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

Bonheur ASA (FRA:V7P) reports improved operating results and strong future demand despite facing wind generation and cruise occupancy challenges.

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May 10, 2025
Summary
  • 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.
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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, Financial) 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.

Q: Can you provide details on the loans issued by Fred. Olsen Seawind to the Codling JV and the carrying value of the equity stake?
A: Richard Aa, CFO of Bonheur ASA, stated that they were not prepared to provide exact figures during the call but would follow up with the information later.

Q: What are the current bottlenecks in the supply chain for offshore wind projects?
A: Lars Bender noted that the supply chain is dynamic, with tightness in some areas and availability in others. The slowdown in the American market could positively impact capacity availability for projects like Codling. The supply chain has become less tight over the past year, and technological advancements are also contributing positively.

Q: How does the potential introduction of zonal pricing in the UK affect your Scottish wind farms?
A: Sofie Olsen Jebsen, CEO of Fred. Olsen Renewables, expressed concerns that zonal pricing could increase uncertainty and hinder renewable energy build-out. The company is actively engaging with industry bodies and politicians to influence the debate against this reform.

Q: Are there plans to contract new vessels for offshore wind installations given the current market conditions?
A: Haakon Magne Ore, CEO of Fred Olsen Windcarrier, stated that while they do not provide forward guidance, they are closely monitoring the situation. The company aims to remain a leading player in the segment, leveraging its strong operational and financial platform to seize opportunities as they arise.

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