Pareto High Yield Daily-05/20/2026

Research evidence excerpt

Pareto High Yield Daily-05/20/2026

ues, projects on schedule USD/NOKEUR/NOK 10.789.29 0.00.0 %% -0.20.0 %% -0.9-1.0 %% -1.0-0.8 %%

• BWE reported Q1 EBITDA 10% below consensus, likely explained by SEK/NOK 0.99 0.0 % 0.0 % -0.1 % -0.1 %

Oil price, Brent

consensus production not updated after the trading update. No surprises on

the rest of the P&L USD/bbl

• FY’26 production guidance lowered to 24-27 kbd (25-30 kbd) due to MaBoMo 140

first oil moved to early 2027 (unit opex guidance also accordingly up) 120

• FID was taken on Bourdon and Golfinho boost in the quarter, and BWE lift 100

their 2028 production target to 100 kbd (90 kbd). Consequently 2026 capex 80

is lifted to USD 600-650m (500-600m)

• Maromba remains the key growth catalyst and is still on track for first oil by

YE’27, despite flagged logistics impact from the Strait of Hormuz closure. The 40

project is fully funded, with WHP conversion started and the FPSO upgrade 20

on schedule -

• Net leverage has increased to 2.0x LTM EBITDA (up from 1.5x at year-end Jan-21 Sep-21 May-22 Jan-23 Sep-23 May-24 Jan-25 Sep-25 May-26

2025), reflecting BW Energy’s heavy investment phase. Leverage will iTraxx crossover

naturally come down when Maromba, MaBoMo Phase 2, Golfinho Boost and bps

the newly sanctioned projects come onstream, with the company targeting 750

production of ~100 kbd in 2028

• Link to Q1’26 report 650

Canada Cartage – Beating Q1’26 expectations as risk on run-rate 450

estimates reduce

• Canada Cartage reported a strong Q1’26 EBITDA of CAD 17m vs CAD 15m

estimated and CAD 12m in Q1’25 250

• Net leverage came in at 4.9x vs. 5.0x as of 2025. Management highlighted 150

improving market conditions across both Brokerage and Dedicated, with Jan-21 Sep-21 May-22 Jan-23 Sep-23 May-24 Jan-25 Sep-25 May-26