Good morning, everybody, and very welcome to the fourth quarter presentation for Bonheur. Richard Olav Aa, our CFO, will do part of the presentation, and then we will have, as we did last time, three of our CEOs for the different companies to present also their companies. Please, Richard, go ahead.
Thank you, Anette, and good morning from Oslo to everybody. We can go to the first slide. It's a good result this quarter, and it's all across the renewable energy companies, and it's really related to two factors. It's the high energy prices, and that the wind service segment has a good result, despite two out of three installation vessels have been at the yard in the quarter. Those are the real headlines driving the result this quarter, but we'll go through them in more detail. Let's start with renewable energy, which had an EBITDA of NOK 1,060 million, which is an improvement of more than NOK 800 million from fourth quarter last year.
The result is characterized by high power prices, but also good wind production in the quarter, and my colleague, Anders, will come back to that in more detail later. We're also proud to announce that the Högaliden project was completed in the quarter and adding almost 20% to the expected power production going forward within the budget. Also a major event strategically in the quarter was the formation of Fred. Olsen Seawind, where we have gathered all the offshore wind activities under the leadership of Lars Bender, which also will present later today.
Some major events in the quarter also, of course, the JV with Vattenfall, which actually happened in January, but we highlighted this quarter as well, where we awarded a right to develop what we believe is a very attractive floating offshore wind project just outside the coast of Aberdeen in Scotland over a capacity of up to close to 800 MW in the Scotland lease award. Also, Codling is progressing at schedule. Irish government are shooting for an energy auction later this year, and we see a strong push in Ireland for developing offshore wind. On wind service, an improvement from fourth quarter last year, from NOK 102 million EBITDA to NOK 147 million this quarter. Again, this is despite two out of three vessels have been at yard in the quarter.
It's a strong result across the board within this segment from all companies in the wind service. Bold Tern is going through its conversion program, getting a new crane for taking the next generation turbines in Singapore, and my colleague, Alexandra, will cover that in more detail later. Also, Blue Tern had her class renewal in Denmark in the fourth quarter into also now the first quarter, and also had a lengthening of the crane. That was completed, and she's now back at work. Also, very important, for which we were able to strengthen its backlog by close to EUR 80 million in the fourth quarter, and now up to EUR 355 million in backlog over the next three years. The planning activities for a new build to continue to reinforce Bonheur's market position is in progress.
The IPO, we unfortunately had to put on hold due to the geopolitical tension that we read about every day now, not least the war in Ukraine. On the cruise side, we have a small improvement in the EBITDA from -NOK 113 million in the fourth quarter 2020 to -NOK 85 million in the fourth quarter last year. We have been cruising with two new ships in the quarter, but with low occupancy and also quite discounted prices in the U.K. market in the fourth quarter. The current plan for bringing the full fleet back into operation is to bring Balmoral into cruising in the second quarter and Braemar in the spring of 2023. We see good demand for cruises both in 2022 and 2023.
We also have to take a little bit of a disclaimer here that our first quarter sailings were impacted by Omicron and not at least for a group in quarantine. On the other investments, also a small improvement on the EBITDA. EBITDA of NOK -14 million compared to NOK -29 million. Some prioritization of cost and so drivers behind that. Don't put too much note into that. What is very important on the other investment, that finally the subscription revenue growth in the media business is turning positive with a healthy 4% organic growth in the quarter. NHST is also investing in the soft business.
On a consolidated basis, we see that operating revenues were up almost NOK 1.2 billion in the quarter, driven by the high energy prices and also the resuming of the cruise. EBITDA improved by more than NOK 900 million as the revenues in renewable energy flows directly to the EBITDA. EBIT was positive by more than NOK 1 billion, that we had some one-offs which also went in a positive direction under financial items. On the parent company, the board is proposing a dividend of NOK 4.30 per share, which is up from NOK 4 per share for the accounting year 2020, which represents a dividend payout of NOK 183 million.
After that dividend, the equity in the parent stands strong at more than NOK 6.8 billion on an equity ratio of 66%. I come back to the cash in the parent and the capitalization of the group of companies. We also have to mention the post-quarter event that we're spending a lot of time on monitoring how it may impact our various businesses, and that of course, the war in Ukraine. What we say here and where we are is it's very difficult to assess that as have on. Now moving on to the consolidated summary. Already covered the revenues and EBITDA, somewhat lower depreciation this quarter. We have no impairments.
Like I said, the net finance, we have several one-off, both realized and unrealized items in net finance that comes out with a +NOK 66 million compared to a -NOK 150 million for the quarter last year. That is resulting in an earnings before tax of NOK 957 million. Then we have quite heavy taxes on the renewable energy in the U.K. The net result is NOK 647 million. Yeah. Go a little bit deeper into the revenue side. We see an improvement in revenues of more than NOK 1.1 billion- NOK 2.7 billion this quarter. The main driver is the renewable energy with an improvement of NOK 853 million.
That is both we have higher wind speed, good wind production this quarter, but also significantly higher energy prices. Anders Bade will cover the development on the pluses later in the presentation. Wind service, again, despite two out of three vessels at yard, revenues were almost at the same level, NOK 844 million. Then we see the impact of cruising, two vessels out at sea in the fourth quarter, generating NOK 310 million in revenue. In other, it's the subscription growth in NHST that creates the small growth in the quarter. On the EBITDA for the renewable energy, we see a direct pass-through of the improved revenues into improved EBITDA, with improvement of more than NOK 800 million in the quarter.
We also see wind service improving NOK 46 million despite revenues being down and two out of three vessels being at the yard. The results of NOK 147 million in Q4 2021 across the business units in wind service, including Global Wind Service and FOWIC is a good result given the low activity. On cruise, -NOK 85 million still have layup cost on the two vessels. We have increased marketing spending as we are going back to cruises and with low occupancy and fairly low prices in the quarter, we still have a loss in the cruise business. Anyhow, the EBITDA at the fourth quarter at NOK 1.1 billion, an improvement by NOK 900 million from fourth quarter 2020.
Final slide on the introduction on Bonheur before I leave the floor to the CEOs, group capitalization per fourth quarter. This is an important slide on how we capitalize the group. It all stands on a solid green financing framework, which is now in place for Bonheur and all the renewable activities. Fred. Olsen Windcarrier has already a green financing on their fleet. Also we are using the bonds that we raise under this green financing framework to finance the expansion within renewables. It stands firm on the green financing framework, and we have a very clear policy for the capitalization of the group, which is highlighted in the three bullet points on top there.
I will not go into detail, but just take them one by one, what they really mean and how that relates to the figures below. First of all, you have the strong parent. That's the first point, that we will not expose the parent company in any way. The second is that we diversify the funding sources for the subsidiaries. I'll come back to how we do that. The thirdly is that everything in the subsidiaries non-recourse to the parent. So those are the three pillars of our financial policy going forward. I will also take them one by one into the numbers below, and maybe start with the one that is absolutely clear from the table below, and that is the point three, a non-recourse. You see at the right-hand column, we have zero debt now that is guaranteed by Bonheur.
On the second point, diversified funding sources, I would like to point you to the line some joint ventures and associated holding companies, where we now have NOK 878 million in cash and NOK 6.5 million in debt. That's where the bulk of the debt of the group of companies sits, and that's where we have done the main diversification of the funding sources by taking in long-term infrastructure capital on our wind farms in Scotland, and also have joint ventures with strategic partners like, for example, Keppel in Singapore on the Blue Tern. The third point is the strong parent position, which you can see to the bottom where we see Bonheur ASA sits now with NOK 2.3 billion in cash by the end of fourth quarter.
On top of that, we have liquid bonds and shares and so on, and external debt of NOK 2.7 billion. You see the companies above the cruise lines, wind service, renewable energy, which Bonheur own 100%, have very low leverage. By that, I hand over the word to my colleague, Anders, that will present renewable energy.
Just to introduce you, Anders. Anders is one of the two Co-CEOs in Fred. Olsen Renewables.
Thank you. That's very kind. Good morning to all of you on the call from myself. If you go to the first slide on renewable energy and brief recap of Fred. Olsen Renewables. We are an early mover in renewables. We had our first wind farm built back more than 25 years ago. Today, we have 12 wind farms in operation with the completion of the Högaliden. We have a track record of delivering construction activities on time and on budget, and we are growing our pipeline significantly now with the onshore development pipeline of 3.7 GW in Europe. With development pipeline, we mean sites where we have long-term land agreements. We're also building competitive edge within what we install.
We have a full integrated in-house business model, doing all the steps from site identification, development, construction, operation and ownership optimization. We clearly benefit from applying the learnings across the different phases. In terms of production, the normalized year, the last few years, we had around 1.8 TWh production. That was somewhat lower in 2021 due to particularly unusually low wind speeds in Scotland for Q3 and Q2. With the completion of Högaliden, we have seen approximately 19% expected production to the 1.8 terawatts. That will be a significant increase for 2022. We go to the next slide. This is an important slide always, and particularly interesting for this quarter. Starting on the upper left corner, see the capacity factors and generation.
In this quarter, we had good wind conditions in Scandinavia, both Norway and Sweden, and reasonably good in Scotland. That provided a production of more than 600,000 MWh for Q4. That is, as you can see, more than twice as high as it was for Q3. That is also more than 100,000 MWh more than we had Q4 last year. That was important in a quarter with high power prices, as you can see in the lower left corner. In the U.K. and Southern Norway, on a quarterly basis over the last year, the power prices has been very correlated on a quarterly basis.
You can see the two axes there on the left- and right-hand side that the power price in Scotland has been around GBP 200 per MWh and GBP 130 per MWh in Southern Norway. Both markets, very strong prices. Northern Sweden, SE2, also solid prices, but significantly lower than what we've seen in Southern Norway. I come back to the reasons for that on the left- and right-hand side. In the continental Europe, Southern Norway and U.K., gas prices are the main driver for the power prices. You can see during Q4 last year, you have the blue line, that's the gas prices, were very high during the quarter, peaking in Q4 December.
They have been somewhat lower for some months, but now they are, for the reasons you know, with the invasion of Ukraine, going up again. Carbon prices, the orange line, also high, staying around EUR 80. For just to give the impact of this for continental Europe, which will then impact both Southern Norway and U.K., you can multiply the gas price with a bit less than two, and you can divide the carbon price by three to get to the marginal cost per megawatt hour in euros for power production from gas-fired power plants. It's the blue line, the gas prices that has the strongest impact. Hydrological balance in Scandinavia, the bottom right graph, somewhat improving, strengthening the hydrological balance start of this year, but a very weak balance in Q4.
This was driving high prices. The buildup is primarily in Northern Norway and in Sweden, and with snow in Southern Norway. The reservoirs in Southern Norway is still constrained. Go to the next slide, please. To a construction update with Högaliden. We completed this construction in Q4 within budget of around slightly less than SEK 1.2 billion. This is the second-largest wind farm in the portfolio, and it's adding 19% energy production to our portfolio. It's also the first wind farm in the world to be fully equipped with ZX lidars, turbine-mounted lidars. These lidars use laser technology to measure the wind from approximately 300 meters before the wind reaches the turbine.
That allows for turbine optimization in terms of how you tilt the blades and maximizing production. To the final slide from my side, to update. We continue at full speed to do site identification in U.K., Sweden, and Norway. We're also looking at PV in the markets where we find that to be attractive. We are entering floating solar. We have an approach to floating solar, where we're building a strong competitive edge, and we're leveraging that to attract strong local partners. This particularly, we're going then for markets with strong solar irradiation, good power prices, and lack of land for onshore PV. We also have now established a presence, both in Singapore. It's a regional office.
On the development side, we have two new sites in southern Sweden, adding 180 MW to the portfolio. We now have a significant development portfolio. That's a long process where you need to do the right things all the way from wind measurement, design, and then you come to all the local consultations, EIS, environmental impact assessment, and the permitting. That's a phase where we put significant effort into. The same we do for the consented sites, where we now have three sites in Scotland, consented over the last 15 months, that we are working hard to progress towards consent. The other update is that we have now Högaliden in operation. That has moved from construction to operation. That concludes my presentation.
Thank you, Anders. Next one out is Lars Bender, responsible for our offshore wind development. We are very happy to announce the name of the company now that you are the CEO of It's Fred. Olsen Seawind. Please, Lars, go ahead.
Thank you, Annette. Yes, as Annette already mentioned, we have in this quarter established formally Fred. Olsen Seawind, which will be the company structure for our offshore wind activities going forward. I will, in this presentation, give you a short update on the main project activities, but also say a bit about the path going forward for our company. First slide. First, I'll do is a short update on the Codling Wind project in Ireland. Just to recap, the Codling Wind project is the largest project in Ireland. It is the largest infrastructure investment in Ireland, project of up to 1,500 MW, so a large offshore wind project. We are developing the project together with EDF in a 50/50 partnership, and the project is one out of six classified as a phase I project.
This basically means that we will have priority into the first auction, which as Richard mentioned before, is roughly a year from now. We still see a very attractive project in Codling. We are by far the largest project in phase I. We have around 32% of the capacity into that auction. We have a project which is close to shore, favorable seabed conditions. Overall, we see a very good competitive situation for our project with economies of scale and favorable conditions on site driving that competitive situation. If we then look a bit further into what's happened in this quarter in Ireland, there are mainly three points to be aware of. First of all, our project is on track. We are running engineering, procurement and consenting processes in the project.
We have around 40 to 50 employees working with that together with EDF. We are happy that we are on track and preparing for the auction later this year. The second point is that the government is also very much on track. They have picked up speed on all regulatory framework. It's from grid to the terms and conditions for the auction, but also the rules around consenting is now slowly coming into place, which is very positive. In addition to that, the third point to take away from Ireland is that the government has also announced that there will be a phase II and also a phase III or an enduring regime, as they refer to it as.
Which means that Ireland now is a long-term market for offshore wind, which for us of course is important given the position we have now in Ireland, and we naturally see it as a natural point or country to develop further in as well. Next slide. To a bit of good news. As Richard mentioned before, we were one of the companies that were successful in the ScotWind competition in Scotland. We talked about it in the last quarter that the results would be announced in January, and they were. We, together with Vattenfall, secured a site in that competition. It has undoubtedly been the most competitive competition seen in offshore wind.
The government received 74 bids, so very much unparalleled competition we've seen, and also a lot of new constellations in offshore wind going into that competition. A total of 17 projects was awarded with around 10 being floating projects. If we look a bit closer to our project, it is a project of 798 MW. It's a floating project. It is situated in the attractive E Zone. We have a project with a, in our opinion, good location close to demand, close to grid, relatively favorable wind speeds, and also with a good water depth and soil conditions for floating wind. Overall, we see a project with a good LCOE profile and also competitive project when we look at the coming CfD rounds in Scotland.
Naturally, we've been very happy with securing the site. It's been a team across Fred. Olsen that has worked very intensely with this over the last one and a half years. Winning there solidifies our position, but naturally also gives us something to build our future on as well. Very positive. We will be looking at developing the project together with Vattenfall in an integrated team, so both companies will supply resources into that team with base out of Scotland. The project will be developed over the next year. Currently, we are targeting CfD in around 2026 and FID around 2027 to 2028.
If we then look at this last slide and trying to put together, we are of course very happy that we now have come across the 2 GW mark for secured projects. We have Codling bottom-fixed in Ireland, a very mature development project. Now we've further added almost 800 MW to that portfolio of a floating project. Overall, a solid portfolio of projects, which gives us a good basis for growing our business further. That will happen through several tracks. First of all, we want to develop in our core markets, and that would be Norway, Scotland, and Ireland. We wanna solidify our position in those markets. We have already great positions, but we naturally wanna build further on that. We also want to look at the synergies we have with our related companies.
We wanna look at new markets to take the track record we already have and the experience we have to develop into to those new markets. There's a clear path to a larger portfolio for us now, built around a very solid platform of Codling Wind Park and the Magheramore Wind Park as well. Overall, in recapping this quarter, it's been a very good quarter for the offshore wind. First of all, we've separated our business into a separate corporate structure, which gives us a platform to grow on. We secured ScotWind lease, and third, we are on track with the Codling project for an auction later this year. With that, I will give the word back to you, Anette.
Next one out is Alexandra Koefoed, CEO of Fred. Olsen Windcarrier. Last one out. It's supposed to be ladies first, but maybe next time, Alexandra. Go ahead, please.
Good morning, everybody. I will give an update on the Fred. Olsen Windcarrier for the last quarter. Firstly, just very brief introduction to Fred. Olsen Windcarrier. We are a leading wind turbine installation contractor. We have 20% market share since our vessels were delivered, so we have a very solid foundation for a growing market. In the last quarter, as Richard already mentioned, we have had two vessels in yard. I'll go in sort of a little bit more detail on the next slide. Brave Tern, she has been working more or less for the whole quarter. She's been on the Yunlin project. That contract was terminated by the client in December, but that meant we were still paid the full fixed fee for the project.
Bold Tern, she's in Singapore, doing sort of the full upgrade to become a future-proof vessel for the next generation turbines. Blue Tern has also been in yard in Q4. That's been linked to 10-year class renewal and some project updates. We've done extension of the boom. We've done some modifications to the spud cans and the jacking system to make her ready for projects up until 2024. Which sort of brings me to the next point where we have secured additional work. Blue Tern, she finished the yard stay as planned mid-February, and she's now on a new contract that we secured in December.
All in all, we secured EUR 80 million of new contracts in December, which means the fleet is sold to 80%-90% for the next two years, which we are very happy with. Overall, we have a EUR 355 million backlog. In terms of results of the quarter, that was carried by Brave Tern completely, as the two other vessels were in yard, but still a solid EBITDA of the quarter. Looking at the full year of 2021, we have an EBITDA in Windcarrier of almost EUR 53 million, which is our best year so far. The contracts that was awarded, that was three new contracts. They were linked both to work in Taiwan and Europe. They were linked to existing and new contracts.
At the time when they were signed, two of them were reservation agreements. One of those is now firm, and we do expect a second one to be firm in the near future. Further in terms of preparing ourselves, we have secured an extension of our existing facility with DNB and Sparebanken with EUR 35 million. This is on the same terms as the loan we secured in summer of 2020, which means this is still classified as a green loan and on the same terms. This gives us flexibility in the company because we have some investments that need to go in, but that also fully finances the upgrade program for the fleet. Firstly, we are continuing to pursue our long-term strategy to reinforce our position in a growing market.
We see very significant growth in the sort of range of 20% annual for the next decade. We are working to be a leading global turbine installation contractor in this market. With that, we need the teams and assets to deliver the services in that market. Firstly, we have an upgrade program on the fleet, which we have initiated some time ago. To take it vessel by vessel, Bold Tern is the first vessel, and she is currently at Keppel FELS in Singapore. What you see here is pictures of the crane pedestal that's installed at Keppel FELS. The crane is in China waiting to be transported to Singapore. We have seen some delays, but that's due to the very, very strict requirements for vessels entering into China in terms of COVID.
We are now looking to have a solution. I think we can very soon share the good news that the crane is on its way to Singapore, and we do expect to depart the yard in early Q2, and then the vessel will head straight for project commitments. Brave Tern, we have in the fourth quarter placed a firm order for her new crane. That's a Huisman 1,600-ton crane. Exactly the same crane we are installing on Bold Tern these days, and we are expecting to complete the new crane installation on Brave Tern in early sort of 2024. The reason for the timing is because she actually has project commitments up until then. Then finally, Blue Tern. She is planned for an upgrade in first half of 2025.
We're still optimizing the crane size on that vessel, but she also has contract commitments up until the end of 2024. All in all, good contract coverage for our vessel. Finally, we do continue the work on building to create a diversified fleet, to serve diversified projects across the globe. We do have a clear ambition to be present in all that we see as the three main markets in the next decade, which is Europe, APAC, and the U.S. That was all for me.
Thank you. Back to Richard-
Thank you.
...covering some of our additional companies.
Yes. Thank you, Anette. Going from one global market leader to another global market leader, we have Global Wind Service, which is clearly the market leader in offshore wind service installation services, and very often work in tandem with Alexandra's team. Also a good year for Global Wind Service, and they were now up at almost 1,400 employees in the fourth quarter last year. With the growth ahead of us, they are now really ramping up also to expand that further into 2022 and 2023. We're very happy that we have our own training center, so we can train our own employees when we see the shortages of people in the industry now.
Back to the market, we are in Global Wind Service now, truly a global player, and we're working also very in tandem with the Blue Tern now, especially in the Far East in Taiwan. Like Alexandra said, two out of three vessels of Blue Tern are now in Far East. GWS is also mobilizing heavily for taking on more projects in the regions. Also a significant presence now in the U.S., we have executed some of the larger onshore projects in the U.S. the last couple of years, and getting more and more traction in the U.S. market, which very important to talk for GWS on onshore presently, but also then positioned when offshore finally takes off in the U.S. like it seems to do now.
I think I leave it by that for Global Wind Service. Going over to Cruise. Yeah, see a nice picture here, one of the new vessels. It's actually a very good picture where it's a picture of one of the new vessels that we're actually able to go to Iceland already in August, and one of the first vessels out on international voyage. Our customers, they're really eager to cruises, so we have had good bookings all through the Omicron outbreak. Obviously, only with two vessels in operations and all the things you have to take care of with quarantine and logistics and everything, the operation in the quarter was only 66% on the two ships.
In the first quarter, we had the Omicron effect, where a lot of the crew had the Omicron virus, and due to safety reasons, we had to put the ships idle for some cruises, but they are now back into operation again. Hopefully the COVID situation in cruise line is behind us. Bookings are good and restrictions are easing around the world. Based on that, we have no plans for sailing Balmoral from the second quarter as we see strong demand for her itineraries. While on Braemar, given the whole situation with the COVID and Omicron, we decided to push her sailing date back to the spring of 2023. We know that fourth quarter, first quarter is typically a low season, so we thought it would make more financial sense to take her back into the waters next spring.
Of course, with the world situation now with the war in Ukraine and everything that may follow from that, it's obviously a very uncertain time also for the cruise business going forward. Maybe end where we started and not going through the results again, but say that in addition to good results in the quarter, I just want to reiterate that we have had some good strategic advances in the quarter, and maybe particularly with the creation of Fred. Olsen Seawind and the ScotWind award, but also the strong progress, I would say, on the strategic direction of Fred. Olsen Windcarrier with the upgrades of the vessels and adding to the backlog. All in all, I think it's been a strong quarter financially and also strong developments on the strategic side. Then, Annette, back to you. Should we open for questions?
Yeah. Absolutely. Please go ahead.
Thank you. Our first question comes from Turner Holm with Clarksons. Please go ahead.
Hi, good morning, everybody, and congratulations on a strong quarter. Richard or perhaps Anders, I was wondering if you all could talk a little bit about, you know, the power price environment that you see now. A lot has changed in the world in the last week, and I think politicians have been pretty clear that moving away from Russian gas is a top priority in Europe. That seems to set up an environment where power prices may stay higher for longer. I just wondered if you all could kind of share your thoughts on what you see going forward. Thanks.
Nice. Million-dollar question.
That's the million-dollar question.
Yeah.
It's very market specific for our operations. I think in Southern Europe, we will clearly be impacted from the prices in continental Europe. Gas prices are now also forward gas prices. They are around EUR 115. This is the same forward for the next few months than they are today. How that will develop, how Putin is behaving, I don't wanna speculate on that. It's obviously the gas prices that are the biggest uncertainty and how that will impact the power prices both in Southern Norway and in Scotland. As you are aware, we have most of our operation production in Scotland. In Northern Sweden, there is a strong hydrological balance and a lot of onshore wind, so that will be less impacted by the gas prices.
It's the gas prices which we see as the big uncertainty. The forward prices are today as they are. Forward prices are similar to the current spot prices. It's what we have seen over the last few days. How they will develop, I don't know if you want to speculate any more, Rikard. No. You have a very good point about the long term for the need for more renewable energy. Yeah.
That's very clear. Yeah.
Okay.
I understand. Obviously it's a dynamic situation, but I think that is, like you said, the million-dollar question or billion kroner question this quarter. In terms of just renewable energy for the fourth quarter, I think one thing that positively surprised was the level of generation. You know, one of the reasons people talked about for high power prices during Q4 was relatively low wind speeds, but the load factor was quite good. First quarter seems to improve, at least, you know, kind of what you hear in the media. I mean, how does the first quarter look compared to how you did in the fourth quarter for the renewable energy business?
Well, thank you for the question. I think we will comment on the first quarter when we get to the first quarter results.
Okay. All right. One last one from me is just Seawind. I like the name. It's obviously very well-positioned with the project upcoming in Codling Bank, in Ireland, and ScotWind in Scotland. But I mean, these are also projects that require, you know, billions of euros to execute. I understand you may not have an exact answer now on how you intend to finance them, but you know, what are kind of the range of options that you're considering and kind of how do you see a timeline for the future of Fred. Olsen Seawind developing? Thank you.
Well, we're considering all options at the moment. Really looking at the timeline, obviously, the big money starts being spent when construction starts for the wind farms. I think for now it's a project. It's a project, steering the projects in a good way. Time-wise, we have a decent time in front of us to also deal with the financing.
Yeah.
If you want to add something.
No, I can just add back to our financial policy, with the three pillars I mentioned earlier in the call, that the second pillar is that we develop diversified funding sources for the various subsidiaries, unlike we've done in onshore wind, for example, where we have taken in long-term infrastructure capital on our Scottish wind farms, and there could be a range of other options and renewable energy is an attractive class to finance. So we just have to, like Annette say, work on all options.
We're very glad you like the name.
It's simple and to the point. It's very good. Okay. All right. Thank you so much. Best of luck in first quarter.
Thank you. Thank you.
Next question.
I remind you that if you do wish to ask a question, please press zero one on your telephone keypad. Our next question comes from John Olaisen with ABG. Please go ahead.
Yeah. Good morning, everybody. A couple of questions, if I may. If I start with Fred. Olsen Windcarrier, of course, you had to put the IPO on hold, but I just wonder how important is it for you to have control of that company? The plan was to have a roughly 60% ownership, if I remember correctly, of Fred. Olsen Windcarrier after the proposed IPO. I just wonder, have you considered consolidating or merging with somebody else? I guess, as you mentioned, you said you want to be a market leader. There are a lot of players, but most of them are very, very small. Could you shed some light on your thoughts of the need for consolidation and the opportunities for you potentially, and how would you view that, please?
Yeah. I think to comment on what we do when it comes to future possibilities with other companies, we're not going to do that, you know that. You asked about how important Fred. Olsen Windcarrier is for us. I think we see Fred. Olsen Windcarrier as a very important company with the cluster of companies we have within Fred. Olsen Renewables companies. It certainly is in the center of the development. We have over the years developed the services of the company. We believe in the quality the company delivers, and also feel that there is a very good possibility for making sure that we also work together with the other companies that we have in Fred. Olsen Renewables to further add new offerings to our customers.
Generally, on consolidation, I think the industry has been talking about this for as long as we have been in this part of the industry. You know, we keep developing the business as we see fit for the business, but have no further thoughts on consolidation.
Maybe a question to Richard. Now, with the high electricity prices and the great results from that part of your business, of course, the minority interest position or the non-controlling interest is becoming a big number. I just wonder if you could outline a little bit to us how that impacts the balance sheet. For instance, you have a gross cash position of NOK 4 billion. I just wonder if it's possible to discuss a little bit just how much of those NOK 4 billion in cash belongs to your partners, so to speak, and how would that be distributed out. If you could just tell us a little bit about the big impact on the balance sheet from the minority interest, please.
Yeah, sure. Maybe if I could get a little bit help from my colleague, Jørn, to flip back to the group capitalization slides, I can show you there, John. Yeah, this one. What you see here on the two lines that relates to renewable energy at the top, and then also the fourth line from the top. On the top you have the joint ventures where we have brought in external capital.
Mm-hmm.
Both debt and equity, where we have eight of the Scottish wind farms, where we have 49% owners from TRIG, the listed Renewables Infrastructure Group and Aviva, a large U.K. insurance company. What you see here, John, is that those entities sits with a cash position per year end of NOK 519 million, an external bank debt with a long tenure debt with Japanese and German banks. That's where that cash is then distributed out on a regular basis to the owners. You have renewable energy, four at the fourth line, and that's where we have the one Scottish wind farm we own 100%, and the three Scandinavian wind farms that we own 100%, which have no debt and sits with NOK 168 million in cash.
We also have some repatriation of cash from renewable energy into Bonheur in the quarter, but we have also had outflows from Bonheur into Cruise Lines and other that needed financial support from the parent. That's, I think, as far as I can explain it with these numbers, John.
No, they're a good reminder. Thank you. My final question is regarding the offshore wind. Maybe it starts in ScotWind in Scotland. I just wonder why. It's probably a national explanation, and I know the lead times are long, but could you tell us why you expect to see CfD auction to take place in 2026? Why does it take four or five years between now and the CfD auction? Why is it such a long time?
Yeah, I think, Lars, you can answer better.
Yeah, I think actually Anders answered it a bit earlier for onshore wind. There is a lot of work going into a project before you can actually go into an auction. The focus over the coming years will be to obtain a consent. In order to obtain a consent, among other things, you need two years of bird surveys at site. You need to do geotech work at site. There's a lot of work before you can secure consent, and you need that consent before you can actually bid into an auction. In addition to that, site needs to be secured and developed. There's a lot of development work before you can actually bid into an auction. I think our timeline is fairly aggressive, actually.
We do see that we have a project which can be developed quite quickly. We are actually on a quite fast-track timeline. Even though, as you alluded to, it might not seem like that, but that's basically because there's a lot of work to be done before you can bid into an auction.
Even after the CfD auction takes another two years before we have the final investment decision. All in all, we've got, like, seven years, isn't it? It just sounds very like a long time, especially now, like, with reference to the earlier question with European politicians trying to speed up any renewable production. Since it's difficult for them to do that, isn't it, with all the lead time, with these kind of lead times, I guess. That's just the way it is, I guess. Is it possible to speed up if politicians decided to?
Obviously, you can always speed up. You can, of course, look at the regulatory constraints. As the regulations are in most countries now, I think, for both offshore and onshore wind, there is a lead time. Of course, there are good reasons for that lead time because you want to secure that the projects you develop, it takes consideration of environment and other factors before you actually start building. There are good reasons for that. Yes, you're right. There is a lead time to developing renewable energy, whether it's offshore or onshore.
My final question in relation to this is Codling. You now say you expect a CfD auction in 2022, 2023. Is any chance it could happen in 2022, or do you think it's slipping into 2023? What are the next milestones or indications that we'll get? When should we expect an announcement on when it will happen? I think the last announcement the government has made is that they expect it around November this year for the first CfD auction. That's currently also our expectation. Naturally, a timeline like that can slide with a few months. As I mentioned before, what we see is that the preparations the government is now doing on the terms and conditions for the auction, but also in relation to consent, is on track. Therefore, we believe it's a realistic timeframe that the government has set up with an auction late this year.
When will it be? If it actually happens in November 2022, when will the government in advance say that it will happen in November 2022? Is that like six months before or is it closer to November?
Yeah. The government is currently working with a timeline where they will do a prequalification sometime after summer. Probably we will have more clarity on the specific timeline after summer, at least. Yeah.
Okay. That's all for me. Thank you. Thank you very much, everybody. Thank you.
At this time, we have no further questions. I will now hand back to the speakers for their final remarks.
Well, thank you very much. I hope you have gotten the information you need. Thank you for today.