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Edda Wind AS Interim / Quarterly Report 2024
3585_rns_2024-05-22_caa00a6f-620b-4158-8584-ff8e36e3da8d.pdf
Interim / Quarterly Report
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1st Quarter Report 2024
eddawind.com
Contents
Photo: Nicki Pløk
- 03 Letter from the CEO
- 04 Highlights Q1 2024
- 05 Management report Q1 2024
- 08 Key figures Q1 2024
- 09 Statement from the Board
- 10 Income statement
- 10 Comprehensive income
- 11 Balance sheet
- 12 Cash flow statement
- 13 Statement of changes in equity
- 14 Notes
During the first quarter of 2024, Edda Wind experienced significant technical challenges related to several of our gangway systems, resulting in unscheduled off-hire and revenue loss. To address these issues and ensure reliable performance, Edda Wind temporarily took three vessels out of operation. Today, I'm pleased to report that all three vessels are now back in service and on hire. The gangway systems, which represents new technology, are expected to enhance operability and flexibility once fully functional. However, there may be some financial fluctuations during the ramp-up phase as a result of the commencement of operation for new vessels with calibration of the gangways system. Needless to say, the experience gained is invaluable, and we are now achieving enhanced operability.
During Q1, Edda Wind completed the sale of Edda Passat. As of today, Edda Wind's current fleet in operation counts five vessels with a further eight vessels under construction. Three of the vessels are expected to be delivered and in operation in 2024, with the remaining in 2025 and 2026. We remain highly optimistic about the market outlook and eagerly await these deliveries.
Goelo Enabler was delivered from yard in March 2024, but as announced on 7 May, Edda Wind unfortunately experienced an incident which will delay commencement of operation, which was set to start in May 2024. Edda Wind is investigating the incident, including an updated timeline regarding commencement of operation for Goelo Enabler on the remaining period of the five-year contract to SiemensGamesa.
On the positive side, Edda Nordri successfully commenced operations for Vestas in March 2024. This marks to some extent a new era as our newbuildings are entering the more profitable short-term commissioning segment. Unlike our previous long-term contracts, these shorter-term arrangements allow for greater flexibility. As the Company strive for a balanced portfolio, most of our newbuilds are expected to follow suit by entering the short-term commissioning segment upon delivery.
Edda Wind has established strong relationships with key operators in the market. We consistently receive invitations to participate in tenders and vessel requirements and tendering activity is increasing. Our order backlog currently stands at EUR 416 million, and with several uncommitted newbuilds we are ideally positioned to secure work in an increasingly attractive market for specialised offshore wind service vessels.
We express our gratitude to all stakeholders for their continued support of Edda Wind.
Kenneth Walland CEO
Photo: Bård Gudim
Letter from the CEO
-
- for Vestas in March.
- reliability and performance.
- result in additional work for CSOVs.
- including purpose-built CSOVs.
- CSOV market.
Management report Q1 2024
Operating income EUR 17.0m
Operating expenses EUR (10.1)m
Operating profit before depreciation
EUR 6.9m
Profit before tax EUR 1.7m
Investment in vessels and new buildings EUR 495m
Operations
Edda Wind ASA and subsidiaries ("the Group") is an offshore wind service provider.
As at 31 March 2024, the Group operates two purpose-built SOVs and three CSOVs, and has eight vessels under construction.
Edda Mistral operates in the North Sea on charter for Ørsted on Hornsea 1 windfarm with firm period expiring September 2024.
On 28 March 2023, Edda Breeze commenced the contract with Ocean Breeze with a firm period up to April 2032 and on 29 March 2023, Edda Brint commenced its long-term contract with Vestas with a firm period up to May 2037. Edda Boreas commenced a 2+1 year contract for SSE Renewables on 2 July 2023.
The three vessels experienced technical challenges during the quarter and were temporarily taken out of operations to implement robust solutions to the various issues. The Ocean Breeze charter was temporarily serviced by Edda Passat as frontrunner until Edda Breeze recommenced operations. The Vestas charter was temporarily serviced by an external frontrunner until Edda Brint had completed its upgrade.
On 1 October 2023, the 5-year contract with SiemensGamesa commenced with an external frontrunner vessel for Goelo Enabler. The external frontrunner vessel was replaced by Edda Nordri on 28 December. Edda Nordri operated as frontrunner until mid-March and was then replaced by Edda Passat on 16 March 2024. Edda Nordri commenced the short-term contract with Vestas Baltic Eagle on 20 March 2024.
The sale of Edda Passat was successfully closed on 20 March 2024.
Due to technical challenges on Edda Breeze, Edda Brint and Edda Boreas, the utilisation during the quarter was only 60%.
Edda Wind is in the process of establishing a standalone fully integrated organisation to take over project and technical management as well as corporate services from 2025.
Group consolidated results Q4 2023
Total operating income for Q1 2024 was EUR 16,990 thousand compared with EUR 6,893 thousand in Q1 2023. The increase in operating income is primarily driven by commencement of operation for new vessels and gain on sale of vessels. Operating income was also adversely affected by the technical challenges experienced on Edda Breeze, Edda Brint and Edda Boreas. However the off-hire effect for Edda Breeze has partly been mitigated by a loss of hire insurance. The sale of Edda Passat was closed during Q1 2024 resulting in a gain on sale of EUR 6,478 thousand.
Operating expenses before depreciation were EUR 10,117 thousand in Q1 2024 compared with EUR 6,220 thousand in Q1 2023. The increase is mainly resulting from an increased number of vessels in operations in the quarter compared to the same quarter last year. In addition, the operating expenses in Q1 2024 were positively impacted by lower cost related to chartered in vessels as frontrunners compared to Q1 2023. During the quarter, the Group has chartered in frontrunner vessels for the newbuild Goelo Enabler and the vessel Edda Brint. In Q1 2023, the Group chartered in a frontrunner to Edda Breeze until Edda Breeze commenced operations at end of March 2023.
The Group had an EBITDA of EUR 7,014 thousand in Q1 2024, compared with EUR 673 thousand in Q1 2023. The increase is largely due to more vessels in operation and gain on sale of Edda Passat.
Depreciation expense was EUR 2,807 thousand in Q1 2024, compared with EUR 773 thousand in Q1 2023. The increase is due to depreciation of new vessels commencing operation after Q1 2023.
Management report Q1 2024
continued
Net financial result in Q1 2024 was EUR 2,318 thousand in net financial cost, compared with EUR 333 thousand in net cost in the same quarter last year. The increase in interest cost is mainly due to delivery of new vessels.
The Group had a profit before tax of EUR 1,748 thousand in Q1 2024, compared with a loss before tax of EUR 433 thousand in Q1 2023.
Capital structure and financing
Cash and cash equivalents ended at EUR 45,900 thousand at 31 March 2024, up from EUR 32,918 thousand at 31 December 2023, positively impacted by the sale of Edda Passat. The Group is continously exploring alternatives to strengthen its balance sheet, including its liquidity position.
Total investment in newbuildings and vessels was EUR 495,493 thousand at 31 March 2024, down from EUR 515,516 thousand at 31 December 2023.
Total interest-bearing debt was EUR 281,132 thousand at 31 March 2024, down from EUR 284,830 thousand at 31 December 2023 due to settlement of the d ebt for Edda Passat in connection with the sale, offsetting the increase from drawdown of predelivery financing of the Group's newbuild program.
Total equity was EUR 287,479 thousand at 31 March 2024, compared to EUR 284,882 thousand at 31 December 2023. The increase is due to the total comprehensive income for the period.
Photo: Bård Gudim
Management report Q1 2024
continued
Outlook
The ongoing transition of the world's energy systems in a greener direction has continued and strengthened. This megatrend will contribute to shaping the world for decades to come. The leading analytical environments within offshore wind estimate significant growth in energy generation capacity from offshore wind turbines. This will naturally be accompanied by a sharp growth in the number of wind turbines installed and in operation. As a consequence, it is estimated that in excess of 250 C/SOVs will be needed by 2030 to assist with commissioning and operation of these; a number that compares favourably with the existing fleet size of approximately 90 Tier 1 vessels, including vessels under construction. Subsea tonnage, which has been filling the gap between supply and demand until now, is continuing to migrate back to oil & gas markets, as demand and day rates achieved in these markets have strengthened significantly over the last year.
For Edda Wind, as the leading shipowner and operator within the C/SOV market, this continues to be an opportunity for growth in what is expected to be a market with increasing day rates. The Company is currently experiencing increased tendering activity, supporting the growth expectations for the years to come.
The newbuilding programme
As at 31 March 2024, the Group had eight vessels under construction (one SOV and seven CSOVs). The Group strives to use similar suppliers and equipment, even for vessels of different design. This will give benefits in relation to operation, crew training and spares.
Quoted yard prices and values for similar vessels have increased significantly during the last year, implying that the current fleet has been ordered at an opportune time, and at attractive prices.
Subsequent events
Edda Brint was back in operation following system upgrades in March 2024, but the vessel experienced further off-hire during the first part of April. Since mid April, the vessel has been in operation.
Edda Wind experienced an incident during the Harbor Acceptance Test of the gangway system for Goelo Enabler in early May 2024. There was no personnel injuries, but the incident will result in delayed operational start for Goelo Enabler, which was set to start in May. An investigation has been initiated by Edda Wind.
In 2023, Edda Wind entered into a loan agreement of EUR 11 million as prefinancing of the tax lease benefit under the Spanish Tax Lease structure for Goelo Enabler. As at 31 March 2024, the amount is included in the balance sheet as current interestbearing debt. In April 2024, Edda Wind received EUR 11 million in tax lease benefit and the amount has been used to settle the outstanding loan.
Key figures Q1 2024
(EUR 1,000)
| Key figures | Q1 2024 | Q1 2023 | Q4 2023 | Full year 2023 |
|---|---|---|---|---|
| Total operating income | 16,990 | 6,893 | 11,400 | 39,368 |
| Profit/loss for the period | 1,748 | (433) | (5,082) | (3,868) |
| Total assets | 581,558 | 467,798 | 582,258 | 582,258 |
| Equity | 287,477 | 288,199 | 284,882 | 284,882 |
| EBITDA | 7,014 | 673 | (1,084) | 7,436 |
| EBIT | 4,066 | (100) | (3,573) | (190) |
| NIBD | 235,232 | 33,893 | 251,912 | 251,912 |
| Equity ratio | 49.4% | 61.6% | 48.9% | 48.9% |
Definitions of APMs
• EBITDA (earnings before interest, tax, depreciation and amortisation) is defined as operating revenue and gain/loss on sale of assets less operating expenses, adjusted for amortisation of late delivery penalties. • EBIT (earnings before interest and tax) is defined as total income (operating revenue and gain/loss on sale of assets) less operating expenses, other gain/loss and depreciation and amortisation. • NIBD (net interest-bearing debt) is defined as total interest-bearing debt (non-current interest-bearing debt and current interest-bearing debt) less cash and cash equivalents, restricted cash and current
-
- financial investments.
• Equity ratio is defined as total equity as a percentage of total assets.
Management Statements
Jan Eyvin Wang Chairman of the Board
Toril Eidesvik Board member
Adrian Geelmuyden Board member
Cecilie Wammer Serck-Hanssen Board member
Martha Kold Monclair
Board member
Duncan J. Bullock
Board member
Håvard Framnes
We confirm that the consolidated accounts Board member for the period 1 January 2024 until 31 March 2024 are, to the best of our knowledge, prepared in accordance with IAS 34.
The interim condensed consolidated financial statements give a fair and true value of the enterprise and Group's assets, debt, financial position and result, which, in its entirety, gives a true overview of the information in accordance with the securities trading act.
Statement from the Board
Haugesund, 21 May 2024 (signed electronically)
Report
Income statement
(unaudited)
(EUR 1,000)
Comprehensive income
(unaudited)
(EUR 1,000)
| Q1 | Q1 | Full year | ||
|---|---|---|---|---|
| Notes | 2024 | 2023 | 2023 | |
| Freight income | 2 | 9,932 | 6,235 | 36,955 |
| Other operating income | 2, 8 | 580 | 658 | 2,413 |
| Gain on sale of asset | 10 | 6,478 | – | – |
| Total operating income | 16,990 | 6,893 | 39,368 | |
| Payroll and remuneration | (5,216) | (1,963) | (16,325) | |
| Other operating expenses | 2 | (4,901) | (4,257) | (16,023) |
| Total operating expenses | (10,117) | (6,220) | (32,348) | |
| Operating profit before depreciation | 6,873 | 673 | 7,020 | |
| Depreciation | 3 | (2,807) | (773) | (7,210) |
| Operating profit | 4,066 | (100) | (190) | |
| Financial income and expenses | ||||
| Financial income | 9 | 263 | 242 | 1,543 |
| Financial expense | 9 | (2,540) | (739) | (5,353) |
| Net currency gains/(losses) | (41) | 165 | 132 | |
| Financial income/(expense) | (2,318) | (333) | (3,678) | |
| Profit/(loss) before tax | 1,748 | (433) | (3,868) | |
| Tax (income)/expense | 7 | – | – | – |
| Profit/(loss) for the period | 1,748 | (433) | (3,868) | |
| Basic/diluted earnings per share in EUR | 6 | 0.02 | (0.01) | (0.04) |
| Q1 | Q1 | Full year | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Profit/(loss) for the period | 1,748 | (433) | (3,868) |
| Items that may be reclassified to the income statement | |||
| Currency translation differences | 847 | (79) | 39 |
| Other comprehensive income, net of tax | 847 | (79) | 39 |
| Total comprehensive income for the period | 2,595 | (512) | (3,829) |
Balance sheet
(unaudited)
(EUR 1,000)
ASSETS
| Non-current assets | |
|---|---|
| Vessels | |
| Newbuildings | |
| Machinery and equipment | |
| Current assets | |
EQUITY AND LIABILITIES
| Equity | ||
|---|---|---|
| Notes | 31.03.2024 | 31.03.2023 | 31.12.2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Vessels 3 |
238,876 | 170,429 | 271,222 |
| Newbuildings 3 |
256,616 | 145,441 | 244,294 |
| Other non-current assets 3,10 |
8,772 | 8,334 | 8,840 |
| Machinery and equipment 3 |
111 | – | 136 |
| Total non-current assets | 504,375 | 324,204 | 524,492 |
| Current assets | |||
| Account receivables | 12,393 | 5,499 | 10,650 |
| Other current receivables | 18,890 | 1,252 | 14,198 |
| Cash and cash equivalents | 45,900 | 136,843 | 32,918 |
| Total current assets | 77,183 | 143,594 | 57,766 |
| Total assets | 581,558 | 467,798 | 582,258 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital 5,6 |
1,071 | 1,071 | 1,071 |
| Share premium | 220,732 | 220,732 | 220,732 |
| Other equity | 65,674 | 66,396 | 63,079 |
| Total equity | 287,477 | 288,199 | 284,882 |
| Non-current liabilities | |||
| Non-current interest-bearing debt 4 |
250,003 | 157,442 | 257,101 |
| Total non-current liabilities | 250,003 | 157,442 | 257,101 |
| Current liabilities | |||
| Account payables | 4,014 | 2,537 | 5,488 |
| Public duties payable | 145 | 48 | 183 |
| Current interest-bearing debt 4 |
31,129 | 13,294 | 27,729 |
| Other current liabilities 10 |
8,790 | 6,279 | 6,875 |
| Total current liabilities | 44,078 | 22,158 | 40,275 |
| Total equity and liabilities | 581,558 | 467,798 | 582,258 |
Non-current liabilities
Current liabilities
| Current interest-bearing debt | |
|---|---|
| O |
|---|
| ve |
| rv |
| ie |
| w |
Cash flow statement
(unaudited)
(EUR 1,000)
Q1
Q1
Full year
Cash flow from operations
Cash flow from investment activities
Cash flow from financing activities
| Notes | 2024 | 2023 | 2023 |
|---|---|---|---|
| Cash flow from operations | |||
| Profit/(loss) before tax | 1,748 | (433) | (3,868) |
| Financial (income)/expenses | 2,318 | 333 | 3,678 |
| Depreciation and amortisation 3 |
2,807 | 773 | 7,210 |
| Gain on sale of asset | (6,478) | – | – |
| Change in working capital | (5,700) | (4,642) | (20,120) |
| Net cash flow from operations | (5,305) | (3,969) | (13,100) |
| Cash flow from investment activities | |||
| Investments in fixed assets 3 |
(13,781) | (26,649) | (231,925) |
| Sale of fixed assets | 39,752 | – | – |
| Reclassification of restricted cash to cash | – | 4,510 | 4,510 |
| Net cash flow from investment activities | 25,971 | (22,139) | (227,415) |
| Cash flow from financing activities | |||
| Proceeds from issue of interest-bearing debt 4 |
15,955 | 18,852 | 140,846 |
| Repayment of interest-bearing debt 4 |
(20,676) | (3,947) | (10,564) |
| Payment of debt issuance costs | (20) | (1,320) | (3,708) |
| Interest received | 263 | 313 | 1,543 |
| Interest paid | (2,909) | (1,021) | (3,880) |
| Paid other financial expenses | (267) | (78) | (426) |
| Proceeds from issuance of new shares | – | 105,032 | 105,032 |
| Net cash flow from financing activities | (7,654) | 117,831 | 228,843 |
| Effects of currency rate changes on bank deposits, cash and equivalents | |||
| Net change in bank deposits, cash and equivalents | 13,012 | 91,723 | (11,671) |
| Translation difference | (30) | 100 | (432) |
| Cash and cash equivalents at period start | 32,918 | 45,021 | 45,021 |
Effects of currency rate changes on bank deposits, cash and equivalents
Cash and cash equivalents at period end 45,900 136,843 32,918
Statement of changes in equity
(unaudited)
(EUR 1,000)
Foreign
| Share capital |
Share premium |
Other paid-in capital |
Retained earnings |
currency translation reserve |
Other | equity Total equity | |
|---|---|---|---|---|---|---|---|
| Balance at 01.01.2024 | 1,071 | 220,732 | 27,608 | 34,588 | 882 | 63,079 | 284,882 |
| Loss for the period | 1,748 | 1,748 | 1,748 | ||||
| Other comprehensive income | 847 | 847 | 847 | ||||
| Balance at 31.03.2024 | 1,070 | 220,731 | 27,607 | 36,336 | 1,729 | 65,674 | 287,477 |
| Balance at 01.01.2023 | 644 | 116,128 | 27,608 | 38,457 | 844 | 66,908 | 183,680 |
| Share capital increase by issuance of new shares | 427 | 104,604 | – | 105,031 | |||
| Loss for the period | (433) | (433) | (433) | ||||
| Other comprehensive income | (79) | (79) | (79) | ||||
| Balance at 31.03.2023 | 1,071 | 220,732 | 27,608 | 38,023 | 765 | 66,396 | 288,199 |
| Balance at 01.01.2023 | 644 | 116,128 | 27,608 | 38,457 | 844 | 66,908 | 183,680 |
| Share capital increase by issuance of new shares | 427 | 104,604 | – | 105,031 | |||
| Loss for the period | (3,868) | (3,868) | (3,868) | ||||
| Other comprehensive income | 39 | 39 | 39 | ||||
| Balance at 31.12.2023 | 1,071 | 220,732 | 27,608 | 34,588 | 882 | 63,079 | 284,882 |
| O |
|---|
| ve |
| rv |
| ie |
| w |
Note 1 General accounting principles
Basis of preparation
This interim condensed consolidated financial statement has been prepared in accordance with International Accounting Standards (IAS 34), "interim financial reporting". The interim condensed consolidated financial report is unaudited and should be read in conjunction with the consolidated Annual Financial Statements for the year ended 31 December 2023 for Edda Wind ASA (Group), which were prepared in accordance with IFRS as endorsed by the EU. Consolidated interim and yearly financial statements are available on the news services from Oslo Stock Exchange, www.newsweb.no and the Company's webpage, www.eddawind.com.
The Group's interim condensed consolidated financial statement are presented in Euros, which is also the parent company's functional currency. For each entity within the Group, the Group has determined the functional currency based on the primary economic environment of which the entity operates. Items included in the financial statements are measured using that functional currency. The functional currency for the Group's entities are EUR, GBP and NOK.
The interim financial report is prepared on the assumption of a going concern.
Basic policies
The accounting policies applied are consistent with those applied in the Annual Financial Statements for Edda Wind ASA for the year ended 31 December 2023. No new standards have been applied in 2024.
Notes
(EUR 1,000)
Note 2 Revenue from contracts with customers
Operating income
The Group's revenue mainly derives from offering vessels and maritime personnel to the offshore wind sector under long-term chartering agreements. Under these agreements the Group delivers a vessel, including crew, to the customer. The customer determines, within the contractual limits, how the vessel is to be utilised. The Group is remunerated at an agreed daily rate for use of vessel, equipment, crew and other resources or services utilised under the contract. The Group's contracts also include victualling covering meals and bedding provided to customer personnel on board the vessel. The Group's revenue is split into a service element and lease element. The revenue is mainly recognised over time as the performance obligation is satisfied over time.
The Group also provides management services to companies outside of the Group. Remuneration for management services is classified as other revenue and recognised over time as performance obligation is satisfied over time.
The Group has one reportable segment being the Offshore Wind segment.
Offshore Wind operating revenue
| Q1 | Q1 | Full year 2023 |
|
|---|---|---|---|
| 2024 | 2023 | ||
| Offshore Wind operating revenue | |||
| Revenue from contracts with customers: | |||
| Service element from contracts with day rate, including victualling | 6,636 | 3,581 | 23,271 |
| Gain on sale of asset | 6,478 | – | – |
| Other revenue | 580 | 658 | 2,413 |
| Lease revenue: | |||
| Lease element from contracts with day rate | 3,296 | 2,654 | 13,684 |
| Total operating income | 16,990 | 6,893 | 39,368 |
On 28 July 2022 Edda Wind entered into an agreement with Colombo Dockyard PLC for the cancellation of two newbuilding contracts signed 31 January 2022. Under this agreement, Edda Wind will receive a compensation in excess of incurred project cost. EUR 500 thousand has been recognised during Q1 2024. The remaining agreed compensation is recognised as revenue when payment is received.
The deliveries of Edda Breeze and Edda Brint to clients were postponed until end of March 2023 due to delayed delivery of gangway systems. Following the delay, Edda Wind incurred liquidated damages for both vessels until delivery. As of 31 March 2024, Edda Wind has incurred a total of EUR 7.0 million in liquidated damages. The amount is capitalised as other non-current assets and is recognised in profit and loss on a straight-line basis over to contract period from the date the vessels were delivered to the clients. As at 31 March 2024, a total of EUR 138 thousand has been recognised in profit and loss.
Notes
continued
(EUR 1,000)
Notes
continued
(EUR 1,000)
Note 3 Tangible assets
The tables below show the Group's tangible assets as at 31 March 2024, 31 March 2023 and 31 December 2023.
| Periodic | |||||
|---|---|---|---|---|---|
| 31.03.2024 | Vessels | maintenance Equipment Newbuildings | Total | ||
| Cost 01.01.2024 | 281,775 | 11,236 | 212 | 244,294 | 537,516 |
| Additions | 1,458 | – | – | 12,323 | 13,781 |
| Disposal | (39,724) | – | – | – | (39,724) |
| Reclassification | – | – | – | – | – |
| Currency translation differences | 791 | 31 | – | – | 822 |
| Cost 31.03.2024 | 244,300 | 11,267 | 212 | 256,616 | 552,119 |
| Accumulated depreciation and impairment losses 01.01.2024 | (18,513) | (3,276) | (76) | – | (21,865) |
| Depreciation | (2,349) | (447) | (11) | – | (2,807) |
| Disposal | 8,142 | – | – | – | 8,142 |
| Currency translation differences | (210) | (38) | – | – | (247) |
| Accumulated depreciation and impairment losses 31.03.2024 | (12,929) | (3,760) | (87) | – | (16,777) |
| Carrying amounts | 231,371 | 7,506 | 125 | 256,616 | 535,342 |
| Remaining instalments newbuildings 31.03.2024 | 213,958 | 213,958 |
| Periodic | |||||
|---|---|---|---|---|---|
| 31.03.2023 | Vessels | maintenance Equipment Newbuildings | Total | ||
| Cost 01.01.2023 | 78,820 | 2,273 | 76 | 223,082 | 304,250 |
| Additions | – | 1,223 | – | 25,427 | 26,649 |
| Reclassification | 103,067 | – | (7) | (103,067) | (7) |
| Currency translation differences | 238 | – | – | – | 238 |
| Cost 31.03.2023 | 182,125 | 3,496 | 69 | 145,441 | 331,130 |
| Accumulated depreciation and impairment losses 01.01.2023 | (12,256) | (2,122) | (69) | – | (14,447) |
| Depreciation | (657) | (116) | – | – | (773) |
| Currency translation differences | (39) | – | – | – | (39) |
| Accumulated depreciation and impairment losses 31.03.2023 | (12,952) | (2,238) | (69) | – | (15,259) |
| Carrying amounts | 169,173 | 1,257 | – | 145,441 | 315,870 |
| Remaining instalments newbuildings 31.03.2023 | 412,357 | 412,357 |
Report
Management Statements Financial
| 2024, 31 March 2023 and 31 December 2023. | ||
|---|---|---|
Note 3 Tangible assets
| Periodic | |||||
|---|---|---|---|---|---|
| 31.12.2023 | Vessels | maintenance Equipment Newbuildings | Total | ||
| Cost 01.01.2023 | 78,820 | 2,273 | 76 | 223,082 | 304,250 |
| Additions | – | 3,536 | 136 | 228,252 | 231,924 |
| Reclassification | 201,644 | 5,396 | – | (207,040) | – |
| Currency translation differences | 1,311 | 31 | – | – | 1,342 |
| Cost 31.12.2023 | 281,775 | 11,236 | 212 | 244,294 | 537,516 |
| Accumulated depreciation and impairment losses 01.01.2023 | (12,256) | (2,122) | (69) | – | (14,447) |
| Depreciation | (6,075) | (1,129) | (7) | – | (7,210) |
| Currency translation differences | (182) | (25) | – | – | (207) |
| Accumulated depreciation and impairment losses 31.12.2023 | (18,513) | (3,276) | (76) | – | (21,865) |
| Carrying amounts | 263,262 | 7,959 | 136 | 244,294 | 515,651 |
| Remaining instalments newbuildings 31.12.2023 | 224,510 | 224,510 |
The depreciation schedule for vessels is 30 years straight-line depreciation. For periodic maintenance, the depreciation is set to five years based on time expected until next maintenance.
Vessels under construction ("newbuildings") are capitalised based on instalments paid to the shipyard and other costs directly attributable to the construction, including borrowing costs during the construction period. Capitalised cost for vessels under construction is reclassified to vessels when the vessel is delivered and ready for use. Vessels under construction are not subject to depreciation until the vessel is ready for use.
Notes
continued
(EUR 1,000)
Note 3 continued Tangible assets continued
Impairment assessment
The Group considers the relationship between its market capitalisation and its book value, among other factors, when reviewing for indicators of impairment. As at 31 March 2024 the market capitalisation of the Group was below the book value of its equity. As a result, the Group performed an impairment test at the end of the first quarter for each of its operational SOVs and newbuilds expected to be delivered during the next year.
As part of the assessment of vessel value, the Group has obtained broker values. When comparing broker values to book values, a substantial headroom is identified. To further support the broker values, the Group has performed an impairment test through a value in use calculation. Cash flows are estimated throughout the useful time of the vessels. The estimates for 2024 reflect the current market conditions. The Group has used a discount rate in the interval of 8.0-9.6% for cash flows denominated in EUR and GBP. This is also an assumption when performing the impairment assessment. The recoverable amount exceeded the carrying amount in the value in use calculation and thus the impairment test did not reveal any need for impairment.
Notes
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Notes
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Note 4 Interest-bearing debt
The table below shows the Group's interest-bearing debt.
| Non-current interest-bearing debt | |
|---|---|
| Current interest-bearing debt | |
| Total interest-bearing debt |
| 31.03.2024 | 31.03.2023 | 31.12.2023 | |
|---|---|---|---|
| Non-current interest-bearing debt | 250,003 | 157,442 | 257,101 |
| Current interest-bearing debt | 31,129 | 13,294 | 27,729 |
| Total interest-bearing debt | 281,132 | 170,736 | 284,830 |
Loan agreements entered into by the Group contain financial covenants related to liquidity, working capital, book equity ratio and market value. The Group was in compliance with these covenants at 31 March 2024 (analogous for 31 December 2023).
The table below shows specifications of the Group's interest-bearing debt.
| Total interest-bearing debt | |
|---|---|
| Bonds | |
| Pledged debt to financıal institutions | |
| 31.03.2024 | 31.03.2023 | 31.12.2023 | |
|---|---|---|---|
| Pledged debt to financial institutions | 208,891 | 95,543 | 211,534 |
| Bonds | 72,241 | 75,193 | 73,296 |
| Total interest-bearing debt | 281,132 | 170,736 | 284,830 |
The tables below show the repayment schedule of the Group's interest-bearing debt.
| 31.03.2024 | 31.03.2023 | 31.12.2023 | |
|---|---|---|---|
| Repayment schedule for debt to financial institutions | |||
| Due in year 1 | 15,949 | 9,340 | 23,642 |
| Due in year 2 | 47,459 | 11,653 | 43,537 |
| Due in year 3 | 28,471 | 11,653 | 29,895 |
| Due in year 4 | 23,484 | 11,653 | 31,567 |
| Due in year 5 and later | 93,528 | 51,243 | 82,894 |
| Total repayment schedule for debt to financial institutions | 208,891 | 95,543 | 211,534 |
The repayment schedule for debt to financial institutions is based on renewal of a bank guarantee expiring in 2027. If the bank guarantee is not renewed, EUR 45.0 million of the debt to financial institutions will fall due in 2027.
| 31.03.2024 | 31.03.2023 | 31.12.2023 | |
|---|---|---|---|
| Repayment schedule for bond | |||
| Due in year 1 | 4,180 | 3,954 | 4,088 |
| Due in year 2 | 4,369 | 4,129 | 4,268 |
| Due in year 3 | 5,084 | 4,317 | 4,763 |
| Due in year 4 | 5,192 | 5,026 | 5,081 |
| Due in year 5 and later | 53,415 | 57,766 | 55,096 |
| Total repayment schedule for bond | 72,241 | 75,193 | 73,296 |
Note 5 Share capital
Edda Wind's share capital amounts to NOK 11,231,449 divided into 112,314,488 shares, each with a nominal value of NOK 0.1.
Largest shareholders at 31 March 2024
| Number of | Ownership | ||
|---|---|---|---|
| Shareholder | Country | shares | share |
| Wilhelmsen New Energy AS | Norway | 28,500,000 | 25.4% |
| Geveran Trading Co Ltd | Cyprus | 24,306,313 | 21.6% |
| Østensjø Wind AS | Norway | 21,300,000 | 19.0% |
| Credit Suisse (Switzerland) Ltd. | Ireland | 17,888,331 | 15.9% |
| VJ Invest AS | Norway | 1,313,235 | 1.2% |
| J.P. Morgan SE | Luxembourg | 1,166,603 | 1.0% |
| Varner Equities AS | Norway | 776,973 | 0.7% |
| State Street Bank and Trust Comp | United States | 665,780 | 0.6% |
| Wahl Eiendom AS | Norway | 656,000 | 0.6% |
| Clearstream Banking S.A. | Luxembourg | 628,373 | 0.6% |
| Largest shareholders | 97,201,608 | 86.5% | |
| Others | 15,112,880 | 13.5% | |
| Total | 112,314,488 | 100.0% |
Note 6 Earnings per share
The table below shows the earnings per share.
Earnings per share
| Q1 | Q1 | Full year | |
|---|---|---|---|
| Earnings per share | 2024 | 2023 | 2023 |
| Net profit attributable to ordinary shareholders of Edda Wind ASA | 1,748,068 | (432,732) | (3,867,732) |
| Weighted average number of outstanding shares to calculate EPS | 112,314,488 | 69,867,444 | 101,819,340 |
| Earnings per share | 0.02 | (0.01) | (0.04) |
Earnings per share is calculated based on the average number of outstanding shares during the period. Basic earnings per share is calculated by dividing profit for the period by average number of total outstanding shares. The Group does not have any dilutive instruments.
Notes
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Note 7 Tax
The effective tax rate for the Group will, from period to period, change dependent on the Group gains and losses from investments inside the exemption method and tax exempt revenues from tonnage tax regimes.
The Group's Spanish subsidiaries, Puerto de Llafranc SL, Mar de Grado SL, Mar de Berrobi SL and Puerto de Gandesa SL, are taxed in accordance with the Spanish Tonnage Tax regime. The Group's Norwegian subsidiaries, Edda Wind XI AS, Edda Wind XII AS, Edda Wind XIV AS and Edda Wind XV AS are taxed in accordance with the Norwegian Tonnage Tax regime. Tonnage tax is recognised as an operating expense in the income statement.
The Group recorded a tax expense of EUR 0 during the first quarter of 2024 (EUR 0 during first quarter 2023), and recognised a deferred tax asset of EUR 0 at 31 March 2024 (deferred tax asset of EUR 0 thousand at 31 March 2023).
Note 8 Related party transactions
Related party transactions include shared services and other services provided and purchased from entities outside of the Edda Wind Group that are under control directly or indirectly, joint control or significant influence by the owners of Edda Wind ASA. This includes operation and supervision of vessels, crew hire, and corporate management services.
Services are priced on commercial market terms and in accordance with the principles set out in the OECD Transfer Pricing Guidelines and are delivered according to agreements that are renewed annually.
| Q1 | Q1 | Full year | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Transactions with related parties | |||
| Leasing of Edda Fjord from West Supply VIII AS (incl. victualling) | – | 2,930 | 3,270 |
| Purchase of management services, operation and supervision of vessels from Østensjø Rederi AS | 662 | 220 | 1,281 |
| Sale of services to Østensjø Rederi AS | (80) | (107) | (375) |
| Hired crew from Østensjø Rederi AS | 3,939 | 1,434 | 11,859 |
| Guarantee commission to Johannes Østensjø d.y. AS | – | – | – |
| Board fee to Johannes Østensjø d.y. AS | – | – | 43 |
| Purchase of goods from Wilhelmsen Ships Service | 26 | – | 104 |
| Insurance cost to Wilhelmsen Insurance Services AS | 174 | 177 | 699 |
| Total transactions with related parties | 4,721 | 4,655 | 16,881 |
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Note 9
Financial income Financial expense
| Financial items | |||
|---|---|---|---|
| Q1 | Q1 | Full year | |
| 2024 | 2023 | 2023 | |
| Financial income | |||
| Other financial income | 263 | 242 | 1,543 |
| Total financial income | 263 | 242 | 1,543 |
| Financial expense | |||
| Interest expenses | (2,273) | (591) | (4,855) |
| Realised loss financial derivatives | – | (71) | (71) |
| Other financial expenses | (267) | (78) | (426) |
| Total financial expense | (2,540) | (739) | (5,353) |
Note 10 Other circumstances
In relation to one of the newbuildings, the Group has assumed payment obligations and purchased certain equipment directly in order to avoid delays in delivery. As at 31 March 2024 the obligation was EUR 0.2 million. The Group will be compensated for the assumed obligations through a loan agreement in the net amount of EUR 2.4 million paid over two years. As at 31 March 2024, the loan amount was EUR 1.8 million.
On 20 March 2024, Edda Wind, through its subsidiary West Energy AS, closed the sale of all outstanding shares in Puerto de Calella SL, the registered owner of Edda Passat. The disposal of Edda Passat resulted in a gain of EUR 6.5 million. The gain takes into consideration the selling price of the vessel less book value of the vessel, cost of disposal and settlement of working capital. The loan amount financing Edda Passat was settled subsequent to the sale. From the selling date, the vessel has been leased back from the buyer on a short-term timecharter to operate as frontrunner under the SiemensGamesa charter.
Edda Brint and Edda Breeze were taken out of operation in February 2024 due to technical challenges. Both vessels were in operation again in March. During this period, Edda Brint was substituted by a frontrunner vessel under a timecharter to service the Vestas charter.
Note 11 Subsequent events
Edda Brint was back into operation following system upgrades in March 2024, but the vessel experienced further off-hire during first part of April. Since mid-April, the vessel has been in operation.
Edda Wind experienced an incident during the Harbor Acceptance Test of the gangway system for Goelo Enabler in early May 2024. There was no personnel injuries, but the incident will result in delayed operational start for Goelo Enabler, which was set to start in May. An investigation has been initiated by Edda Wind.
In 2023, Edda Wind has entered into a loan agreement of EUR 11 million as prefinancing of the tax lease benefit under the Spanish Tax Lease structure for Goelo Enabler. As at 31 March 2024, the amount is included in the balance sheet as current interest-bearing debt. In April 2024, Edda Wind received EUR 11 million in tax lease benefit and the amount has been used to settle the outstanding loan.
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Spannavegen 152 Haugesund, Norway [email protected] +47 52 70 45 45