Norwegian owner OHT believes it has timed its move into offshore wind shipping perfectly, as it works to firm up a second new wind turbine installation vessel (WTIV).
A contract for the $230m WTIV Vind 1 was confirmed in November at China Merchants Industry Holdings (CMHI) for delivery in mid-2023.
Basic design is well underway, with the focus now on working with the yard and designer to maximise payload by reducing component and material weights as much as possible, the Arne Blystad-backed owner said.
A refund guarantee has been received by the yard's lender and OHT has paid the first instalment.
Negotiations for a conditional shipbuilding contract for the next Vind ship are awaiting further clarity regarding client commitments, OHT said.
Tendering for installation of foundations and turbines continues at a high pace, the company added.
OHT said it would remain disciplined when it comes to pricing and selection of projects.
Running out of time
"Management is increasingly confident that the timing for entering this market is exactly right, as it will be characterised by tightness on the supply side for several years," the owner added.
A final investment decision has now been made by SSE and Equinor on its Dogger Bank A and B wind farms off the UK.
This means OHT's new 48,000-dwt foundation ship Alfa Lift, due from China Merchants in 2022, has finalised a contract to install 190 foundations for A and an unspecified number for B.
New wind farm tenders have moved into the clarifications and negotiations phase, the shipowner said.
OHT is in talks for contracts in Europe and the US from 2024 to 2028.
"For the many projects planning to start offshore construction in 2024, various developers are gradually realising that there will be more projects than there are vessels that can effectively perform the installation work," said OHT.
"There is no longer time to bring newbuilt foundation installation vessels to the market unless construction has already started."
Contracts coming this quarter?
The first contract awards may still come in the first quarter, the company said.
OHT is aiming for a listing on the main board of the Oslo Stock Exchange, moving from the Euronext Growth board.
To do this, it needs to show it is fully financed for the next year.
Bosses have accelerated a process to formalise take-out financing for Alfa Lift as a result.
"Alternative funding structures are being developed to take advantage of export credit agency financing and achieving more favourable overall terms," the company said.
The group has already entered into a $50m revolving credit facility to replace an earlier $30m loan.
Loss grows in pandemic
The net loss in the fourth quarter was $5.53m, against a loss of $3.44m in 2019.
Revenue dropped to $8.9m in the period, against $12.1m.
Annual earnings were $5.32m, turning around a loss of $7.6m in 2019.
The second wave of the pandemic led to cancellations or delayed charters for OHT's heavylift fleet.
But pricing is back to levels seen before the rise in cases in the latter part of 2020.
