Cadeler Triples Revenue in 2021

Danish wind farm installation vessel owner and operator Cadeler A/S said that the company tripled its revenue in 2021 and returned to profitability.

The revenue for 2021 totaled EUR 61 million, an increase of 212 per cent against EUR 19.5 million in 2020.

The growth reflects a 77 per cent utilization rate of the vessels in the Cadeler fleet at competitive market rates, the company said.

The realized EBITDA amounted to EUR 28 million, compared to EUR -10 million in 2020. The 2021 expected EBITDA was EUR 26-30 million.

For 2022, Cadeler expects significant improvements on key metrics. Based on the current contract coverage, the financial performance for 2022 is expected to result in a revenue in the range of EUR 96-110 million and an EBITDA in the range of EUR 56 million to EUR 70 million.

”We delivered the results that we promised our investors, maintaining a leading position in a fast-growing, increasingly complex industry. Over the past year, we secured all contracts we were aiming to win. We believe this to be a strong endorsement of our business strategy, our culture, and our track record of collaborating closely with clients,” Mikkel Gleerup, CEO of Cadeler, said.

Cadeler said that the company had signed contracts that would provide a steady, continuous flow of projects from 2022 to 2026, with the contract pipeline amounting to a total value of EUR 409 million.

Furthermore, the company is actively bidding on tenders up to 2030.

Gleerup said that 2022 is promising to be another very busy period.

”Our order book for 2022 is full, and we have many high-profile projects in the pipeline,” Gleerup said.

”We have already embarked on the Seagreen project in the North Sea off the east coast of Scotland. And soon, work will begin on installing 11 MW wind turbines on the Hollandse Kust Zuid project off the Netherlands – the first subsidy-free wind farm in the world and the largest in the world upon completion with the biggest and most powerful turbines ever installed on a commercial scale.”

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Fleet Investments

In addition to the daily operations, Cadeler said that the company’s strategic focus is on growing and future-proofing the company by acquiring new equipment and recruiting qualified personnel.

This includes major investments in new cranes for the existing two vessels,  Wind Osprey and Wind Orca,  in Q4/2023-Q1/2024, and the building of two new X-class vessels – an investment of EUR 548 million, which is expected to enable Cadeler to continuously support the largest and most advanced offshore projects into the foreseeable future.

The two X-class vessels are expected to be delivered in H2/2024 and the first quarter of 2025 respectively.

”When our new vessels are operational, the Cadeler fleet will be the largest in the industry in terms of loading capacity. Based on current projections, we will have approximately 35% of the global market’s capacity to install the next generation of wind turbines, which gives us an important competitive advantage,” Gleerup said.

The first X-class vessel has been contracted by Siemens Gamesa, even prior to signing the contract with the shipyard, to transport and install one hundred 14 MW wind turbines at the Sofia wind farm in the North Sea.

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These 14 MW turbines are expected to be the largest in the world at the time of installation. With a rotor diameter of 222 metres, the turbines will be 252 metres tall, measured from sea level to the tip of the rotor blade.

Looking Ahead

Current macroeconomic trends are favourable for the offshore renewable sector, Cadeler said. The EU Strategy on Offshore Renewable Energy aims to increase the total offshore wind capacity to 60 GW by 2030, and 300 GW by 2050.

Additionally, recent geopolitical events have increased European focus on the need for a further acceleration of the green transition to become less dependent on imported energy sources, the company said.

”Europe remains the focus of our current operations as we are seeing a lot of activity in the area. However, we are naturally also cognizant of the potential opportunities outside of the region and we continuously investigate these opportunities to assess whether these are beneficial for Cadeler to engage in or not,” Gleerup said.

Additional to the favourable tailwind for renewable energy at present, Cadeler is also assessing how emerging or disruptive technologies in the industry can serve as potential business opportunities of tomorrow.

”Our industry is constantly evolving and Cadeler will adapt alongside. For example, we are seeing interesting technologies such as floating wind turbines being introduced – predicted to account for 10 to 20 percent of the total market. This will also offer attractive opportunities for Cadeler,” Gleerup said.

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