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Edda Wind AS Investor Presentation 2025
3585_rns_2025-02-26_43a33e59-6a7f-471a-bdc2-91be6b312daa.pdf
Investor Presentation
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Photo: Stein Øyvind Andersen
Edda Wind
Quarterly presentation, Q4 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
Q4 2024 key events
Revenue growth and vessel takeover
- Revenue of EUR 20.1 million (EUR 8.7 million above Q4 2023)
- EBITDA of EUR 5.9 million (EUR 7.0 million above Q4 2023)
- Delivery of Vestri Enabler and contract commencement
- Vessel management takeover completed
- Insights from 2024 establish new standards for 2025
Q4 2024: Continued revenue growth following additional vessel delivery in late Q4
Operating Income1 LTM Operating Income EBITDA2
Thousands
1) Operating Income includes gain on vessel sales
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. 5
3) Q1 2024 includes effect from vessel sale (EUR 6.5m in Q1 2024)
Vestri Enabler delivered from yard in November and commencement operation for NNG in December
- Delivery of Vestri Enabler from Gondan Shipbuilders on 14th November, followed by naming ceremony the next day
- Vestri Enabler is of Salt 0217 design and the third vessel in the series of four sisters from Gondan1
- Following yard delivery, Vestri Enabler went straight onto contract with NNG with firm period until end March
- Options expected to be declared into mid May
1) Following Nordri Enabler and Sudri Enabler, delivered in 2023 and 2024 respectively. Austri Enabler expected to be delivered in Q2 2025
Vessel management takeover completed
Economics of scale, in-housing and further efficiency drive economics
Edda Wind has completed vessel management takeover which adds flexibility and optimisation ability
Organisation has been strengthened with highly experienced operational employees to manage the vessels, including vessel managers and 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
Successful vessel management takeover – 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
Insights from 2024 establish new standards for 2025
- Five vessels at the start of the year, mostly longer term charters
- Delivery of three vessels (8 vessels YE)
- Contracts secured moving vessels directly from yard and into operation
- Measures taken to improve utilisation and gangway reliability – significant improvements during the year
- Ramp up of organisation and moving vessel management in-house
- Fully financed during the year
- Eight vessels at the start of the year, more exposure to an attractive spot market
- Delivery of four vessels (12 vessels YE)
- 81% of 2025 capacity booked at attractive rates, including geographical expansion
2023 2024 2025
- Utilisation remain high and high focus on operability and increased reaction time – newbuild testing procedures improved
- Cost improvement measures initiated and benefits of scale expected
- Focus on value creation and accretive opportunities, including consolidation
Strong ownership constellation with coherent view on growth strategy and positioning
Strong platform for value creation with an attractive asset base and financial capacity
Source: Company information
2018 – 2022
Market fundamentals remain favourable
Thousands
- Market fundamentals remain strong and Edda Wind is experiencing increased tendering activity with several tenders requiring immediate or close to immediate start up
- According to shipbrokers, the pricing discipline of owners has also continued into the winter season of 2025
- Day rates for shorter term contracts in 2025 appear similar to average seasonal rate in 2024, with rates pending between EUR 40k/d and EUR 50k/d
- Further pricing divergence between short term (<1 year) and long term tenders observed
Positive outlook supported by positive growth projections1
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
Increasing newbuilding prices observed during 2024
- Increasing newbuilding prices observed during 2024
- Approx. 20 Tier 1 offshore wind vessels ordered during 2024, with delivery stretching into 2028. The majority of the orders were ordered in the first half of 2024
- 1/3 of the orders are expected to go onto long term contracts
- Limited yard availability for deliveries prior to 2028
- Consolidation expected to take place within the offshore wind W2W
Newbuilding yard prices increased during 20241
Source: Clarksons Research (RIN), Clarksons Offshore Renewables 1) CSOV class (LOA 85-90m / DP2 / POB 90-120 / Integrated MCG with height adjustability / MCC 5t 3D). APAC: India/Vietnam/Sri Lanka. Spain prices including Spanish Tax Lease. Note that other ready for sea costs (supervision, financing, training etc are not included. Estimated in the range of EUR 3-5m
Solid 2025 coverage following contract announcements – some open capacity for selected summer campaigns
| Vessel | Type | Client | Start1 | End | Option | Location | '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 Enabler2 | CSOV | Q1-24 | Q1-26 | 1/2 year | Northern Europe | ||||
| Sudri Enabler |
CSOV | / | Q3-24 | Q1-26 | < 1 year | UK / Northern Europe | |||
| Vestri Enabler |
CSOV | Q4-24 | Q1-25 | < 1/2 year | UK | ||||
| C504 | CSOV | Tier 1 | Q3-25 | Q3-26 | < 1/2 year | UK | |||
| NB965 | CSOV | Q2-25 | |||||||
| NB966 | CSOV | Q2-25 | |||||||
| NB967 | CSOV | Tier 1 | 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 currently working as a substitute for Goelo Enabler for approx. 2 months during Q1-25 12
Strong and attractive backlog with solid counterparties
Total backlog of EUR 412m in place (firm backlog of EUR 297m) 1
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 Q4 2024. Start date for future contracts is estimated by management and are subject to change.
No open capacity prior to 2025 summer campaign – well timed to take advantage of attractive market fundamentals
Contracted Options Open days 572 413 276 207 115 276 429 805 1,090 1,104 1,075 1,145 1,196 1,196 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2026
Note: Start date for future contracts are estimated by management and are subject to change.
days
Key financials – income statement
| EUR thousand (unaudited) | Q4 2024 | Q4 2023 | Full year 2024 | Full year 2023 |
|---|---|---|---|---|
| Freight income | 20,002 | 10,844 | 62,612 | 36,955 |
| Other operating income | 86 | 556 | 1,336 | 2,413 |
| Gain on sale of asset | 0 | 0 | 6,478 | 0 |
| Total operating income | 20,088 | 11,400 | 70,426 | 39,368 |
| Payroll and remuneration | -8,845 | -5,219 | -27,717 | -16,325 |
| Other operating expenses | -5,482 | -7,405 | -23,594 | -16,023 |
| Total operating expenses | -14,326 | -12,624 | -51,311 | -32,348 |
| Operating profit before depreciation | 5,762 | -1,224 | 19,115 | 7,020 |
| Depreciation | -3,703 | -2,349 | -12,301 | -7,210 |
| Operating profit | 2,058 | -3,573 | 6,814 | -190 |
| Financial income/(expense) | -2,693 | 23 | -3,039 | 1,177 |
| Profit/(loss) before tax | -634 | -3,550 | 3,776 | 987 |
| Profit/(loss) for the period | -634 | -3,550 | 3,776 | 987 |
Thousands
▪ Operating income for the quarter up ~ EUR 9m y-o-y
Comments Q4 2024
- Full year 2024 operating income of EUR 70m, up from EUR 39m in 2023 (+79%)2
- Q4 2024 EBITDA of EUR 5.9m (up from negative EUR 1.1m in Q4 2023) and full year 2024 EBITDA of EUR 19.7m (up from EUR 7.4m in 2023)1
- Operating expenses include approx. EUR 0.5m in one-off costs related to vessel management takeover
- Net financial result for 2024 YE is positively affected by an adjustment of capitalised interest of EUR 8m due to a new interpretation of IAS 23 borrowing cost. 2023 figures have been restated. The adjustment has no cash effect.
16
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
0.6
6.1 5.9
Key financials – balance sheet
| ASSETS (EUR thousand) |
31.12.2024 | 31.12.2023 (restated) |
|---|---|---|
| Non-current assets | ||
| Vessels | 395,427 | 272,970 |
| Newbuildings | 245,697 | 247,401 |
| Other non-current assets | 7,105 | 8,976 |
| Total non current assets |
648,229 | 529,347 |
| Current assets | ||
| Account receivables | 18,276 | 10,650 |
| Other current receivables | 3,415 | 14,198 |
| Cash and cash equivalents | 33,369 | 32,918 |
| Total current assets | 55,060 | 57,766 |
| Total assets | 703,289 | 587,113 |
| EQUITY AND LIABILITIES (EUR thousand) |
31.12.2024 | 31.12.2023 (restated) |
|---|---|---|
| Equity | ||
| Total equity | 330,280 | 289,737 |
| Non-current liabilities | ||
| Non-current interest-bearing debt |
309,278 | 257,101 |
| Total non current liabilities |
309,376 | 257,101 |
| Current liabilities | ||
| Account payables | 3,023 | 5,488 |
| Current interest-bearing debt | 48,523 | 27,729 |
| Other current liabilities | 12,088 | 7,058 |
| Total current liabilities | 63,634 | 40,275 |
| Total equity and liabilities | 703,289 | 587,113 |
Comments Q4 2024
- Value of vessels, including newbuildings up to EUR 641m – in line with newbuilding programme (adjusted for the IAS 23 adjustment)
- Vessels and newbuildings affected by an adjustment of capitalised interest due to a new interpretation of IAS 23 borrowing cost. 2023 figures have been restated. The adjustment has no cash effect.
- Cash position of EUR 33m
- Gross interest bearing debt of EUR 358m and NIBD of EUR 324m
- Equity ratio of 47%1
Fully financed fleet and a large portion of fixed interest
Key debt financing information Debt facility breakdown
EUR 110m Senior Secured Term Loan Facility
- Pre-and post delivery financing of Goelo Enabler, Boreas Enabler, Mistral Enabler and C504
- 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
- Contract tranche of up to EUR 20m
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 (~50%) and floating interest rate (~50%)
Debt maturity (balloons)
Summary
Vessel growth is continuing into 2025
Thank you
Photo: Astilleros Gondán
Investor Relations
Questions & comments to:
Mr. Hermann H. Øverlie, CFO and interim CEO Tel: +47 922 46 501 E-mail: [email protected]
Mr. Lars Stubhaug, VP Finance Tel: +47 917 42 725 E-mail: [email protected]
