Bonheur, the Fred Olsen group’s holding company, is warning of clouds on the horizon for the offshore wind vessel sector.

The Oslo-listed company said the market outlook for wind turbine installation vessels remains positive, and its ships are close to being sold out up to 2026, with a contract backlog of €512m ($540m).

“There is, however, an increasing uncertainty related to the rising cost levels in the offshore wind industry, and the subsidy levels from the local governments,” Bonheur added.

This has already resulted in some cancelled projects and impairment of offshore wind projects in the US.

And no bids were received from offshore wind developers in the latest clean energy auction in the UK.

“The risk of further cancellations and delays in the industry has increased,” Bonheur said.

Its own backlog has not been hit so far, however.

The wind service division comprises Fred Olsen Windcarrier, Global Wind Service and Universal Foundation, with a 50% interest in United Wind Logistic in Germany.

Fred Olsen Windcarrier owns 100% of the 132-loa Brave Tern (built 2012) and Bold Tern (built 2013) WTIVs, and 51% of the 151-loa Blue Tern (built 2012).

Earnings down

Ebitda in the third quarter for the division was NOK 399m ($35.6m), down from NOK 418m a year ago.

The Tern vessels had 91.4% utilisation, against 99%.

Bonheur’s overall net profit was NOK 172m, compared with NOK 394m in 2022.

Revenue was flat at NOK 3.2bn.

But the cruise operation improved earnings.

Bonheur has four cruise ships, one of which was in lay-up in the quarter.

Ebitda grew to NOK 213m from a NOK 42m loss. Occupancy rose to 76% versus 59%.

Bunker costs dropped £7.4m ($8.5m) year on year.

Bonheur is the owner of TradeWinds’ parent media company DN Media Group.