Good morning, good afternoon. Welcome, everyone, to the BW Offshore second quarter 2021 update. My name is Marco Beenen, and I will cover the general part of this update, and Ståle Andreassen, our CFO, will run you through the financials. Unfortunately, once more, a rather impersonal format with this conference call, but I'm hopeful that next quarter we can return to the format of live attendance at a selected venue, and live streaming for those that can't attend. With that, moving on to the next slide. Please take note of our disclaimer when you process the information of this presentation. Slide three, highlights. We are pleased with the overall progress on Barossa. Our major contracts and packages have been locked in. Equally important, the financing of the Barossa FPSO is now very near to completion. Financial results were solid.
Second quarter EBITDA came in at $91 million, a bit below previous quarter, but that's explained by some positive one-offs in the previous quarter and negative one-offs in this quarter, but Ståle will come back to that. Operating cash flow was $134 million, which includes $56 million of lease prepayments for the Barossa FPSO. Cash dividend continues at same levels as previous quarters. Over to the operational update, slide five, HSE performance. HSE performance was good. Our statistics are trending down, and we had zero recorded LTIs and high potential incidents in the second quarter. Commercial uptime is trending back up, and we're now close to our usual 99% average uptime, as we normally have. Zooming in to some of the units on slide six. First of all, Polvo, she comes off contract.
We've started decommissioning, and we're preparing for demobilization later in the year. She's a suitable candidate to develop the Maromba field, also because she came off the Polvo field, which has similar oil characteristics. Espoir, to reinstate the cargo tank, which was involved with the accident, we are currently carrying out a planned 60-day shutdown, and this will impact the third quarter results somewhat. Fourth quarter will be normal quarter again, and we're also discussing contract extension scenarios with our client, CNR. Sendje Berge, she has a planned shutdown next month, to carry out a tank inspection campaign, which will last about two months. That brings us more or less to the end of the current contract, which expires early November. In the meantime, we're evaluating the best options for her, either a contract extension or a potential divestment.
Vicente in Brazil, we're moving her out of Brazil as layup there was too expensive, we changed that to a cold layup in Oman. She's currently in transit to Oman. Finally, Umuroa, after we managed to agree with the New Zealand government last year that they would pay for the decommissioning and disconnection of the unit in New Zealand, has now arrived in Indonesia for a cold layup. This demobilization project was concluded without accidents and within budget and schedule, and to the satisfaction of the authorities of New Zealand. Next slide seven. It's important to be reminded that of the current operating fleet, three units deliver about 85% of the cash flow, which are, in the first place, Catcher, operating on the Catcher field for Harbour Energy and delivering above 100% commercial uptime.
Adolo, producing on the Dussafu license in Gabon for BW Energy, and Pioneer, for which we extended the contract with Murphy Oil till 2025 and five more years after that. If we add the new backlog of the Barossa FPSO for Santos, we're building out our portfolio with a solid backlog for the future, amounting to a gross number of $8.1 billion, of which $6.8 billion is fixed, which is about 84%. Diving into Barossa, the project execution, slide eight. The project has been off with a good start with several milestones already completed within schedule, like model test and first steel cut for the turret system. Also steel cutting for the hull will already follow next month.
The increasing commodity pricing puts pressure on our costs, but we have sufficient contingency to absorb this, and we're also mitigating this by accelerating the lock-in of our major contracts and packages, like the hull fabrication contract, the turret system, the topside fabrication, the integration yard slot, and the power generation packages. While we're still early in the project, with already 66% of all procurement scope committed, we will be less vulnerable to the dynamics in the market going forward. Moving on to the fleet contract view. This is the usual slide. It shows what I already explained. You see the first four units there, Barossa to Catcher. That's actually now 95% together of our backlog. Nautipa comes off, and Yunkap Nap as well during the course of next year. BW Joko Tole, Espoir, and Abo are all units that are on fields with still longer-term production ahead of them.
Sendje Berge, I already discussed as well as Polvo. Moving on to COVID, slide 10. Despite the progress in the vaccination programs in some parts of the world, COVID-19 is still very much a threat to the health of our people and to the operation of our assets. Therefore, we still have our quarantine protocols in place and enforced, the cost of these have now been reduced to about $5 million per quarter. This is still a lot of money. However, the pie chart on the left shows the success of these protocols. As you can see, we only had one infected case on one unit offshore in the second quarter, all the other cases are caught during the pre-mobilization. It shows the effectiveness, but it doesn't come without efforts and expenses.
The majority of our offices around the world, we're now seeing an increase of occupancy. In Singapore, we have been able to ramp up the Barossa project team as per plan. With that, I'm handing over to Ståle for the financials.
Thank you. Next slide. Thank you, Marco. Next slide, please. We're starting with the overview as we usually do. As you can see, operating revenues were almost in line with the first quarter at $208 million in Q2, while EBITDA came in at $91 million for the quarter, which is about 18% below a relatively strong quarter one. The EBITDA for second quarter has been impacted by a number of items. We are incurring higher layup costs for CSV in Brazil than anticipated, as we're not able to do cold layup. We have been focusing on bringing the unit out as soon as practical, and although this has taken some time, we are now on our way to layup in Oman. We have, as Marco mentioned, also brought Umuroa safely back to Indonesia for layup.
Although the cost of decommissioning the unit was covered under the contract, the actual cost of transportation of the unit was not reimbursable and is another cost element impacting the result for the second quarter. In general, we have seen that activity level on the fleet has been relatively high, resulting in somewhat higher cost when you compare like for like, quarter-over-quarter. As Marco also mentioned, we continue to have to manage COVID, where we incurred about $5 million this quarter on management. As we look at it, we consider this will continue at similar levels for quite some time going forward.
I also want to mention that with the BW Ideol now owned approximately 53% by BW Offshore, we have to consolidate their business as part of our results. The EBITDA impact of Ideol of negative $2.2 million in the second quarter has been consolidated into the result of the BW Offshore Group. Looking forward, I want to highlight that as the contract for Polvo was ending and with Espoir and Sendje Berge going into a period of shutdown where we have to do tank inspections, we do expect to have some limited negative impact on the results in quarter three as well. Next slide, please. On the income statement, I'll comment on some of the main items. As you can see, depreciation and amortization is going up a little bit from quarter one to $68 million.
This is a result of including depreciation and amortization of assets and technology in BW Ideol as part of our accounts. We did sell Berge Helene for recycling in the second quarter. No impact on our income statement as the unit was sold for a price equal to net book value. When you look at the financials, net interest expenses were in line with previous quarter, while we had to record a mark-to-market loss on financial instruments of $9 million in quarter two, predominantly linked to swap rates reducing quarter on quarter. This was somewhat offset by a positive revaluation effect on our bond loans. Our investment holding in BW Energy continued to provide positive contribution to our results with $5.3 million to BW Offshore from an overall net result of $15.5 million in BW Energy in quarter two.
With underlying taxes from operations in line with expectations at $6.4 million, we posted a net profit for the period of $5.9 million. Next slide, please. We started the quarter with a total cash position of $210 million, of which $60 million were consolidated cash from BW Ideol. Cash flow from operation was $134 million. This includes $56 million received in prepayments from Santos for the Barossa FPSO. As we've stated before, the contract with Santos includes a prepayment of the FPSO day rate during construction of approximately $1 billion. This will be presented as cash flow through operation as it is technically part payment of the future lease of the FPSO. We invested $41 million into projects. This is predominantly linked to Barossa as CapEx on existing fleet was limited in the second quarter.
As I mentioned earlier, Berge Helene was sold for recycling in Q2 for, as previously communicated, net proceeds of $16 million. We continued to amortize on our debt, and we did schedule repayments on the cash facility and repayment under our corporate facility, reducing our debt by $88 million. The remaining items are, I would think, self-explanatory and to a large extent in line with previous quarters. When that taken into consideration, we ended the quarter with a net cash position of $148 million when excluding consolidated cash from BW Ideol of $55 million. Next slide, please. On the balance sheet, you can see that we continued to reduce our net debt, reducing it from $930 million in Q1 to $854 million by end of second quarter.
In terms of ratios, you see the leverage ratio is trending flat in line with previous quarters, while the equity ratio trended up just slightly and stood at 39.9% at the end of Q2. We have said this before, I want to reiterate that it is important to prepare the balance sheet to be able to take on growth. As we ramp up the activity on the Barossa project in the coming quarters, you shall expect to see that both net debt and leverage ratio will increase from current levels. Next slide, please. This is another familiar slide. Again, you see the installment schedule show that we have a manageable maturity profile on our existing debt, with the larger debt maturities only towards end of 2023 and into 2024.
Although we're now starting to see the contribution from all the units are tapering as they get closer to end of contract, the key units on the FPSO fleet continue to deliver substantial cash flow, and we do expect that they will continue to do so for years to come. This is what gives us comfort towards refinancing of debt maturities in due course. I also want to highlight that we have substantial asset values through the investment in BW Energy as well as the investment in BW Ideol, which is completely unleveraged as of today, but which we could potentially leverage if we see fit in the future.
From a cash management point of view, I also want to caution that with a large project like Barossa, which is relatively capital-intensive and also will tie up some working capital, we will plan ahead and work on maturities in a structured way to ensure we have good visibility on liquidity at any time. Next slide, please. As Marco mentioned, we are near complete on the financing for Barossa now. We have continued to focus on this throughout the whole quarter, and I'm pleased to say that we are near complete on signing a $1 billion, $150 million combined construction and post-delivery financing for the project. The loan will be a 14-year facility when including the construction period delivered through a syndicate of nine international financing institutions. In parallel with this, we have been finalizing agreements with our partners for equity participation in the project.
Although we do recognize this has been a large and relatively complicated effort with multiple stakeholders as everything has been worked in parallel and it has taken some time to complete this, we hope that we will be able to announce this now very shortly that it has been concluded upon. As we're always looking for ways to increase our funding toolbox. In the second quarter, we were contemplating to launch our inaugural green bond to finance the transition we have started on with our investment in BW Ideol. A great deal of work was done to prepare for this, including developing a green bond framework. Proceeds from a green bond is highly regulated and will have to be used towards investments in qualifying renewable activities.
However, as the terms that were offered were not satisfactory to BW Offshore, we did decide to halt the issue for the time being. We might come back to the market at a future point in time with this. On the liquidity side, as I've mentioned, we have to be focused now going forward as Barossa is ramping up. We are making good progress on locking in large contract packages, and as we are doing so, the spend curve will pick up in second half of this year. As indicated last quarter, we estimate total CapEx in the range of half a billion by end of the year.
We continue to evaluate opportunity costs on holding units in layup. Although it's not a significant cost per unit for layup, they also tie up working capital and we will be focused on making sure we right-size the fleet going forward. The estimated CapEx for existing fleet continues to be in the range of $25 million for the full year of 2021. As shown on the slide here, overall liquidity was approximately $280 million by end of Q2 when you exclude consolidated cash from BW Ideol. This includes $132 million in available liquidity from the corporate facility. With the recent investment in BW Ideol and securing the contract for Barossa, we believe we are on track on the strategic initiatives that we have set out.
Barossa is a project that has helped us developed a robust partnership model, which we believe is one of the cornerstones for future success in both the large-scale new build FPSO segment and the offshore floating wind segment. Barossa itself provides for long-term stable cash flow, as well as the ability to grow our dividends in the medium-term future. BW Ideol provides for growth potential in the new and potential vast market longer-term. We are also pleased to see that BW Energy is announcing multiple value triggers over the next couple of years, culminating in an intention to pay dividend when fully operational on Dussafu and Maromba. With this, we continue to keep confident that we have good overview of our liquidity and that we can continue to pay a dividend as in previous quarter of $0.035. With that, I'll hand it over to Marco again.
Yes, okay. Thank you, Ståle. In the next slides, I would like to give you an update on our strategy in adjacent segments. Firstly, the floating wind segment. Next slide, please. We're very pleased with how this market develops. The response to the recent ScotWind tender is a testimony that the floating wind industry is maturing rapidly and that there will be a significant growth to expect in that segment. Therefore, it's important to be an early mover with proven technology, which means having full-scale floating wind turbines in the water and gaining experience on a daily basis. We're doing that through our controlling ownership of 53% in BW Ideol. We're combining BW Offshore's global footprint and project track record with BW Ideol's proven technology and project developer positions together with our partners.
We're also teaming up to develop wind power service business through EPCI or lease of floating substations, and power-to-platform solutions based on BW Ideol's technology. In parallel, we have a partnership with a leading U.S. renewable energy and utility company, Invenergy, which was established to submit bids for the ScotWind tender. Next slide, diving in a bit more on BW Ideol itself. They presented their second quarter results last week, showing that they're progressing well with building their project pipeline. Worth mentioning is the EolMed project in the south of France. It's a 30 MW pilot project, based on three times 10 MW of floating wind turbines. Also in France, the partnership with a leading French utility for the Brittany tender. Furthermore, a collaboration has been established with Hitachi ABB to deliver industry-first scalable floating substations.
That's a competitive solution for both floating as well as bottom-fixed wind farms. That's in reference to this, what we call wind power service business that we're trying to develop with BW Ideol together. In July, a joint development agreement was signed with Eneos Corporation for a commercial-scale floating wind farm in Japan. It further strengthens the already quite strong position BW Ideol has in Japan. In the U.K., together with our joint venture partners, bids were submitted for the ScotWind tender. A design and engineering service agreement has been signed for Taiwan. This not only creates a strong position in that market, but also generates some immediate revenues for the company. Finally, this month, heads of terms for a partnership was signed for a floating wind development in Italy. Moving on to BW Energy.
Our 35% ownership in BW Energy, which has a current market cap of $680 million, represents a significant value for BW Offshore. That's slide 21. It keeps us exposed also to the upsides in oil price, as well as to the dividend potential, as Ståle also mentioned, once the Hibiscus project and the Maromba development are in production. At the moment, the Tortue field in Gabon produces about 10,500 barrels per day, and in Q4 this will increase when two more wells will come in production. The Hibiscus Ruche project is on track for first oil in the last quarter of next year, and the Maromba development is on track for a FID in first quarter of next year.
We materialize our strategic fit with BW Energy through an increased production tariff when the production on the Tortue field increases, as I said, by end of this year, with those two new wells that come in production. That will give additional peak production of about 8,000 barrels per day. Already mentioned that Polvo is considered a suitable FPSO to be redeployed at the Maromba field development. There is also potential for additional redeployments, like BW Opportunity for new field developments. To slide 22. Basically, now summing up and looking forward. First of all, we're fully focused on a safe delivery of the Barossa FPSO within budget and schedule. This is the most important activity we have in the company, and it is encouraging that we went off with a great start and have been able to lock in the majority of our commitments.
We will take a holistic view on how to maximize the value of the handful of units which are approaching the end of contract in the coming 1-2 years, as well as those that are already in layup. This spans from either extending contracts, if it makes sense, but also looking at divestments, which means selling to either our clients or local operators if those opportunities arise, or redeployments, preferably with BW Energy. For those units where none of these options are likely, we will proceed with recycling. The aim is really to target a lower average operating cost, minimal layup cost, and capture some divestment opportunities if they arise.
The Hibiscus Reach project from BW Energy is on track for first oil in the last quarter of next year, we continue to expand the project pipeline of floating wind developments together with BW Ideol and partners, with a target of 1.5 GW in operation by 2030. Lastly, we continue to evaluate new floating energy infrastructure projects, both FPSO projects as well as energy transition opportunities. That ends this update, but we're very happy to take any questions. With that, over to the operator.
Okay. Once again, if you do have a question, please dial zero one on your telephone keypads now to enter the queue. Once your name has been announced, you can ask your question. If you find your question is answered before it's your turn to speak, you can dial zero two to cancel. We currently have one question in the queue. That's from the line of Haakon Amundsen of ABG. Please go ahead. Your line is open.
Yeah. Hi, guys. Two questions for me, if I can. Firstly, Marco, I think you mentioned that about two-thirds of the procurement scope on Barossa have been placed through contracts already. Can you give some color on the remaining amounts, how that is impacted by the inflation rates and how it would impact your contingencies if in any way? Can you give some color on that, please?
Yeah. Thank you. Good question. There is a remaining procurement scope, but the sensitivity to commodity pricing is a lot less as it was in the early part of the scope. Obviously, the steel price has increased significantly, so we had to mitigate that and make sure we had our slots and have access to these materials. It's not just pricing, it's also making sure your schedule stays robust by locking in the slots for these commodities. I would say, the rest, the potential sensitivities are a lot less. There's some dynamics in the exotic material market. We're looking at that. Again, it's of a very different magnitude than what we have been seeing in the first half year.
All right. Thank you. That's clear. Ståle, is it possible to quantify a little bit the special items you mentioned with respect to layup of BW Cidade de São Vicente and transit of Umuroa in the quarter?
Yeah. How much was the impact?
Yeah, I'm just trying to get a better grip of the real underlying kind of EBITDA in the quarter, a couple of moving parts there. If you could quantify how much impact those elements had on the EBITDA, if possible.
The delta impact on Umuroa was close to $5 million. As I mentioned, you had the transportation leg from New Zealand to Indonesia, which was covered by us in the quarter. The tow was relatively expensive as you can expect, and that had an impact of about $4 million in Q2. For BW Cidade de São Vicente the layup costs were about $1 million a month. You had almost $3 million in the second quarter. I just want to mention as I also did earlier, for BW Cidade de São Vicente we're now on tow $2 million a month. You have to expect a similar cost to what we had for Umuroa on that unit in Q3. That'll probably go up to ballpark $5 million of the cost base for that unit in the third quarter.
Understood. Okay. Thank you. That's it for me. Thanks.
Thank you. Once again, if there are any further questions, please dial zero one on your telephone keypads Now. Okay, it seems there's no further questions on the phone, I'll hand back to our speakers.
Okay. I don't think there are questions on the portal either. If I'm correct, Ståle, you have any?
No questions on the portal so far.
No. I think we can conclude that all questions have been answered in the presentation. With that, I think we can close this session. Thank you for your attention and looking forward to talk to you next quarter.