Cadeler A/S — First Quarter 2024 Form 6-K Summary
Business context and reporting period
Cadeler A/S, a pure-play offshore wind installation, operations, and maintenance company, reported results for the quarter ended March 31, 2024 in a Form 6-K furnished on May 28, 2024. The company operated four jack-up offshore wind installation vessels and had seven newbuilds under construction or development.
Financial and operating metrics
| Metric | Q1 2024 | Comparable period |
|---|---|---|
| Revenue | EUR 19 million | Similar to Q1 2023 |
| Group result | EUR 21 million loss | EUR 2 million profit |
| EBITDA | EUR 10 million loss | EUR 8 million gain |
| Cost of sales | EUR 27 million | Approximately EUR 13.5 million |
| Fleet utilisation | 17% | 75% |
| Group equity | EUR 1,115 million | EUR 959 million opening balance |
| Order book | EUR 1.8 billion, including options at 100% | Not clearly provided |
The filing does not provide a clear Q1 2024 cash-flow, total debt, or liquidity balance. Equity increased by EUR 156 million, primarily due to a EUR 152 million net capital increase, a EUR 13 million hedge-related gain, and an EUR 11 million foreign-currency translation gain, partly offset by the EUR 21 million quarterly loss.
Material changes versus the prior comparable period
- Utilisation fell to 17% from 75% because three of four operating vessels underwent scheduled drydock, maintenance, or crane-renewal work.
- EBITDA declined to a EUR 10 million loss from an EUR 8 million gain, while the Group result moved from a EUR 2 million profit to a EUR 21 million loss.
- Cost of sales doubled to EUR 27 million, reflecting the Eneti business combination and the addition of Wind Scylla and Wind Zaratan.
- Wind Orca and Wind Osprey completed crane renewals on budget and on schedule; Wind Zaratan underwent scheduled maintenance.
- On February 15, 2024, Cadeler issued 39.5 million shares at NOK 44.50 per share, raising EUR 155 million before transaction costs.
Guidance, outlook, risks, and unusual items
- 2024 revenue guidance remains EUR 225 million to EUR 245 million.
- 2024 EBITDA guidance remains EUR 105 million to EUR 125 million.
- The company stated that its 2024 order book is substantially filled and expects vessels to be on hire for the remainder of 2024.
- Cadeler expects timely delivery of the Wind Peak newbuild in the second half of 2024.
- The order book includes a contract signed with Ørsted and PGE for installation of 14 MW Siemens Gamesa turbines, a Wind Scylla contract valued at USD 75 million to USD 150 million, and a long-term lease of a new vessel to Ørsted from the first quarter of 2027 through the end of 2030.
- Vessel Reservation Agreements include potential values of EUR 110 million to EUR 130 million for the Bałtyk II and III projects and EUR 400 million to EUR 700 million for an undisclosed customer over a term of up to four years. These values are potential contract amounts and remain subject to negotiation and execution.
- Near-term results were materially affected by vessel downtime and fleet-renewal spending. The filing highlights execution of newbuild deliveries, crane renewals, and the ability to secure financing for fleet expansion as key considerations.
Important facts for investors to verify
- Reconcile the reported EUR 1.8 billion order book, including the treatment and probability of options and reservation agreements.
- Verify delivery timing and remaining financing requirements for Wind Peak and the other newbuild vessels, including the planned third A-class vessel.
- Monitor vessel utilisation and revenue conversion as vessels return from drydock and maintenance.
- Assess whether the EUR 225 million to EUR 245 million revenue and EUR 105 million to EUR 125 million EBITDA guidance remains achievable after the weak first-quarter utilisation.
- Review the company’s complete financial statements for cash flow, debt maturities, liquidity, capital expenditures, and transaction costs, which are not clearly provided in this filing text.