4th Quarter Report 2022
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Contents
03. Letter from the CEO
04. Highlights Q4 2022
05. Management report Q4 2022
08. Key figures Q4 2022
09. Statement from the Board
10. Income statement
11. Comprehensive income
12. Balance sheet
13. Cash flow statement
14. Statement of changes in equity
15. Notes
02
Edda Wind ASA - 4th Quarter Report 2022
Overview
Management Report
Financial Statements
Letter from the CEO
Edda Wind gearing up for more activity, more vessels and more contracts.
Edda Wind ASA - 4th Quarter Report 2022
Photo: Bård Gudim
03
The offshore wind industry is continuing its growth and the upward trend is set to continue. This is backed up by huge optimism from the industry itself, markets analysts and investors. This optimism is welcomed and shared by Edda Wind.
Market reports indicate a demand for more than 250 service vessels in the offshore wind industry by the end of this decade. The supply of existing C/SOVs plus newbuilds amounts to around 60 vessels, of which 50% are engaged on firm contracts. It is expected that the demand/supply gap will result in favourable day rates, particularly in the shorter commissioning segment. The fact that the subsea tonnage is exiting from offshore wind back to oil & gas, suggests an expected increase in this trend. This demand represents a significant growth opportunity for Edda Wind, being a leading operator with a portfolio of both long-andshort-/medium-term contracts, able to balance stable cash flows with flexibility to capitalise on favourable market dynamics.
Edda Wind is increasing its capacity and another CSOV was ordered in October. The ongoing newbuilding programme will bring the fleet to a total of ten purpose-built offshore wind vessels by mid 2025. Four of the newbuilds are presently uncommitted, which is considered to be a great opportunity based on market outlook. The company has previously reported delays on the gangway systems for the first newbuilds. Therefore, I am happy to report that the installation and commissioning of the systems onboard Edda Breeze and Edda Brint is about to be completed allowing the vessels to start generating cash. Both vessels are expected to commence operations in March.
The three vessels in operation have performed very well, with a utilisation of 99.7% and no injuries to personnel during the quarter. The chartered-in frontrunner vessel, Edda Fjord, has provided very good service to Ocean Breeze since April 2021. The vessel will be redelivered to Østensjø once it is replaced by Edda Breeze. I am delighted to see that Ørsted has declared an optional period for Edda Passat and Edda Mistral, which is firm proof of the quality of service Edda Wind has provided during a five-year period.
It is already a year since Edda Wind's successful IPO, and the first full year of operation is over. It has been a very exciting and hectic period with its challenges and I am happy to have received such positive feedback on the company, as a trusted and recognised service provider to the offshore wind industry. We have much excitement ahead of us, including five newbuilds that will commence operations during 2023. The Edda Wind organisation will be geared up in line with these newbuilds coming into operations to ensure that the company has the capacity and scale to deal with an increased workload, and the ability to operate smoothly as we gradually grow larger fleet.
We are grateful to all stakeholders who have, and continue to show, confidence in Edda Wind and our business model.
Kenneth Walland
CEO
Overview
Management Report
Financial Statements
Highlights Q4 2022
04
Market 250
Strong demand growth, estimated to be more than 250 vessels by 2030, excluding China; far exceeding existing tonnage and order book of approximately 60 vessels
↑
Increasing rates as oil & gas tonnage exit offshore wind
↑
Increased focus and accelerated pace for the renewable energy transition
Edda Wind 8
Eight vessels under construction, ordered at low prices with attractive delivery schedule
Newbuilding programme
Edda Breeze and Edda Brint expected to be ready for operation in March 2023. Edda Boreas and C-416 expected to be ready for operation during Q2 2023 and Q4 2023
99.7%
Close to 100% utilisation in Q4 2022 and zero incidents to personnel
Edda Wind ASA - 4th Quarter Report 2022
Overview
Management Report
Financial Statements
Management report Q4 2022
Operating income
EUR 7.3m
Operating expenses
EUR 5.9m
Operating profit before depreciation
EUR 1.4m
Profit before tax
EUR 0.2m
Investment in vessels and newbuildings
EUR 289.8m
Operations
Edda Wind ASA and subsidiaries ("The Group") is a pure-play offshore wind service company.
Currently, the Group owns and operates two purpose-built SOVs and operates one chartered-in frontrunner vessel.
Edda Passat and Edda Mistral operate in the North Sea on charters for Ørsted on Race Bank and Hornsea 1 wind farms, while Edda Fjord is chartered in as a frontrunner for a long-term contract with Ocean Breeze at the BARD Offshore 1 wind farm. All three vessels had near full utilisation throughout the quarter and zero injuries.
The Group has a newbuilding programme for further SOVs and CSOVs at yards in Spain which will bring the fleet up to ten vessels.
Group consolidated results Q4 2022
Operating income for Q4 2022 was EUR 7.3 million, 7.5% up from EUR 6.8 million in the same quarter in 2021. The increase in operating income is primarily related to increases in day rates in firm contracts as well as compensation received from Colombo Dockyard Plc.
Operating expenses in Q4 2022 were EUR 5.9 million. In Q4 2021, the operating expenses were EUR 6.4 million, the reduction in cost is primarily related to the IPO-process in Q4 2021.
Operating profit before depreciation in Q4 2022 was EUR 1.4 million, versus EUR 0.4 million in Q4 2021.
Net financial result in Q4 2022 was EUR -0.4 million, compared to EUR 0.7 million in the same quarter last year, mainly due to currency effect and realised gains on financial derivatives.
Profit before tax was EUR 0.2 million, versus EUR 0.3 in Q4 2021.
Capital structure and financing
Cash and cash equivalents ended at EUR 45.0 million, down from EUR 89.5 million at the end of Q4 2022 mainly due to investments in newbuildings.
Investment in newbuildings was EUR 223.1 million, up from EUR 131.1 million at the end of Q4 2022 due to payments in relation to the eight newbuildings on order.
Total interest-bearing debt was EUR 156.9 million, up from EUR 117.5 million in Q4 2022.
Total equity was EUR 183.7 million by the end of Q4 2022, down from EUR 184.3 at the end of Q4 2022.
Outlook
The ongoing restructuring of the world's energy systems in a greener direction has continued and strengthened throughout the quarter. This is a megatrend that will contribute to shaping the world for decades to come.
The leading analytical environments within offshore wind estimate a continued significant growth in energy generation capacity from offshore wind turbines until at least the end of this decade. 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 to assist with commissioning and operation of these; a number that compares favourably with the existing fleet size of less than 60 vessels, including vessels under construction.
Edda Wind ASA - 4th Quarter Report 2022
Overview
Management Report
Financial Statements
05
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Edda Wind ASA published this content on 24 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 13:24:29 UTC.