Bonheur Asa

Good morning and welcome to the first quarter 2024 presentation for Bonner. My name is Annette Olsen and I'm the CEO of Bonner. I have with me here, as you know well, Richard Olavo, our CFO, and he will present the main figures. We also have, as usual, our CEOs for the different subsidiaries of Bonner, and they will take their turn in presenting to you. Today, we have three relatively new CEOs that will present for you. It is Sofie Olsen-Jepsen, responsible for Fred Olsen Renewables, Per Arbid Holt, responsible for Fred Olsen 1848, and Håkon Magne Ore, responsible for Fred Olsen Wind Carriers. In addition, Lars Bender will, of course, present Fred Olsen Sea Winds for you. So with that, I will give the word to Rikard.

Yes, thank you, Amette. and also a hearty welcome to this conference call from me. I think before I go into the numbers, I would like to give you a little bit of the market backdrop of the main markets Bonheur is present in. I think if you... Look at the first quarter results. These market trends give a very good description of what were the backdrop of the results. First of all, the energy markets. We see that the steep decline in natural gas prices, coupled with the high inventory of natural gas, have driven the cost of electricity down in Europe to a large extent. And that also impacts electricity prices in all our main markets, as you see coming through in the results. So we see a weaker power price market than we have been used to the last few years. On the other hand, we see a quite buoyant market for our installation business, with a lot of delays and movements in the schedule in the short run, and also a strong pipeline building up in the long run. And also the cruise market is quite buoyant, as we see coming through in the booking numbers. So that's the market backdrop of the results. When it comes to the operational backdrop of the results, we have quite good operations underlying this quarter. However, we have, especially in the wind service segment, one vessel, Brave Turn, in yard in Spain, out of service, and one vessel, Blue Turn, has been in transit between two projects impacting the result this quarter. Also cruise, we had some special operational issues this quarter due to the geopolitical situation in the Middle East, where we had to change our plans and reroute vessels in the quarter with additional costs impacting the cruise. So that is a little bit of the macro sentiment, the market backdrop, and what are the main things impacting the result, which is a good backdrop when we go into the numbers. Starting out with renewable energy, we see that EBITDA is down from slightly short of 800 million, down to 476 million, a drop of 288 million, mainly related to lower prices, which is on average 39% lower than first quarter last year. But we will come back to the main market drivers in the third presentation. On the offshore wind, we are progressing both the coddling and scoping projects and Lars will come back to that in his presentation. The main focus there now are on the consent applications. When it comes to wind service, despite one vessel in yard, Brave Turn in Spain and Blue Turn in transit between Scotland and the Baltics, we still deliver an EBTA of 174 million down from 206 first quarter last year. Backlog is strong, 514 million euros for the turn vessels and 105 million for the blue wind vessels. I also commented on the break turn at the yard, and Håkon Magne-Ore will come back to that later in his presentation. On the cruise, we have an EBITDA of 2 million, which is more or less on par of first quarter last year. Occupancy slightly up, net ticket income prices slightly down, and I'll cover more details on the cruise at the end of the presentation. On the strong side, we see that the booking numbers are coming in strong compared to last year. Other investments, EBITDA more or less on the same level, largely overhead costs and investments into 1848, and a small EBITDA loss in NHST. But I will come back to the investments and the technologies in Fedorsen 1848. I will cover the consolidated results on the next slide, but just a quick note on the parent company, standstill at an equity ratio of close to 70% and cash in parent 3.5 billion at the end of first quarter. So the consolidated summary, revenues of close to 3 billion, same level as first quarter last year. And you may ask, why can you have revenues at the same level with this steep drop in the power prices? Well, the explanation is really related to the blue wind vessel, where we have high revenues this quarter and also higher revenues in the cruise lines, also driven by a strengthening of the pound. That we see on the OPEX as well, that OPEX is going up with 304 million. That's also mainly related to taking in also the OPEX on the blue wind vessel from Shimizu and somewhat higher also OPEX in cruise. So EBITDA is down with 330 million, mainly driven by lower power prices. Depreciation corrected for currency is more or less of the same level at 279 million. Net finance this quarter is very positive. Normally, you would expect a negative figure on net finance. This quarter was a positive 114. It was also a positive first quarter last year. This is mainly unrealized effects in currencies and also the interest rate swaps in renewable had a positive value development in the first quarter this year and the same as first quarter 2022. So earnings before tax came in at 425 million. Then the tax cost, we pay largely tax in the UK on the renewable side and also in the operations for wind care in Taiwan. So tax costs at 122 million and the net results of 304 million, which is 262 million down from first quarter last year. And again, mainly driven by lower poll prices. One small note maybe worth mentioning is on the net interest-bearing debt. We had a good development in working capital this quarter, so the net interest-bearing debt on a consolidated level is down by close to 500 million kroner year-on-year on a consolidated basis. The revenue side, again, stable revenues. And you see here a more detailed breakdown of why we have stable revenues. Renewable energy down at 445 million, mainly related to power prices. When we look at generation, generation is also lower than P50, but also somewhat compensated by curtailment. So generation is not a big explanation. This quarter net of curtailment, it's really the prices. On the wind service side, we have the Shimizu vessel, but also strong start of the year on the revenue side in global wind service compared to last year.

Cruise, high rock impensity, but also currency effects driving up the revenues.