BW Group-backed shipowner Cadeler will emerge financially stronger after a big offshore wind farm contract was torn up.

The Danish company received notice that Siemens Gamesa has terminated a deal agreed in April for Cadeler to transport and install 26 11-MW turbines for the Aflandshage project in Denmark.

“Cadeler regrets the cancellation of the project,” the owner said.

“However the cancellation will not impact Cadeler’s long-term financial performance, but will have a positive impact on the guidance provided for the financial year 2023,” it said.

The work was due to begin in 2026.

Cadeler said it has replacement projects lined up and operates with mutual termination fees.

The firm is in the process of merging with Scorpio Group’s Eneti to create the world’s leading turbine installation shipping group.

Cadeler’s previous forecast for 2023 was for adjusted Ebitda to be between €41m ($44.5m) and €49m.

This has been upped to between €47 and €52m.

Chief executive Mikkel Gleerup said: “We naturally regret the decision to cancel Aflandshage, a Danish project we had looked forward to supporting with all our expertise.

“However, the decision to cancel Aflandshage will not affect our long-term financial performance, as we see a strong demand in the market for our services. We expect back-to-back utilisation of vessels on other projects.”

HSBC comes up with the cash

Cadeler has also secured a green loan with HSBC worth €50m.

This will fund its new X-class and F-class wind turbine installation vessels (WTIVs), as well as the upgrade of the existing O-class ships with new cranes.

The term is five years.

Christina Ma, head of global banking Asia-Pacific at HSBC, said: “This green loan showcases HSBC’s ability to arrange tailored solutions for clients. We’re pleased to partner with Cadeler as the sole mandated lead arranger, green loan coordinator and facility agent.”