BW Energy (BWE) investor relations material

Executive summary

• Q2 2026 saw record-high cash flow and strengthened financial position, driven by favorable oil prices, strong operational execution, and robust sales volumes.

• All major development projects, including MaBoMo Phase 2, Maromba, Golfinho Boost, Bourdon, and Golfinho infill, are progressing on schedule and within budget.

• Net profit reached $44 million on revenues of $296.3 million, with cash from operations at $260.1 million and a cash position of $254 million at quarter-end.

• Production guidance for 2026 remains at 24,000–27,000 bbl per day, with Q2 production at 25.3 kbopd.

• The company is on track to deliver over 100,000 bbl per day by 2028, supported by significant organic growth projects.

Financial highlights

• Q2 2026 revenues were $296.3 million, up $123.6 million from Q1, driven by higher realized oil prices and increased sales volumes.

• Net profit was $44 million, EBITDA $141 million, and operating cash flow $260.1 million; cash position at $254 million and total liquidity at $544 million.

• Sales volumes in Q2 were 3.2 million barrels, exceeding production of 2.3 million barrels due to inventory drawdown.

• Realized oil price before hedges was $103.50/bbl, with a $40 million hedging loss reducing effective realized price to $90/bbl.

• Q2 production cost per barrel was $24.0, mainly due to timing effects from inventory; underlying OpEx remained stable.

Outlook and guidance

• Full-year production guidance remains at 24,000–27,000 bbl per day, but output is expected to track towards the lower end due to planned shutdowns and equipment issues.

• CAPEX guidance for 2026 is $600–650 million, with $231 million spent at the halfway point.

• Unit OpEx guidance for the year is unchanged at $22–$26 per barrel.

• Production is projected to reach 50,000 bbl per day in H2 2027 as new wells and projects come online.

• Targeting over 100,000 bbl per day by 2028, with significant organic growth potential.