Making case for new wind vessel capital 'hard as it's ever been', says CEO

Tight shipbuilding capacity and challenges in the offshore wind industry mean making the case for finance for new-build installation vessels is “as hard as it’s ever been”, said the CEO of sector giant Cadeler.

With five new units joining its six-strong fleet over the next few years, Cadeler is poised to reap the benefits of an upcoming installation boom in Europe in particular amid strong demand for its wind turbine installation vessels (WTIVs).

However, with industry commentators concerned over a vessel bottleneck around the end of the decade, even if the US sector advances more slowly than expected, Cadeler CEO Mikkel Gleerup cited a “challenging environment” for further WTIV orders compared to that seen in the early part of the decade.

“The amount of yards that can complete a new build like this is very limited,” Gleerup said when asked by financial analysts about the general market for further new-build vessel orders.

Gleerup added: “My view is it’s as hard as it’s ever been to go into the boardroom and ask for capital to order new vessels… it’s hard now with the challenges the industry has been through, with lack of deliveries on projects, current narratives [around the industry and] very high prices.”

In terms of its existing and soon-to-be expanded fleet, Cadeler expects a “transformative year” in 2025, the company said in its full-year financial results.

Cadeler has a record order backlog of €2.5bn ($2.7bn) as of 25 March, including 100% of contractual options, up from $1.7bn at the end of 2023.

Cadeler expects to double its revenue in 2025 to between €485m and €525m, with profits before tax, depreciation and amortisation (Ebitda) seen soaring to €278-318m from €126m in 2024.