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Cadeler A/S(CDLR) - 2025 H1 - Earnings Call Transcript
2025-08-26 13:02
Cadeler (CDLR) H1 2025 Earnings Call August 26, 2025 08:00 AM ET Company ParticipantsMikkel Gleerup - CEO & Member of the Executive BoardPeter Hansen - Chief Financial OfficerRoald Hartvigsen - VP - Equity ResearchConference Call ParticipantsJamie Franklin - Equity AnalystOperatorGood morning, and welcome to Caterpillar's H1 twenty twenty five Earnings Presentation. Presenting today are Mikael Glerop, Chief Executive Officer and Peter Brogaard, Chief Financial Officer. Please be reminded that presenters' re ...
Cadeler A/S(CDLR) - 2025 H1 - Earnings Call Transcript
2025-08-26 13:00
Financial Data and Key Metrics Changes - For Q2 2025, revenue reached EUR 233.1 million, showing substantial growth compared to the previous year, despite being impacted by termination fees from the Horn C4 project [16][18] - EBITDA increased significantly from EUR 32 million to EUR 189 million year-over-year, indicating strong operational performance [21][22] - The company maintains a solid balance sheet with a market cap of EUR 1.7 billion and an adjusted utilization rate of 94.1% for Q2 [17][18] Business Line Data and Key Metrics Changes - The backlog remains stable at EUR 2.5 billion, with 97% of projects having final investment decisions [11][12] - The Windkeeper vessel is highlighted as a key asset, with a long-term contract secured with Vestas for operations and maintenance services [6][9] - The company is actively expanding its O&M services through the establishment of NexTra, responding to increasing demand for larger turbine maintenance [5][43] Market Data and Key Metrics Changes - The U.S. market constitutes less than 10% of the total backlog, with ongoing projects like Revolution Sunrise and an O&M job [10] - The company is seeing a healthy contract economics in new projects, such as the Formosa Four in Taiwan, scheduled for installation in 2028 [9] - There is a noted undersupply of vessels expected towards the end of the decade, particularly for foundation installation [42][58] Company Strategy and Development Direction - The company is focused on building a resilient business model with a clear emphasis on core competencies and strategic partnerships, particularly in emerging markets [55][56] - The acquisition of the Windkeeper vessel is part of a broader strategy to enhance the fleet's capabilities and meet client demands in the O&M sector [52][76] - Sustainability initiatives are being prioritized, including biofuel testing and equipment efficiency upgrades, to reduce the carbon footprint [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a period of market recalibration, with expectations for improved conditions and policy changes in key markets like the UK and Denmark [36][38] - The outlook for 2025 has been adjusted to reflect revenue expectations between EUR 588 million to EUR 628 million, influenced by project timelines and termination fees [29] - The company remains optimistic about long-term growth in offshore wind and O&M markets, despite short-term challenges [58] Other Important Information - The company has a strong track record in capital markets and a record-high backlog, which enhances earnings visibility for investors [59] - The financial situation is solid, with cash reserves and committed facilities in place to support ongoing operations and future projects [27][28] Q&A Session Summary Question: Impact of Revolution Wind project halt - Management indicated that contractual protections are in place for both Revolution and Sunrise Wind projects, and they are in dialogue with clients regarding the situation [63][64] Question: CapEx related to Windkeeper - It was confirmed that the majority of Q2 CapEx was related to the Windkeeper vessel, with no unplanned expenditures [68][69] Question: Upgrades on Windkeeper - Upgrades include adding a new auxiliary crane, a bow thruster for improved DP capabilities, and general accommodation upgrades to meet client expectations [70][72] Question: Acquisition rationale for Windkeeper - The acquisition was driven by a unique opportunity at an attractive price, with existing client demand for O&M services influencing the decision [76]
Cadeler A/S(CDLR) - 2025 H1 - Earnings Call Presentation
2025-08-26 12:00
Financial Performance & Backlog - Cadeler's financial performance exceeded expectations, leading to increased full-year guidance in July 2025[9] - The company's contract backlog remains strong at EUR 25 billion[13, 29] - 97% of the contract backlog, totaling EUR 2412 million, relates to projects with a positive final investment decision (FID)[36] - Revenue increased by EUR 170 million in Q2 2025 compared to Q2 2024, with utilization at 76% and adjusted utilization at 94%[46] - Revenue increased by EUR 216 million in H1 2025 compared to H1 2024, with utilization at 67% and adjusted utilization at 89%[50] Fleet & Operations - Cadeler took delivery of the Wind Keeper, securing a long-term contract with Vestas for three years, with options for an additional two and a half years, potentially worth over EUR 380 million[10, 35] - Seven vessels are currently on hire globally, including two in Taiwan and two in North America[11] - Cadeler has secured EUR 2058 million in funding for its CAPEX program, including Wind Keeper, with EUR 1225 million drawn as of June 30, 2025, leaving EUR 833 million undrawn[57] Market Outlook & Strategy - The company anticipates an undersupply of capable vessels from 2029 onwards, driven by increasing market demand, including strong growth in demand for O&M[101] - Cadeler is building up Nexra, a new service concept for the offshore wind industry, to address the strong and increasing demand for O&M services, especially for larger turbines[12, 95]
Cadeler Keeps Delivering For Green Growth Investors
Seeking Alpha· 2025-06-26 13:16
Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the com ...
Cadeler A/S(CDLR) - 2025 Q1 - Quarterly Report
2025-05-21 10:00
Exhibit 99.1 Financial Performance Income statement and cash flows The Group's revenue for the first three months of 2025 was EUR 65 million, an increase of EUR 46 million compared to the EUR 19 million revenue reported for the comparable period in 2024, driven by the expansion of the fleet and higher utilisation. The Group's cost of sales for the first three months of 2025 was EUR 45 million, EUR 18 million higher than the comparable period in 2024, driven mainly by the addition of new vessels to the fleet ...
All You Need to Know About Cadeler (CDLR) Rating Upgrade to Strong Buy
ZACKS· 2025-05-12 17:05
Cadeler (CDLR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a cha ...
Cadeler A/S(CDLR) - 2024 Q4 - Earnings Call Transcript
2025-03-25 22:57
Cadeler A/S (CDLR) Q4 2024 Earnings Conference Call March 25, 2025 9:00 AM ET Company Participants Mikkel Gleerup - CEO Peter Brogaard Hansen - CFO Conference Call Participants Martin Huseby - DNB Jamie Franklin - Jefferies Benjamin Nolan - Stifel Pet Billing - SEB Asne Holsen - ABG Sundal Collier Roald Hartvigsen - Clarksons Operator Good morning, and welcome to Cadeler's 2024 Annual Result Report Presentation. Presenting today are Mikkel Gleerup, Chief Executive Officer; and Peter Brogaard, Chief Financia ...
Cadeler A/S(CDLR) - 2024 Q4 - Annual Report
2025-03-25 17:10
Currency Risk Exposure - The Cadeler Group's largest currency risk exposure is future instalments for the M-Class and A-Class New Builds, totaling USD 1,112.0 million as of March 25, 2025[235]. - A 10% deterioration in the USD:EUR exchange rate would decrease profits before tax by EUR 1.8 million based on USD cash holdings as of December 31, 2024[236]. - The Cadeler Group has a significant foreign currency risk exposure with future instalments for the M-Class and A-Class New Builds totaling USD 1,112.0 million as of March 25, 2025[272]. Interest Rate Risk - The interest rate under Credit Facilities is based on the 3-month EURIBOR, which was 2.9% and 3.9% at December 31, 2024 and 2023, respectively[240]. - If the EURIBOR increased by 100 basis points, the cost to the Cadeler Group would have increased by EUR 5.9 million for the year ending December 31, 2024[241]. - The Cadeler Group seeks to hedge 50% of its interest rate exposure and evaluates the potential cost and benefits of fixed interest rate borrowings on an ongoing basis[239][242]. - The fair value of interest rate swaps for 2024 includes a notional amount of EUR 355.1 million for between 2 and 5 years[269]. - The fair value of interest rate swaps for 2023 was EUR 555.0 million for between 2 and 5 years[269]. Liquidity Risk Management - The Cadeler Group manages liquidity risk by maintaining sufficient cash and committed credit facilities, with total obligations in EUR of 691 million, 516 million, and 188 million due in less than 1 year, between 1 and 2 years, and between 2 and 5 years, respectively, as of December 31, 2024[254]. - As of December 31, 2024, cash and cash equivalents are considered low credit risk, primarily held in banks with high credit ratings[251]. Credit Risk Management - The maximum exposure to credit risk is the carrying amount of trade receivables and other receivables, with trade receivables from external customers subject to immaterial credit loss[245][250]. - The Cadeler Group uses a provision matrix to measure lifetime expected credit losses for trade receivables, grouping them based on shared credit characteristics and days past due[249]. Hedging Activities - The cumulative fair value change of cash flow hedges at December 31, 2024, was EUR 1.8 million, with interest rate risk hedging at (14.9) million and foreign currency risk hedging at 11.6 million[265]. - The cumulative fair value change in the hedging reserve as of January 1, 2024, was (EUR 11.8 million), compared to EUR 3.2 million in 2023[271]. - The fair value adjustment for the year 2024 resulted in a decrease of EUR 3.3 million, while in 2023, it was a decrease of EUR 14.2 million[271]. - The nominal amount of FX forward contracts for 2024 includes USD 104.5 million for less than 1 year and USD 55.4 million for between 1 and 2 years[274]. - The fair value adjustment for FX forward contracts in 2024 was EUR 12.2 million, compared to a decrease of EUR 3.5 million in 2023[274]. - The fair value adjustment for FX option collars in 2024 was EUR 5.6 million, while in 2023, it was a decrease of EUR 0.8 million[274]. - The total movements in the hedging reserve as of December 31, 2024, showed a net position of EUR 16.7 million, compared to (EUR 9.7 million) in 2023[274]. - The company aims to match critical terms between hedged items and relevant hedge instruments to mitigate hedging ineffectiveness[273].
Cadeler A/S(CDLR) - 2024 Q4 - Annual Report
2025-03-25 16:56
Currency and Interest Rate Exposure - The Group's largest currency exposure is future installments for new vessels, amounting to USD 1.3 billion[839]. - A 10% deterioration in the USD:EUR exchange rate would decrease pre-tax results by EUR 1.8 million based on USD cash holdings as of December 31, 2024[840]. - A 10% deterioration in the GBP:EUR exchange rate would decrease pre-tax results by EUR 0.7 million based on GBP cash holdings as of December 31, 2024[841]. - If the EURIBOR interest rate increased by 100bps, the cost would increase by EUR 5.9 million for 2024[845]. - The average fixed rate of interest rate swaps is 2.78% in 2024, slightly down from 2.81% in 2023 and 2.82% in 2022[880]. - The average USD:EUR rate for currency exposure hedging is 0.9107, compared to 0.9187 for both 2023 and 2022[885]. Liquidity and Debt Management - The Group manages liquidity risk by maintaining sufficient cash and available funding through committed credit facilities[856]. - The Group anticipates seeking further debt financing for milestone payments related to the third A-Class New Build[857]. - Total obligations for newbuild vessels in 2024 amount to EUR 1.395 billion, with EUR 455 million expected to be paid in the first half of 2025[858]. - The Group has utilized EUR 210 million under the P-Class Facility to finance the final installment for the delivery of the first P-Class Vessel in August 2024[900]. - The Holdco Facility was increased from EUR 50 million to EUR 80 million on February 7, 2024, with a total capacity available under the unsecured corporate term loan facility reaching EUR 125 million[897]. - The Group entered into a Sinosure-backed green term loan facility of up to EUR 425 million in December 2023 to finance the purchase of P-Class newbuilds[899]. - The M-Class Facility was successfully refinanced, securing an aggregate of EUR 420 million in post-delivery financing, reflecting the Group's strong credit story[898]. - As of December 31, 2024, the total new debt facility amounted to EUR 597 million, with EUR 571 million as the carrying amount[893]. - The Group's financial performance is impacted by the interest and fees associated with the total debt, which is primarily EUR 597 million[893]. - The covenants for all debt facilities include customary financial and other requirements[901]. Credit and Counterparty Risk - The Group's credit risk is mitigated by transacting only with counterparties rated "A" and above[847]. - As of December 31, 2024, cash and bank balances are subject to immaterial credit loss due to high credit ratings of banks[855]. - The Group has not written off any receivables as of the reporting date[852]. Derivative Financial Instruments - As of December 31, 2024, the fair value of derivative assets amounted to EUR 18,468 thousand, a significant increase from EUR 338 thousand in 2023 and EUR 3,376 thousand in 2022[871]. - The total derivative liabilities decreased to EUR 16,414 thousand in 2024 from EUR 21,961 thousand in 2023, reflecting a reduction in expectations for rate cuts due to persistent inflation[871]. - The Group has hedged approximately 40% of its foreign exchange risk for upcoming USD instalments related to new vessel contracts[886]. - The cumulative fair value change for cash flow hedges at December 31, 2024, is EUR 1,799 thousand, recovering from a cumulative loss of EUR 21,559 thousand in 2023[877]. - The notional amount of FX forward contracts for 2024 is USD 104,545 thousand, with a fair value asset of EUR 6,849 thousand[888]. - The fair value adjustment for FX forward contracts in 2024 is EUR 10,771 thousand, recovering from a loss of EUR 3,518 thousand in 2023[888]. - The Group's interest rate swap contracts have a notional amount of EUR 355,117 thousand for maturities over 2 to 5 years, with a fair value liability of EUR 16,231 thousand[882]. Financial Performance and Equity - Total assets increased to EUR 1,733,293,000 in 2024, up from EUR 1,309,674,000 in 2023, representing a growth of approximately 32.2%[948]. - Total equity rose to EUR 1,134,497,000 in 2024, compared to EUR 952,791,000 in 2023, marking an increase of about 19.1%[948]. - Non-current liabilities increased to EUR 372,243,000 in 2024, up from EUR 224,508,000 in 2023, reflecting a rise of approximately 65.8%[948]. - The company reported trade receivables of EUR 47,958,000 in 2024, an increase from EUR 35,227,000 in 2023, indicating a growth of about 36.5%[948]. - Cash and bank balances decreased to EUR 16,727,000 in 2024 from EUR 59,436,000 in 2023, a decline of approximately 71.8%[948]. - Share capital increased to EUR 47,144,000 in 2024 from EUR 41,839,000 in 2023, representing a growth of about 12.4%[948]. - The total financial assets reached EUR 748,428,000 in 2024, compared to EUR 747,047,000 in 2023, showing a slight increase of approximately 0.2%[948]. Acquisitions and Related Transactions - The Group completed the acquisition of Eneti on December 19, 2023, with total identified net assets and goodwill valued at EUR 581,989,000[912]. - The fair value of vessels and dry docks acquired from Eneti is EUR 296,707,000, with a vessel under construction valued at EUR 144,219,000[912]. - The company acquired 100% of the shares in Eneti for EUR 496 million in 2023, which included acquisition-related expenses of EUR 15 million[1002]. - Related party transactions included purchases of services totaling EUR 8,260,000 in 2024, down from EUR 9,216,000 in 2023[915]. Operational Developments - The company is focused on expanding its fleet with new generation offshore WTIVs through contracts with Hanwha[936]. - The company has dissolved several dormant entities during 2024, streamlining its operations[939]. - The company’s financial statements include various wholly owned subsidiaries across multiple countries, enhancing its operational footprint[938]. - The company took delivery of the sixth vessel, Wind Maker, on January 31, 2025, and drew down EUR 212 million for the final installment[942]. - The company requested EUR 211 million under the P-Class Facility on March 17, 2025, to finance the final installment for the second P-Class vessel[943]. Compliance and Governance - The Group is required to maintain a minimum equity ratio of 35% and a debt service coverage ratio of at least 2:1 for the Holdco Facility[903][908]. - The Group's cash and cash equivalents must be at least EUR 35,000,000 or 5% of gross interest-bearing debt, depending on the cash flow ratio[908]. - The Group has not breached any financial covenants related to interest-bearing loans and borrowings in the current period[862]. - The Group's net interest-bearing debt to EBITDA ratio must not be lower than 2.75:1 across its debt facilities[906]. - The Group is not permitted to pay dividends exceeding 50% of consolidated net profit without lender consent[906]. Financial Reporting and Audit - The company will recommend the financial statements for approval at the annual general meeting scheduled for April 22, 2025[945]. - Statutory audit fees increased significantly to EUR 1.93 million in 2024 from EUR 464,000 in 2023[976]. - Total auditor remuneration for 2024 was EUR 2.16 million, compared to EUR 2.68 million in 2023[976]. - The Company has not prepared a cash flow statement as it is included in the consolidated cash flow statement[956]. Asset Management - The company recorded a net book value of EUR 475.632 million for property, plant, and equipment as of December 31, 2024, following additions of EUR 358.915 million during the year[995]. - The total additions in property, plant, and equipment during 2024 were primarily driven by vessel newbuild and upgrades[995]. - The total assets under construction increased to EUR 473.505 million as of December 31, 2024, following significant additions during the year[995]. - The company capitalized borrowing costs of EUR 19.7 million in 2024, reflecting a capitalisation rate of 7.6%[996]. - The tax value of tax losses available for carry forward as of December 31, 2024, is approximately EUR 12 million, which has not been recognized[985]. - The company reported no tax expense related to Danish Tonnage tax for 2024 due to the utilization of tax losses[986]. Lease Obligations - The company has off-balance sheet obligations related to vessel leasing estimated up to EUR 115 million annually, depending on the number of days on hire[1008]. - The company’s future minimum lease payments are structured around the new headquarter contracts, with significant contributions expected from the new facilities[928].
Cadeler: Buy Before A New 'Green Wave' Emerges
Seeking Alpha· 2025-03-06 13:47
Company Overview - Cadeler (CDLR) is a global leader in offshore wind farm construction, maintenance, and decommissioning [1] - The company is based in Denmark and was established in 2008, being listed on the Oslo stock exchange in late 2020 [1] Industry Position - Cadeler specializes in the offshore wind sector, indicating a strong focus on renewable energy and sustainability [1] - The company has a significant role in the growing offshore wind market, which is expected to expand as global energy demands shift towards greener alternatives [1]