Cadeler backlog soars as offshore wind vessel leader banks on super-sized turbine installation

Dry dockings dent profit line but upgrades are part of the plan for a bigger future, Oslo-listed company says.

Cadeler CEO Mikkel Gleerup.
Cadeler CEO Mikkel Gleerup.Photo: Cadeler

Cadeler, the world's biggest owner of wind turbine installation vessels, saw its backlog of orders swell to a record €1.9bn ($2.1bn) at the end of June, up €566m from the same time last year.

Of this backlog, 86% relates to projects where the counterparty has already reached final investment decision, the company stated in its interim report for the first half of this year.

"The growing demand in our market is evidenced by our record-high order backlog. Securing additional financing, and placing the official order for our third A-class vessel, are significant milestones of which I am very proud,” said Cadler's CEO Mikkel Gleerup.

The "A-class" vessels are described as catering for some of the largest foundation dimensions in the offshore wind industry. They are able to transport and install as many as six sets of the largest monopiles per load, according to Cadeler.

Cadeler also just took delivery of the latest addition to its jack-up fleet, the Wind Peak wind turbine installation vessel (WTIV), and expects to put the unit into operation later this year.

Cadeler described its new vessel as "the most modern and innovative vessel in the industry... designed to cater to the growing needs and demands of future wind farms in terms of size, scope, and complexity".

The vessel, which was built by a COSCO Shipping Heavy Industry shipyard in Qidong, can transport and install seven complete 15MW turbine sets per load, or five sets of 20MW-plus turbines, according to its owner.

Cadeler said integration of the Eneti business, following the completion of Cadeler’s acquisition of its former rival in December 2023, was achieving synergies "above expectations".

Cadeler reported that its revenue was €82m in the first half of 2024, compared with €68m in the same period last year. However, the company posted a net profit of just €153,000 , down from €30m last year.

This was attributed to with a decrease in vessel utilisation as three out of the group’s four operating vessels were undergoing scheduled drydock, crane upgrades and maintenance during the first quarter of 2024.

Cadeler currently has six more newbuild vessels under construction.

Wind Peak has already been contracted by Siemens Gamesa for the transportation and installation of 100 of the OEM's 14MW wind turbines in the UK North Sea for the RWE-run Sofia Project.

"Our results align with expectations, demonstrating our strategic focus on fleet modernisation and expansion in sync with growing customer demand and project complexity," Gleerup stated.

"The first half of 2024 saw key maintenance and crane upgrade projects completed on time and within budget, and with four vessels now fully operational and a fifth set to commence work, Cadeler is well-positioned for continued growth," he added.

With the completion of the main crane upgrades on Wind Orca and Wind Osprey and the ongoing renewal and expansion of its fleet, Cadeler said in its earnings statement that it is "ready to meet the growing market demand".

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Published 27 August 2024, 11:19Updated 27 August 2024, 11:33
CadelerEnetiMikkel GleerupDenmarkWTIV