Jamie Franklin

Jamie Franklin from Jefferies Group inquired about the variables impacting Cadeler's Q4 2025 guidance, specifically seeking more details on the current scope of work for the Hornsea 3 project and the expected timing for the first monopole installation in 2026. He also asked CFO Peter Brøgaard Hansen about Q4 cash flow expectations, including potential working capital inflows and the main CapEx components, such as the final installment for Wind Mover and any CapEx related to the Wind Keeper upgrade.

Answer

CFO Peter Brøgaard Hansen detailed Q4 CapEx, primarily driven by the Wind Mover delivery and Wind Ally mission equipment, totaling around EUR 320 million, plus capitalized borrowing costs. He noted that Q3 working capital saw a significant inflow from termination fees, and Q4 is expected to show modest growth or similar levels. CEO Mikkel Gleerup stated that Cadeler is not permitted to disclose the exact timing of the first monopole installation for Hornsea 3 due to Ørsted's announcement criteria. However, he confirmed that the project is on plan, with all planned deliveries on target and budget, including engineering scopes, transportation frames, and mission equipment, with full execution underway and Wind Ally preparing for pile installation in Q1 2026.

Jamie Franklin from Jefferies Group inquired about the variables impacting Cadeler's Q4 2025 guidance, specifically seeking more details on the current scope of work for the Hornsea 3 project and the expected timing for the first monopole installation in 2026. He also asked CFO Peter Brøgaard Hansen about Q4 cash flow expectations, including potential working capital inflows and the main CapEx components, such as the final installment for Wind Mover and any CapEx related to the Wind Keeper upgrade.

Answer

CFO Peter Brøgaard Hansen detailed Q4 CapEx, primarily driven by the Wind Mover delivery and Wind Ally mission equipment, totaling around EUR 320 million, plus capitalized borrowing costs. He noted that Q3 working capital saw a significant inflow from termination fees, and Q4 is expected to show modest growth or similar levels. CEO Mikkel Gleerup stated that Cadeler is not permitted to disclose the exact timing of the first monopole installation for Hornsea 3 due to Ørsted's announcement criteria. However, he confirmed that the project is on plan, with all planned deliveries on target and budget, including engineering scopes, transportation frames, and mission equipment, with full execution underway and Wind Ally preparing for pile installation in Q1 2026.

Jamie Franklin of Jefferies asked about the potential impact of the Revolution Wind project halt, including contractual protections and financial implications. He also inquired about the Q2 CapEx related to the Windkeeper vessel, the specifics of its planned upgrades, and whether the acquisition was opportunistic.

Answer

CEO Mikkel Gleerup explained that Cadeler is contractually well-protected on the U.S. projects and is in dialogue with the client regarding the Revolution Wind halt. He detailed the Windkeeper's upgrades, including a new crane and bow thruster, and confirmed the acquisition was an opportunistic purchase driven by an attractive price and client demand. CFO Peter Hansen affirmed that Q2 CapEx was dominated by the Windkeeper acquisition and scheduled newbuild installments.

Jamie Franklin from Jefferies asked for clarification on the expected contracted days in Q2 relative to Q1, potential downtime for the fleet, the nature of any remaining gaps in the 2025 order book, and current day rates for O&M work.

Answer

Executive Mikkel Gleerup confirmed a significant step-up in Q2 activity is expected from newbuilds and the Wind Zaratan, with no adverse downtime anticipated beyond normal 'teething issues'. He noted that remaining 2025 gaps are mainly for vessel transit or late-year weather risk. Regarding O&M, he explained that spot market rates are on par with installation rates, while longer-term contracts are slightly lower but offer more visibility.

Jamie Franklin of Jefferies Financial Group Inc. asked for clarification on the expected increase in contracted days in Q2, potential downtime, the nature of remaining gaps in the 2025 order book, and current day rates for O&M work compared to installation projects.

Answer

CEO Mikkel Gleerup confirmed a significant step-up in Q2 activity from newbuilds and the Wind Zaratan, with no adverse downtime expected despite normal "teething issues." He explained that 2025 availability gaps are primarily for vessel transit or at the very end of the year. For O&M, Gleerup stated that spot market day rates are on par with installation rates, while longer-term contracts are slightly lower but provide greater visibility.

Jamie Franklin from Jefferies asked about the 2025 guidance, seeking clarity on the key variables to reach the upper end of the range and the delivery timeline assumptions for the remaining newbuilds, given recent early deliveries. He also inquired about the most significant near-term country-specific opportunities within the strong European market.

Answer

Executive Mikkel Gleerup stated that while some newbuilds are ahead of schedule, the company is maintaining its quarterly delivery guidance for now. Reaching the top end of the 2025 guidance depends on securing remaining vessel utilization, adding scope to existing projects, and the timing of revenue from foundation projects, which have lower initial margins. Gleerup identified the North Sea and Baltic Sea regions as key growth drivers, with the U.K., Germany, and Denmark showing significant activity.

Jamie Franklin from Jefferies asked about the key variables for reaching the top end of the 2025 guidance and which specific European markets present the greatest near-term opportunities.

Answer

Mikkel Gleerup (Executive) responded that achieving the high end of guidance depends on solid execution, securing additional scope on projects, and the timing of newbuild deliveries and project milestones. He highlighted that the North Sea and Baltic Sea regions, particularly the U.K., Germany, and Denmark, are the primary drivers of near-term growth in Europe.

Jamie Franklin from Jefferies asked about the key variables for reaching the top end of the 2025 guidance range, the delivery timeline assumptions for the next two newbuilds, and which specific countries are driving the near-term growth opportunities in Europe.

Answer

Executive Mikkel Gleerup stated that achieving the high end of 2025 guidance depends on the timing of newbuilds, solid project execution, and managing the initial lower margins on foundation projects before installation begins. He identified the North Sea and Baltic Sea regions as primary growth drivers, with significant activity in the U.K., Germany, and Denmark.

Jamie Franklin requested a quantification of the progress made on the $200 million cost-saving program targeted for H1 2025. He also asked for elaboration on the sales decline in South America, specifically regarding lower prices mentioned for Argentina.

Answer

Chairman and CEO Paolo Rocca confirmed that the company has already captured more than half of the planned $200 million in savings and is on track to meet the goal by the end of Q2. Regarding Argentina, he explained the lower average price was due to a product mix shift toward lower-priced welded line pipe projects. He noted that OCTG prices, which are largely tied to the Pipe Logix index, are expected to follow that benchmark.

Jamie Franklin asked about the expected revenue profile for the Project Delivery segment for the rest of the year, noting that the Q1 run-rate already puts the company on track to meet the high end of its increased guidance.

Answer

CEO Arnaud Pieton explained that while project work isn't typically seasonal, there can be a slight slowdown in progress during the summer in the Middle East, where several major construction projects are located. For safety reasons during high temperatures, work shifts to night, which can sometimes result in less weekly progress compared to day shifts. This factor is built into their planning and could temper the run-rate in subsequent quarters.

Jamie Franklin pointed out that run-rating the Q1 Project Delivery revenue already reaches the high end of the new guidance and asked if there were specific reasons to expect a decline in revenue in subsequent quarters.

Answer

CEO Arnaud Pieton explained that while projects typically don't have seasonality, the current portfolio has a high concentration of construction in the Middle East. He noted that progress can slow during the hot summer months due to safety protocols like shifting to night work, which can affect the quarterly revenue phasing. This is factored into the annual plan but can cause quarterly fluctuations.