John Fredriksen-backed Edda Wind believes strong demand will lead to market growth in the coming years.
“Edda Wind is experiencing a favourable demand outlook and the Group’s tender activity is increasing,” the Oslo-listed company said in its second-quarter report.
The owner’s total backlog was €424m ($470m) at the end of June.
“There is a limited number of available vessels, including vessels under construction, in the coming years, and vessel demand is estimated to significantly outgrow supply,” the report said.
“This, combined with several newbuilds uncommitted at delivery in a market with great demand for this type of vessels, positions Edda Wind to capitalise on the expected growth in the quarters and years to come.”
Edda Wind’s revenue in the second quarter rose to €14.9m from €5.7m in the same quarter last year. Ebitda fell to €0.6m from €2.2m.
Two of the company’s newbuildings, the Goelo Enabler and Sudri Enabler, began operations in July.
Chief executive Kenneth Walland said: “I’m pleased to see Sudri Enabler going directly from delivery from the yard to operation.
“I remain highly optimistic on the market outlook as we will welcome one more vessel in our fleet during 2024, with the remaining five in 2025 and 2026.”
Edda Wind now has three service operation vessels and three commissioning service operation vessels in operation.
The total fleet is 13 vessels, including six CSOVs under construction.
The company had a challenging first quarter when it temporarily took three vessels out of operation to address issues related to the gangways systems.
Those vessels are now back at work.
“However, there has been and will be some financial fluctuations during such ramp-up phase that Edda Wind is currently experiencing, where there will be need for calibration of the gangways system during commencement of operation,” Walland said.
