculated by assuming a 5% reasonably possible change in the main foreign currency exchange rates that impact BW Energy\u2019s financial accounts at 31 December 2025, including cash and cash equivalents, trade and other current assets, trade and other current liabilities, and an investment in equity securities.
At 31 December 2025 | ||||
USD MILLION | XAF | BRL | CAD | CNY |
Impact from a 5% strengthening of given currency vs. USD on: | ||||
Shareholders equity through P&L | (1.7) | (0.5) | (1.0) | (0.4) |
Impact from a 5% weakening of given currency vs. USD on: | ||||
Shareholders equity through P&L | 1.7 | 0.5 | 1.0 | 0.4 |
Commodity price risk
BW Energy derives its revenues from the sale of crude oil produced in Gabon and Brazil. Revenue is and will continue to be exposed to fluctuations in oil prices. The Group continuously evaluates opportunities for hedging as part of a prudent financial risk management process, utilising different derivative financial instruments. These derivative instru-ments are marked to market with changes in market value recognised in the statement of income. BW Energy does not apply hedge accounting. The net effect of crude oil derivative contracts recognised in the statement of income in 2025 is USD 5.3 million, with USD 1 million of realised gain related to closed positions and USD 4.3 million unrealised gain related to open positions (nil in 2024, USD 0.9 million realised gain offset by USD 0.9 million of unrealised loss).
BW Energy undertakes hedging through crude oil derivatives that utilise Dated Brent as the underlying, the hedging volumes are determined in compliance with the internal hedging policy and financial covenants. Currently, the Group targets hedging 40% of its year 1 production, and a maximum of 25% of year 2 production, on a rolling basis. BW Energy enters 2026 with approximately 5.1 million barrels hedged, comprising of long puts and collars with a weighted average strike price of $54.5 per barrel.
The derivative assets and liabilities related to various contracts are presented gross in the statement of financial position, as current and non-current assets and liabilities.
Commodity price sensitivity
Based on the net crude oil sales of 11.3 mmbbls (9.9 mmbbls) and the crude oil derivative instruments in place, the 10% change in the crude oil price would have the following impact on the total revenues and other income.
2025 | 2024 | |||
USD MILLION | (10%) | 10% | (10%) | 10% |
Change in crude oil price\u200c1 | (77.8) | 77.8 | (72.2) | 72.2 |
Crude oil derivatives\u200c2 | 3.3 | (0.3) | 7.7 | (4.2) |
1Calculated as -/+ 10% compared to actual realised crude oil prices on sold volumes
2Calculated based on the effect of -/+10% crude oil price changes on the derivative instruments in place during the period
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__102": { "value": "Liquidity risk
Liquidity risk is the risk that BW Energy will not be able to meet its financial obligations when they become due. As part of the prudent liquidity risk management, the Group maintains sufficient cash balance and ensures the availability of funding through committed credit facilities. The Group monitors the liquidity through cash flow forecasting of operational and investment activities in the short-, medium- and long-term. These plans are updated regularly for various scenarios and form part of the decision basis for the Group\u2019s management and the Board of Directors.
The Group generated USD 315 million in operating cashflows during 2025 from its oil and gas production operations. To ensure adequate funding for the ongoing development projects and to enhance financial flexibility, the Group entered into various loan facilities, including two new facilities in 2025: a long-term project loan facility of up to USD 365 million for the FPSO BW Marombarefurbishment, with USD 124.7 million drawn at 31 December 2025, and a revolving credit facility of up to USD 250 million, with USD 35 million drawn at 31 December 2025.
At 31 December 2025, the Group had USD 150.5 million (USD 221.8 million) in cash and cash equivalents (see Note 15) in addition to USD 455.3 million (USD 50 million) in undrawn capacity under its financing facilities (see Note 17).
The table below presents the maturity profile of the Group\u2019s financial liabilities based on undiscounted contractual payments.
2025 USD MILLION | Carrying amount | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 and beyond | Total |
Non-derivative financial liabilities | ||||||||
Maromba FPSO facility\u200c1 | 105.3 | - | - | 12.4 | 17.6 | 18.7 | 76.0 | 124.7 |
Revolving credit facility\u200c1 | 33.2 | - | 35.0 | - | - | - | - | 35.0 |
Reserve Based Lending facility\u200c1 | 393.1 | - | - | 133.3 | 133.3 | 133.3 | - | 400.0 |
Senior unsecured callable bonds\u200c1 | 99.0 | - | - | - | 100.0 | - | - | 100.0 |
MaBoMo sale-leaseback\u200c1 | 125.7 | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | 52.5 | 127.5 |
Interest payments\u200c2 | 5.8 | 72.4 | 66.8 | 57.9 | 33.1 | 17.8 | 11.6 | 259.7 |
Provisions | 272.6 | - | 75.0 | 16.6 | 13.8 | 6.9 | 325.1 | 437.5 |
Other non-current liabilities | 5.8 | - | 4.6 | 1.1 | - | - | - | 5.8 |
Lease liabilities | 229.5 | 52.7 | 49.8 | 56.3 | 27.2 | 27.0 | 177.4 | 390.4 |
Trade and other payables, less accrued interest\u200c2 | 213.3 | 218.3 | - | - | - | - | - | 218.3 |
1,483.3 | 358.4 | 246.2 | 292.7 | 340.1 | 218.8 | 642.6 | 2,098.8 | |
Derivative financial liabilities: | ||||||||
Interest rate swaps | (0.1) | - | (0.1) | - | - | - | - | (0.1) |
Crude oil hedges | (5.1) | (4.0) | (1.0) | - | - | - | - | (5.1) |
Total | (5.2) | (4.0) | (1.2) | - | - | - | - | (5.2) |
2024 USD MILLION | Carrying amount | 2025 | 2026-2029 | 2030 and beyond | Total | |||
Non-derivative financial liabilities | ||||||||
Reserve Based Lending facility\u200c1 | 243.8 | - | 250.0 | - | 250.0 | |||
Senior unsecured callable bonds\u200c1 | 98.6 | - | 100.0 | - | 100.0 | |||
MaBoMo sale-leaseback\u200c1 | 140.3 | 15.0 | 60.0 | 67.5 | 142.5 | |||
Golfinho prepayment facility | 80.0 | 80.0 | - | - | 80.0 | |||
Interest payments\u200c2 | 3.6 | 51.5 | 131.3 | 14.0 | 196.8 | |||
Provisions | 195.0 | 0.0 | 20.0 | 325.1 | 345.1 | |||
Other non-current liabilities | 9.1 | 4.6 | 10.4 | 0.0 | 15.0 | |||
Lease liabilities | 130.1 | 53.9 | 87.6 | 19.3 | 160.8 | |||
Trade and other payables, less accrued interest\u200c2 | 193.4 | 193.4 | - | - | 193.4 | |||
1,093.9 | 398.4 | 659.3 | 425.9 | 1,483.6 | ||||
Derivative financial liabilities: | ||||||||
Interest rate swaps | (0.3) | - | (0.3) | - | (0.3) | |||
Crude oil hedges | (1.9) | (2.1) | 0.2 | - | (1.9) | |||
Total | (2.2) | (2.1) | (0.1) | 0.0 | (2.2) |
1Difference between carrying amounts and total future payments for debt facilities relates to transaction costs reducing the carrying amount.
2Interest payments reflect interest on borrowings without considering the effects of interest swaps, while interest on leases is included in the payments for lease liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__103": { "value": "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. The carrying amounts of financial assets represent the maximum credit exposure.
To mitigate the credit risk, financial derivatives and cash deposit transactions are only entered with approved coun-terparties and predominantly with investment grade financial institutions and are governed by standard agreements (ISDA and LMA documentation).
The risk of not collecting the receivables is viewed to be minor as historically there have not been any losses on customer or partner receivables. The Group\u2019s customers and partners are credit worthy oil and gas companies. Crude oil was sold to three customers, with 94% of 2025 petroleum revenues from customers sold to two major international oil and gas companies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__104": { "value": "Foreign currency risk
The functional currency of the Company and all subsidiaries is USD. In general, operating revenues and a significant portion of investments and operating expenses are denominated in USD. The Group does not have any financial instruments for currency hedging at 31 December 2025.
The following currency risk sensitivity has been calculated by assuming a 5% reasonably possible change in the main foreign currency exchange rates that impact BW Energy\u2019s financial accounts at 31 December 2025, including cash and cash equivalents, trade and other current assets, trade and other current liabilities, and an investment in equity securities.
At 31 December 2025 | ||||
USD MILLION | XAF | BRL | CAD | CNY |
Impact from a 5% strengthening of given currency vs. USD on: | ||||
Shareholders equity through P&L | (1.7) | (0.5) | (1.0) | (0.4) |
Impact from a 5% weakening of given currency vs. USD on: | ||||
Shareholders equity through P&L | 1.7 | 0.5 | 1.0 | 0.4 |
Capital structure
The Board continuously evaluates BW Energy\u2019s capital structure to ensure that the capital-to-debt ratio remains appropriate for the Group\u2019s objectives, strategy, and risk profile. This includes monitoring available funding sources and the associated cost of capital. BW Energy has access to capital markets, including bank and bond financing, and seeks to maintain an appropriate balance between the potentially higher returns associated with increased leverage and the stability and resilience provided by a sound capital position.
The Group also uses lease financing to achieve efficient capital allocation, enabling access to assets without a large initial cash outlay. This approach preserves capital for other critical investments and enhances liquidity. Overall, BW Energy seeks to optimise its capital structure by balancing returns on equity with liquidity requirements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5493004D19CJBN3DLD40", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__6__106": { "value": "Note 24\tList of subsidiaries
Subsidiaries | Country of incorporation | Ownership 2025 | Ownership 2024 |
BW Energy Angola Limited | Bermuda | 100% | - |
BW Energy Assets Holding Limited | Bermuda | 100% | - |
BW Energy Dubai Holding Limited | Bermuda | 100% | 100% |
BW Energy Gabon South Holding Limited | Bermuda | 100% | 100% |
BW Energy Investments Limited | Bermuda | 100% | - |
BW Energy Mabomo Limited | Bermuda | 100% | 100% |
BW Energy OI Limited | Bermuda | 100% | 100% |
BW Energy Services Limited | Bermuda | 100% | 100% |
BW Energy Trading Holdings Ltd | Bermuda | 100% | 100% |
BW Energy Trading Ltd | Bermuda | 100% | 100% |
BW Energy Trading Njord 1 Limited | Bermuda | 100% | 100% |
BW Energy Maromba do Brasil Ltda. | Brazil | 100% | 100% |
BW Energy Peixe Ltda. | Brazil | 100% | 100% |
Yuanxing Nengbo (Dalian) Consulting Management Co., Ltd | China | 100% | - |
BW Energy Gabon S.A. | Gabon | 100% | 100% |
BW Energy Dussafu B.V. | Netherlands | 100% | 100% |
BW Energy Maromba B.V. | Netherlands | 100% | 100% |
BW Energy Maromba FPSO B.V. | Netherlands | 100% | - |
BW Energy Norway Management AS | Norway | 100% | 100% |
BWE Mgmt Portugal, Unipessoal LDA | Portugal | 100% | 100% |
BW Energy Holdings Pte Ltd . | Singapore | 100% | 100% |
BW Energy Production Pte. Ltd. | Singapore | 100% | 100% |
BW Kudu Holding Pte. Ltd. | Singapore | 100% | 100% |
BW Maromba Holdings Pte. Ltd. | Singapore | 100% | 100% |
Bard Wisdom Projects Management FZE | UAE | 100% | 100% |
BW Energy PI Holding Limited | UAE | 100% | 100% |
BW Energy Rundu Limited | United Kingdom | 100% | 100% |
BW Kudu Limited | United Kingdom | 100% | 100% |
BW Energy USA Management, Inc. | USA | 100% | 100% |
Note 25\tAcquisitions and disposals
Acquisition of ReconAfrica shares
BW Energy made an initial investment in Reconnaissance Energy Africa Ltd. (\u2018ReconAfrica\u2019) in July 2024 with the purchase of 17,600,000 common shares and 17,600,000 common share purchase warrants for USD 16 million. In 2025, the Group acquired additional 6,423,000 common shares and the same number of common share purchase warrants exercisable during the period of 24 months for an additional investment of approximately USD 2.5 million. Currently, the Group owns approximately 7.1% of the outstanding common shares, not including the warrants.
BW Energy accounted for the investment in shares and warrants under IFRS 9 Financial Instruments and designated it as equity securities at FVOCI because these equity securities represent investments that are intended to be held for the long term for strategic purposes as this enables the Group to expand its footprint in the strategically important energy region.
Consequently, BW Energy and ReconAfrica also entered into a farm-in agreement to transfer 20% working interest in the onshore exploration licence PEL 73 in Namibia to BW Energy. ReconAfrica agreed to pay USD 16 million on behalf of BW Energy (\u2018carry\u2019) based on the initial work program, the carry amount is expected to be exhausted in early 2026, after which BW Energy will be required to pay its share of costs related to this licence area.
Acquisition of FPSO Cidade de Vit\u00f3ria
In November 2023, BW Energy acquired the FPSO Cidade de Vit\u00f3riafrom Saipem for USD 73.5 million, including agreed-upon contractual adjustments and taxes. The final payment of USD 5.8 million was made in March 2025.
Note 26\tMacroeconomic and geopolitical uncertainty
Several macroeconomic factors influence BW Energy\u2019s business, such as the availability of industry products, fluc-tuations in energy prices, inflation, rising interest rates, the volatility of oil prices, and the geopolitical uncertainties stemming from global tensions.
BW Energy has a strong commitment to safety and environmental protection, aiming for zero harm in all areas of the Group\u2019s operations. The Group is focused on lowering its carbon footprint by repurposing existing production infrastructure to develop known oil and gas resources.
BW Energy anticipates that oil and gas will continue to play a crucial role in the global energy landscape for many years. The Group is dedicated to generating long-term value through a strategic approach to phased development and investment in high-yield assets. Its adaptable investment strategy is designed to withstand various market conditions, enabling BW Energy to capitalise on both immediate and future opportunities to enhance cash flow and profits.
Note 27\tClimate risk
BW Energy anticipates ongoing regulatory focus on climate issues and greenhouse gas emissions, which could lead to revised taxation and other regulations, higher compliance costs, and changing investor and lender attitudes. Such regulatory changes may affect the Group\u2019s business and financial outlook. BW Energy is vigilant in monitoring these developments across the operational regions. Additionally, the shift towards alternative energy sources could decrease demand and prices for oil and gas, potentially leading to asset value impairments. To ensure resilience, BW Energy evaluates its assets under various oil price scenarios.
The future investments rely on operational cash flow, capital, and borrowing. The rising concern over climate change might increase capital costs as some investors and lenders have started to limit their engagement with the oil and gas sector. To counteract this, BW Energy engages with a diverse group of financial institutions and investors worldwide, continually revising the investment strategy to maintain a robust balance sheet.
Moreover, like most energy companies, BW Energy faces risks from climate-induced weather changes and natural disasters, which could damage infrastructure, disrupt operations, and increase costs. Severe weather might also hinder drilling efforts and production. BW Energy has insurance in place to safeguard assets and revenues against such contingencies.
Note 29\tReserves (unaudited)
BW Energy engaged Netherland, Sewell & Associates, Inc. (NSAI) for certification of proved and probable reserves (2P).
Evaluations were based on standard petroleum engineering and evaluation principles. This includes use of standard engineering and geoscience methods, or a combination of methods, including volumetric analysis, analogy, and reservoir modelling, considered to be appropriate and necessary to classify, categorise, and estimate volumes in accordance with the 2015 PRMS definitions and guidelines. The reserves were estimated using deterministic methods.
As in all aspects of oil and gas evaluation, there are uncertainties inherent in the interpretation of engineering and geoscience data; therefore, conclusions necessarily represent only informed professional judgement.
Estimated remaining oil and gas reserves are as follows:
At 31 December 2025
mmboe | WI | 1P Net | 2P Net |
Developed assets: | |||
Dussafu Marin Permit | 73.5% | 52.5 | 85.3 |
Golfinho BES-100 | 100.0% | 25.7 | 36.1 |
Total | 78.1 | 121.4 | |
Non-developed assets: | |||
Maromba BC-20A | 95.0% | 86.7 | 121.6 |
At 31 December 2024
mmboe | WI | 1P Net | 2P Net |
Developed assets: | |||
Dussafu Marin Permit | 73.5% | 58.9 | 87.1 |
Golfinho BES-100 | 100.0% | 30.4 | 42.0 |
Total | 89.3 | 129.1 | |
Non-developed assets: | |||
Maromba BC-20A | 95.0% | 71.3 | 100.1 |
Proved reserves (1P) are those quantities of oil and gas which, by analysis of engineering and geoscience data, can be estimated with reasonable certainty to be commercially recoverable; probable reserves are those additional reserves which are less certain to be recovered than proved reserves.
Developed assets include the Dussafu and Golfinho licences. Non-developed assets include the Maromba licence, where the project final investment decision is subject to conclusion of project financing activities.
During 2025 and 2024, the reserves movements were as follows:
mmboe | Developed assets 2P\u00a0Net | Non-developed assets 2P\u00a0Net | Total 2P\u00a0Net |
At 31 December 2023 | 109.7 | 100.1 | 209.8 |
Production 2024 | (10.1) | - | (10.1) |
Discoveries | 20.8 | - | 20.8 |
Revision of previous estimate | 8.7 | - | 8.7 |
At 31 December 2024 | 129.1 | 100.1 | 229.2 |
Production 2025 | (10.9) | - | (10.9) |
Discoveries | 15.8 | - | 15.8 |
Revision of previous estimate | (12.5) | 21.5 | 9.0 |
At 31 December 2025 | 121.4 | 121.6 | 243.1 |
Note 28\tSubsequent events
In December 2025, BW Energy in a consortium with Maurel & Prom signed an agreement to acquire 20% in Block 14 and 10% in Block 14K offshore Angola from Azule Energy, with 10% and 5%, respectively, net to BW Energy. BW Energy\u2019s net share of consideration due for this transaction was USD 97.5 million, with USD 6 million paid at signing and the remainder due at closing, which was expected to occur in mid-2026. In February 2026, BW Energy and Maurel & Prom have been notified that one of the existing partners in Block 14 and Block 14K indicated its intention to exercise its pre-emption rights in relation to the transaction. The agreement entered into between BW Energy, Maurel & Prom and Azule Energy remains effective until the execution of a new sale and purchase agreement between Azule Energy and the party exercising the pre-emption right.
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