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Edda Wind AS Investor Presentation 2024
3585_rns_2024-11-19_e5df61a1-bb99-42b1-8ac5-069c6bf8eb53.pdf
Investor Presentation
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Edda Wind
Quarterly presentation, Q3 2024
We enable a greener future
Disclaimer
Cautionary note regarding forward-looking statements
This presentation, prepared by Edda Wind ASA (the "Company"), may include forward-looking statements relating to the business, financial performance and results of the Edda Wind Group and/or the offshore wind industry. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provide any assurance as to the correctness of such forward-looking information and statements. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
Agenda
Q3 2024 key events
Revenue growth and vessel takeover
- Revenue of EUR 18.4 million (EUR 6.6 million above Q3 2023)
- EBITDA of EUR 6.1 million (EUR 1.1 million above Q3 2023)
- Commencement of operation for Goelo Enabler and Sudri Enabler gives a total of seven vessels in full operation
- Gangway performance and vessel utilisation significantly improved
- Vessel management takeover initiated
Subsequent events:
- Employment for three of our newbuilds directly from yard and entering the Taiwanese market
- Vestri Enabler secured four months + options from delivery in November 2024
- NB967 secured six months in Taiwan + options from delivery in Q2 2025
- In the signing process for C504 for a 12 months + 12 months options contract from delivery in Q2 2025
4
▪ Debt financing secured for C504 securing a fully financed fleet
Q3 2024: Continued revenue growth and improved profitability following normalised operation
Thousands
1) Operating Income includes gain on vessel sales
Thousands
2) EBITDA (earnings before interest, tax, depreciation and amortisation) is defined as operating revenue and gain/loss on sale of assets less operating expenses. Operating revenue is adjusted for amortisation of late delivery penalties.
Edda Wind has seven vessels in operation following commencement of operation for Goelo and Sudri
On 18 July, Goelo Enabler commenced operation and is now the permanent vessel for the SiemensGamesa contract on the Saint-Brieuc wind farm
On the 19 July, Sudri Enabler commenced operations for DEME at the Dogger Bank Wind Farm where she will be working until Q2 2025
Seven vessels in operation by end Q3
Vestri Enabler delivered from yard 14 November with charter contract secured directly from delivery
Close to 100% vessel utilisation during the quarter post gangway system upgrades in Q1 2024
Gangway systems upgraded and improved
all vessels are now operating with enhanced utilisation / uptime / reliability
Monthly utilisation per vessel2
| July | August | September | |
|---|---|---|---|
| Mistral | 100% | 100% | 100% |
| Boreas | 100% | 100% | 100% |
| Breeze | 99% | 100% | 100% |
| Brint | 99% | 98% | 100% |
| Nordri | 100% | 100% | 100% |
All delivered newbuilds successfully upgraded1
Critical steps successfully executed by the organisation to ensure reliability and delivery as planned for customers
Source: Company information
Photo: George Saunders
1) Edda Nordri is planning a minor upgrade between jobs (approx. 2 weeks) during Q1 2025 2) Goelo and Sudri not in operation during the full quarter (commenced operation on the 18th and 19th July respectively)
Expected cost reduction from economies of scale, in-housing of management and other efficiencies
Vessel management takeover initiated with clear steps to enhance fleet economics based on designated activities
Economics of scale, in-housing and further efficiency drive economics
Edda Wind has started to take over management of its vessels which adds flexibility and optimisation ability – seven vessels to date
Strengthening the organisation with highly experienced operational employees to manage the vessels, including vessel managers, technical operators, gangway specialists
Building a lean and profitability-driven organisation with expected scale benefits as the vessels are commencing operations
Strengthening administrative functions to do all vessel and organisational management, including management and newbuilding supervision
Economics of scale combined with lean organisation to enhance economics and value creation
Successfully takeover for seven vessels – Edda Wind is already seeing benefits of in-house vessel management
Breeze Enabler – November Brint Enabler – September Goelo Enabler – October Boreas Enabler – October Mistral Enabler – November Nordri Enabler – October Sudri Enabler – November Vestri Enabler – November take over
Mgmt
New contracts I/II: First contracts for our newbuilds Vestri Enabler and C504
Vestri Enabler
C504
Employment directly from yard for the two sister vessels Vestri Enabler and C504
Vestri Enabler delivered from Gondan 14 November 2024
Following mobilisation, testing and commissioning, Vestri Enabler will commence operation in the UK on a short-term contract (four months + options)
C504 scheduled to be delivered from Gondan in Q2 2025
In the signing phase for a 12 months charter contract for C504, with 12 months option extension (options to be declared by end 2024)
Edda Wind extends its track-record of moving vessels directly from construction to attractive contracts
Further expansion and diversification of Edda Winds client base
New contracts II/II: New contract for NB967 marks Edda Wind's entrance into Taiwan
Post delivery, expected in Q2 2025, NB967 will commence operation in Taiwan on a contract lasting until year-end 2025 (options extending into 2026)
The contract marks Edda Wind's entry into the Taiwanese market, a market which is expected to grow significantly over the coming years
First contracts for our exclusive Vard 425 design
Vard Vung Tau
Taiwan Strait
Strong turbine growth expected in Taiwan – more than half the growth is "secured" through approvals
Source: Rystad Energy
1) ("Turbines under construction", "Approved")/ forecasted growth 2) ("Turbines under construction", "Approved", "In application")/ forecasted growth
~7days Transit period from Vard Vietnam (Vung Tau) to Taiwan vs. ~2months mobilisation to Europe
Market fundamentals remain favourable and a large portion of expected growth is "firm"
Strong growth expected in # turbines in Edda's "core" markets1
Cumulative # turbines (in thousands)
~3,800
Turbines to be installed during 2025-2028, of which 68% is either already in the construction phase or approved2
~1,700 Turbines to be installed during 2025-2026, of which 88% is either already in the construction phase or approved2
Source: Rystad Energy; Clarksons Offshore & Renewables. Note that years indicate start up year of the turbines 1) Figures displayed for Europe, Asia (ex.China) and South America. 2) ("Turbines under construction", "Approved")/ forecasted growth
Growth expectations in close proximity to Edda Wind's core markets
Growth expectations by country 2025-2030 (# turbines)1
UK Germany Netherlands Denmark South Korea Taiwan Vietnam Other
Solid growth projections in or in close proximity to Edda Wind's current core markets with vessels already in operation (UK, Germany, Netherlands, Denmark ++)
Solid growth projections in Taiwan, South Korea and Vietnam where Edda is expected to be well positioned to participate in future growth (first contract already secured in Taiwan)
…while local (Norwegian) delays are not expected to impact growth projections for Edda Wind (no turbines included in projections for Norway prior to 2030)
2024 fully booked and solid 2025 coverage following several new contract announcements
| Vessel | Type | Client | Start1 | End | Option | Location | '24 | '25 | '26 | '27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Mistral Enabler | SOV | Q3-18 | Q3-25 | 3x1 year | Hornsea One wind farm, UK |
|||||
| Brint Enabler | SOV | Q1-23 | Q2-37 | ~2 years | Seagreen wind farm, UK |
|||||
| Goelo Enabler |
SOV | Q4-23 | Q3-28 | 1/2 year | Saint-Brieuc, wind farm, France |
|||||
| Breeze Enabler | CSOV | Q2-21 | Q2-32 | ~3 years | BARD Offshore 1 wind farm, Germany |
|||||
| Boreas Enabler | CSOV | Q3-23 | Q2-25 | 1 year | Dogger Bank wind farms, UK |
|||||
| Nordri Enabler | CSOV | Q1-24 | Q1-26 | 1/2 year | Northern Europe | |||||
| Sudri Enabler |
CSOV | Q3-24 | Q1-25 | UK | ||||||
| Vestri Enabler |
CSOV | TBN | Q4-24 | Q1-25 | < 1/2 year | UK | ||||
| C504 | CSOV | TBN3 | Q3-25 | Q3-26 | 1 Year | UK | ||||
| NB965 | CSOV | Q2-25 | Q1-26 | < 1 year | Northern Europe | |||||
| NB966 | CSOV | Q2-25 | ||||||||
| NB967 | CSOV | TBN | Q2-25 | Q4-25 | < 1/2 year | Taiwan | ||||
| NB968 | CSOV | Q1-26 | ||||||||
| Under construction | Firm contract | Option period | ||||||||
| Internal substitute2 |
Source: Company information. Contracts subjects to internal changes
1) Planned delivery for vessels under construction or start of contract 2) Nordri Enabler to work as a substitute for Goelo Enabler for approx. 2 months during Q1-25 3) In signing process 14
Strong and attractive backlog with solid counterparties
Total backlog of EUR 443m in place (firm backlog of EUR 314m) 1
| EUR 100m 2025 backlog |
|||
|---|---|---|---|
| Backlog | EURm1 | ||
| Firm period | 314 | ||
| Option period | 129 | 9% | |
| Total | 443 | ||
| 7 | 8 | 13 | |
| contracted vessels |
vessels expected in |
vessels in total fleet |
|
| operating end Q3 2024 |
operation by end 2024 |
incl. under construction |
Revenue backlog per client1
1) The total revenue backlog comprises firm contracts as well as contractual options. Revenue post 2025 is escalated by 2.5% unless the charter party explicitly states escalation. The «firm» backlog are contracts which have been entered into with customers, and these contracts can be cancelled by customers under given circumstances and are in general subject to certain terms and conditions. "Options" are options to extend firms contracts, and such options can be extended at the discretion of the respective customer. As such, the "option" backlog is subject to such extensions. The backlog includes the contribution from vessel day rates as well as victualling revenue for certain additional services onboard. This definition applies to all references to backlog in this presentation. Numbers as of Q3 2024 but including latest contract announcements made in Q4. Backlog figures also include contract for C504 (12 months firm + 12 months option)
9%
7%
No open capacity prior to 2025 summer campaign – well timed to take advantage of attractive market fundamentals
622 601 364 276 276 463 1,102 1,104 1,075 1,145 1,196 1,196 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2025 2026 # days Contracted Options Open days
Financials
Key financials – income statement
| EUR thousand (unaudited) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Freight income | 18,328 | 11,198 | 42,610 | 26,111 |
| Other operating income | 85 | 633 | 1,250 | 1,857 |
| Gain on sale of asset | - | - | 6,478 | - |
| Total operating income | 18,413 | 11,831 | 50,338 | 27,968 |
| Payroll and remuneration | -7,686 | -4,864 | -18,872 | -11,106 |
| Other operating expenses | -4,740 | -2,114 | -18,112 | -8,618 |
| Total operating expenses | -12,426 | -6,978 | -36,984 | -19,724 |
| Operating profit before depreciation | 5,987 | 4,853 | 13,354 | 8,244 |
| Depreciation | -3,294 | -2,306 | -8,539 | -4,861 |
| Operating profit | 2,693 | 2,547 | 4,815 | 3,383 |
| Financial income/(expense) | -2,452 | -702 | -6,709 | -2,169 |
| Profit/(loss) before tax | 241 | 1,845 | -1,894 | 1,214 |
| Profit/(loss) for the period | 241 | 1,845 | -1,894 | 1,214 |
Thousands
Comments Q3 2024
- Operating income for the quarter up ~ EUR 7m y-o-y
- YTD Q3 2024 operating income of EUR 50m, up from EUR 28m in YTD Q3 2023 (+80%)2
- Operating expenses include frontrunner cost for parts of July (prior to Goelo Enabler commenced its contract)
- Interest expenses up y-o-y as a consequence of delivery of new vessels
1) EBITDA (earnings before interest, tax, depreciation and amortisation) is defined as operating revenue and gain/loss on sale of assets less operating expenses. Operating revenue is adjusted for amortisation of late delivery penalties. 2) Gain related to the sale of Edda Passat of EUR 6.5m in Q1 2024
Key financials – balance sheet
| ASSETS (EUR thousand) |
30.09.2024 | 30.09.2023 | 31.12.2023 |
|---|---|---|---|
| Non-current assets | |||
| Vessels | 341,506 | 223,756 | 271,222 |
| Newbuildings | 246,863 | 226,925 | 244,294 |
| Other non-current assets | 9,123 | 8,937 | 8,976 |
| Total non current assets |
597,492 | 459,618 | 524,492 |
| Current assets | |||
| Account receivables | 15,491 | 10,034 | 10,650 |
| Other current receivables | 4,401 | 723 | 14,198 |
| Cash and cash equivalents | 34,826 | 34,674 | 32,918 |
| Total current assets | 54,718 | 45,431 | 57,766 |
| Total assets | 652,211 | 505,049 | 582,258 |
| EQUITY AND LIABILITIES (EUR thousand) |
30.09.2024 | 30.09.2023 | 31.12.2023 |
|---|---|---|---|
| Equity | |||
| Total equity | 319,480 | 290,132 | 284,882 |
| Non-current liabilities | |||
| Non-current interest-bearing debt |
299,288 | 194,647 | 257,101 |
| Total non current liabilities |
299,422 | 194,647 | 257,101 |
| Current liabilities | |||
| Account payables | 3,138 | 2,727 | 5,488 |
| Current interest-bearing debt | 21,044 | 15,331 | 27,729 |
| Other current liabilities | 9,127 | 2,212 | 7,058 |
| Total current liabilities | 33,309 | 20,270 | 40,275 |
| Total equity and liabilities | 652,211 | 505,049 | 582,258 |
Comments Q3 2024
- Equity ratio of 49%1
- Cash position of EUR 35m
- NIBD of EUR 286m
- Value of vessels, including newbuildings up to EUR 588m – in line with newbuilding programme
All vessels fully financed following secured debt financing of C504 – large portion of fixed interest
Key debt financing information Debt facility breakdown
EUR 110m Senior Secured Term Loan Facility
- Debt financing secured for C504, included in the EUR 110m Senior Secured Term Loan Facility
- 60-65% LTV based on contract status
- Drawdown linked to yard
- Combination of ECA and commercial tranche
- Financing of Goelo Enabler, Boreas Enabler, Mistral Enabler and C504 (recently announced)
- Revolving credit facility of up to EUR 20m
EUR 120m green loan facility
▪ Pre-and post delivery financing of Nordri Enabler, Sudri Enabler and C503
EUR 161m green term loan facility
▪ Pre-and post delivery financing of NB965, NB966, NB967 and NB968
EUR 38m Private Placement
- Financing of Breeze Enabler
- Semi-annual amortization based on annuity style profile with balloon payment at maturity in Sep '31
GBP 36m Private Placement
- Financing of Brint Enabler
- Quarterly amortization based on annuity style profile with balloon payment at maturity in Apr '37
Interest
▪ Blend of fixed and floating interest rate
Debt maturity (balloons)
Edda Wind's fleet growth is continuing
Summary
Q&A
eddawind.com
Investor Relations
Questions & comments to:
Mr. Kenneth Walland, CEO Tel: +47 916 93 418 E-mail: [email protected] Mr. Hermann H. Øverlie, CFO Tel: +47 922 46 501 E-mail: [email protected] Mr. Lars Stubhaug, VP Finance Tel: +47 917 42 725 E-mail: [email protected]
