Bonheur Asa

Good morning and welcome to the third quarter presentation for Bonheur. My name is Annette Olsen and I am the CEO. As usual, our CFO, Rikard Olav Å, from Fred Olsen and Company, will present. And in addition, we have the CEOs for the subsidiaries that each will have their presentation. At the end, we will open for a question and answer session. So go ahead, Rikard.

Thank you, Anette. And also a hearty welcome from me to this third quarter presentation. Before we go into the numbers, the quarter has been an okay quarter with improvements across all business lines and also all the major companies are making healthy EBITDA profit. That being said, we also have a quarter where the asset utilization is not at 100%. We had one big wind farm out due to fire by one of our suppliers. We have one vessel in yard in wind carrier and utilization in cruise lines is still only at 78%. So there is still a lot of potential. But with that, we can go into the numbers. We have operating revenues at 3.6 billion, which is up 400 million compared to the same quarter last year. EBITDA improvement of 138 million, up from 800 to 938. And EBITDA improvement of a little more than 100 million, from approximately 500 million to approximately 600 million. A doubling of net result after tax from 172 to 350. And I'll come back to the tax effects this quarter. Parent company remains, according to policy, very strong with an equity ratio of close to 76% and cash in parent at 2 billion at the end of third quarter. The highlights in the quarter, and here the CEOs will come back to these bullet points, so I will only make a swift comment about them now. But starting from left to right with renewables, improvement on EBITDA with 20 million to 263 million, despite 25% lower power prices. This is a result of higher generation, despite, like I said in the beginning, one of the largest wind farms, Midhill, have been out of the production for the full quarter. Sofia Jebsen Olsen will come back to the details on that. Very proudly, we won two power contracts in the CFD allocation round six, which will then enable the building of Crystal Raid 4, which we already had an FID on, and potentially also Windy Standard 3, which will be covered later in the presentation. Also, a very important milestone this quarter, the consent application for the Coldling Wind project, a document of more than 11,000 pages, a massive piece of work, which is for the planning permit for the project to hopefully go ahead in the not-too-distant future. Windcarrier is really driving the improvement in this segment from 399 to 435, but also good results in global wind service and UWL this quarter. Åke Magne-Ore will come back to development in the backlog and a potential new contract. But also, like I said in the start of the presentation, a strong result, but one of the vessels at the full yard stays. So the utilization of the turn vessels is only 63% in the quarter. Cruise, also an improvement in EBITDA from 213 million to 255 million. It's improvements across the board. It's a slight improvement in occupancy. It's a slight improvement in ticket income. And it's a slight improvement in costs. So a marginal improvement across the board. But still, 77% occupancy in the peak season is a too low number for cruise lines. And on that note, it's very good to see that the cruise lines organizations is able to increase booking. So their booking numbers now at end of Q3 is 15% higher than compared to Q3 last year. In the other segment, an EBITDA of minus 15 compared to minus 56. The main driver for this improvement is a much better result in the media company, NHST, which had an EBITDA of 57 million this quarter compared to 4 million same quarter last year. A lot of cost cutting is the main driver behind this improvement in results, but also some improvement in the advertising markets. On the financial side, we redeemed a bond loan of 800 million in third quarter and we issued a new bond loan in October of 950 million. And we're very happy that we were able to do the new bond loan at the lowest margin we ever have achieved. So it's a strong demand for Bonaire bonds currently in the bond market. Then we have Fred Olsen 1848, which will be covered by Per later in the presentation, and also Fred Olsen Investments that are progressing with their investment activity. This slide is a new slide in this quarter, and you may have seen that we have modernized the slide and made them which we think are better, and this is a completely new slide. I think it's a lot of good messages in this slide. And if we start to the left with the revenue development, and here we go back to fourth quarter 2017 and up to third quarter this year. Why have we chosen this time period? Well, we want to see a time period pre-COVID and the time period post-COVID because that had a significant impact on our business. especially on the cruise business, but also on the renewable energy. If we look at pre-COVID, we had revenue on approximately level between 6 and 8 billion and quite evenly distributed across the business lines. Then COVID came and cruise lines went to zero revenue. Also, energy prices fell and we also had low utilization in the wind service segment. So revenues dropped actually below six billion during COVID. Then coming out of COVID and of course, raising energy prices. The renewable energy segment really drove up revenues. And we now also see that cruise lines is coming back. Wind service is generating strong revenues across the board in Fovik, in global wind service, and also in UWL. So we see now a completely new revenue level compared to pre-COVID. So we're now up between 10 and 12 billion in revenues on a 12-month rolling basis. All right, but revenues, you don't make profit only from revenues. You have to manage your cost and investments and so on. So when you take a look at how this has transferred into operating results on the right-hand side, we can also see the trends from the left are even more reinforced in the EBITDA. So pre-COVID, we see an EBITDA of around an average of around 1.5 to 1.6 billion. where renewable energy is really carrying the big part of that EBITDA. Small contribution from cruise and a small contribution from the wind service sector. Then during COVID, obviously, cruise lines, large losses, falling energy prices, and also not the best utilization in wind carrier. So then down to an EBITDA level, slightly more than 500 million on a rolling basis. Then coming out of COVID with strong energy prices, we see renewable energy really shooting off, while the contribution from the wind service is small and cruise is still negative. Then we see renewable energy going down on the drop in energy prices, but then cruise line is coming back with the modernized fleet. And also wind carrier coming into the market with much better rates, much better utilization and much better results. So we are now at an EBITDA level on a four-month rolling basis from the peak of the renewable energy prices. And the last couple of years, we are now between three and a half and four billion in EBITDA. And all three business segments are contributing significantly to the CBTA. So when we take on this more historical perspective, it's a quite interesting perspective. And we also felt it was important to convey this picture to you this morning. Then going back to the quarter, again, we see strong revenues in the quarter, despite two significant assets being out of operation. Revenue increase is mainly in the wind service segment. While we see the EBITDA increase is spread across all three segments. And again, all companies are making good profit in the third quarter. Net finance on depreciation, slightly higher. Net finance needs a comment. 3Q23, we had significant unrealized losses on financial instruments, mainly related to the interest rate swaps in renewables. Well, when interest rates are dropping, we have to take down the gain we have on those swaps. It's still a large gain in the balance sheet, but when interest rates are coming down, it will be a loss. So that was really impacting the 213 million last year. We still have some of the same effects this year, but we also have positive currency effects. So the net finance is a loss of 165. Normally, without these unrealized gains and losses, net finance should be at the level slightly below 100 million per quarter, given the debt level across the group. So that takes us to an earnings before tax of 438, which is an improvement of 154 compared to last year. Then tax cost is actually coming down despite a stronger earnings before tax. And the main reason for that is that we now have good profits from vessels in the tollage tax systems. All three cruise vessels, Braveturn and Volturn, are in the tonnage tax systems while more of the result in 23 came from the wind farms in scotland where we pay tax so that makes the net result to 350 which an improvement of 178 million and more than a doubling on the on the net results so to the financial position of the group um in addition to um improvement in the results. We see a strong deleveraging across the board in the group over the last couple of years and also particularly strong this year. So I will not go through the financial policy now. We have refreshed it and made it more, what should I say, easily accessible to the left. But we will not go into that now. That will save for later. But there's nothing new there. But just looking at the numbers and the deleveraging, we have... Been true now, we look at the 100% owned entities. We have a cash position of 4.8 billion at the end of the quarter and external debt of 2.6 billion. So we have net cash of 2.2 billion. If I go back to the earlier slide I showed you when we came out of COVID, that was a complete different picture than the 100% owned entity had more debt than cash. And what has really changed, you can find in the wind service segment, which now sits with 1.7 billion in cash and external debt of close to 400 million. So a net cash position of 1.3 billion, while that was in a net debt position all up to last year. Same with Cruise, generating good cash now and has a cash position of 738 million by the end of the quarter. And the external debt is only the remaining payment on the seller credit to Holland America Line. So a net cash position of 633. Bonneur, the mother company, has always been fairly balanced between cash and debt, and we still are. So we paid down the bond loan. So that took down the debt and it also took down the cash. But that will reverse itself now in the fourth quarter with a new bond of 950. So that will increase both cash and external debt for Bonneur Assa in the fourth quarter. On the less than owned 100% entity is not any big change on the renewable energy. Those are the long-term loans related to the UK wind farms. So they are just amortizing as planned and the wind farms are generating cash. While we see a big change on the wind service, also there with strong deleveraging, both in UWL, but also in particularly for Blue Wind, which have been generating good cash the last periods. So all in all, a very strong situation on the 100% old entities and as planned on where we have the joint venture and where we have the significant debt in the group of companies. Finally, and also what's very important for us and also particularly us that work with the financial reporting, we are from next year, or actually for 2021, This reporting year to be reported next year by law need to be compliant with the new ESRS reporting standard. So I just give you a short update where we are on that. I think we are in good shape. So what we are working on right now is this double materiality assessment, which is really the building block for everything in this reporting system. So that is how we impact the external world and how the external world may impact us. So we're doing this for all the subsidiaries and Bonheur ASA. And it's building on the same we did last year. So that is work in progress now this autumn. Then as the one that have read our ESG report carefully, you see that we have a disclaimer on the scope three reporting for CO2 because that has been very difficult. And I don't think there are many companies that have this fully in place, but we need to get it in place. So we have acquired a software that can help us do this scope three reporting much more efficient and get this in a much better place than it has been. Then to comply with the ESRS, we also need some new policies into the ESD statement next year. We need to refresh our environmental policy, our social policy and our governance policy and tailor them to the reporting requirements. But I was also very much like to emphasize on this slide that what we do at the model company level is one thing. That is a lot to do with reporting. But what is really matters is what happened in real life in the subsidiaries. So we have taken a position that the subsidiary reporting is actually the most important in real life and what the subsidiaries actually do. So to have a strategy process integrated with the strategy in the subsidiaries on sustainability is really important. And we also are transparent on this and publicize the sustainability report for all the major subsidiaries publicly. So that's where you really should focus when you look at what is really changing the needle on sustainability and makes us drive this forward, because that's where we're close to where the action is. So by those words, I hand back to you, Anette.

Thank you. The first company that we'll present this morning is Fred Olsen Renewables. And Sofia Olsen-Jepsen, the CEO, will do so.

Thank you. Thank you very much. Moving on then. Our highlights this quarter is that we have had moderate power prices, but there are indications of an upward trend. We have increased power generation as there has been high wind, and this is very good considering that Mid-Hill has been out of production due to a transformer failure, which I will come more into. And as Richard mentioned, we've been successful in bidding for CFD for two of our wind farms, which I will also cover more in the next slides. As you know, we in Fred Olsen Renewables have a full cycle business model where we develop wind farms and energy farms from cradle to grave. And if you look at this graph to the right are our 12 operational wind farms, and then we move more into the future as we move left. We have one wind farm under construction, Crystal Rig 4, and then there's an overview of our consented projects that we are working on to move towards construction. We have a large development pipeline of four gigawatts and also a significant amount of site investigation, et cetera, going on. Moving on to the market, we are delivering renewable electricity. So why do we spend a lot of time in this graph talking about the gas prices? Well, as you see and might know, the gas prices and the electricity prices are very much linked. And after the invasion of Ukraine, the EU put targets on the gas storage levels. Right now, we are at a situation where those targets are 90% fulfilled. storage levels prior to their November 1st deadline, which is a sign that there is a tightening LNG market. We do also have increasing cold prices. And with the winter temperatures coming, there might be an indication of an upward trend in the electricity prices. And you can see this from the lower left graph on this slide. The prices do however remain sensitive to geopolitical tensions and escalations in the conflicts that we see around the world. If you look at the graph on the right hand side, this shows the development of the power prices in our markets. And as you see, the prices have stabilized at a slightly higher level than they were at in 2020. Moving on then. This quarter, we increased production with 11% around that due to high winds. Midhill was out of not generating during the quarter. There was a transformer failure at the external SSE transformer substation, which meant that the grid operator could not receive our power from the wind farm. So we have had to shut down production. We are currently very much in dialogue with the grid operator to support the process of getting a transformer replacement in the best way that we can. We do have an insurance claim in process, but we've not booked any claim revenue in Q3. There is a 30 days deductible for the insurance, and then we are should be covered by this insurance that we have across all our wind farms. Good news in the quarter. We had a successful bidding on a contract for difference in the UK allocation round six. A contract for difference that is a 15-year fixed price for the electricity that we produce. deliver and that we get the price we get from the UK government. If the power price falls below this level, because the level is set by a competitive auction, where a strike price is defined. So if the price falls below the strike price, then we will still receive the fixed strike price. If the power price goes beyond or above, then we will have to pay that back. We were awarded a price of 50.9 pounds per megawatt hour in 2012 prices. That equals 71 pounds per megawatt hour in 2024 prices. And we're very happy with this as the Beringa estimates for the same period was 50 to 60 or is 50 to 60 pounds per megawatt hour in 2024 prices. And forecasters like Volu are even below this. The two projects that were awarded were Crystal Rig 4 and Windy Standard 3. Crystal Rig 4 is already in construction. And as you see on the picture on the right hand side, we are here installing The first anchor cage, which is in the middle here, it's a gravity-based foundation. So all of this area here will be filled up with concrete in order to support the wind tower and the nacelle coming on top. Both of the projects are in scope of Windfond 1 acquiring 49% ownership. Going into a bit more detail about Crystal Rig 4, which is under construction, it's in our Crystal Rig 1 area, which we like to call it, where we already have three adjacent wind farms. And the construction of roads that we have is well matured across the sites. The roads are going out to all the 11 turbines to be constructed. We also have some requirements to fulfill from the Scottish Environmental Protection Agency. And I think one of them that is interesting to mention is whenever a road crosses a small river, we have to take care of the fish that live in the river. So the river is electrically stunned so that the fish are quiet for 10 seconds and then we gather them and move them away for rescue. For each river that we cross, 150 small fish are rescued in this way. So it's really environmental protection in action. Then we are progressing well on excavation for turbine foundations. And the felling of forest for construction is nearly completed in the eastern array of the project. And we are opening burrow pits. Windy Standard 3 was the other projects that won the contract for different auction. This is a proposed extension to also a cluster that we have with Brockrock Rig 1 and Brockrock Rig Wind Farm already operating. It's important to mention that there has not been a financial investment decision for this project yet, but we are continuing to mature the project and the business case now going forward through the pre-construction phase. So to sum up, again, main points this quarter, and that's all for me.

Thank you. Next company to present will be Fred Olsen Siebelman with CEO Lars Bender.

Thank you Annette. I will give a walkthrough of the highlights for photo concealment in this quarter. And I think it's been a good quarter, good progress on our project activities, but I think one specific event will dominate my presentation today, and that is the submission of the consent application on Kotlin Windpark. We have, over the last three years, taken Kotlin Windpark through several significant delivery milestones, starting with the maritime area consent, which gave us an exclusive right to the site, We achieved full grid access for the full capacity of the project. And last year, we got a fixed price contract, a CFD, for 20 years for the project. Now we have submitted the consent application. So we can be very satisfied with the progress of the project overall, but also satisfied Very proud of the fantastic work done by the team, not only to submit the consent application, which is, as Richard alluded to, a significant piece of work, but also delivering milestone on milestone in relation to that project. I will later in my presentation come a bit back to what the consent application means and the process going forward. But before that, a short status and update. We are engaged in three core markets, Ireland, Scotland, and Norway. In those markets, our core activities and core projects is Kotlin Windpark and Miobor. I will come specifically back to both of these projects. But a short comment on Norway before that. We are still in Norway in a waiting position. We are still awaiting the framework around Utsjanoa and also the support regime. So, No news there in this quarter, besides that we are patiently waiting for an update. Turning to Kotlin Winpart, as I alluded to, a significant milestone. The Kotlin... project has submitted a consent application and a consent application consists of two main parts. One part is a detailed overview of the project, what we intend to build and how we intend to build it. So that includes layout of the site. It includes details of the sign. So that's the one part. The other part is a very detailed environmental impact assessment, basically substantiating which environmental impact the project will have on the surrounding environment. that is a work that has been going on for several years it has very much been informed by detailed surveys on site detailed investigations and then all of course coming into one application which we have now submitted we've done a very thorough work it's a very robust application we've submitted And therefore, we also have significant confidence in our application and also a consent at the end of that. In relation to the process going forward, given we've now submitted the consent application, this will now undergo a determination period by the consenting board. In that period, various stakeholders can submit observations we will then have an opportunity to respond to these. And at the end of that process, the consenting board will issue a so-called consent determination, which is basically the final consent and building permit for the project. On the back of that, the project will face a risk of judicial review. A judicial review is basically a legal process where a person or an entity against the government raises a legal case on the process around the consent. We are not as a project or as a company party to such a process, but it is a risk that we naturally have to cater for. Both when we talk about the consent determination period and the potential risk of a judicial review, the timing is currently uncertain. And that also means that we have to cater for a rarity of potential timings for the project. And as I've alluded to before, the way we've dealt with this is in a very prudent manner where we have a flexible development timeline and schedule for the project. So we can deliver a project early if the project takes a shorter period of time. We can also deliver a project later if the timing of the consent takes longer. So that is very much the work that's ongoing now in the project, focus on design, focus on procuring with the aim of retaining a significant flexibility so we can cater for the consent period that we are now facing. Turning to Scotland and Muir War, we have had good progress over the quarter, and that means we can still look forward to submitting a consent application this year on Muir War. And that also means the project remains on track for being one of the first movers in relation to floating offshore wind in Scotland. In addition to that, we had a bit of positive news from AR6, the CFD round, where the floating wind projects that bid into that achieved a price of 140 British pounds in 2012 prices, which is equivalent to 193 British pounds in 2024 prices. I think overall that has been perceived and also by us as positive news. It underlines that there is a willingness to pay in UK for developing and industrializing floating offshore wind. So that naturally supports the market as such as a good market to develop and industrialize floating offshore wind in. So overall, in summary, a quarter with a lot of work but also good news and good progress. So with that, I'll leave it back to you, Annette.

Thank you. Next, Håkon Magne Åre, CEO of Fred Olsen Wind Carrier.

Thank you, and good morning to everyone. If we start with the three highlights of Fred Olsen Wind Carrier this quarter, First point is yet another quarter with steady operational performance. You see it in the statistics. You also see it in the financials. But I think we set a new company record this quarter, which I think highlights the performance of our assets and not at least the team. On Baltic Eagle, we completed four turbines in four days. Normally, the rule of thumb is that you use three days on average per turbine. This comes despite this project having significantly soil conditions with penetration of the legs into the seabed of more than 30 meters. The market remains the same as we have pointed out the last half year. It's a tight market, but it's also a dynamic market being driven by value chain issues, which again, in fact, delays in the project. And the last point is more for you to take notice of, that we have a higher than normal planned yard stay the next 90, 12 months. If you go into what the vessel has done and what they will do, we can start with Bolton. She has been in Taiwan now for four years. She completed the Song Neng project in August. And then as we saw better opportunity the next years for the vessel in Europe, we started to take her home to Europe. When she arrived here in November, she will go into yard to strengthen the vessel so we can make a more generic sea fastening for the different 15 megawatt turbines. Brave Turn, she has stayed a little bit longer than we would like to see at the yard being upgraded, but we are coming to an end. Upon that, she will go directly to install the last turbines on energy of Scotland. Blue Turn, it completed the Baltic Eagle project in August, went direct on to a medium-term O&M campaign, which is expected to last throughout January. At the end of that contract, she will also go to yard. Different things. We will have to renew an insert in the crane. We will do some preparation for class. But also, you have to take into account that this vessel has worked non-stop for three years. Back-to-back on contract for three years. Most of them in very challenging projects. So she also needs some maintenance. Blue wind. We completed the Yunlin project. We completed the foundations in July. The vessel was remobilized to do turbines. The last turbines was installed now in October, actually ahead of the firm contract expiring. That led the client to terminate for convenience. But as we state, it has no financial impact on us. It has something impact on the booking. So if you go over to the quarter and the financials, As I started with stable operations, stable uptime, we sold 96% of the days we had for sale. But with one vessel in yard for the whole quarter and the start of transit, the commercial uptime, the days we are invoicing was 63%. Our EBTA for the quarter was 29 million. That takes us to over the 100 million mark year to date. As I mentioned, we have seen some delays on the major upgrade program for Braveturn in Spain. And we expect to complete it within very short. Yeah. So if we then go over to backlog, the reported backlog is not so much change. For our own vessel, it stands at 288 million, no new contract in the quarter. But we have signed a reservation agreement for work in 25 and 26 that is not included in this backlog. On the BlueWin, just to take note, a little bit more accounting also, that the next contract BlueWin have, the high long in 25, that will not go through our books because of a different contracting structure. So then it's not also reported in the backlog. As I mentioned, the market is tight. There is limited vessel availability the next years. And we see that the value chain continues to struggle and that impacts projects, timing of projects, which again impacts the demand for our services. I think another trend which consists the client are increasingly at least willing to discuss and look into longer term contracts, a fixed period or bundling different projects to get the visibility on the rest. That goes both for installation, but also the maintenance segments. We also see that clients are wanting to discuss best availability on a longer term basis than what has been normal. The normal has been two to three years ahead of the work. Now we see they are engaging to do work in 29 and 30 and even longer. As you may have seen, the first contract for work in 2030 has already been entered into by some of our competitors. So I think that concludes my prepared remarks. And give the word back to Anette.

Thank you. Next, Fred Olsen, 1848, and CEO Per Arvid Holt.

Yes, thank you, Anette, and good morning. Yes, so if we move on, we can go to the next one. Brief status and updates from 1848 in this quarter. We have on the floating wind side on Brunel, we have achieved the basic design certification on our floating foundation. So that is a major achievement for us. Going a bit more into detail to that, so that's a a add-on on the concept level certification that we achieved in 2022 but it's a completely different ballgame when we did the concept level certification we achieved a statement of feasibility so that means that the brunel was feasible according to the design standard which is called dv se0422 At this point, after a lot of work, we have now achieved what is called a statement of compliance that you can see to the right there. That means that we comply to the extensive set of requirements set out in that standard. So, further to that, it also means that we need to take full design responsibility. We need to take in a turbine, a tower, and a mooring system, and there's no interfaces behind that. hide behind so it's a comprehensive setup from our side we early took responsibility design responsibility of the towers providing one structure from the mooring and up to the inner cell and that makes a lot of sense in this setup here Further to that, for any developer who is developing a floating project and are certifying that project, then a basic design certificate also relieves quite a lot of work because then a major part of the scope has achieved an advanced level of certification. So by this, Brunel has a documented technical maturity to the satisfaction of an independent third party. And that's important to us. If you go to the next one, then some comments to the project. We are one of the first floating foundations who have achieved this level of certification to the new standard. It should be said that the new standard is quite new, but it also means that we have chosen, deliberately chosen, to be on top of that process and to be an early mover. There's a couple of perspectives for why we did that. One of them is that it's important for us, of course, to document the maturity of our technology, as mentioned. But the second part is that we see that this standard is an important standard for the highly required standardization of the offshore floating wind industry. So there's two comments on standardization. One is, of course, that when you have a basic design certificate, you have the ability to move on different sites, so it's not site-specific. The other side of standardization is that this standard provides a transparent set of criteria that you can use to benchmark different technologies. And with all the different technologies out there and the different maturity levels, that has been quite difficult also for us to benchmark ourselves. So with this certificate, we feel that we follow and are in the front in the industry. We've had a strong team as part of the process. Rambl has been the main engineering contractor. We've had Seven Waves, who had that role in the concept phase, supporting for continuity. C-Systems on anchor mooring, and then a very specific supplier, but very important when you have a turret design, is Moog Focal, who is responsible for the high voltage stable in the turret. Part of that, we are continuing our turbine controller project, underlining that we are working holistically, a project that is optimizing the controller of the Brunell turbine in cooperation with IFE and ZXLidar and supported by the Norwegian Research Council. So that is the floating wind side for this time. A brief update also then on the floating solar side. So that is our system Briso. So just to recap what Briso is. Briso is a floating solar technology suitable for installation in areas where you have wave loading. We're targeting four meter HS. And it opens up the possibility to then develop new areas, large lakes, large reservoirs and nearshore applications where you have an environmental loading, which is typically too high for the typical steel water technologies. In this quarter, it's been a busy quarter. We are in what we call the validation phase in our work process. There's a new set of components being designed, more optimized than from the previous design stage. We have our pilot in research where they are implemented for validation. And then our next step is to secure a commercial size pilot, typically one to three megawatts. And that's our main focus going forward. So by that, thank you.

Thank you. Richard will then talk about Fred Olsen Cruise Lines this time.

Yes. Yes. Thank you, Annette. Cruise Lines is Yes, we have improved earnings, but I would also like to underline we see a lot of operational improvement potential in cruise lines. We see occupancy still at below 80% in the peak season. We see pricing optimization opportunities and obviously working on the cost side. So yes, we're moving in the right direction, but a lot of potentials on the operating agenda for Fred Olsen Cruise Lines. Status on the quarter occupancy 77%. And again, being a third quarter peak season, it's lower than we want it to be. Net ticket income, a slight improvement from 190 to 194, but also lower than where we want to have it. Cruises in the quarter, a lot of the occupancy, some cruises are close to 90 plus. Other cruises are not there. So you can see some of the cruises we have taken or produced. We'll not go into detail on that for competitive reasons, but there is no doubt that some of the destinations here around Norway is very good for Fred Olsen Cruise Lines. We have an important dry dock planned for Balmoral in December to upgrade her. While we see the dry docks for the two sister vessels are planned for next autumn. This is a new slide. We have not given this information before, but since we now have a strong focus on driving up occupancy and pricing, we think it's good for also the external to see how we perform on that. So we're happy to report that if you look at the forward bookings in pounds million end of third quarter this year, compared to end of third quarter last year, we see an improvement of 15% from 179 million pounds up to 206 million pounds. And it's equally driven by volume and price. And the volume increases are both with new guests and repeat guests. Or repeat guests are very loyal and coming back. But we also need new and younger guests. So also to grow the guest volume on you is a strategic target for the company. So by that, Anette, we are at the end of the presentations. Back to you.

We now open up for questions.

Thank you. Dear participants, as a reminder, if you wish to ask a question over the phone, please press star 11 on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star 11 again. Please stand by. We'll compile the Q&A roster. This will take a few moments. And now we're going to take our first question. And it comes from the line of Daniel Hogland from ABG Saint-Denis Collier. Your line is open. Please ask your question.

Thank you. Thank you for taking my question. So I have a couple of questions. My first this time goes on the wind service segment because... I think we see quite high revenues in EBITDA, a bit like in Q2. So I was wondering if you could give a bit more details on whether you have booked any reservation and cancellation fees in the quarter, like we saw last quarter, and maybe a bit on how the accounting on that works, because my understanding was that you will book some revenues on bread turn, even if the vessel is not used on the council contract. So how is that looking right now? So that is my first question.

Thank you.

I can start by saying that we had no bookings of reservation fees or booking from the Öster termination fees in this quarter. What we had, I mentioned that there was some technical issues from the termination for convenience last month of the union, that we booked some more millions in this quarter that should normally have been booked for work in October and November. So I think that's the main accounting issue we have in this quarter.

Okay. So there is kind of no other than big non-recurring effects?

Some millions that we had to book because of the termination. We had to book it ahead of the actual work.

Okay. Thank you. And then one more for you, Håkan Magne. So you talk a bit about yard stays on the turn vessels. So can you say anything about how long kind of the planned yard times for Bold and Blue is?

I think they are slightly less than two months. Okay. In total or for each of the vessels? For each of the stays.

Okay. Thank you. And then I have one question on the renewable energy segment. So it seems like a quite high implied realized price this quarter. So if I just divide the revenues by the production in the quarter, and given that you have not booked any insurance claims, is there any other effects from, let's say, curtailments or anything like that that affects this quarter? Kind of just to get a transparent view on what you've actually booked.

we do have we do have effects on of curtailment and also of these EGLs which is electricity generator levy this quarter yeah we had a positive effect compared to last year on the EGL which we have if you look at the report it's the disclosed effects in the notes

Yeah, but from the notes I see that there was no effect from EGLs in 2024, so obviously on a year-to-year basis you have that, but there is no EGL in the numbers for this quarter, is there? No. No. Okay. Great. And then my last question is on the Codeling project. You submitted the consent application, and... I appreciate that the timing of such a project is difficult to talk about and is really unknown. But is there a deadline for the government to review your application?

No, there is no specific deadline currently. And that's also, of course, why it's difficult for us to guide on it. It is a new offshore wind is new for the planning body in Ireland. And therefore, the timing is uncertain.

That's helpful. Thank you for taking my questions. I'll get back in line.

Thank you. Now we're going to take our next question. And the next question comes from Helen Brandbo from DNB. Your line is open. Please ask your question.

Yes. Hello. I have some questions particularly related to the wind service segment. So welcome, Magne. I was also just wondering related to this yard space. Do you have any estimates that you could share on the expected capex from that?

I think the main impact is the downtime we have. There is not so many millions. It's a couple of millions per yardstick.

Yes, okay. And just also sort of to be clear on the ocean wind cancellation payments, is it sort of fair to assume that they started now Sort of the EBTA recognition started now in Q4 and will go into at least through Q1 next year. Is that roughly the correct timing or is that wrong?

Yeah, I think it's a good estimate for the start. The ocean winter contract was supposed to end in October next year.

Okay. Yeah.

So it will be spread across all duration of the contract.

Yeah. Okay. And just one more question from my side on the renewables. I was just wondering with respect to the timing of the Windy Standard 3, you said the timing was not known, but in the sort of the CFD term sheet from Crown Estate that said that operations was, expected in 26 and 27. So I was just wondering, is that still your best guess on that one? And is there any time you would need to start production to get full recognition of the CFD?

It is correct that we have applied for the CFD for a certain time period. And I think that is the facts that you refer to very correctly. We do, however, have an internal process to mature the project to reach a final investment decision that we have to adhere to and get all the facts together before we take a final investment decision. So I think that is my comment on that. A very good thing to note, however, with the CFD is actually that we were the most successful onshore developer in the round in terms of number of megawatts won this round.

We're very happy. Thank you. But do you have any flexibility with respect to when you start the CFD? Or do you need to start it by the time you have applied for to get the full amount?

The CFD, correct. The CFD starts at the time we have applied for to get the full amount. So if we start later, then we reduce the period, number of years or period that we get CFD for.

Okay. Thank you for the clarification. Thank you. Now we're going to take our next question. And the next question comes from Lan of Roald Hadvigsen from Clarkson Securities. Your line is open. Please ask your question.

Hi, thanks for taking my question, and congratulations on another sound quarter. I want to touch a bit upon the balance sheet and financial risk policy. You, of course, have a very pristine balance sheet currently. You have, of course, an old net debt at the current company level, and as Rick had mentioned, you have very sound net cash positions both in the wind service and cruise segment, which have accumulated over the last couple of quarters. So just to touch upon that, is there any targeted cash amounts you look for having on the fully owned entities? And as for the wind service and cruise segments where cash has been accumulated, should we expect any upstream dividends to the parent company or do you want to sort of retain the cash there in case any investment opportunities come along? So any thoughts on how you're thinking there would be helpful, I think. Thanks.

Yeah, I think we don't bide when it comes to the future. Do you want to talk a little bit about this?

Yeah, no, I mean, we don't comment specifically on future investment plans over and above what we have disclosed. But it also goes with our financial policy that model company shall be strong. So, we typically upstream excess cash from the subsidiary when it's available. So, of course, we have injected a lot of cash into cruise lines, mainly in the form of shareholder loans. So, obviously, those loans can now start to be paid back. We also have loans between Bonaire and Ocean and ultimately into Wind Carrier on the shareholder loans. So, we're also looking at how we can upstream that. So, of course, it's a matter of upstreaming excess liquidity in the subsidiary up to Bunarasa. That's a part of the policy. So you should not be surprised if you see further upstreaming from cruise lines and wind carrier going forward.

Thank you. That's it from my side.

Thank you. Now we'll take our next question. And the next question comes from Jonas Flemming from Spare Bank One Markets. Your line is open. Please ask your question.

Yeah, hi, and thanks for taking my question. So I will start off with Kodling Windpark. So in the planning application documentation, you have illustrated a financial close in 2027. And obviously you have some flexibility and there are some uncertainties. What are your own kind of expectations around FRD on that project? Is it still possible with 2025, or is it more at 2026 at the best case now, or maybe at 2027 is the most realistic scenario now? Any comments on that would be appreciated.

Yes. Coming a bit back to what I said earlier, the process we are now looking at is we submitted the consent application. The consent determination period is unknown, given that it is the first time this is going on in Ireland for offshore wind projects. So we don't have a clear view to how long that time that takes. And as I said, there is a risk, a potential risk of a JR on the back of that. And that creates uncertainty around timelines. So I cannot give you a specific target FID here for that reason. What I can say is that the way we have dealt with this risk and uncertainty is that we have developed a flexible development schedule. So if it comes early, we can develop the project further and take FID. If it comes later, we have also catered for that.

Okay, but if it's way earlier than you kind of expectations, Should you still take NFID in 2025?

I think it will very much depend on the process. But in principle, we are setting the project up so that we can deliver according to the obligations we have on the ORIS regime. And there are limitations where we have to deliver a certain time after we receive a final consent. And that's what we are now developing and planning for. Yeah.

Okay, understood. And in terms of Kobling, so obviously you own 60% of that project. It's a big project. It's a lot of required capex to continue to own the 50% under construction and also after that. So just thinking about the long term here, it seems to me at least that that the farm down should be kind of expected. Just thinking about that, when would it be natural for you guys to actually do a farm down if that's the plan?

I think we will not guide on farm downs in relation to coddling. I think what we've said earlier, part of the... the plan for Kotlin is project finance overall. But when it comes to our equity and how we handle that, that would very much be assessed on a future basis. And I cannot guide on that here today.

And the last question for me on Fedmos and the wind carrier. So it seems to me that the market is very tight also in 2025. And you obviously secured the reservation agreement for 2025 and 2026. But, I mean, you don't have that much backlog in 2025. You have some yard stays, but still it seems to be that you have more open capacity. So basically my question is, do you expect more backlog to come for 2035?

I think you're going to have to revert that. We do not give forward guidance. What I can say, I think, is that we are very comfortable with the situation we are in today.

All right. And maybe on the reservation agreement, is that on a project that did not secure a turbine installation before, or is it a problematic project with supply chain problems and so on?

I think it's limited, one, what I'm commenting, as it still is a reservation agreement. But if you look at it, that it started in 25, and take my prior comment that normally these vessels are booked two to three. Now they're increasing 45 years out in time. I think a fair assumption is that it is a project that needs more capacity.

Thank you. That's all from me.

Thank you. Now we're going to take our next question. Just give us a moment. And the next question comes from the line of Daniel Hoagland from ABG Sundar, your line is open. Please ask your question.

Yes, thank you for taking another question from my side. So I just wanted to follow up on the EBITDA bookings in wind service. So if I simply compare FUVIC's EBITDA to Q3 last year, it's approximately flat at 29 million euros. But utilization is down from 91% to 63%. So from this, should we conclude that it is higher contract day rates that is the reason why EBITDA is not falling when utilization is lower? Or is there any other effect we should kind of be aware of in these numbers?

Thank you. I think I've said it before that there is no other accounting treatment this quarter than the some million in pre bookings from the union contract termination. So and if the utilization is lower than the other part of the equation is the day rate. Thank you.

Great.

Thank you. Now we're going to take our next question. And the question comes line of Helen brown ball from DNB your line is open, please ask your question.

Thank you for taking another question from my side. I have another question on the Folvik side. I see you talk a bit about this more long-term scope and bundling of contracts for both T&I and O&M. And I was wondering a bit on sort of how attractive you view the O&M market going forward versus T&I. Could you, for instance, see something about where you see sort of day rates relative to T&I and also to what extent you will be able to take O&M contracts in this currently tight market?

I think I can start by saying we are pragmatic. We will try to optimize our schedule where we can get the best income, risk adjusted income. But I think I cannot give you a specific answer to this, but just maybe give you a little bit more backdrop on the market. You need the same vessel. If you're going to do a main component change on a turbine, you need the same vessel capacity as you need to install it. When we now go into the installed base being 15 megawatt generation, you basically need either an upgrade vessel or a new build to do the installation. part of those. That is a major change to that market because prior you had a lot of smaller vessels that has been redundant that has serviced the older vessels, the older turbines. So it is a potential shift in the market now when the client needs to get bigger vessels to actually maintain the turbines they are installing at the moment.

this i hopefully gave some flavor to it with not two lines below the answer oh but thank you so much for the color thank you and now we're going to take our last question for today and the question comes land of anders rosenlund from seb your line is open please ask your question thank you uh

I've been waiting and waiting, so good that I got to ask the final questions, and it'll be more than one. My first question is on the curtailment prices or curtailment revenues. I appreciate that you don't want to give us the figure, and it's not in the report, in notes, or anywhere, but if we think about revenues in the renewable segments, Is it correct that that consists of sale of electricity, green certificate revenues and primarily curtailment?

I think you can conclude that we receive revenues from curtailment. And of course, this is the way that the UK system works. In order to balance the market between a lot of wind production in the north, or Scotland mostly, and then you have all the demand in the south, the grid is not strong enough to supply the amount of power. So in days where there's a lot of wind, the... The national grid would typically curtail the producers and pay wind power producers to stop production so that the grid is still balancing. So that is the very way that the market functions in the UK.

So in periods with curtailment, then you will have lower reported production because that's actually no production. You're getting paid for something that you don't do, right?

It is correct that curtailment is a payment for not producing.

Okay. Thank you for that. And then my second question is to the cruise segment. I appreciate the illustration which shows forward booking. But when I read the report, I got the impression that this was revenue recognition yet to date. But you're confirming that the figures that you show on the slide are revenues booked for the future period, right?

Yes.

Thank you. Then my third question is on wind services. The 100 million reservation agreement, the way it's written in the report, it kind of looks like it could be a reservation agreement for the Blue Wind Vessel. Is this the correct interpretation or is this for the owned part of the fleet? It's for the owned part of the fleet.

But just a correction, I think we're looking at it now, but I think we actually wrote in the report that it's a four-week control vessel.

Okay, maybe it was my misunderstanding then. And then my fourth and final question is on the Coddling and Scotland projects. I think in the second quarter, you made a comment saying that aim of FID in the 25 to 27 period on Cuddling Bank, and that's been talked about over and over again in this Q&A session, but I presume that is still the case. and CFD auction in 26 on Scottwind, potentially with the FID in the 27 to 29 window. There are no changes to that, is there?

I think I'll go back to what I said earlier. We can start with Kotlin. We have a process ahead of us with consent now that is uncertain. And hence, we cannot, with that uncertainty, give a clear guidance on FID. But we are preparing for an early scenario and we are preparing for a later scenario. When it comes to Scotland, our strategy is, as I also alluded to today, to be one of the first movers. And that also means preparing as quickly as we can after we've received the consent for a CFD round. But again, also in the UK and in Scotland, the consent timing is uncertain. You'll submit the application later this year, and then the exact timing of that person will determine how early we can participate in a CFD round.

Yeah, I understand what you're saying, but last quarter your best assessment were the years that I indicated. So are there any changes to your best assessment last quarter now? Have you made any changes to what you said last quarter?

Sorry, repeat that again. What is the relation to Scottwind or the relation to Codling?

Both. I appreciate your comment on Codling and maybe that's the granularity you're willing to give, but On Scotland, you indicated 2026 and 2027-2029 to Indo. Nothing has changed that changes that view, has it?

No, I think what I've said today about coddling is highlighting the uncertainty around the assumptions in relation to FID. As alluded to before, there is public information out there around coddling. also indicating potential timings of FID. But there is an uncertainty here. And therefore, we find that it's more prudent now to be very open about that uncertainty and not guide specifically on FID for Kotlin for now. When it comes to Scotland, then, of course, it's an early phase project. We will now submit a consent application. That timing will then determine when we can bid into a CFD allocation. In principle, You're right. The assumptions around that have not changed. We're still protecting an early opportunity in Scotland. Whether we will then actually go for that is a question we'll take down the road.

Thank you very much for that last answer. And thank you for the presentation and the new layout looks nice. So thank you.

Thank you. And then to all of you, thank you very much for listening in. And it only remains to wish you all a very nice weekend.