Edda Wind (EWIND) Q2 2024 earnings summary

Executive summary

• Revenue increased to EUR 14.9 million in Q2 2024, up EUR 5.7 million year-over-year, driven by fleet expansion, new contracts, and improved vessel utilization.

• Operating income and EBITDA declined due to higher costs from frontrunner vessels, gangway system issues, and substitute vessel expenses.

• Private placement of NOK 400 million completed in June, strengthening the financial platform and supporting growth strategy.

• Goelo Enabler and Sudri Enabler commenced operations in July, securing long-term contracts with Siemens Gamesa and DEME Offshore.

• Transition to in-house ship management is underway, targeting full control by January 2025 for cost and quality benefits.

Financial highlights

• Q2 2024 revenue was EUR 14.9 million, with H1 2024 operating income at EUR 32 million, up 98% from H1 2023.

• EBITDA for Q2 2024 was EUR 0.6 million, EUR 2.2 million below Q2 2023, mainly due to EUR 5.4 million frontrunner costs.

• Q2 2024 operating profit was negative at EUR -1.9 million; pre-tax loss was EUR 3.9 million.

• Cash and cash equivalents at quarter-end were EUR 58.9 million, supported by the NOK 400 million private placement.

• Book value of vessels and newbuilds reached EUR 544 million at June 30, 2024.

Outlook and guidance

• Strong market demand, high tender activity, and positive day rate trends support optimism for continued growth.

• Supply-demand balance remains tight, with over 250 C/SOVs needed by 2030 versus ~90 Tier 1 vessels currently.

• Eight vessels will be in operation by year-end, with more newbuilds scheduled for delivery through 2026.

• Additional revenue potential exists in Q4 due to surplus fleet capacity and vessel swaps.

• In-housing of vessel management expected to drive cost efficiencies from Q3 2024.