Here are the highlights:
- Revenue of EUR 39.4 million (+38% growth vs 2022)
- Four vessels commenced operation during the year
- Favourable demand outlook for C/SOVs despite announced delays and setbacks within the supply chain
- Delays and unscheduled work at the wind farms result in additional work for CSOVs
- Oil & gas sector continues to extract tonnage, including purpose built CSOVs
- High seasonal dayrates observed for the CSOV market
Edda Wind – an eventful year
2023 has been a year of transition for Edda Wind. We successfully grew our vessels in operation from two to six vessels, delivering on our growth strategy.
In March 2023, we ordered four additional vessels from the Vard Group, solidifying our position as the unrivalled market leader within the C/SOV sector with a total of 13 vessels in operation and under construction (post the sale of Edda Passat). At the same time, we raised NOK 1.2 billion to cover the equity portion of the vessels and secured and attractive EUR 161 million green term loan facility agreement for the vessels in December 2023. During 2023, Edda Wind secured financing in excess of EUR 400 million in total capital for our newbuilding programme and we are grateful for the support from our investors and lenders.
Despite operational difficulties related to our gangway operation, we are confident that the current issues, which resulted in unscheduled offhire during in Q4 2023 and Q1 2024 , will be resolved. Edda Wind expects some fluctuations in its financial performance during the ramp-up phase as new vessels are entering operations with associated additional costs. However, our long-term view remains firm and highly positive.
The offshore wind industry continues to grow, and all signs point towards this upward trend persisting. This growth is supported by the industry’s optimism, market analysts, and investors alike. The projected growth is further supported by a record high number of offshore wind final investment decisions (FIDs) in 2023. Market reports predict a demand for over 250 service vessels in the offshore wind industry by the end of this decade, compared to a supply side of approximately 80 Tier 1 C/SOVs.
The anticipated demand-supply gap is expected to result in favourable dayrates, particularly in the shorter commissioning segment. The trend is further amplified by the fact that subsea tonnage is transitioning from offshore wind back to oil & gas. This demand presents an exciting growth opportunity for Edda Wind, as we are a leading operator with a portfolio of both long-term and short/medium-term contracts. This balance allows us to maintain stable cash flows while retaining the flexibility to capitalise on favourable market dynamics.
In February 2024, Edda Wind announced the sale of the vessel Edda Passat. The transaction was completed in March. The rationale for the sale of the vessel is to optimise the Company’s fleet strategy, including alignment of vessel design.
As of April 2024, Edda Wind’s fleet has grown to 13 vessels, including vessels under construction but excluding Edda Passat, and our order backlog amounted to approximately EUR 416 million. Several of the newbuilds are uncommitted and are expected to secure work in a market with high demand for this type of vessel, with expectations for attractive dayrates.
On the organisational side, Edda Wind is making significant progress in the recruitment process for the future onshore organisation and the preparation to assume management of the Edda Wind fleet. Existing ship management and corporate agreements with Østensjø Rederi will remain in effect until the end of 2024. Eight vessels will be operational by the end of 2024, with an additional five expected within 2026.
2023 has been both exciting and challenging, with numerous milestones achieved. Looking ahead, we anticipate the commencement of operations for three newbuilds during 2024 and look forward to seeing them on water.
We are grateful to all stakeholders who have shown, and continue to show, confidence in Edda Wind and our business model.
Read the entire report by using the download below.
Kenneth Walland
CEO
-
Annual Report 2023
Download