Bonheur Asa

Good morning, everybody, and welcome to this third quarter 2025 presentation. My name is Annette Olsen. I am the CEO of Bonner and Fred Olsen & Co. As usual today, Richard Olavo, our CFO, will start the presentation going through the main figures. And then the different CEOs for the individual companies will present to you. And we will take questions and answers at the end. Today, we have Samantha Stimson with us, the CEO for Fred Olsen Cruise Lines. So she will also present to you. So welcome, Richard, I give the word to you.

Yes, thank you, Anette, and also a hearty welcome from me to this third quarter presentation. Before we go into the numbers, I would like to give some reflections on the report. I think the Bonheur Group of Companies deliver a solid set of numbers this quarter. But we can also say that there are room for improvements in the numbers. We see cruise lines improving utilization, but still room to grow. We see wind carrier, one vessel at yard, also this quarter. And we also see downtime in renewables. So yes, a good set of numbers, but definitely more room to grow the earnings on existing assets. So with that in mind, we can move over to the highlights. And my colleagues will go through the main strategic and operational highlights of the quarter within each company. So I will limit myself to comment on the more financial aspects of the highlights. But starting on renewable energy, reporting in EBITDA slightly below last year, some 40 million plus, 40 million down on EBITDA, mainly related to reduced generation and reduced prices of regos that Sofia will cover in more detail. Things to be aware of on the financial side, that there will be a grid outage on Midhill now this winter, Midhill being a significant wind farm, so that will impact earnings and EBITDA going forward. And then we'll be notified on another downtime next winter. And these downtimes don't have any automatic compensation. And for us works heavily to on mitigating actions on these downtime, especially the second one, which will come. So we will come back to it. But no doubt if they last as long as they are stated there, they will have impact on the earnings going forward. Wind service and EBITDA up from 435 to 577, which is coming off of a good operational quarter, both in Fovik and also in GVS. I'll come a little bit back to the underlying improvement in wind service on the next slide, because there are some special items both last year and this year. I'm also happy to see the backlog increasing, and two new contracts signed, and it's the firm contract that is reflected in the backlog, while the reservation agreement is not reflected in the backlog. Håkon Magne will cover that more in detail. On cruise, I will leave that to Samantha, but all in all, an improved quarter, EBTA up with close to 100 million, coming off improved occupancy yield and good cost control. Then in the other investments, NHST continued to deliver healthy results and the margin levels are at higher levels than we have seen in this company before. Also under other investments, we had a refinancing of a 700 million green bond this quarter. utilizing a healthy market and also utilizing the Bonheur Group of Companies good standing in this market, we were able to place that bond at the lowest spread we have ever seen of 215 basis points above NIBOR. Fred Olsen 1848 will present later by Per continuing to progress technologies and today we will cover more detail on the floating solar. Moving on to the segment analysis per third quarter 25. We have showed you these graphs a few quarters now. We think they are very good to also focus on how the group develops in the longer term. Maybe not so much reflection on the revenue side this quarter, but on the EBITDA side, where this quarter is an other quarter that builds on the momentum we have seen coming out of COVID. where we have been able to lift the running EBITDA of the Bonneur Group of companies to a level actually on an average somewhat north of 3.5 billion on a 12-month rolling basis compared to pre-COVID of around 1.5 billion plus. And we see all three segments have significantly better earnings than pre-COVID, especially the wind service segment. Briefly comment on revenue and EBITDA per segment. We have covered the EBITDA already, but there are a few items to note, especially on wind service, which I mentioned on the previous slides. We see on wind service that the revenues are down by 281 million. And that is really related to that in the third quarter last year, we had a big contract with the Shimizu Vessel BlueWin, which contributed by more than 500 million to the revenue. So excluding that and excluding UWL being included in the third quarter 24 and not third quarter 25, as we successfully sold that last quarter, there is a strong underlying revenue improvement in wind service. And we can see that more on the EBTA on wind service, which has an improvement of 142. I think if you exclude the Shimizu contribution, the one-off we also now have related to the ocean wind termination fee and the UWL, we see an underlying improvement in EBTA or in wind service of more than 200 million year-on-year this quarter. So on back of that, we come out with an EBITDA of 1 billion, 117 million compared to 938 million third quarter last year, which is an improvement of 179 million. And remember that figure when we move now on to the consolidated summary. So we can start with the EBITDA line. Then again, the same numbers there, an improvement of 179 million. And I will briefly comment on other P&L items. Balance sheet, I'll cover in the next slide. Depreciations down by 36 million. That's really related to a one-off, a reversal of an impairment in the media company. So the improvement there is a one-off. Net finance, interest cost at a quite normal level on a net basis this quarter around 70 million. And then we have these unrealized currency and interest rate effects, mainly related to the interest rate swaps in the UK that goes up and down each quarter. But I really point out that that's unrealized. But also an improvement there of 28 million. So earnings before tax is at 680 million, which is an improvement of 242 million. Taxes are up, mainly related to better results. So the net results is 561, which is an improvement of 210 million. What is worth noting is that biggest share of this result flows to the shareholders of the parent, the shareholders of Bonheur, because more of the results comes from 100% control entities. So the 561, 461 flows to the shareholders of the mother company. So actually we're delivering earnings per share of more than 10 kroner per share this quarter, which is quite strong. Then final slide for me is the group capitalization per third quarter. First to the left, our financial policy that we obviously reiterate every quarter because it's very important to us. And it's also important to check that we are in line with the financial policy and we can confirm that our numbers are fully in line with the financial policy. Then going through the numbers, and if we start with the table above with 100% owned entities, we see that we now sit with more than 5.3 billion in cash and close to 3.4 billion in debt, and then a net cash position slightly below 2 billion kroner. a few things to note there is that the wind service we have uh dividended out uh the proceeds from the successful sale of uwl and also some dividend up from four week up to boner this quarter so there is a big change in the cash position between wind service and boner asa in the quarter And that you will also see in the model company's results, which are attached in the report, that the model company delivered profit close to 900 million this quarter due to the dividends from Vint Service. Despite that dividend, Vint Service still sits with close to a billion in cash and very little debt left on Brave and Bolton, around 300 million, a net cash position of 675 million. Renewable energy, that is the Scandinavian wind farms plus the development portfolio is debt-free and a small cash position there of 338 million. Point to note, Cruise Lines paid down the final installment on the seller credit on the two new vessels this quarter, so Cruise Lines have zero external debt, so a small milestone for Cruise Lines there. Earnings are improving, so a cash position of 605 million. Also, Cruise Lines is paying down its debt to Bonheur that they took up during COVID. And then finally, Bonheur, with the refinancing of the bond and the dividends out of in-service, sits with 3.4 billion in cash and net debt around 3.1, and a net cash position slightly more than 300 million. So a solid position of what we control 100%. If you look below what we don't control 100% on renewable energy, which is really the joint ventures. Debt of 4.3 billion and 767 million in cash on net 3, 5, 5, 4. But remember, here we consolidate 100%, so Bonheur is 51% of this net debt position. Wind Service, it's Blue Turn and also GWS, almost now debt-free in combination. And other investments also close to debt-free. So all in all, a strong balance sheet, fully in line with the financial policy. So with that, back to you, Anette.

Thank you. First to present today is CEO of Fred Olsen Renewables, Sophie Olsen-Jepsen.

Thank you. This quarter, we saw production lower than the same quarter in 24. There are some reasons for that. The Crystal Rig 1 recovery project, which I've told you about earlier, that has early generation turbines. Also, we have some market reasons at our Swedish wind farm. That is ancillary services, low prices, and grid export limits, in addition to blade issues. We've also seen lower revenues due to lower RIGO prices this quarter. And RIGO's renewable energy guarantees of origin, those are certificates that are issued per megawatt hour produced that can be bought by consumers wanting to offset their carbon emissions. In the last years, we've seen quite high prices on this before they have been decreasing back to the current levels, because more renewable energy is coming into the market with subdued demand. Then we also have construction work of our two wind farms progressing well this quarter. Our business model, as you have seen before in Fred Olsen Renewables, outlined on this slide, and there are some changes this quarter that I'm happy to report. If you see under the consented column, we have some projects that have received consent. Two solar projects, one in the UK and one in Italy. In addition, we have received consent for Windy Standard 1 Repower, which is our first repowering project receiving this. And we are advancing and maturing these projects through our normal development process to ensure long-term value creation. Taking a step back and looking at the market, the prices have been steady. We see that there is now lower gas storage levels in the EU, which is a change in regulation there. This means that changes in weather or colder weather for longer times could mean an increase in prices. What we also do see is that the long-term trends are pointing towards softer prices as there is an expansion of LNG supply. Moving on then to talk about production. The generation was below estimates this quarter. I've mentioned the Crystal Rig 1 recovery project with the early generation turbines. This is increasing availability steadily, which is good to see. We've also had the lower production on Haugaliden and Feboliden in Sweden. That is mainly due to the market, then shutting down due to low prices and provision of ancillary services, grid export limit and blade issues. In terms of the ancillary services, we have recently entered that market and are offering to turn down production of our wind farms in order to help the system operator, which is Svenska Kraftnett in this instance, to balance the grid. And we see that this provides revenues and we are offering this service on an hourly and 15 minute basis together with our balancing system provider. The blade issues I commented on in the last quarter. We have three turbines offline with suspected blade cracks and are working together with the manufacturer to assess and perform necessary repairs. We also see grid outages this quarter. And as mentioned by Richard, we have planned grid maintenance work at Midhill that has been going on from the 15th of September and will last until May 26. And then we have a further estimated outage from November 26 to April 27. There is no automatic compensation from the grid owner here. We are working on mitigating actions, especially on trying to shorten the second outage with technical solutions there. And I think it is fair to note that this quarter we actually had more production from Midhill Wind Farm than the previous same quarter the last year. That was because last year Midhill was out due to a failure at the external Fetteresso substation. That was a highly unusual event. And it is... although still quite unusual that we see this length of grid outage that we now are in with MidHill and that we also have in front of us. I would like to point out that grid outages are in general infrequent, and when they do occur, it's normally due to scheduled maintenance, and it's quite specific for each substation. This outage we are in the middle of now is because of an upgrade of the substation at Midhill, which is still quite unusual. We are notified of all the outages in advance and also monitoring to keep an overview ourselves. Moving on then to talk about our construction projects. Crystal Rig 4 has good progress this quarter. We have five turbines installed, most likely seven by the end of this week. There has been a delayed transport of components that has postponed the installation start. And that has been due to low capacity on police escort in Scotland. We are taking mitigating actions to this and currently operating with two cranes for installing to use all available weather windows. We also saw one blade damaged by the storm Amy that was under, or the blade was under the manufacturer's responsibility and we are working together with the manufacturer to see how this might affect us. Then moving on to our second construction project, Windy Standard 3, more in the southwest of Scotland. The project is progressing well as well. We have two wind turbines foundation successfully poured. These are gravity-based foundations where you need to pour the concrete and the civil works are progressing according to plan. So that was all for me this quarter. Thank you. Thank you, Sofie.

Next is Lars Bender, CEO of Fred Olsen Seawind.

Thank you, Annette. Yes, and I will take you through the highlights for Fred Olsen Seawind this quarter. First of all, we remain confident in our projects. We have good projects in attractive markets with strong political support. Both Kotlin in Ireland and Muir War in Scotland are in markets with political support and where offshore wind is a focus area in the energy transition. We still, as I have alluded to before, deploy very diligent development strategies on our projects, which basically means that we have focused on having lean spend profiles, we limit pre-FID commitments, and we focus on progressing the projects and creating incremental value quarter on quarter. Then this quarter we have received a request for further information for coddling in Ireland. This will postpone the expected consent determination and I'll come back later in the presentation to what this exactly means and also put it into the context of the consenting process in Ireland. Then the fourth bullet, we have secured landfall area and onshore substation area for the Muir War project. This is naturally a good milestone and good progress for the project. I'll also come a bit back to that later. So as I mentioned before, we are in the consenting process in Ireland with Kotlin. We submitted our consent application last year, and we have now in this quarter received a request for further information. That request for information will postpone the expected consent determination. The content of the request for further information is a range of surveys, including offshore surveys, which we have to conduct. Then we have to, on the back of that, analyze the data and then put it into a report which needs to be submitted to the consenting authorities. It's important to note that other phase one projects have received similar requests for information and we very much see this request for information as a clear sign from the IRIS planning body that they want a diligent and process and very robust consent determinations at the back of that. So we have already started this work and we'll naturally continue this at pace. Just to maybe recap the process around consent in Ireland, because I think it's important to put this RFI into context. First of all, the RFI was, from our perspective, expected. It is quite usual on offshore winds to have requests for further information. And also in Ireland, being a new offshore wind regime and a new planning body, it was also expected in that context. As I've said before, we submitted our consent application last year. That was then sent into consultation. And now we have received this request for further information from the government. On the back of that, the planning body will make a consent determination, which is basically the planning body's decision on our application. There is no fixed timelines to that, as I've said before on the quarterly presentations. And when the consent determination is issued, there is in Ireland a risk of judicial review, which basically means that any person or any company can challenge the government's decision. We will not be parties to such challenge, but it is a risk that's sitting on the back. So this process, as I've said before, has some time uncertainty attached to it. But it's important to note a couple of things in that connection. First of all, our development strategy, as I mentioned before, we have been expecting that we had to be flexible in relation to timing. So we have been geared for that. Secondly, on the financial side, we have 100% indexation of our CFD until FID. And then I think thirdly, and that's my third bullet, we are in an environment in Ireland with a government with strong support, which also very much are supporting the build-up of offshore wind and taking measures to support the industry, which again, of course, gives us confidence in the project. That leads me to the fourth bullet. We are still pushing ahead with the project and preparing all procurement processes and engineering and so forth for the project. So we are ready on the back of the consent determination to move the project forward towards FID. If we then go to Scotland, as I said before, we have secured land for both landfall and onshore substation this quarter. This is something we've been working on for a while. The area where we are connecting in, north of Peterhead, is a very attractive area for connection, and therefore it has been important for us to be one of the first projects to secure this area, because it is, of course, a very important precondition to develop the project that we have access to land and grid. Secondly, consent is progressing as planned. I said before that we received the onshore consent, and we're awaiting offshore consent. When we have the consent, we are basically in position to bid into a CFD auction. So currently, I would say the pieces of the puzzle, consent, grid, land are falling into place. And that also very much supports the strategy that we have deployed of being one of the first mover projects on floating wind in Scotland. And that continues to be our direction and also what we aim towards. And with those comments, I'll give the word back to you, Annette.

Thank you. Per Arvid Holt, CEO of Fred Olsen 1848.

Thank you, Annette. So as mentioned by Richard and not visible on the first slide there, we'll focus on floating solar. And the backdrop for this presentation is that earlier this month, the International Energy Agency updated their annual report on renewables. So we'll allow ourselves to zoom out a bit and go through some of the results. So on this slide, I think we'll jump to the graph on the right side. This is one of the main conclusions to me. This is showing the actual product, the electricity produced until today and expected to be produced from renewable energy sources until 2030. If we look at the wind first, then this shows a good momentum both in offshore and onshore wind as well. But it's solar that is sticking out, having started a significant momentum today and that is expected to continue until 2030. So if we compare the sources a bit here, then more terawatt hours of electricity will be produced from solar than from onshore wind this year already. Combined onshore-offshore will be surpassed by solar next year. And in 2028, one year earlier than was predicted last year, it is expected that more electricity will be produced from solar panels than from hydroelectric plants around the globe. So that is quite significant. I also added the capacity expectations where we installed the capacity until 2030 and it's a bit more complicated looking at that when it comes to electricity production. But it gives an indication of how much solar needs to be installed to produce the power that is visible to the right there. And it's a significant amount. It's around 3,600 gigawatts, which is expected to be installed until 2030. So in conclusion, by 2030, amongst renewables, solar is expected to become the largest source, and it will require a significant amount of panels. So then the question is whether the supply chain can supply those panels. So that is the next slide. And there are two things here. One is that the short answer is really yes. The panels, panel production capacity is there. Already there has been a significant increase in growth, but the utilization of the production facilities in the supply chain is quite low. and this fierce competition that exists that has also resulted in in the significant drop in prices so it is now the global spot price is down to nine dollar cents per watt peak and that is that is quite affordable so if you add then that When it comes to solar PV, it's usually quite easily installed and it's available and quite affordable. Then that is why that growth is picking up as shown in the first slide. But it does require a lot of area. And if we go then to the next slide, where does that leave us? 1848, promoting our floating solar technology, Briso. We, of course, see this as very positive. Solar PV is area intensive. And we see that the market for utilizing water surfaces for installing solar PV is growing. So that is positive. But of course, with the amount of solar that is expected, we believe that it's important that there is a high flexibility in the application areas. And our technology can facilitate that either utility scale in hybrid setups with hydro or storage or in direct industrial applications as well. So all in all, BISO offers a scalable and flexible and robust solution which serves the application areas that we see for floating solar and has the potential for opening up new areas. So that is it.

Thank you. Next in line is Samantha Stimson, CEO of Fred Olsen Cruise Lines. And Samantha, you're joining us on Teams this time. So please go ahead.

Thank you. Good morning. So update from Cruise Lines. We've seen growth in revenue and EBITDA. This is through improving our occupancy and our yield, as well as putting some cost control measures in place. I'll also update you in a bit more detail from customers telling us that they are happier And that's through measurements of customer surveys, focus groups, and the introduction of net promoter scoring. And I'm also pleased to announce that the future bookings performance is good as well. If we move on to the next slide, I'll be able to talk you through some details. So our passenger numbers are up 19% in quarter three. This is predominantly due to us taking the decision to introduce more shorter duration sailings. This was a decision taken to encourage new to Fred Olsen Cruise Line customers, introduce them into the business, as well as giving our loyal customers more choice to sail with us during the summer months. And I'm pleased to say this has worked. Our occupancy in quarter three was up to 81%. And it's easier to achieve that through the warmer months of quarter two and quarter three. So it was a good decision. If we then look at our yield performance, yield has improved by 13%. And this is due to some product mix. Every year, our itineraries and destinations and durations across the fleet change. In addition, we've made some decisions around how we manage our revenue performance pre-cruise and during the cruise. And all of the above initiatives have supported the growth that you can see here with our EBITDA. If I then talk to you about net promoter score, I'm pleased to say this is increased from 68, from 63, sorry, to 68. That's a five point improvement in net promoter score. We are investing a lot of time to understand where we need to make improvements with our customer satisfaction. And this is to ensure that we are improving retention and satisfaction rates. We're making good progress and this is something as an organization we are committed to continue to improve. If we look at the forward sales, during quarter three, we had our 2027 world cruise on sale. We had the rest of 2025 to continue to sell and we had the year of 2026. And I'm pleased to say that a big focus on 2026 has driven the improvement in the forward sales performance that you see here of plus 12%. We understand in the organization the importance of filling our ships. And we understand that one of the best ways of doing this is to ensure that we get guest commitment further in advance. And if we move to my final slide, you'll be able to see during quarter three, the number of departures that we took for each of the vessels and some of the key destinations that we visited. And what I'd like to highlight is that Norway continues to be a positive performing destination, as did the UK during the period of quarter three, and that's predominantly supporting the shorter duration cruises that we've been able to see improvement in occupancy through. And that's it from me. Thank you.

Thank you, Samantha. Bokom Mønne is now standing here to talk about Fred Olsen Wind Carrier.

Thank you and good morning. Very happy that I can start the summary as I've done the last time by reporting about a very good performance also this quarter. The vessels that has operated has been above 99% utilization and we are delivering one of the best financial performance in the history. Further on the positive side, we have during the quarter signed two new installation contracts for installation in 27 and 28, respectively. And on the market, I think we reiterate what we have said for the last year, that there is an increasing volatility on demand side, which impacts visibility and adds some uncertainty towards the end of the decade. If you go down to what the vessel has done during the quarter bowl turn, that commenced the work offshore under the Saipem drilling campaign. It took almost five months to make the vessel ready for operations with all the equipment and is now performing well offshore. Braveturn went into Yard to do the same work as we did on Bolturn to prepare her for a generic three turbine sea fastening setup with the 15 megabyte generation so we can easily switch between the different models. We also had to do some carryover work from our stay in Navanta on the crane upgrade last year. Blue Turn, it completed its second major 0-9 campaign with Siemens this quarter and went straight in direct continuation over to its third campaign with Vestas early October. Blue Win, there we completed the high long in the quarter. If we then go over to the financials, as I said, good performance and good results. We had one Wesleyan yard. That's why we only were able to sell 67% of the days. But of the 67 days we were able to sell, we got paid over 99% of it. And that is decent. On the revenue side, we had revenues of around 60 million with an EBITDA of close to 43 million. Just note, I think, as Richard also mentioned, that around four of those are related to the last accounting effect of the termination fee of the contract that was terminated in 2024. If we look to the bottom right of the slide, you see the development of annual performance and Year to date, we are close to 2024, which was a record year for us. So that is good. If we then go over to the market and the backlog slide. Yeah, that appears not to be included in the slide. But I can take it anyway. If you see, I think... Order intake for the general industry has to a larger extent than normal been driven by delayed projects and major O&M campaigns that have been triggered by quality issues on some of the turbines. But I think we are then happy to report that this quarter we actually signed two contracts. We signed one contract for installation in 2027 and we signed a preferred supplier agreement for execution on the Gennaker project in 2028. Both contracts are for more than 60 turbines. Our backlog for the quarter stands at 360 million, slightly up from last quarter, but please note that that does not include the reservation agreement, as we do not report that in the backlog to the market. On the market, as I think we are giving the same message as we have done now for some time, you see in the medium term, there is very limited vessel availability of the highest spec vessels. So their impact on the demand side could have a quite strong impact on the outcome. The uncertainty and the issues that we see in the offshore value chain in general industry, again, that impacts the volatility of demand, and that we continue to see. But given the lead times in our industry, that doesn't impact necessarily the next year's performance. So it's more impact the end of this decade. But I think this is the peak we have seen for some time. So the trend is the same in this quarter as we have seen before. So I think that concludes my comments. Then I give it back to Anette.

Yes. Thank you. We will now open up for questions. So please. Thank you.

To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To answer your question, please press star 1 1 again. We will now take the first question. From the line of Daniel Hoagland from ABG Sander Collier, please go ahead.

Hi, everyone. Thanks for taking my questions. Congratulations on great results, even though it's been maybe a little bit difficult quarter for some of the businesses. I think it's still great results. I have four questions. I think I'll just do them by segment. So just kind of a simple question on renewable energy. So the grid outage at the mid-hill, why is that not compensated, given that... It's a grid outage which seems to be controlled by someone else.

Sophie? Thank you. In general, planned grid outages are not compensated in the industry. Those are due to maintenance. In this case, it's upgrades of the grid. That's how it is.

Okay. And then one question on Seawind. So the coddling consent, if I heard correctly, that is postponed a little bit. So I don't know, are you able to give any comments on when a potential FID on that project could happen? I'm obviously asking for kind of guidance here, but kind of more like are we now into... maybe a 26-27 decision or maybe even later?

I can of course understand the question, but we cannot guide on the FID timeline. As I said earlier in the presentation, the process does have uncertainty attached to it, and we are dependent on the government in relation to this. So we are currently awaiting the determination. We are handling this RFI now where we have extensive surveys we have to do. We have to analyze the data. We have to submit it back. They need to issue the determination, which then again has uncertainty around whether it will be subject to a judicial review or not. So for me to give an indication of FID would be very arbitrary at this point. But it is important to say that we remain confident in the project and the diligent development strategy that we are deploying currently for the project.

Okay, thank you on that. And then I have one question for Håkon Magne on wind service. Just on the demand picture right now, you touched a little bit in on it being volatile, but if I'm kind of just thinking a little bit loudly here, so Ørsted cancelled Horn C4 earlier this year. We're seeing Vestas and Simuskamesa now pausing expansion at some offshore wind factories that they planned. We also saw Maersk cancel an almost finished WTIV. So other than kind of just the very short to medium term here, how do you see kind of the outlook a little bit more out? Is it possible to give any kind of comments around this?

Thanks for the question, but I think it's a very hard question to answer. To start, I think that the main drivers behind offshore wind is still there. We see that the government in the key areas that building offshore wind still is supportive for the industry. We still see new countries coming in with plants, but Unfortunately, I think every industry has the tendency to get some growth pains. So I think it's very hard for me to, again, to explain when exactly this growth pain, then we'll come back into the growth trajectory. So I think it's a good question, but I think it's very hard for us to answer.

Okay, I appreciate you don't have the answer, but do you kind of agree that the, should I say, 2028 to early 2030s picture looks a little bit different now than it did, let's say, one year ago, or you don't see it that way?

No, I think we have been quite consistent in our focus on this the last year on the quarterly presentations. Okay.

And then I have a last question, then I'm going to hand on to the line. I think this maybe will be for Richard. So you now have a lot of cash, and I've been asking almost the same question for a couple of quarters. But given that the outlook for offshore wind might have deteriorated a little bit, at least in kind of the period I mentioned, have you kind of changed any view on, for example, ordering a new wind vessel? Are you able to share any thoughts with shareholders on what to do with the cash?

Thanks. Thank you for the question, Daniel. I think I'll then just relate to our capital allocation policy that we spent quite a bit of time with the board to develop during the winter and that we announced in connection with our with our annual report where we obviously are very aware of our duties of maximizing shareholder values and balancing what we invest in to secure that they create good value up against distribution to shareholders. So that is our starting point. Having said that, a lot of cash. is relative. If we look at the capital intensity of the industries we're in, one single investment can easily relate to several billions of kroner. Just an example now in Foras, two wind farms, not the biggest wind farms in the world, but still sizable wind farms, but 3 billion kroner approximately in gross capex just on those two You also have to put the cash position relatively to the investment sizes we are facing. But again, I'd like to reiterate, listening to this call, to read our capital allocation policy, because you'll find very valuable information there about the thinking of the governing bodies of the Bonneur Group of companies.

Okay, thank you. I'll get back in line.

Thank you. We will now take the next question. From the line of Roald Hardviksen from Clarkson Securities, please go ahead.

Hi, thanks for taking my question and congratulations on a very strong quarter. I want to touch a bit on the cruise segment, your occupancy there. So that 81% this quarter, as far as I can see, the strongest on this side of the pandemic, but still a little bit behind what you saw during the strongest quarter before the pandemic, which could reach into the high 80s. So with that in mind, do you think there's still room to lift occupancy further for the cruise segments as booking seems strong? Or do you believe that the high 80s figures that we occasionally saw prior to the pandemic still is attainable for the summer quarters going forward?

I think Samantha is there, hopefully, to answer your question.

Hi, Roel. Thank you for the question. Yes, occupancy and retaining the focus on filling the ships is a priority for us within the organisation. Definitely continuing to improve to increase as high as we can to the top part of the 80s, as you referenced pre-pandemic, is something that we are focused on. Just to also reiterate that part of our focus as well has been to introduce additional sailing volumes so that's where the passenger growth has come from we've increased the number of sailings um as well as trying to fill the vessels so sometimes it's not a like for like comparable but it is something that we're focused on finding the balance for for sure thanks

And then on, I guess, a continuation of the question that was asked previously, but you are making quite substantial upstream dividends this quarter, bringing up cash to the parent company level. And I'm not going to ask about the potential return of capital to shareholders, because I think that has already been addressed. But should we view this as a step to increase flexibility and potential reallocation of capital within the group? And, of course, I appreciate that you can't give any details there, but any call here is welcome.

Thanks. Erik, I think you did the best to answer this question.

Yes, I think the distribution of dividend up to the parent comes also fully in line with our financial policy. Excess cash should not sit on the balance sheet of the subsidiary. It should be upstream to the mother company. as then the model company will have full flexibility in future capital allocation and can also do a better treasuring activity than having excess cash spread around in the system. So the upstreaming of the UWL proceeds and the dividends out of FUVIC is just a normal upstreaming according to the treasury and financial policy. So there's nothing more to it than that.

I think that's it from my side today.

Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone. That's star 1 and 1 to ask a question. We will now take the next question from the line of Elaine Brunson from DNB. Please go ahead.

Yes, thank you so much for taking my question. I have two ones on Folvik. I can just start with, I just want to understand, or maybe if you just could address, sort of how are you addressing the situation with the higher uncertainty in Folvik? How do you approach that when going into tenders, contract negotiations, etc.? ? Are you, for instance, doing any planning for maybe taking on longer term O&M agreements to secure a baseline of utilization? How are you thinking around this?

I think we all think a lot of what we're doing, not necessarily in this situation. But I think it's hard for us, I think also back to Bono's general point, I think it's very hard for us to comment on what we're going forward.

Okay, I fully appreciate that. And I also wonder... what, in light of this, what do you see as a general trend in day rates, given this market volatility?

I think the market is well functioning, but I think we do not never go into details or into specific day rates, neither on what we have or what we are bidding. But in general, we see a healthy market.

So you would say that day rates in the market are keeping up with levels seen before.

I'm not saying anything. I'm saying that we do not comment specifically on day rates. You are saying that, but I'm not saying that.

Okay. Thank you. Thank you. There are no further questions at this time. I would like to hand back over to the speakers for closing remarks.

Okay. Thank you very much, everybody, for joining us today, and Have a nice weekend.