Bonheur ASA (FRA:V7P) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth

In This Article:

  • Operating Result Improvement: NOK132 million increase in operating result.

  • Renewable Energy EBITDA: Small year-on-year improvement.

  • Wind Generation: 21% lower than P50 estimate due to low wind and technical issues.

  • Wind Service EBITDA: Increased from NOK174 million to NOK280 million.

  • Cruise Occupancy: 63% occupancy due to canceled cruise for Balmoral.

  • Booking Numbers: Up 11% compared to last year.

  • Other Investments Improvement: NOK25 million improvement, driven by NHST's positive EBITDA of NOK31 million.

  • 12-Month Running EBITDA: Between NOK3.5 billion and NOK4 billion.

  • Revenue Drop: NOK77 million decrease, primarily in Wind Service with a NOK109 million drop.

  • Group Cash Position: Close to NOK5.2 billion.

  • External Debt: Close to NOK3.5 billion, resulting in net cash of slightly more than NOK1.6 billion.

  • Renewable Energy Net Debt: Close to NOK4.4 billion in joint ventures.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bonheur ASA (FRA:V7P) reported an improvement in operating results with an increase of NOK132 million compared to the previous year.

  • The Renewable Energy segment saw a year-on-year improvement in EBITDA, aided by higher power prices in the UK.

  • The Wind Service segment experienced a strong improvement in EBITDA from NOK174 million to NOK280 million, despite lower utilization rates.

  • Construction projects Crystal Rig IV and Windy Standard III are progressing on time and within budget, with a combined CapEx of close to NOK3 billion.

  • Booking numbers for the Cruise segment are up 11% compared to last year, indicating strong future demand.

Negative Points

  • Technical issues and low wind conditions led to a 21% lower generation than the P50 estimate in the Renewable Energy segment.

  • A cruise for Balmoral was canceled due to geopolitical issues, resulting in lower-than-expected occupancy and financial performance in the Cruise segment.

  • The Wind Service segment experienced a revenue drop of NOK109 million, primarily due to a lower margin Shimizu contract.

  • The company faces challenges with low power prices in Northern Sweden due to transmission capacity issues.

  • The supply chain for offshore wind projects remains tight and volatile, impacting project timelines and costs.

Q & A Highlights

Q: With Orsted halting the Hornsea 4 project due to increased costs and supply chain risks, are there similar concerns for the Codling project? A: Lars Bender, CEO of Fred. Olsen Seawind ASA, emphasized that projects differ significantly in nature, affecting their cost and revenue profiles. Codling remains a strong project with a flexible development strategy, allowing for cost discipline and the potential to incorporate new technology, thus maintaining confidence in its viability.