Currency Exposure and Exchange Rates - The Group's largest currency exposure is related to future installments for new vessels in USD, amounting to USD 1.3 billion[797]. - A 10% deterioration in the USD:EUR exchange rate would decrease the result before tax by EUR 4.6 million based on USD cash holdings as of December 31, 2023[798]. - A 10% deterioration in the GBP:EUR exchange rate would decrease the result before tax by EUR 1.4 million based on GBP cash holdings as of December 31, 2023[799]. - The Group has hedged approximately 50% of its foreign exchange risk for upcoming USD instalments related to new P- and A-class vessels contracts, securing an average USD:EUR rate between 0.8695 and 0.9466 for USD 500 million of notional amount[844]. Interest Rates and Financial Obligations - The EURIBOR interest rate was 3.9% at the end of 2023, up from 2.0% in 2022[801]. - If the EURIBOR interest rate increased by 100bps, the cost would increase by EUR 2.1 million for 2023[802]. - The Group's total obligations in EUR for 2023 amount to EUR 261.3 million, with significant portions due in less than one year[814]. - The debt to credit institutions increased to EUR 205.6 million by December 31, 2023, from EUR 115.0 million in 2022[816]. - The Group's lease liabilities at the end of 2023 were EUR 993,000, up from EUR 279,000 in 2022[815]. - The Group's exposure to changes in the 3M EURIBOR rate has increased due to new credit facilities established in 2023[836]. Financial Performance - The Group's revenue for 2023 was EUR 108.81 million, a slight increase of 0.34% from EUR 108.44 million in 2022[892]. - Gross profit for 2023 was EUR 51.73 million, up from EUR 48.17 million in 2022, reflecting a growth of 7.9%[892]. - Operating profit decreased to EUR 18.07 million in 2023 from EUR 32.88 million in 2022, a decline of 45%[892]. - The company reported a profit for the year of EUR 11,348,000 in 2023, compared to EUR 27,254,000 in 2022, indicating a decrease of approximately 58%[901]. - Total cost of sales for 2023 was EUR 57,077,000, a decrease of approximately 5% from EUR 60,269,000 in 2022[931]. - Administrative expenses rose significantly to EUR 33,666,000 in 2023, compared to EUR 15,291,000 in 2022, marking an increase of approximately 120%[931]. Capital Management and Financing - The Group's capital management strategy includes potential adjustments to dividends, issuance of new shares, or asset sales to maintain an optimal capital structure[820]. - The Group entered into a new senior secured credit and guarantee facility of up to EUR 550 million on December 7, 2023, to finance the purchase of P-Class newbuilds[835]. - A senior secured green term loan facility of up to USD 436 million was acquired to finance approximately 65% of the purchase cost of the M-Class newbuilding[857]. - The P-Class Facility of up to EUR 425 million was established to finance the purchase of P-Class newbuilds, with an expected additional funding requirement of approximately EUR 450 million for A-Class New Builds[858]. - A successful private placement raised approximately EUR 154 million (USD 166 million) to finance a new wind foundation installation vessel and acquire mission equipment[886]. Shareholder and Related Party Transactions - BW Altor owns 19.57% of Cadeler shares, while Scorpio Holdings Limited owns 12.09% and Swire Pacific owns 8.51%[867]. - The Group has entered into a share lending agreement with BW Altor, with compensation amounting to EUR 85,000 for share lending services[869]. - Related party transactions primarily involved guarantee fees from BW Group Limited, totaling EUR 7.58 million in 2023, compared to EUR 5.31 million in 2022[879]. - Revenue from related parties increased to EUR 3.6 million in 2023, up from EUR 2 million in 2022, representing an 80% growth[927]. - Related party transactions include revenue from subsidiaries of EUR 3.6 million and operating lease expenses of EUR 29.5 million related to vessels during on-hire periods[978]. Assets and Investments - The Group's total assets increased significantly to EUR 1.31 billion in 2023, compared to EUR 722.67 million in 2022, marking an increase of 81.5%[895]. - The total equity of the Group rose to EUR 952.79 million in 2023, up from EUR 524.63 million in 2022, representing an increase of 81.5%[898]. - The company made additions to property, plant, and equipment totaling EUR 48,105 thousand in 2023, with significant down payments of EUR 19.2 million for new P-Class installation vessels[952]. - The company acquired 100% of shares in Eneti for EUR 496 million through a share exchange, with acquisition-related expenses amounting to EUR 15 million[959]. - The company has contracts with COSCO SHIPPING Heavy Industry for the construction of two new P-Class WTIVs, with a total contract sum of approximately EUR 572 million[969]. Employee and Management Compensation - The average number of full-time employees increased to 272 in 2023, up from 232 in 2022, indicating a growth of about 17%[939]. - Total management compensation for 2023 is EUR 2,831 thousand, which includes wages, salaries, and board fees of EUR 1,033 thousand, cash bonuses of EUR 1,155 thousand, and share-based payments of EUR 588 thousand[946]. - Share-based payment expenses increased to EUR 1,134,000 in 2023, compared to EUR 352,000 in 2022, representing a rise of approximately 223%[937]. Hedging and Financial Instruments - The Group's total financial liabilities at fair value through the consolidated statement of profit and loss for 2023 include derivative liabilities of EUR (403,000) and cash flow hedges with derivative liabilities of EUR (17,937,000)[827]. - The cumulative fair value change for cash flow hedges at the end of 2023 is EUR (21,559,000), compared to EUR 1,343,000 at the beginning of the year[831]. - The Group's interest rate swap contracts for 2023 have a notional amount of EUR 555 million, with a fair value liability of EUR (11,790,000)[839]. - The Group's cash flow hedges for interest rate risk hedging show a cumulative fair value change of EUR (11,790,000) at the end of 2023, compared to EUR 3,163,000 in 2022[840]. - The company reported a value adjustment of hedging instruments amounting to EUR (19,281,000) in 2023[901].
Cadeler A/S(CDLR) - 2023 Q4 - Annual Report