Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bonheur ASA (FRA:V7P, Financial) reported an increase in operating revenues to NOK3.6 billion, up NOK400 million compared to the same quarter last year.
- The company achieved a significant EBITDA improvement, rising from NOK800 million to NOK938 million.
- Net result after tax doubled from NOK172 million to NOK350 million, indicating strong financial performance.
- The company won two power contracts in the CFD allocation round six, enabling the construction of Crystal Rig 4 and potentially Windy Standard 3.
- Bonheur ASA (FRA:V7P) has a strong equity ratio of close to 76% and a cash position of NOK2 billion at the end of the third quarter.
Negative Points
- Asset utilization was not at 100%, with one major wind farm out of operation due to a fire and one vessel in the yard, affecting overall performance.
- Cruise line utilization remains low at 78%, which is below expectations for the peak season.
- The company faced significant unrealized losses on financial instruments, impacting net finance negatively.
- Mid Hill wind farm was out of production for the full quarter due to a transformer failure, affecting power generation.
- The Codling Wind Park project faces uncertainty in the consent determination period, with no specific deadline for government review.
Q & A Highlights
Q: Can you provide more details on the wind service segment's high revenues and EBITDA, particularly regarding reservation and cancellation fees?
A: Haakon Magne Ore, CEO of Fred. Olsen Windcarrier, stated that there were no bookings or reservation fees from termination fees in this quarter. However, some millions were booked due to a termination for convenience at the end of the Yunlin project, which should have been booked for work in October and November.
Q: What is the expected duration of yard stays for the Tern vessels?
A: Haakon Magne Ore mentioned that the planned yard stays for both Bold and Blue Tern vessels are slightly less than three months each.
Q: Regarding the renewable energy segment, is there any effect from curtailments or other factors affecting this quarter's high implied realized price?
A: Sofie Olsen, CEO of Fred. Olsen Renewables, confirmed that there are effects from curtailment and the Electricity Generator Levy (EGL) this quarter. Richard Aa, CFO, added that there is a positive effect compared to last year, as disclosed in the notes.
Q: Is there a deadline for the government to review the Codling Wind Park consent application?
A: Lars Bender, CEO of Fred. Olsen Seawind, stated that there is no specific deadline for the government to review the application, making the timing uncertain as offshore wind is new for the planning body in Ireland.
Q: Can you share any estimates on the expected CapEx related to the yard stays in the wind service segment?
A: Haakon Magne Ore indicated that the main impact is downtime, with the CapEx being a couple of million per yard stay.
Q: Regarding the Windy Standard 3 project, is the expected operation timeline still 2026-2027?
A: Sofie Olsen confirmed that they have applied for the CFD for a certain time period, but internal processes to mature the project must be completed before a final investment decision is made.
Q: Is there a targeted cash amount for fully owned entities, and should we expect any upstream dividends to the parent company?
A: Anette Olsen, CEO, explained that they typically upstream excess cash from subsidiaries when available, aligning with their financial policy to keep the parent company strong.
Q: What are your expectations around the financial investment decision (FID) for the Codling Wind Park project?
A: Lars Bender stated that due to the uncertainty in the consent determination period, they cannot provide a specific target for FID. They have developed a flexible development schedule to accommodate early or late scenarios.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
