Arctic: BW Energy - Value creation potential outshines the risks

Research evidence excerpt

Arctic: BW Energy - Value creation potential outshines the risks

BW Energy Buy Hold

BWE NO | E&P | Equity Company Update | 02 June 2026 | 07:25 Sell

Value creation potential outshines the risks Financials and estimates changes Target NOK 72.00 (65.00)

BW Energy’s capital markets update last month was reassuring, with Maromba progressing Key Figures (USDm) Dec-24 Dec-25 Dec-26e Dec-27e Dec-28e Highlights

according to plan and the recently sanctioned Bourdon and Golfinho Phase 1 developments Recommendation Buy

Revenue 794.8 798.3 922.5 1,282.6 2,354.9 Target Price NOK 72.00

demonstrating highly attractive economics. Following i) the inclusion of Bourdon and (65.00) EBITDA 456.6 414.3 609.6 863.6 1,603.2

Share Price NOK 54.3Golfinho Phase 1 in our base-case production profile, ii) further de-risking of ongoing EBIT 275.7 216.5 412.6 572.9 1,083.3

32.6projects, and iii) a one-year roll-forward of our valuation point to YE-26, our core EPS 0.64 0.52 0.83 1.20 3.19 Upside (%)

NAV increases by 25% to NOK 90/sh (previously NOK 72/sh). Furthermore, E&P Adj. EBITDA 456.6 414.3 609.6 863.6 1,603.2 Market cap (USDm) 1,510

companies undertaking substantial greenfield developments typically see increasing Adj. EBITDA margin (%) 57.4 51.9 66.1 67.3 68.1 Enterprise Value (USDm) 2,568

market recognition as projects move beyond the halfway point. With Maromba starting to Revenue growth (%) 56.7 0.4 15.6 39.0 83.6 Number of shares (m) 258

approach this inflection point, we are becoming more tactically bullish. At current valuation EPS growth (%) 103.7 (19.8) 60.2 45.9 164.9 12 months share price performance:

levels, BW Energy trades on a 2028e P/E of ~2x and offers a 2028e FCF yield of >45%

Performance (%) 3M 6M 1Y

(assuming USD 80/bbl Brent).