Release Date: July 11, 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 its best second quarter since 2016, indicating strong overall performance.
- The wind service segment generated an impressive EBITDA of NOK763 million, a significant improvement from the previous year.
- The cruise segment achieved an EBITDA of NOK212 million, marking the best second-quarter result in over a decade.
- The renewable energy segment saw a 32% increase in wind farm generation, contributing positively despite lower power prices.
- The company maintains a strong equity ratio of close to 71%, reflecting financial stability.
Negative Points
- The renewable energy segment's EBITDA decreased to NOK259 million from NOK277 million last year due to lower power prices.
- The wind service segment experienced a contract termination, impacting the backlog, which decreased from EUR514 million to EUR325 million.
- The cruise segment faced a NOK27 million cost due to an arbitration dispute, affecting overall performance.
- The equity ratio decreased from 75.6% last year to close to 71% this quarter, partly due to a bond issue.
- The net finance effects showed a negative change of NOK233 million compared to the previous quarter, influenced by unrealized exchange rate differences and revaluation of swaps.
Q & A Highlights
Q: Can you explain the impact of the termination fees and cancellation fees on Fred. Olsen Windcarrier's financials?
A: The majority of the cash flow effect of the termination fee was received this quarter. We still expect some minor cash inflows related to incurred costs. The market remains tight with limited vessel availability, and we have a good track record of adjusting our vessel schedules to support customers in the short to medium term.
Q: What is the significance of the NOK550 million in recognized revenues?
A: Due to confidentiality clauses, we cannot provide detailed information on this figure. However, the quarterly report provides more explanation on the expected revenue recognition over the remaining contract period, which extends to almost 2025.
Q: Is there any update on the Final Investment Decision (FID) timing for the Codling project?
A: The FID timing remains the same as previously guided, between 2025 and 2027. The project is set up for flexible development to cater to the consent regime in Ireland and to seize opportunities in the supply chain and new technology developments.
Q: Do you see potential for secondhand acquisitions of cruise ships given the current fleet renewal activities by other players?
A: While we follow the developments in the cruise business closely, we do not comment on future acquisitions. However, it is encouraging to see good signs in the market in terms of demand and activity.
Q: Can you provide more details on the timeline for the completion of the Brave Tern vessel?
A: The Brave Tern vessel is expected to be completed in the third quarter. The vessel is about to go out of the drydock, but there is still some work to be done. We do not foresee any revenues from this vessel in the third quarter.
Q: How did the cruise segment perform this quarter?
A: The cruise segment had a good quarter with an occupancy rate of 77%, up eight percentage points from last year. The net ticket income per passenger day was GBP196, up from GBP191 last year. We continue to see good booking numbers and increased customer satisfaction.
Q: What are the key highlights for Fred. Olsen Seawind this quarter?
A: The key highlights include solid performance on projects in Ireland and Scotland, and the Irish government opening up consultations for new areas. The Ministry of Energy in Norway has also published a consultation on new areas, including Utsira Nord.
Q: Can you provide an update on the Crystal Rig IV wind farm project?
A: The Crystal Rig IV wind farm has moved into the construction phase. It is an 11-turbine wind farm with an installed capacity of 49.1 megawatts. The total investment is estimated to be GBP81 million, and the planned commercial operation date is February 2026.
Q: How did the renewable energy segment perform this quarter?
A: The renewable energy segment generated an EBITDA of NOK259 million, down from NOK277 million last year. The performance was influenced by higher generation due to higher winds, offset by lower power prices. The segment also saw a positive revision effect on the UK windfall taxes.
Q: What is the financial position of Bonheur ASA?
A: Bonheur ASA has a strong financial position with consolidated revenues of NOK4.3 billion, up from NOK2.8 billion last year. The equity ratio remains rock-solid at close to 71%, and the cash position is close to NOK3 billion, up from around NOK2.3 billion last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
