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 A/S(CDLR) - 2024 Q4 - Annual Report