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BW Offshore flags FPSO impairment

Norwegian floater specialist BW Offshore said on Monday it had decided to record an impairment to the book value of floating production storage and offloading (FPSO) vessels BW Athena, Espoir Ivoirien, Sendje Berge, Petróleo Nautipa and Umuroa amounting to $66.6m in the fourth quarter of 2021. 

The company said in an Oslo Exchange filing that the impairment reflects the reduced expectation of longer term extensions to current contracts for the listed vessels that are still in operation, as well as limited potential for future redeployment for the same units and for the abovementioned FPSOs that are in lay-up.

In addition, BW Offshore will record an impairment of $23.8m related to the previously announced sale of Joko Tole and the associated loss from the transaction. The company will further reverse a previous impairment of $4.2m related to the sale of Cidade de São Vicente.

The impairments will be included in the fourth quarter earnings and annual 2021 accounts, which will be published on February 28, 2022.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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