CDLR Cadeler AS

Income statement and cash flows

The Group's revenue in the first nine months of 2024 was EUR 163 million, an increase of EUR 72 million compared to the EUR 91 million revenue reported for the comparative period in 2023.

Amounting to EUR 90 million, the Group’s cost of sales for the first nine months of 2024 was EUR 49 million higher than the EUR 41 million reported for the comparative period in 2023, driven mainly by Wind Scylla and Wind Zaratan becoming part of the Group’s fleet.

The Group’s five operating vessels achieved a combined 61.4% utilisation rate for the first nine months of 2024, compared to 97% in the comparative period in 2023. During the first three months of 2024, both Wind Orca and Wind Osprey underwent main crane upgrades while Wind Zaratan underwent scheduled maintenance. In the third quarter, the Group’s combined utilisation rate was 86.5%.

The Group's EBITDA for the first nine months of 2024 was EUR 70 million, an increase of EUR 21 million compared to the EUR 49 million EBITDA reported for the same period in 2023, as disclosed in the Alternative Performance Measures (APM) section.

For the first nine months of 2024, the Group result was a profit of EUR 28 million, a decrease of EUR 2 million relative to the EUR 30 million profit reported for the comparative period in 2023. The year-on-year change in the Group’s result was driven principally by an increase in headcount and vessel depreciation as well as finance costs, which were partly offset by higher gross profit.

Net cash flow provided by operating activities was EUR 45 million in the first nine months of 2024, EUR 8 million lower than the EUR 53 million recorded for the comparative period in 2023 due to an increase in outstanding receivables, contract assets and prepayments, which was partially offset by increase in deferred charter income.

Net cash flow used in investing activities in the first nine months of 2024 was EUR 549 million, an increase of EUR 526 million compared to the EUR 23 million reported for the comparative period in 2023. The increase was driven by the final instalment of Wind Peak, crane upgrades and instalment payments for certain of the Group's vessels under construction.

Net cash flow provided by financing activities in the first nine months of 2024 was EUR 502 million, an increase of EUR 511 million compared to a net outflow of EUR 9 million reported for the comparative period in 2023. This was a result of the capital raised in the Group's February 2024 private placement of EUR 152 million (after transactional costs) and proceeds from borrowings of EUR 366 million (net of bank fees and repayments).

Outlook 2024

In the Group's Annual Report 2023, Cadeler provided guidance for the financial year ending 31 December 2024 indicating that full-year revenue was expected to fall within the range of EUR 225 million to EUR 245 million, while full-year EBITDA was expected to be between EUR 105 million and EUR 125 million. Cadeler today increases its revenue guidance for the financial year 2024, as it expects full-year revenue to fall within the range of EUR 243 million to EUR 253 million, principally due to clients calling more options under the Group's existing contracts than was previously assumed, higher vessel utilisation as a result of the Group having secured contracts for the provision of operations and maintenance services between installation projects, and the receipt of termination fees in respect of a vessel reservation agreement. In addition, Cadeler now revises and narrows its EBITDA guidance within the upper end of the range it has previously communicated, as it expects full-year EBITDA to range between EUR 115 million and 125 million.

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¹ Consolidated figures for the nine months period ended 30 September 2023 comprised the Parent Company, Cadeler A/S, Wind Osprey Ltd, Wind Orca Ltd, Wind N1063 Ltd and Wind N1064 Ltd.

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Capital and assets 

The Group's equity amounted to EUR 1,132 million as of 30 September 2024, reflecting an increase of EUR 173 million from the balance as of 1 January 2024 of EUR 959 million. The development in the Group's equity was driven by a net capital increase of EUR 152 million after transaction costs and a profit of EUR 28 million for the first nine months of 2024, partially offset by a loss of EUR 7 million from foreign currency translation adjustments and a EUR 1 million reduction in equity related to the share buy-back program initiated in July 2024.

As of 30 September 2024, the Group’s total assets amounted to EUR 1,828 million, a 46% increase for the reporting period. This increase was driven primarily by an increase in property, plant and equipment of EUR 527 million, which was attributable to the Group’s newbuild programmes, the last instalment of Wind Peak and main crane upgrades for the Group’s O-class vessels.

The financial ratios and operational metrics are calculated in accordance with the terms and definitions set out in the Annual Report 2023 and in the Alternative Performance Measures section of the Interim Financial Report 2024 for the period from 1 January to June 2024.

¹ Average number of full-time equivalent Cadeler employees for the reporting period. Figures do not include consultants or contractors. Eneti employees, both onshore and offshore, were incorporated into the Company at the end of December 2023. Thus, average number of full-time employees as of 2023 reflects the number of employees divided by 12 months. Eneti had 99 onshore full-time employees and 176 seafarers by the end of 2023.

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On 6 August 2024, the Group achieved the extension and increase of its New Debt Facility (RCF-B) and uncommitted guarantee lines. The extension of the RCF-B facility by 12 months, will provide the Company with additional financial flexibility to seize market opportunities, including by funding the purchase of mission equipment and increased working capital.

Further, the uncommitted guarantee line available to the Group has been increased from EUR 100 million to EUR 200 million, due to surging activity levels. Total drawings within the entire loan facility will offer a maximum of EUR 450 million until the maturity of the RCF-B and thereafter a maximum of EUR 350 million for the remaining period of the loan facility.

On 12 August 2024, the Company requested the utilisation of EUR 210 million under the P-Class Facility to finance the final instalment for Wind Peak, which was delivered on schedule on 16 August 2024.

On 16 August 2024, the Company successfully refinanced the USD 436 million Senior Secured Green Term Loan Facility (M-Class Facility) previously entered into by Eneti Inc. (“Eneti”) in respect of the two M-Class new builds the Group acquired upon the completion of its business combination with Eneti. The replacement facilities – one for each M-Class vessel (M-Class Facility I and M-Class Facility II) – have been entered into on materially improved terms, reflecting Cadeler’s strong credit story and strengthened market position. This refinancing, supported by a broad banking group as well as several export credit agencies, secures an aggregate of up to EUR 420 million in post-delivery financing.

On 26 August 2024, the Company has further increased the capacity available to it under its unsecured corporate term loan facility (HoldCo Facility), with the lender commitments thereunder increased by EUR 45 million, bringing the total capacity available to the Group thereunder to EUR 125 million.

Further debt financing will be required from Q4 2025 for milestone payments for the A-Class newbuilds. The Company is currently in discussions with its banking group towards securing funds, including with the support of export credit agencies. The Cadeler Group’s management expects to require EUR 752 million of additional debt funding in total for the A-Class newbuilds.

¹ For the P-Class Facility, up to EUR 425 million, EUR 214 million was available for Wind Peak of which EUR 210 mil-lion has been utilised.

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Order backlog

Cadeler’s order book for 2024 is substantially filled. As of 26 November 2024, notable contracts signed since 30 June 2024 include:

In addition, Cadeler has entered into several firm contracts, with multiple customers, for the provision of operations & maintenance (O&M) services. The value of these contracts is reflected in the order backlog.

Vessel Reservation Agreements (VRAs) are not included in the contract backlog. Since 30 June 2024 multiple VRAs have been concluded, including a notable VRA with an undisclosed customer for a pipeline of wind projects in the Asia-Pacific region. The aggregate potential value to Cadeler of the development pipeline to be negotiated during the pendency of that VRA is expected to be approximately EUR 200 million.

The Group’s order backlog as of the reporting date amounted to EUR 2,054 million, of which EUR 64 million pertains to contracts that the Company expects to recognise in 2024. The table below includes signed contracts as of 30 September 2024 and new contracts entered in the period from 1 October 2024 to 26 November 2024.

As of 1 January 2024, Cadeler changed the definition of contract backlog and, from that date, has presented options measured at 100% of contract value (previously: 50% of contract value).

This earnings release report for the period from 1 January to 30 September 2024 is neither audited nor reviewed.

¹ As of 30 September 2024, 86.9% of the contract backlog (an aggregate of EUR 1,784 million) related to projects for which the relevant counterparty had taken a positive final investment decision (FID), and an aggregate of EUR 270 million remained subject to counterparty FID. This refers to both firm and option line items.

² As of the date of this earnings release, 88.7% of the contract backlog (an aggregate of EUR 2,116 million) relates to projects for which the relevant counterparty has taken a positive final investment decision (FID), and an aggregate of EUR 270 million remains subject to counterparty FID.

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Cadeler’s Annual Report and Third Quarter Earnings Release contain certain forward-looking statements relating to the business, financial performance, and results of the Company and/or the industry in which it operates.

Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in the Annual Report and Third Quarter Earnings Release, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. Such factors may for example include a change in the price of raw materials.

None of the Company, any of its subsidiaries or shareholders or any of such person’s officers, director’s or employees provides any assurance that the assumptions underlying these forward-looking statements are free from errors, nor do they accept any responsibility for the future accuracy of the opinions expressed in the Annual Report or Third Quarter Earnings Release or the actual occurrence of the forecast developments.

The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results.

The Annual Report and Third Quarter Earnings Release contain information obtained from third parties. You are advised that such third-party information has not been prepared specifically for inclusion in the Annual Report or Third Quarter Earnings Release and the Company has not undertaken any independent investigation to confirm the accuracy or completeness of such information.

Several other factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in the Annual Report or Third Quarter Earnings Release.

Should any risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the Annual Report or Third Quarter Earnings Release.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company, any of its subsidiaries or shareholders or any of such persons’ officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of the Annual Report or Third Quarter Earnings Release.

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Non-IFRS Financial Measures

To supplement its financial information presented in accordance with IFRS, the Group uses certain non-IFRS metrics, including EBITDA, when measuring performance, including when measuring current period results of operations against prior periods. Because of its non-standardised definition, these non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These supplemental non-IFRS measures are presented solely to permit investors to more fully understand how the Group Management assesses underlying performance.

These supplemental non-IFRS measures are not, and should not, be viewed as a substitute for IFRS measures. Management believes the presentation of these non-IFRS measures provides investors with greater transparency and supplemental data relating to the Group’s financial condition and results of operations, and therefore a more complete understanding of factors affecting its business and operating performance. In addition, Management believes the presentation of these non-IFRS measures is useful to investors for period-to-period comparison of results as the items may reflect certain unique and/or non-operating items such as asset sales, write-offs, contract termination costs or items outside of Management’s control.

As a performance measure, the Group uses EBITDA: Earnings before interest, tax, depreciation, amortisation, and foreign exchange gains/losses.

EBITDA is calculated as shown below:

The Company defines adjusted EBITDA as EBITDA net of transactional costs. Transactional costs comprise significant unusual and/or infrequently occurring items that are not attributable to Cadeler’s normal operations.

As of 30 September 2023, transactional costs include all costs related to the business combination with Eneti closed on 19 December 2023, such as advisory, legal and consulting fees.

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