Bonheur Asa

Good day and thank you for standing by. Welcome to the Bonaire ASA Q1 2026 results conference call. I would now like to hand the conference over to your speaker today, Annette Olsen, CEO. Please go ahead. Good morning, everybody, and welcome to our presentation today. As usual, our CFO, Richard Olauo, will go through the main figures. And then the CEOs for the different companies will present to you. And we will have the questions and answers at the end. So, Rikard, over to you.

Thank you, Anette, and also a hearty welcome from me to this first quarter presentation. I think we are off to a good start to 26, a lot of positive events. in this quarter. Normally I try to highlight the top three. I think this quarter I would like to highlight the top five. I think this quarter we have two wind farms in Scotland now that are progressing well to full completion. We have acquired the remaining 50% of the Moomort project in Scotland. We have closed the transaction with Fovik and Mayag. We have entered a 10-year charter in Fovik and last but not least, there are record bookings in Krus. So I would like to highlight all those events. It spans across all our segments and the CEOs will cover these important milestones in more detail under their presentation. But I think definitely we're off to a good start here. So moving on to the numbers. For a segment, I'll come back to the consolidated figures, starting from the left on the renewable energy side, an improvement of EVTA of close to 100 million. That comes on the back of improved generation, particularly crystal reed-4 in the production, but also other improvements in the portfolio. And very good to note that the power price in Scandinavia, and in particular in Sweden, has come from a very much more healthy level after many quarters with very poor prices in Sweden, and Sofie will come back to that in more detail in her presentation. On the more challenging side, we have the grid situation in Scotland, where the Mid-Hill Wind Farm has been out since 15th of September and will not come back, and now it's estimated late July, without any compensation. I mentioned then the two wind farms progressing to full completion. Handover of Chris Briggs IV has happened, and in this number three are now on track to be in production as planned first quarter next year. And then the acquisition of the Moormore, which Martin will cover in more detail. On the wind service side, EVTA is down by close to 100 million. There are a few items behind that. We have no longer UWL as a part of the wind service, as we saw that in second quarter last year. That contributes approximately 20 million of the drop. The remaining part of the drop is largely related to the contract mix in Fovik, and that we did not have any Shimizu revenue in this quarter. Backlog has increased more than doubled by inclusion of the contract, the 10-year firm contract for one of the turn vessels that Håkon Magne will cover in more detail. Utilization is low this quarter, yard stays for the vessels, and Håkon Magne will come back to the situation there, but we see that Raythorne has come very well out of the yard and now installing turbines on the tour wind project in Denmark in a very good way. And finally, this we have covered before, but the first dose of the Mayag transaction between Frodusen Ocean, Hovik and Mayag happened in the first quarter. Good improvement in the EBITDA from a minus 33 to plus 9. I think Samantha will come back to it. I don't think first quarter last year is really the benchmark, as we had a canceled cruise around the Red Sea, and we scrambled to find compensating cruises, so that impacted the first quarter negatively last year. But also first quarter this year, there's been a 22-night dry dock, on the fleet this quarter. Occupancy and gross income for passenger day is up, but still we see first quarter lower than we would like to have it with an occupancy of 70%. On the very positive side, the booking numbers are up 23% compared to the same date last year in the first quarter, 25%, and Samantha will also cover that in more detail. Other investments, same level as it last year, both for the segment and also for EVTV. Not necessarily for NSFT, which is the main revenue-generating company in other investments. Karajan will cover some interesting aspects around floating solar in his presentation, especially related to a combination with floating solar and hydro production. from Hydro is maybe more correct to say. Yeah. We can move on. This is the long-term trends, which we, of course, pay a lot of attention to to see that over time we strategically move in the right direction both of what we do with our assets and how they grow in revenues and EVTA. And if you, we have spent time on this before, but if we focus on the right-hand side, on the EVTA 12-month rolling, We see now that we've been on this level of around 3.5 billion plus on the rolling thermal spaces for a while. But you see in the last few quarters, we see an upward trend, and also this quarter builds on that, that we have a stronger Q1 this year than we had last year. And what we also see is that cruise lines start now to contribute more and more to the mix. So we have the two big segments on EBITDA, the wind service and renewables, more or less on the same level now, but also now cruise lines start to be a significant part of the group of companies, EBITDA. So a little bit more granular on the revenue and EBITDA per segment. We see on the revenue side, we are more or less the same revenue as last year, around 2.9 billion. We see higher revenues in renewables, in particular than 8% fire generation and fire prices, especially in Sweden. And the wind service is down for the reasons I mentioned earlier. Contract mix, UWL being sold, and no Shimizu revenue in those numbers. While CruiseWise is up, but here you also have to take into account the FX effect that Krona has strengthened quite considerably towards the pound. So in pound, the revenue growth is quite much stronger than what you see measured in kroner. That also goes for the older segment that they have significant lower revenues if you just measure same revenues and with the new currencies. So, we are able to grow underlying, but we have headwinds on the krona awakening, although the currency is towards the krona. So, on EVTA, we see renewable have an improvement on EVTA of 93 million. You may ask why is not more of the 156 flowing down to EVTA? We have a quarter with quite a lot of major component exchange in EVTA. on the onshore wind, which is kind of more of a timing effect. So that comes in on the negative side on the cost in this quarter. Wind service, same explanations as have been true before. And cruise lines really driven by improved pricing and utilization. And all there is on the same level. Before we move to the next slide, maybe I should make a small comment. We are in quite volatile times in terms of commodity pricing, especially all the situation in the Middle East. We, of course, analyze this very carefully, and I think when we look at the main impacts on our results, we can see it on total prices being up. We can see it on fuel prices going up, but we are 65% hedged. in cruise lines. So the impact this quarter is not very big on the banker. And then, of course, there are some headwinds on travel for crew and technicians. So those are the main effects that we have seen so far. But as you've seen from the numbers, the financial effect from what we have seen so far on commodity prices and the turmoil in the Middle East is fairly limited. So moving on to the consolidated summary, we see an improvement on EBITDA from last year, from 728 to 760. Depreciation is also down. We have upgraded to turn vessels, and then we have prolonged the depreciation of those vessels following those upgrades. That's the main explanation for the lower depreciation. Leading to an EBIT improvement of 72 million. Net finance significantly improved. 62 million is more or less the net interest cost of the group of companies. But behind those numbers, there are quite large unrealized positive effects on fuel hedging and interest rate swaps in the UK, and quite large negative effects due to the strengthening of the krona, but they net each other out. So the net finance is quite clean net interest cost for a group of companies of 62 million. So that leads to an earnings before tax of 408, which is 210 up from last year. Tax cost is somewhat up, where we have the significant tax cost is in the UK with the wind farms in the joint ventures. So that's the bulk of the 115 million. And that leads to net results of 294 million, which is up 201. We also see the contribution to the shareholders to the parent improved from minus 42 first quarter last year to plus 135, or to 93, which is an improvement of 135. So the final slide from me is the group capitalization, and this slide you've seen many times before, but I reiterate, there are two messages there. We have the policy on the left-hand side, and you have the numbers on the right-hand side. And I want to focus a little bit on the policy. I think this quarter really shows a very strong compliance against the policy. Liquidity position shall be strong. We can see that from the numbers. I'll come back to that. Subsidiaries must optimize their own non-recourse financing. There are no guarantees to any bank or bond debt from the mother company to the subsidiaries. But then finally, how we then innovate to enable growth when you have quite hard restrictions on the two first pillars in the policy. And we see the strength of the third pillar in this quarter with the MEA transaction coming in, giving more growth capital into Fovik. And we also see the strength of it, being able now to construct two new wind farms in the UK with strong partners in the widest end structure. So I think the policy works, we are compliant with the policy, and I just want to reiterate that. Finding out the numbers, we see what we control 100%. Cash is around 5.5 billion, while external debt is around 3.1 billion, leaving a net cash of 2.4 billion by the end of this quarter. Where we have some debt is in the joint venture, and in particular then in the two joint ventures in the UK on the wind farm side. We see the debt level there is quite much down from last quarter. That is related to the currency movement as well. So there we have a positive effect from that strengthening of the krona. So where we don't control 100%, the main Assets then are in renewable energy. We see that we have cash now close to 2.4, while the debt is 4.4, so the net debt there is minus 2 billion, where a big part of it is the 2.6 billion net debt in renewables, which we have the 51% of, but there is 100% consolidation. So by that capitalization and quite a strong capitalization of the group of companies, I leave it back to you, Anette.

Thank you, Richard. We will now present the individual companies. First one out is Fred Olsen Renewable with the CEO, Sofia Olsen-Jeks. Thank you. Fred Olsen Renewables. This quarter... we have seen production and prices increase compared to the last quarter or similar quarter last year, and that is even though we've had the grid outage for Mid-Hill. For Crystal Rig 4, all the turbines there are now operational, and Windy Standard 3 is progressing towards project completion in Q1 2017. This is the overview of our business model and the full cycle of how we develop projects. The change here is really that Crystal Rig 4 has moved from construction to operation. Otherwise, we're still progressing projects towards content and construction as well. So moving on, the market backdrop is, of course, important. Europe has experienced seasonally high prices this quarter. We began with seeing cold temperatures that kept the demand for heating and thermal generation high. Then there have been concerns about the gas supply because the Middle East conflict began right at the start of the gas injection season in Europe. I think we do all see that there's a risk of a further escalation or a prolonged closure of the Strait of Hormuz, which may pose challenge for both the short-term power prices and the storage ahead of the winter season. We have taken advantage of the market environment and have entered into two forward contracts this quarter. 75% of the volume for Pulse Hill and Crystal Rig 3, and that is for the periods Q2-26 to Q1-27. The production this quarter has been 8% higher in combination with the higher prices that we have seen. Highlights include a contribution from Crystal Rig 4, as mentioned. We've also had the Mid-Hill outage due to the grid upgrades happening at the substation there. The export capacity is now expected to be restored towards the end of July. And then there is a second outage coming. That was previously scheduled from the end of 26 until April 27, but has now been postponed, and the new timing is not announced. But we are in close dialogue with SSE to mitigate this. Brosses 1 and 2 were curtailed to 25 MW each. That was due to a faulty current transformer at the external substation. That curtailment lasted from early December until early March, so we're very happy that they are back in operation fully again. Then we have a partial curtailment at Lista ongoing. That is due to fatigue-related rock anchor foundation issues. We are currently doing inspection here and planning repair work, which will probably be finalized by Q4. But it means that the curtailment is of approximately 20% of the capacity at least. Moving on then, to go a bit more into the details of the construction projects. Starting off with Windy Standards 3, I talked last time about the capacity limitations that we do see on the police escort for transportation on public roads. I'm very happy to say that we've been able to accelerate the transportation of the first batches of wind turbine components. It's just been a great job by the team. And that is being achieved by a close cooperation with the police on the mitigating action. Now we are estimating project completion in Q1 2017. Moving on then to Crystal Rig 4. As mentioned, all the 11 turbines there are now operational. We have formally taken over the project from the OEM. And the contracts for different start date is estimated to be in Q2. So a very good job by the whole team on that project as well. And that concludes my presentation this quarter. Thank you.