Cadeler A/S American Depositary Share (each representing four (4) Ordinary Shares)

Good morning and welcome to Cadillac's H1 2025 earnings presentation. Presenting today are Mikael Glierup, Chief Executive Officer, and Peter Brogard, Chief Financial Officer. Please be reminded that the presenters' remarks today will include forward-looking statements. Actual results may differ materially from those contemplated. The risks and uncertainties that could cause Cattler's results to differ materially from today's forward-looking statements include those detailed in Cattler's annual report on Form 20F, on file with the United States Securities and Exchange Commission. Any forward-looking statements made this morning are based on assumptions as of today and Cadillers undertakes no obligation to update these statements as a result of new information or future events. This morning's presentation includes both IFRS and certain non-IFRS financial measures. A reconciliation of non-IFRS financial measures to the nearest IFRS equivalent is provided in Cadillers' annual report. The annual report and today's earnings presentation are available on Caddler's website at caddler.com forward slash investor. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. As a reminder, this call has been recorded today. If you have any objections, please disconnect at this time. Mikael Glierup, you may begin.

Thank you very much and good morning and good afternoon and good evening to the people that have dialed into this presentation. Happy to present our half-year results together with Peter. And what we can say, around the first half-year result in 2025, our financial performance is above our expectations. With the full-year guidance increased in July 2025, we maintain that guidance in this half-year report. When Keeper delivered a long-term contract with Vestas was secured, I think a process that we entered into earlier during the year where this opportunity became possible for us and where we also had a discussion with our client to come to the point where we are now. Upgrades are waiting for Keeper before we will put her into commercial operation in Q1, 2026. Seven vessels are on hire around the world, including two in Taiwan and two in North America. Strong and increasing demand for O&M services, especially for the larger turbines, is reinforcing our decision to establish Nexra, our service concept, where we also have seen now the first real evidence of that coming to the market with the wind Keeper. Our catalog backlog continued to strengthen, even with the removal of the Horn C4 after delay from Ørsted on that project, and we currently stand at 2.5 billion euros. Commercial highlights in the first half of 25. The wind keeper is certainly a commercial highlight. It's a vessel that we negotiated, acquired, and took delivery of all ahead of schedule. It's the newest addition, and we have secured a long-term contract with Destas, a three-year period with additional two and a half years of options with the same client. The contract, as I said, commences in the early part of 2026. And we believe that the wind keeper will be a very versatile service vessel where the client can mainly do operations and maintenance for the vessel, but also have an ability to support transport and installation for certain projects. And before, as I said, before we put her on work for Vestas in Q126, the windkeeper will undergo tailored upgrades really to fit the Kettler operating model, but also what we would like to deliver to our clients in terms of vessel and also what the vessel can do in European waters on projects there. Overall, on the fleet, we can say that the Wind Orca is continuing the installation on Hidride. She had an O&M campaign earlier during the year, but is now installing on Hidride. Wind Osprey had also an O&M campaign and is installing on Baltic Power now in Poland. Silla, probably a question that I will receive in the questions and answer section around the Revolution Wind, but we are working on Revolution Wind for Ørsted and the vessel is still here in the US. On Saratan, she's working in Taiwan on O&M. The peak continues to install on Sofia. The wind maker is installing on Greater Changwa for Ørsted. And Wind Pace is also here in the US working for GE Vinnova. And the wind keeper is in transit on the way back in or close to South Africa at the moment, expecting to arrive in Northern Europe in October this year. In terms of our backlog standing at 2.5 billion euro, I think that what we wanted to highlight on this slide here is really because there's not a great change. We have had another project coming in in Taiwan with the Formosa 4 coming in. We announced that last week. It was part of a reservation agreement and we signed that contract last week. And I think that it was a healthy contract economics we saw on that project. and a project that will be installed in 2028, which fits really the strategy for what we are doing at the moment. And 2028 is certainly a focus here, but more to follow on that. In terms of US, we are busy on three projects. In the US, Revolution Sunrise and an O&M job here. But the U.S. in total constitutes less than 10% of our total backlog. And revolution itself is the smallest part of that U.S. backlog in itself because we are almost done on that project. In terms of the backlog, I think having increased the backlog, although slightly from the Q1 presentation, I think it is an achievement, especially with the large chunk coming out from the Horn C4. And we still stand at a very, very high level of final investment decisions in our backlog. So 97% of the projects in our backlog has final investment decision. And we are focusing on maintaining a solid overview of the projects that we are adding to the backlog, but also ensuring that the quality of projects we are letting into the backlog is something that we do. on the same basis as we have always done. But pleased that we have been able to maintain the backlog at its current level after the delay of Horn C4. In terms of the new builds, I'm pleased to say also that we are on Wind Ally almost complete. We are on seed trials and jacking trials as we speak, and we are ahead of schedule. Originally, we expected to deliver the Wind Ally in November this year, but according to the current plan, we are looking to take delivery at the end of September, which is a very, very strong performance, both by site team, but also by the yard, and everybody who has supported that. The ally then has a sequence of jobs to do in terms of mobilizing her for her first project, which will be the Horn C3. But it's very good for us that we are delivering as we are because it also means that we are coming on the project as we expect and everything there looks to go according to plan as we see it at the moment. Also on Windmover, we are also looking to deliver the Windmover in the fourth quarter of this year. And at the moment, it also looks like we are slightly ahead of schedule on Windmover, which is also positive. The Windmover has a contract also where she will depart the yard and immediately go on that contract. So for us, it's of course, it has been important to make sure that the yard and us have an agreement on when the vessel is delivering and as early as possible for us was important. The WindApex is also in production in Corsico Cidon and the WindApex is currently at block stage. So I would say that on new builds, the fourth remaining new builds is on or ahead of schedule and also on budget, which is pleasing. And on the financial results, I will hand it over to Peter, so he can walk you through the financial results.

Yeah, thank you very much, Mikkel. For Q2, the three-month ending, we had a revenue of €233.1 million. That is, of course, impacted by the termination fees from the postponement of Hornsley 4. However, if you adjust for that, then it's still a substantial growth as compared to last year. XG ratio is still at around 50%, i.e. a very solid balance sheet going forward. Utilization, adjusted utilization for the three months in Q2 was 94.1%, which is very, very solid as well. And we are pleased to see that we are above 90% for the quarter. Market cap, 1.7 billion euros. EBITDA also substantially up against last year, again, of course, impacted by the termination fees on the 100-4. We adjusted our outlook for 25 early July, so we took the range up with 103 million. indicative of this termination fee, but adjusting for that, it is still a substantial growth that we are showing. Cash flow from operating activities also up 50 million in the quarter. Backlog stands, as Mikkel said, at 2.5 billion euro. And three months daily average turnover on the stock exchanges, 4.9 million euro. If you look at the P&L for Q2 2025, and still bearing in mind, of course, this termination fee which inflates the numbers, we see very, very solid growth in Q2. Of course, now we have eight vessels on water as compared to four last year when Keebo came in very late in the quarter and not operational yet. However, we see that our operational model is functioning very well. The cost of sales is following the the increase of versus OPEX also even a little bit lower than compared to last year and SDNA, which is a number that we have talked a little bit about in the past where we have increased that number in the past to be able to to operate a bigger fleet and the foundations versus now also showing that that with the base that we have we can operate a a bigger fleet and also foundations versus and more projects as said utilization was 76 percent and adjusted utilization 94 And cost of sales is, of course, increasing with the delivery risks, which is then will peak. Delivered in August last year, so not in comparable numbers with NATO and with PACE. And EBITDA also have a very solid growth from 32 million to 189 million euros. The P&L for the first half is... of course, impacted again by the termination fees that we have received on T4. Adjusted utilization for six months is 89%, also a very, very good number. Revenue increases with the termination fees, of course, but also with more projects and more vessels at and projects we also see at a higher rate than historically. So again, it shows the operational business model is working as planned. If we look at the quarter and the first half, it is as we have expected and planned, I think on all lines. So I think development under very good control, costs under very good control, revenue as expected or above. So it is a really, really strong quarter. No doubt about it. The balance sheet is of course increasing with the delivery of vessels. Also CapEx for the quarter was, as expected you can find, More flavor on it in the notes to the first half accounts. But it is growing with the wind maker. Installments on Ally. It is on the M class vessels of which one was delivered. And it's on the wind keeper that came in. late june with a significant amount but again as planned other current assets is increasing and that is of course again the the termination fees they are sitting in the balance as contract assets we We issued the invoices early July. We got the termination very late in June, hence it's sitting as a contract asset, but it's not a reflection of, it's less certain. It is only a reflection of that we received the termination the 30th of June, so then invoiced in early July. Transmission fees are due here in Q3, so we expect to have a cash inflow from other current assets in Q3. Still a solid balance sheet, execute ratio 50%. As compared to 64%, of course, it goes down as the balance sheet is a little bit more leveraged, but we will not expect the execute ratio to go below 45% around. CAPEX program is expected to be fully funded. What is outstanding now is only the third A-class vessel, the APEX, coming in in 2027. It's a bit early for us to start that. started, you could say, the bend and stretch on starting up a facility discussion on that one, but it's not being delivered until 27, so it's too early to start paying commitment fees, but there is a strong interest from banks to also support the funding of that business. We have a CAS of 51, but of course, we are not taking in the determination fees here. So all in all, the conclusion on this slide is that we have a very, very solid financial situation with cash and available cash, substantially available cash also after payment of the Capex program. As we have elaborated on in the past, our hedging policy is that we hedge 50% of the US dollar exposure on the installments to the yards. And we hit 50% of the interest exposure. And that is a straight policy that stick to what I think has served us very well in the past. Financing overview. We have 2 billion, 2.1 billion of committed facilities. And then the APEX is uncommitted as of now, but we are in dialogue with the banks to also get that financing committed. And we expect to close it approximately a year before delivery. We had the windkeeper bridge facility in Q2, which formed a part of a very attractive business case where we were able to buy the windkeeper at an attractive price, get an attractive contract on it, and fully finance it. We have to sign the takeout facility of 125 million. The remaining part of purchase price and the capex we can finance from the operational cash flow and the already available cash we have in place. Full year outlook, I said it was increased. in early July, on the back of the termination of Honshu 4. The project is now in an outlook of revenue between 588 to 628 million, and an EBITDA of 381 to 421 billion euro. Of course, the full year is impacted by termination fees and timely investor deliveries and execution on projects. Windbreaker and Windpace, which was delivered in Q1-25. And it's already employed in APEC and US. And then there is two additional vessels deliveries coming in, Q3, Q4, WindAlly and WindMover. And as Millie said, it is on time and budget. And then we also start to see the revenue and cost from foundation projects starting to be recognized. So it's the two foundation projects that we have, Haunting 3 and EA2. I would like to also elaborate a little bit on how we show revenue in our numbers. There's two lines. There's a line from... time chart of revenue and foundation work, installation work. That is what is coming from our business and the contracts on the business. Then we have another line, which is other revenue for this first half. It's 120 million euros. That is where the termination fees sits. But the 120 million euros is not equal to the termination fees as there's also... Other services and other revenue in there, it's what you would call sun-dry income. So it's income from accommodation and catering on the business. And there can also be other smaller revenue streams. And you can see in the comparable numbers, there's also 13 million euro in for the first six months in 2024. So it's not a correct conclusion then to say that the termination fees from Horn C4 is 120 million euro. Then I will give the word to Mikkel on sustainability.

Yes, just a slide on sustainability update as well. We believe that that is important to update you guys as well on what is being done. I think we can say that the team has been expanded both in terms of competencies, but also raw muscle to develop what we need to develop. We have had several investors over the years asking us to be vetted and certified on the different schemes. And this is something that our sustainability team is also working on to make sure that we are where we need to be in terms of that. But also in terms of really raw decarbonization on what we do, we have our own targets and we are trying to be ambitious. And the roadmap has been defined also with the larger fleet that is coming in. And the gaps that are needed to be bridged, so to speak, they are being modeled and what to do to reach our targets. We also have ongoing shore power upgrades for the O-class vessels with on-wind Osprey being finalized in Q1. In terms of equipment efficiency upgrades, we are also looking at that on the O-class vessels after the energy audit we did there, and we are planning the execution for the end of Q3. In terms of biofuel, this is also a strategy we're looking at. The legacy vessels will not be able to sail on the new fuel types and their biofuel can play a role. And we have been testing with blending biofuels into the fuel mix to also have that as an asset on the sustainability beta for us and something that we can work with our clients to procure and to deliver on projects as well. And then last but certainly not least, we are also developing a roadmap for implementation of a human rights strategy. And that is something we have based on the old one and to be presented to the board for final approval and then roll out across the company as well. In terms of commercial outlook, I think that our view of the market is that there is a calibration in the market, but there is also a continued momentum. We recognize that there are things that are happening in the market that is outside anyone's control at the moment. But we think that there is a period of recalibration. There has also been targets in every market, basically, that were not achievable with the supply chain we have. So things are being recalibrated. There are also companies that are recalibrating their roadmaps due to local auctions and auctions that didn't go as they planned. Denmark is an example, Germany is an example, the UK had an example of that in the round five, but also due to company specific events that means that companies have to recalibrate what they can do and when they can do it. So I think that what we can say is that We are, you know, I think the market caution is exercised and is prudent. But I think also that we think that conditions and policy improvements are expected, and we have seen some of that in the markets that have redone their tenders and have gotten them right. And I think we have seen improved conditions both in Denmark, but also in the UK. And as many others, we expect that the UK round seven will be a solid round. We saw also the British government coming back with the approval of even projects without permits allowed to be participating in the round. And I think that that's certainly a new for that round for those auctions. So we are seeing that the governments are also trying to play a role in achieving as much as possible by 2030. So some projects are facing delays and timelines are shifting on some projects closer to 2030, where on the other hand, we see a pretty significant pickup again in projects. As I said already, there are important auctions ahead. The AR7 is probably the most significant one. But also we see several new early stage markets beginning to emerge. And just this morning, there were news about offshore wind in Vietnam again. where one of the larger developers is taking now a share in one of those projects. And we see more of that. We see also test projects in Brazil starting to emerge and have been in contact as well with partners in these markets, although this is also again for the longer term and probably more into the next decade. We still have a positive outlook on the long term in the market. And we believe that offshore wind will play a crucial role in the future energy mix for many different reasons. But also that we are seeing that probably 27 and 28 are more challenging now than they were a year ago. Because when one of these bigger projects goes out of the market, then it's for sure that that is playing a role. But what so our strategy has always been to work on projects that are our primary projects, but also always to have backup. And we believe that with the strength of the fleet and the strength of the assets that we will be able to also play a strong role for clients in the market, even in those years as well. And as we see it currently, we have been developing this slide here from last time as well. We see that there is still an undersupply of vessels expected coming towards the end of the decade. And it starts first on the foundation vessels where we see an undersupply in 29 based on the projects that needs to go into the water. We also see that clients are engaging early with these projects with us and with others to ensure the right capacity for installation. But also for O&M and one of the reasons that we announced Nexra in our last call with you guys, It's of course because we have seen that the O&M market is something where we see the clients really asking for support and supply of capacity. And that is across regions where some regions have more access to O&M supply where other regions find it very difficult due to complex sites, deep water, complex soil conditions and the biggest turbines out there. And we do believe that Nextra and our fleet strength can play a strong role in both these spaces. And if we are to look at what is really an efficient vessel, we have talked a lot about this supply and we have shown you how we believe that the supply situation looks in the market, but more on an overall what is in there in total. But I think that here we are trying to say how we look at the situation in terms of efficiency. And efficiency in offshore wind is really days. How many days do you take to install a project? And here we have just said a theoretical project that we have evaluated and tried to program. How long time would it take for two different vessels to install this project? We have said it's 100 turbines of 15 megawatt class. It's 140 nautical miles from the site that we are installing. And it's in the North Sea. If we look at the P-class vessel that can transit with six VTGs per round trip, then we need 17 round trips and 2.14 days per turbine. If we compare that to another standard vessel in the industry, the Gusto engine 9000, then they can transit with two turbines They need 50 round trips, and they need 2.69 days per turbine installed. So if you look at the raw numbers, the raw program, then we would need 214 days to install such a project, and they would need 269 days. But on top of that comes project-related delays. And the longer you take to install, no matter where you start and where you end, you will have longer time and, let's say, a less favorable season. Waiting on weather, waiting on pilot, waiting on tide and stuff like that, that is something that is increasing on the less capable vessel. And we do believe that that is converted into money and the value calculation at the clients as well. And hence, we believe that the stronger assets will be the first ones to be taken in the market because they simply drive a better value proposition to the clients. So trying to take that into the next slide, where we show you the slide we have shown you before, what is the total supply in the market? What is the total supply of new built vessels since 2020? And what is the total supply of legacy vessels? This is a slide that you all should be familiar with because we have shown it before. Cadela is on the left side here with 12 vessels and currently the market leader in terms of number of vessels. If we then try to say, okay, what is the efficient vessels that are out there? And then we are looking at, if we look at what vessels can install wind turbines, then we believe the number looks quite different. If we say what vessels can efficiently install the 15 megawatt class of turbines, then the numbers look very, very different. And at Kettler, we are discounting a number of vessels here in terms of efficient installation, but we believe that we have nine, Daimler with two, Fanord with one, CY7 with one, Jan de Noord with one, Penza Ocean with one, Maersk with one, Shimizu with one, and Dominion with one. But it's a significant reduction from the overall numbers. If we then look at the foundation installation, then it's an even more dramatic number we are looking into, because in terms of efficient installation, then we're looking at seven at Pedlar. We're looking at four at BEMA, and two of those are only for foundations. We're looking at two at One of those only for foundations, and I would say primarily foundations in the Baltic Sea due to limited weather capability. Three at Heremar, one at Seaway 7, two at Jandenul, two at Boskalis, one at Pensa Ocean and one at Saipem. So I think that that is our view on what is efficient vessels and it changes the supply equation slightly and hence also why we do believe that, especially in 29, we see an undersupply of vessels that can do efficient foundation installation compared to the number of projects that will be installed. So we have been asked for it many times, what is our view on efficient installation across the two components, turbines and foundations, and this is our view. I know that if you compound the numbers, we have more than the total number of vessels, and that's because some of our vessels can be converted to both do either foundations or turbines, and hence they are counted in both spaces, but obviously they can only work in one space. So if one is counting them for installing foundations, then one has to discount them from the turbine installation and hence make that space slightly tighter. If we look at the demand for O&M, the reason we entered into that market is pretty simple. We see a steady growth in the O&M market due to a larger installed fleet. And we also see that our clients are asking us for more services in this space. the support on the bigger assets that can handle more complex sites, because this is really where the bigger turbines are installed. And we have seen situations where our clients have only had one or two vessels to select from to do a particular service for the turbines. We are here to try to help our clients and provide them with what they need to do the work. And that's why Nextra is believed to have a pretty strong demand outlook across the years ahead of us. And as we said, the vessels on our side, where we believe that there will be, in the beginning at least, an O&M future, we are looking at Wind Saritan, Wind Silla and Wind Keeper. Silla and Keeper will also have some installation scope to do Silla in the US, Keeper probably primarily in Europe, and then on to a future of O&M. And then the installation vessels will have patches of O&M in between installation work. We believe that the market opportunity, as I said already, is growing and it's growing significantly. We are working to strengthen the Nexford team and I think with the Vestas contract that we now have, not only is that a proof of concept, but also it is really also now the point in time where we can start to build the NextRod team and make sure that we are able to deliver what our O&M clients, they are requesting. We have gotten the question from a lot, why NextRod? Why not just under the Cadillac umbrella? It is still under the Cadillac umbrella, but the reason that it's NextRod is really because we want someone We want a team that can speak the same language as the O&M clients on the other side. And that is something where I think that the first three months of Nextra has shown that that is something that is appreciated by the clients as well. And also good conversations have come from that. We believe that we are deepening the client engagement, not only across the O&M, but also into the installation space by having more touch points with our clients And then of course, the strategic fleet expansion with the keeper. I think we already knew that there was a future for that asset. And hence we believe that both the price we could acquire, but also what we could agree with our client was both attractive enough to make this decision. And hence we did it. And we believe that that will add value to the overall case for our investors. In terms of what the future is for Catla and what we are focusing on at the moment, we are really focusing on building a resilient business with a clear and consistent focus on our core competencies. Also, so we can handle when things don't go to plan. And I think that we are talking about the expansion. We have talked about that for a long time. And I think that the Nexra expansion was an expansion that really... not only is it something that is asked for by our clients, but it's also something that stabilizes the whole Cattler fleet due to an expected utilization stream from Nexra into the installation fleet as well. And I think, as I already talked about, the latest acquisition of Keeper, It's one where we had the opportunity to look at, you know, an attractive price for an asset and an attractive client with a client. Sorry, an attractive contract with a client we know. And those things together we discussed with our board and both we and the management team and the board agreed that that was attractive enough to go ahead with it. But we are, of course, also looking at what is what is what. what is good growth and what is not good growth. And I would say that at the moment we are very, very happy with where we are on fleet size and what we can both across O&M turbine installation and foundation installation. We are working in all the major regions and we are also being asked to be a partner in the emerging markets, which is positive. That has been a strategy for us to be having early looks so we know what is coming, not in the near or mid-term, but really in the long term. But that is a positive sign that we can see that these markets that we expected to come online, they are also coming online as expected. And focusing on strategic partnerships has always been a focus for Cadla, and I think that the latest addition of the long-term contract with Vestas is a further substantiation of that, and also enabled us to maintain our backlog despite the fact that Horn C4 was delayed and hence taken out of the backlog. And then really also monitor and apply new technologies. Here we are mentioning the developing and testing of biofuel and having a strategy for that to really drive down our carbon footprint. But it also is something that will be very relevant for the whole Nexra entity in terms of having let's say more strategy on tooling and tools used for O&M to really make the O&M journey as efficient as possible for us and our clients. And we already are in discussions with large clients in the industry to co-develop certain tools and assets for that that could... And when I say assets, I mean the things that we need on the Jacobs to efficiently do the maintenance, which can, for example, be a flexible sea fastening that can range across different turbine types, for example, so we can service different components as fast as possible and as efficient as possible. So in terms of investment highlights, still sitting on the largest and most capable and versatile fleet in the industry. And we believe that the complementarity on the fleet really enables to cause utilization, efficiency, and project de-risking across the three different legs that Kettler stands on today. very experienced team. And as Peter said, we are now where we would like to be in terms of being able to execute across different things. And I think also the team has shown its flexibility and its versatility by also enabling the onboarding of Kiba at record pace and still also having it manned at record pace and getting it back to Europe, strong technical plan for the upgrades and getting it to work in the early part of next year. a resilient global platform that can handle these shifts in the market that we see. Some of them are really unfortunate and we are trying the best possible way to support our clients with stabilizing as much as we can. And that is what the Kettler fleet can do, but also what our team can do. We can think out of the box when things go not to plan and we are looking forward to continue to support our clients when things don't go to plan. As I said, an undersupply of especially foundation vessels from 29 and onwards, and we see an increasing market demand, especially to the end of this decade and beginning of next decade. So still I believe in the long-term story for offshore wind and for O&M in general also in the market. With a larger need for electricity in the market, that is something that we still stand firm on. We have a strong track record in the capital market and a record high backlog. And we believe that that creates earnings visibility for our investors. And we continue to focus on being a good custodian of capital. So with those words, thank you for listening in. And now we open up for the Q&A.

Thank you. At this time, we invite those analysts wishing to ask a question to click on the raise hand button, which can be found on the black bar at the bottom of your screen. You may remove yourself from the queue at any time by lowering your hand. When it is your turn, you will hear your name called and receive a prompt to be promoted. Please accept. Wait a moment and once you have been promoted, you may unmute yourself and ask your question. We encourage you to turn your video on as well. We will wait one moment to allow the queue to form. We will take our first question from James Franklin with Jefferies. If you could unmute your audio and ask your question.

Hey, guys. Hopefully you can hear me okay.

Yes, we can hear you, Jamie.

Hey, so firstly, I've got to ask on Revolution Wind. So I know, obviously, it's only a very small part of your backlog now, but just wanted to get a bit of colour on what the potential impact could be to Cadilla if this project remains halted, for example, if it stays halted for a month, or what would ultimately happen if the contract is cancelled. So do you have any contractual protection in place Firstly on Revolution Wind and then secondly on Sunrise Wind, please.

Yeah, I think what we can say is that contractually we are as well protected as you can be. And that has been discussed before because the fact that the market here is difficult at the moment is not a surprise, I guess, for anybody. So the contract we have on both Sunrise and Revolution are contracts where I would say there's a lot of protection in them. At the moment, what we can say about Revolution Wind is that we are in dialogue with our client. The only reference point we have is Empire that was halted for around about a month or so. And then it was restarted again. The question is, will the same happen here? Nobody knows at the moment. So I think that we are here and we have said to our client that we are looking to support them to the degree we can. with the installation of the project. That's the only logical outcome of this. This is that revolution is completed and providing clean energy to the citizens of the US. But I think that nobody really knows today what is happening. So we have been told that we should stop working on revolution and comply with the stop order and that we will hear more. That is what we know today.

Okay, got it. Thank you, that's helpful. And then secondly, I just wanted to talk about WindKeeper. So you gave a bit of commentary on your capex in the first half of the year, which included various construction payments for the new builds. But talking about 2Q specifically, is it fair to assume that the majority of that capex related to WindKeeper and there was no sort of other major construction payments? And then second part on Windkeeper is if you can just give us a bit of colour on the upgrades that you're expecting to make on the vessel. So not just in terms of the value, but if you can give us a sort of picture of what the physical upgrades are likely to be. Thanks.

Thank you, Jamie. Let me answer the first part of the question and then Mikkel can answer the second part of the question. Yes, it's fair to assume that Q2 CapEx is a good key, but there's no... you know, unplanned capex in Q2 or first half, it is really the installments that is in the contracts with the yards. And then when Kibo, of course, came in with a big number in Q2. So your assumption is correct.

And in terms of the upgrades, upgrades we are doing on keeper is upgrades that will enable the wind keeper to work in in european waters like what we see on other vessels so The Wind Keeper has been built by a company in China that had an ambition of working in Chinese water and also in international waters. But there are things that they have done in the design that we would have done differently if we had started the design, so to speak. And we are trying to rectify some of those. I cannot give you all the details, but some of the things that we are doing is that we are, for example, putting a new auxiliary crane on the vessels. the current auxiliary crane is in the way of the way we do a deck layout for efficient O&M but also for potentially installation work. We're also adding a new bow thruster to improve the DP blood for North Sea operation and we are also working on the leg guides to get more capacity out of the very nicely long legs that this vessel has that enables her to work on very very deep water depth and very complicated soil conditions. We're also recertifying the main crane under an international classification society, which means that we can do a better lifting curve with the crane. And then a general accommodation upgrade that will make her similar to our other vessel standards and also to what our clients can fairly expect from a Kepler vessel. So in highlight, those are the upgrades we are looking at.

That's great. Thanks. And then final question then. With regards to Windkeeper, were you actually sort of actively looking for an O&M vessel or was this basically just an opportunity that came up at a good price and you went for it? And have you seen sort of other similar vessels in the market in Asia? Thanks.

Last question first. We don't see similar vessels. And I think the Windkeeper is pretty unique in terms of how it's been built. It's been built with a lot of international components. So there's a lot of, let's say, read across to other spare parts in the Kettler fleet, for example, on the Huisman crane and so on and so forth. So we have looked at other Chinese assets, but mainly due to the fact that we got the questions from investors a lot. What if these Chinese vessels are coming to Europe, suddenly starting to compete internationally? that actually made us look into all these vessels what is out there how can it be done how would it look if they came and what would need to happen to them if they had to be upgraded and the conclusion was clear it's very very hard to upgrade the vessels that have been built particular for the domestic market in china because they have been built for a different installation methodology that almost would make it easier just to build a new vessel rather than to try to retrofit to Europe with one of these assets. The exception was Keepa, but it has been offered to us for a long while, more than two years, but the price started in a different area. I think that our interest in Kiva started really when we were contacted by the lenders of the vessel. And we could see that we could acquire the vessel at a price point where we believed that we could also build an O&M business case on the vessel. And at the same time, we had a dialogue with a couple of clients that were in need of that O&M supply service. already starting next year. And hence, since there's very, very limited availability this year and next year in the market, we had a dialogue with some of these clients and said, this could be an option. Is that something you would go for? And if you wanted to go for it, how would you do it? And that is what led to the decision. So that is very transparent, sharing how the decision was made.

Okay, that's great. Thank you very much. And well done on the strong results. I'll hand it over. Thank you.

Can we force stop the presentation so we can see the speaker, please?

Our next question will come from Ruel Hartfysen with Clarkson. Please go ahead and ask your question.

Sorry, Dana, can you? Thank you. Thank you.

Hi Mikkel, hi Peter. Congratulations on another strong quarter. So first, just to follow a bit up on the first question that came in on revolution in Chile. And I know it's still early, so probably no firm plans yet, as you alluded to, but do you see the potential for alternative work scopes for the vessel amid the stop order? I guess more specifically, Sunrise Wind is in the same area still progressing. Do you think there is a scenario where Shilla moves over to help out with work there while awaiting clarity on the stop order? Or are there roadblocks making that prohibitively challenging?

I think first and foremost, our client don't wish that. So the vessel is mobilized for the installation of revolution and sunrise. And hence, if we work on something else, we have to demobilize from these projects. because we are working with a Jones head compliant box that is landing the equipment on the Jacob and then we installed from the Jacob. So it is not so easy to just go and work somewhere else. So I think it's fair to say that our client don't wish us to go and work somewhere else now. But that is certainly something we would have considered if it was possible also to minimize the impact for our client. I can say that after this news came out on Friday, we have been called up by some clients that is interested to hear whether that vessel then becomes available because there is at the moment today a shortage in the market on capacity in projects also in Europe that is already in installation. And hence, I believe that if the vessel comes free, which I don't believe or hope today, I would like to make that clear, then I think that it could be repurposed to another project.

Thank you for the color. Furthermore, we have over the last year or so seen a number of contract terminations for turbine installation vessels where the turbine installation vessel operator have benefited significantly from large termination fees. And I guess many would also place you in that category. My question is, in that context, Do you see more pushback from developers to sort of lower termination fees on the contracts being signed and negotiated now and in the time ahead? Or are you still of the impression that the levels for termination fees in the contracts remain fairly stable from the contracts that were signed one, two, three years ago? And yeah.

I don't see that at the moment, but I would also say that the backdrop is very short still. So if it's coming, it's probably not seen it yet. But I think that the flip side to that coin is also that for us as a vessel provider to log in the vessel and not being able to do anything else with the vessel, it comes with a cost. It's an option and an option has a price, right? So it's something that you can calculate the value of an option. And I think that that is how we are looking at it as well, because we can also say to our clients that projects have been delayed and hence we need to protect ourselves if that happens. We cannot just sit with nothing if it happens, because then we become the losers in the grand of play, so to speak. So I think that we still have very fruitful dialogues on this, but And it's a two-sided sword, almost, you can say, because one thing is, of course, to have the protection and the termination fee. The other side to that is also to try to really bet on the projects you believe on as well. And so there is work on our side to be rightly placed for the right projects. And then, of course, also to... not always look for the last dollar, but also look for the right conditions and the contracts, I would say. And I think that that's something that is still working fairly well for all parties in the industry. And I would like to say that termination fees as a contractor, you're happy they're there, but you really don't want to have them. You would like to do the project instead. The same goes for Horn C4. We would have loved to do Horn C4. We would still love to do Horn C4 when it comes back.

Yeah, makes sense. Thanks for your time, guys. That's it from my side. I'll leave the floor to the next one. Thanks, everyone.

We have no further questions at this time. Thank you for your participation. I will now hand the floor back to Mikael Clearup for any closing remarks.

Just thank you for everybody listening in. Good to speak to you again and reach out to us separately. Alexander, Peter and myself, if there's any additional questions. I'm sorry we cannot give more detail on revolution, but I think everybody can understand that it's very new for everyone. and that we are working with our client as much as we can in this sad situation that our client is currently in. So we will update you as soon as we know something that we can share. But thanks for listening in now, and have a good day ahead.