Very welcome to the third quarter presentation for Bonheur. Today we will do as we usually do. Richard Olav Aa , our CFO in the company, will give us an overview of the main figures, and then the different responsible for the segments will talk to their segments, and then we will take questions at the end. We'll start. Richard.
Yes. Thank you Anette, and also a hearty welcome this morning from me. Before we dive into the numbers, I would like to set the scene for the figures this time. I think it's fair to say that we have closed a landmark transaction this quarter with the new fund to Hvitsten and securing long-term financing, both short-term financing for renewables, but also long-term financing for developing the wind farms. We have strong results in the renewable energy, two renewable energy segments. We also have some challenges in Cruise that we'll come back to. Going forward, very important topic, taxes. We'll come back to that in detail on the tax situation, maybe in particular in Norway, which is the most concrete as we see it today with potential quite harmful consequences for the situation in Norway.
With that introduction, with no further ado, I will go into the figures. Starting with the renewable energy business. We had an EBITDA this quarter of close to NOK 750 million, up from NOK 174 million in third quarter last year. We see continued high power prices in the quarter, especially in the U.K., and also in Norway, while Sweden is still on a low level. Generation was 18% lower than P50, which is the normalized level, so we could still have generated more with normal wind speeds. We have the closing of the Borgå transaction that closed early September, which gave a net liquidity effect into the renewables of more than NOK 1.7 billion, and also very important, EUR 305 million in committed capital for building future wind farms in Scotland and Sweden. On the tax side, I already made a comment about the significant uncertainty related to government taxation and then maybe especially in Norway as we see it as of now, but also general uncertainty around the U.K. Ivar Brandvold will cover that in detail later today.
On the wind service, a strong quarter with an EBITDA of NOK 418 million, up from NOK 264 million. All three operating units in that segment performed well in third quarter. The TUG vessels had close to 100% utilization. Alexandra will cover in detail the projects and how that work has performed. The backlog for the next three years, 2023, 2024, 2025, stands at a solid EUR 473 million. GWS had a strong quarter with a lot of activity in the main markets, U.S., Taiwan and Europe. UWL had 100% utilization of their three vessels and good results in the quarter.
We have our challenges at the Cruise. We had still an EBITDA loss of Cruise, although lower. It's -NOK 42 million this quarter, an improvement from -NOK 138 million third quarter last year. We clearly had hoped that we would be back in black figures on EBITDA on Cruise this quarter, but we still have a small way to go. We have had three ships in operations. The occupancy was 73%, up from 62%, but still quite a bit lower than we have seen in the third quarter ahead of the COVID-19 pandemic. What are the reasons for this? Well, the EBITDA is influenced by on the occupancy, and that's mainly due to rebookings.
We had a fairly good booking situation ahead of Q3, but we see what customers when they're uncertain, they rebook the cruise and/or a cancellation policy allow for that you can move your cruise to a later cruise. We have maintained the cash from the cruisers, but they have rebooked to later cruises. High fuel cost, especially for the low sulfur grades, marine gas oil and the very low sulfur fuel grade has gone up quite considerably in price. The U.S. dollar-pound development, where the pound has gone from around 1.30 down to 1.10 against the dollar, given the political uncertainty in the U.K. and the strong dollar development in general. All these three items are hitting Cruise quite hard this quarter and we end up with still an EBITDA figure in the red.
Going forward, we see market uncertainty in the U.K., given the economic situation in the U.K., and with high inflation, high energy prices, and less consumer confidence and also continued high fuel costs. There are more uncertainty related to Cruise than we saw three months ago. Given the challenging environment and also the fuel cost and also the increase in interest rates, we have to do an impairment based on the latest development in long-term interest rates. We have made an impairment of Cruise of NOK 456 million this quarter. We have taken that impairment towards the two older Cruise ships. I'll also come back to the impairment and cruise on a later slide.
On the other investments, the EBITDA of -NOK 42 million, weakening of NOK 21 million. Part of that is in NHST, which have higher cost this quarter, also due to inflation and distribution costs, but also due to higher investments in product development. Fred. Olsen 1848, an active quarter. Sophie will come back to that later in the presentation. Fred. Olsen Investments also starting to gain good speed ahead and have now in total five smaller investments within renewable energy. On a consolidated basis, we have operating revenues of NOK 3.2 billion, up from NOK 1.9 billion, and EBITDA of close to NOK 1.1 billion, up from NOK 279 million.
EBIT and net result after taxes are impacted by impairments and impact of long-term interest rates. I'll come back to that on the next slide because we have some special effects on the P&L from that. The parent company, the equity in the parent, compared to third quarter last year, is down from close to NOK 6.9 billion to close to NOK 6.2 billion. That's largely due to the investments we have made into the Cruise business. Equity ratio stands at 56.8%, down from 68.2%, while the cash in the parent has increased from approximately NOK 2.2 billion to approximately NOK 3.3 billion, and the latter is due to the Borgå transaction.
That money that we had from the Borgå or Hvitsten transaction, dear child has many names, that converts into renewables. That money is now borrowed up to Bonheur, and that is converted to dividend in the fourth quarter. These ratios on the equity and equity in parent will be quite significantly improved in the fourth quarter. On the consolidated summary, already covered, revenues and EBITDA improvement. On the depreciation, we have written off the crane on Bold Tern. That the old crane, which has been replaced by a new crane. That's why we see an increased depreciation of NOK 72 million. We have the impairment of Cruise of NOK 455 million.
That gives an EBIT of NOK 290 million, which is an improvement of NOK 277 million from third quarter last year, even though we have had the impairment of Cruise. On net finance, we have a significantly positive net finance this quarter of NOK 387 million, which is an improvement of NOK 458 million from third quarter last year. That is almost entirely due to the interest rate situation in the U.K., where long-term interest rates in the U.K. have risen sharply in the quarter, not least due to the political turmoil. We have hedged our long-term financing in renewables in Scotland with fixed interest rate swaps that have secured interest for more than 10 years.
Those interest rate swaps have of course become much more valuable in the quarter when long-term interest rates have increased. That's the reason behind the strong result in net finance. That gives us a strong EBIT improvement even though we have this impairment increase of NOK 600 million up to NOK 675 million, which is an improvement with more than NOK 700 million. The net result of NOK 393 million, we are in tax position in the U.K., so we pay quite a bit of taxes on the U.K. wind farms. Still an improvement on net result of NOK 550 million.
To the parent, though, it is a result of only NOK 40 million, and that's because the parent owns 100% of Cruise and takes the full impairment against the parent. On the revenues, a little bit more deep dive into the revenues. An improvement of more than NOK 1.3 billion in the quarter, whereof NOK 616 million comes from the renewable energy, both due to higher wind speeds, although lower than normal, but also improved pricing, especially in Norway and U.K. Wind service, an improvement of NOK 30 million. All three segments have improved revenues this quarter. In particular, Fred. Olsen Windcarrier due to the 100% utilization.
Cruise, an improvement of close to NOK 400 million, even though it's weaker than expected, it's still a strong improvement from third quarter last year, where we had one cruise ship in full operation in the third quarter last year, and one cruise ship for half the quarter, while we had three cruise ships in the full quarter of 2022. Other is more or less stable on the revenue side. On the EBITDA, an improvement of NOK 803 million in total, where renewable energy has an improvement of NOK 574 million, again, largely due to prices and higher wind speeds.
We wind service, an improvement of NOK 154 million, and again, high utilization of both UWL and Windcarrier, but also a record high quarter for Global Wind Service. Well, Cruise, an improvement of NOK 96 million. What we see is that it's been a good decision to put all three ships out in the market. The results have been significantly worse if we hadn't reactivated the Balmoral, so it's been profitable to make that decision. But still, it's not enough to cover the overhead cost in Cruise, so we are NOK 42 million negative on EBITDA. On the other, it's smaller movements. This slide on the balance sheet, it's a busy slide. We have done a little bit of product development of this slide ahead of this quarter.
Previously we had a lot of focus on this slide on the guarantee side that we tried to visualize that Bonheur moved away from having any guarantees for their subsidiaries financially. That's now in place, so that's not really a big thing to address with the numbers. What we see now is the long-term interest rates are increasing quite dramatically in all our markets. The slide now takes more a focus on how the debt and cash is linked to the interest rates. I would like to just keep the financial objectives in focus as well, which are the first bullet points that we have the policy. A strong parent financial positions with the conservative leverage and solid liquidity position. That has further improved in this quarter that the parent now has NOK 3.3 billion in cash and no guarantees.
Then also with the aim to accelerate growth, subsidiaries within the company's high growth and capital-intensive business segments are actively investigating and considers various means of sourcing external capital. Hereunder a broad set of equity options, including listing. The Borgå transaction or the Hvitsten transaction, what do we define it to call it, is a clear example on that and secure long-term financing on a standalone basis for Fred. Olsen Renewables. That also links to the third bullet point and also the fourth bullet point of green financing. Going to the numbers, I think at least some of you will find interest in this table. What it really shows, on a high level, is that, on a financial side, actually, Bonheur will benefit from increased interest rates. That comes from a very strong cash position, and quite a bit of our long-term debt is on fixed interest rates.
If we start on the top, with the joint ventures, the three lines, what we have in the joint venture on the renewable side, the two joint ventures in Scotland and the new joint ventures in Norway and Sweden, and the wind service joint ventures with the UWL and Keppel. We see, in total, we have approximately NOK 1.1 billion in cash and NOK 5.6 billion in external debt. Of that NOK 5.6 billion in external debt, approximately NOK 1 billion is shareholder loans, and NOK 4.2 billion is covered by the fixed interest rates. In total, the cash and what is not on fixed interest rates is very well balanced on the joint venture side. For the joint ventures, an increase or a decrease in the long-term interest rates will not drive up the net interest cost in the joint ventures in total. When it comes to what we control 100%, from Bonheur on the five lines below, we see a total cash of NOK 3.9 billion and external debt of close to NOK 3.4 billion. We're close to NOK 300 million on some fixed interest rates.
In total there, we have approximately NOK 800 million more in cash than we have on floating interest rates. For what we control 100%, an increase in the interest rates actually improves the net interest. At this time, I mean, of course, this has not been beneficial when interest rates have gone down, but now when interest rates go up, we are very well protected. To the end of this part of the presentation before handing over to Ivar. This slide you've seen many times before, but it's been developed further this quarter, and it's growing from every quarter. We had the debate actually yesterday if it start to be too wide. But there is a good development in this slide also this quarter.
We see on the renewable side, Ivar will come back to that, adding pipeline. Lars will come back to that, developing the projects in Seawind. We see strong development across all the service sectors. Sofie will come back to the Fred. Olsen 1848 development this quarter. What we have added though, in this quarter is a fourth box on this, which we call capital. There we have the Hvitsten Asset Management Company, which is now in operation. We see there with the partners of MEAG and KLP and Keppel. We have started a new, really a new business on the asset management side. That builds on what we have done before with equity partnerships with TRIG and Aviva.
We did account, and we see that over the years now, we have taken in close to EUR 1 billion in financial partnerships in the capital side. Now 480 million of that is with the KLP and MEAG and KIT structure. Then also on the investment side, starting to gain speed with now five smaller investments within renewable energy. We see an increased importance of this fourth box, and we think that the capital side now fills in with the renewables and services and technology and innovation in a very good way. With that's the end of my presentation.
Yeah.
Yeah.
Thank you, Richard. Next one out is Ivar Brandvold, Co-CEO of Fred. Olsen Renewables. Welcome, Ivar.
Yeah. Good morning, everybody, and I'll cover over renewable energy, and we're starting with the business model, which gives us an overview of our portfolio. As we speak, we have a development portfolio of 3.7 GW. We have a consented portfolio of 462 MW, and we have also a small park in northern Sweden now under construction of 17, the Fäbodliden II, and we have 478 MW in production in total. The material change over the last quarter has been an increase of the consenting portfolio in the U.K., and we cover that in the next slide.
Building on what Richard just mentioned, we have the wind farm as a partner now for new projects. I dare say that we have developed a very strong consented portfolio over this last period, including Fäbodliden. It will be around 480 MW that is consented. The two last ones is Fetteresso in the U.K. and Lotus 3 most recently. I must say that the Lotus 3, of 126 MW, is quite an achievement given the constrained development on land in U.K. That is something we are really proud of, being able to bring to consent at this stage. We have then six consented parks and in addition to Fäbodliden two under construction now in northern Sweden, which is an extension to the producing Fäbodliden park. That's four turbines to be installed next year.
We started with the construction work in August this year, and things are progressing well, I must say. If you then look at the market development. Now I'll cover production first. 2021 was an odd year out with a very low wind production, as you can see here, of 1.7 TWh. When it comes to 2022, our expectation has been that we're going to deliver on what we call P50 or expected production, and we are now on target to meet that forecast of 2.2 TWh being produced in 2022. There's not really been any surprises of a negative character for the producing wind farms up until now.
If you look at the energy sector, so we see the market on these four slides. If you look at the top left, you there see the capacity factors and the generation on our wind farms. Of course, it also then shows over the years and each quarter, the variations we have from winter to summer and back to winter again. When it comes to the last three quarters, we are quite, as I mentioned, normal year production in our wind farms in total, with a drop during the summer season, and we now expect a rapid increase in production again in the fourth quarter. In a way, the energy market is in a little bit more of a normal, as we speak.
If you look at the lower left graph, which covers the power prices, you will see that the power prices in Europe, in U.K., and in Norway has come down quite sharply over these last months. We have had a relatively stable development in Sweden. It's still at higher levels, but at least there's some form of normalization in these markets. I'd say that is on the back of the development on the gas pricing, which you see to the upper right, where there has been a rapid drop in the gas prices over the last months. That is a consequence of additional sources of gas via LNG, not Russia, into Europe, and also that the storage has been now replenished in Europe in advance of the winter months.
The other topic, should we say, or parameter, is the hydrological balance in Scandinavia, which has been low, lower than usual over quite some period. You can see to the lower right there, that is starting to come back to normal. The zero level here is what we call the normal level on the hydrological balance. In a way, those two factors are part of what's forming the basis for the current electricity prices. What do we expect during winter? We think that the most pronounced effect is going to be the uncertainty related to Ukraine and the sensitivity as to the energy market in Europe. We expect volatility and large variations also through this winter than we would normally see prior to this crisis.
If you go then to another topic which has taken quite some interest over these last months, and that is the measures implemented by the governments in U.K. and Norway, and also EU, related to the power situation. They're a little bit different approaches in Norway as to EU and U.K. I would like to draw your attention to the lower graph to the left there. That is the Statnett's prognosis in terms of our power balance in Norway going forward. With no new power being brought to the market, we expect that we will have a negative power balance in Norway by 2027.
Sometimes I wonder if this is a realization that is in a way understood in Norway, because this is facts, and if we don't develop new energy sources via hydro or wind on land, we will not be able to meet our demands after 2027, which I think is quite a dramatic situation. To meet the needs by 2030, additional 30 TWh of new energy is required in Norway, which is a challenge in itself. As I said, the two sources would be hydro to a lesser extent and onshore wind to a larger extent. It's a challenge in itself to develop this.
On the back of this, we have then now seen a tax proposal in Norway, which I dare say took us by surprise, which is quite dramatic. This was announced in late September in relation to preparation for the 2023 budget. The consequences, if being legislated, so to speak, is that existing wind farms with this resource tax, basically, the government would capture about 51.3% of the value of the wind farms with no compensation, which is a dramatic change in itself. On new wind farms, we would see a what we call a non-symmetrical, that is, not a cash neutral resource tax being proposed, in contrast to what we have on hydro and oil and gas today. That would materially effectively have the result that there will have to be a dramatic increase in energy prices to have any minimum profitability on new projects.
That is also something which I think is not wanted in Norway, really. On top of this, a fee of 23% is proposed above NOK 0.70 per kilowatt hour for any production above NOK 0.70 , which is an effective tax also drawn from the wind farms. All in all, if implemented, it's impossible to see or say that this would not hamper new energy investments dramatically. What we could see is that it would severely then impact the power balance in Norway. We would have longer term higher electricity prices more strongly linked to Europe. We think that it also would hamper the transition into a greener energy situation in Norway, and hence also Europe going forward.
If you look at what's being implemented and discussed in EU and in the U.K., the main focus there has been to reduce the consumer bill on electricity that has been very high due to the circumstances. In EU, they have now proposed a or implemented a cap of from until June 2023, so it's a temporary measure of EUR 180 per megawatt hour. Plus, there will also be a profit element above for the generators. We have two wind farms within that sphere, which is in northern Sweden. But because of the prices in northern Sweden will be limited impact on our Swedish wind farms with this cap.
What has been a prerequisite in EU, and which is also a prerequisite in the discussions in the U.K., is that measures should not be negative in terms of constructing and bringing new energy sources of renewable nature to the markets. In the U.K., there was just recently an Energy Prices Act of 2022, voted in both houses, so it's now an act to be implemented. There is a secondary legislation that is now being prepared that will give us further details. As we speak, we do not know what the end result of that secondary legislation will be. That covers my part of the presentation. Thank you.
Thank you, Ivar. Next one out is Lars Bender, CEO for Fred. Olsen Seawind.
Thank you very much, and welcome to the first Q3 for Seawind. I will today cover our core markets. That's Ireland, Norway and Scotland. At the end, I will say a bit about our new markets as well, and our expectations in offshore wind. If we flip the slide. We'll start in Ireland with the Codling Project. Just to recap, the Codling project is the largest offshore wind project in Ireland. It's a bottom-fixed project. We own it in a 50/50 joint venture with EDF. It is one out of six projects which are qualified for the ORESS 1 auction, which is expected to be in April 2023.
Overall, a significant offshore wind project, not only in an Irish context, where it's the biggest, but also in a European and global context. In this quarter, we've seen significant progress. We've received a marine area consent minded to award letter from the Irish government, which is positive. As you might recall, this is one out of two preconditions we need to fulfill in order to qualify for the auction. The other precondition is a grid connection assessment, which is expected that we will receive within the next month or so. Overall, the legislation is progressing well. We've received a marine area consent. In general, the project is progressing according to plan. This has also allowed us to now continue the development of the project.
We've received node assignment on the Poolbeg Peninsula, meaning that we now can do detailed design around our onshore substation, and the connection into the grid. All in all, a quarter with significant progress on the framework around the auction, and also with a significant milestone in form of the award of the Maritime Area Consent. In Ireland, it's been positive development this quarter. With that, I will go to Norway. Just to recap our position in Norway, we've entered into a long-term partnership with Ørsted and Hafslund, an equal partnership where we aim to not only contend in the first upcoming lease round, but also to develop offshore wind long-term in Norway.
What we've seen in this quarter's news is that we've entered into a strategic supplier partnership with Nexans. Nexans is one of the world's leading cable producers for offshore wind. They have a significant Norwegian footprint, and one of the challenges we see in floating wind is dynamic cables. So the aim of this partnership is to discuss and develop tomorrow's solutions for dynamic cables for floating offshore wind. This has been part of our strategy from day one. We want to cooperate with the best Norwegian suppliers to deliver good solutions for floating offshore wind in Norway. Remembering back, Norway is a fantastic country for offshore wind. We have some of the best wind speeds in the world. We have a long coastline, so the conditions for being an offshore wind champion in floating wind is absolutely there.
We need to find some of the new solutions for both technology, but also financing, and production of offshore wind. We intend to do exactly that through our partnerships with the supply chain. Other news in this quarter in Norway, well, on the framework around the legislation, it's expected still that we will receive news in Q4 around this. We haven't heard a lot yet, but obviously what we are waiting for is the details on competition regimes. Is it going to be auctions? Is it going to be qualitative competition? We'll know more about that in Q4. Currently, our expectation is that Utsira Nord will be a qualitative competition, similar to what we saw in ScotWind. Whereas our expectation is that Sørlige Nordsjø II will be a more auction price determination mechanism.
Also, with less focus on, for example, Norwegian supply chain and so forth. We will know more about that during the next quarter. In any case, we are preparing for both competitions together with our partners. Naturally, we also have the long-term focus, and we've been happy to see that the Norwegian government through NVE has now started with consultation on potential new acreage in Norway, supporting the 30 GW target before 2040. Overall, that is positive. As Ivar already have mentioned, we've also followed the tax situation in Norway very closely from the offshore wind side. I think it's relevant to make a few comments from the offshore wind perspective on tax as well.
There's naturally two very important points for offshore wind when seeing the proposed tax regime. One is that given the process around the tax regime, that it came, as Ivar said, as a bit of surprise, it's naturally something which we look at, which we will most likely, or for sure, decrease the investor confidence into Norway. That's, of course, something we do not need from an offshore wind perspective. We would like Norway to be attractive. We would like to see Norway as an offshore wind champion long-term. In order to realize that, we need investments into Norway, and we need good, stable, predictable frame conditions. The other part is, of course, that currently, when the suggestion is, not cash neutral, as Ivar also mentioned, it will drive electricity prices up.
If similar rules are implemented, for example, on offshore wind, which is a reasonable expectation, it will also drive the price of offshore wind up. Again, making it more difficult for Norway to succeed with the green shift, making it more difficult for Norway to claim the position as an offshore wind champion long-term, which we see the potential for. Again, we need stable, good frame conditions in order to realize that. Hopefully now what will happen is that there will be a good consultation around these rules, and there will be a good compromise to find frame conditions that support the green shifts and which also supports development of offshore wind in Norway.
With that, next slide, we will go to Scotland. In Scotland, we have the Muir Mhòr project. As mentioned before, it's around 800 MW, at least not less than that. It's a floating offshore wind project owned in a 50/50 joint venture with Vattenfall. Our expectation is still that we will see a CfD round, with a separate path for floating around 2026. That is what we are preparing the project for. In this quarter, we have mobilized the full team from Fred. Olsen Seawind where we are leading the development with the project director and the full consenting of the site. That means that we have undertaken significant data collection and investigation of the site, and we'll continue to do that into 2023. That includes aerial studies, metocean studies, deployment of LiDAR later this year. It also includes geophysical works.
Overall, it is going to be a busy Q4 for the project, but it's also gonna be a very busy 2023 with a lot of data collection and analysis of the site, all in all preparing the project for an early consent. On a last note, besides the core markets we now have been in Scotland, in Norway, and in Ireland, we naturally also are looking very much at new markets. We are working with a range of new markets, as I've mentioned before. Even though we do see an energy crisis, we also see maybe also to some extent supported by the current crisis on energy, that offshore wind targets are increasing in a lot of countries and in a lot of regions.
Latest numbers we see is that there is an expectation of 300 GW of offshore wind to be built before 2030. To put that into context, we are today in a situation where we've built around 30 GW, so it's a tenfold increase until 2030, so very, very significant growth. If you look at the numbers towards 2050, the expectation is above 2,000 GW. The market potential is still extremely high, and I think the only thing that's happening now is that these targets are increasing, as we almost speak. We maintain a very positive outlook for offshore wind. We have a solid platform in our three core markets to develop from and to build into new markets. With that last note, I'll give the word back to you, Anette.
Thank you, Lars. Sofie Olsen-Jepsen, CEO for Fred. Olsen 1848 will now present to us.
Thank you. I'll start off by showing a picture of the Brunel foundation in the Oslo Fjord, and it just illustrate the sheer size of a 15-MW foundation and turbine. Fred. Olsen 1848, we are dedicated to develop tomorrow's sustainable energy solutions. As you know, we are a technology and innovation company, and our technologies try to solve the challenges in the renewable industry. On the right-hand side here, you see the floating wind technologies that we've launched to the market so far. I will not go into the mobile port solution and the mobile fabrication site, which is on the bottom line there, but we're gaining solid traction on these as well.
I'll start off by talking about our floating foundation, Brunel, which is a semi-submersible structure, and it's based on a modular design on steel tubulars so that it is very fit for serial mass production, which we believe is very important in floating wind. Highlights from Q3. We are in several ongoing commercial processes, both on a request for information level and on a deeper, more engaging contact with developers, which we are excited about. On the technical side, we are completing a structural optimization to make the structure more lean and optimized, and also focusing on the fabrication properties. We do believe that having a refined assembly and fabrication setup is quite key for Brunel and the industry as a whole, and are focusing very much on this at the moment. Additionally, we are developing a cost-efficient operation and maintenance solution for Brunel that is linked to the floating maintenance solution, which I will present on the next slide. Although it looks a bit different for Brunel, and it is even more cost efficient, but we will show you this on a later date.
We are very happy to have launched a new technology, the floating maintenance solution. I'll start off by describing the challenges that this solution solved and the reasons for why we developed it. Today, most floating wind operation and maintenance solution is based on having to disconnect the foundation, towing it to shore, doing the repairs or change of blades, et cetera, and then towing it back again. This is quite a lengthy and large operation which involves downtime. It involves weather windows to be quite large, and it involves having available ports. You also have to have and add some additional weight on the floater to withstand the towing back and forth. In order to overcome this and develop something better, we have worked on a solution that is based on the following criteria. Firstly, we wanted to be able to perform the major component exchanges offshore. We also wanted it to be based on proven technology and methodology.
We believe that there are so many challenges happening in floating offshore wind and the technology gap should be as small as possible. We also wanted a solution where the crane could operate with the same movement as the floater, where you would reduce the amount of dynamic lifts to a minimum, and where you had a self-supporting solution with no external requirements for power. A solution that could be used on almost all semi-submersible foundations. In order to have a solution that looked and operate like a crane, we turned to Huisman, which is a leading crane manufacturer, and have worked together with them. Huisman have pulled out all their tricks up their sleeve and developed a crane that is both telescopic and it has a fly jib.
In order for you to understand more about the solution, we will now show it in a video. You want to change thinking? As you saw from the film, the crane is quite efficiently mobilized by a service construction vessel, and since it is based on two different parts of 300 tons, there are many available such vessels in the market that can perform the operation today. You also have very minimal modifications to the floating foundation. This, the only thing needed is this interface adapter ring of 40 tons, and that is not a lot required for such a large structure. As the solution fits on most semi-submersible foundations today, we have received an immense amount of positive feedback from the market, and it's clear that it solves a true gap out there. We are now in the process of forming up a FEED study for the solution, which will look more into the very details of the operation as well as the technical side. I hope this made you as enthusiastic about the floating maintenance solution as we are, and I look forward to answer your questions afterwards.
Thank you, Sofie. Alexandra Koefoed, CEO of Fred. Olsen Windcarrier. Welcome.
Good morning. I will present some highlights from Fred. Olsen Windcarrier in this quarter. In general, it's been a good quarter. We've had high activity, very busy installation season in Taiwan, so I will start there as we have two vessels working in Taiwan, this season. Looking at the slide, you can see that Brave Tern has actually been involved with three different projects over the summer, and Bold Tern have been involved with two different projects, which is not our typical season. I would like to highlight a little bit what we see in Taiwan, which I think could be a prediction of what we will see in general in the offshore wind market going forward. We talked about growth in the offshore wind market, and that means that we have a supply chain that needs to follow that growth.
That supply chain is very likely to be under pressure in the next decade to come. What we see in Taiwan is small disruptions in any part of the supply chain creates sort of a ripple or a domino effect through the projects. I think if we had a third vessel in Taiwan this summer, it would easily have been occupied because the clients have all been asking for additional vessel capacity. What this really requires is an open dialogue between us and the clients, and in some instances also between the operators to really utilize the capacity in the supply chain which is there in order to get wind built, which is definitely something we need to do. It highlights another element that having a fleet of vessel and being able to offer the clients flexibility is important.
Blue Tern, a little bit less exciting. She has been on one project in Scotland, installing foundations for NnG, and she is scheduled to install foundations on the same project next year. That brings me to the numbers. As mentioned already, all three vessels have seen 100% utilization during the quarter. That is very good. That's something we should have in the third quarter, but it's not necessarily something new. The increased day rates we have managed to secure results in that we're seeing historical revenue and EBITDA for this quarter. In terms of the year, we still have some catching up to do compared to, for instance, 2021.
As you see in the backlog, we have also a solid backlog for Q4 2022, which is probably something a little bit less ordinary, where we usually have our best quarters in the second and third quarter. In terms of added backlog, we haven't signed any new contracts in this quarter. We have done some shuffling on the contracts we are in. We have a very, very significant tender activity for the mainly the period 2025-2027, I think I should mention, but also a longer outlook. We do see clients are realizing that we are seeing a tighter market and they're approaching us to secure capacity early.
I think if you look, going back to Lars mentioning we need to build 300 GW by 2030 and the vast majority of that will be the second sort of half of this decade because projects for 2025 are already more or less lined up. We have a very good market outlook for our Windcarrier and I think anybody in the offshore wind industry. That concludes my presentation.
Thank you. I will now give the word back to you, Richard, to talk about cruise.
Yes. Thank you, Anette, and also thank you to my colleagues. I think where we started this presentation with strong results and a very good development in the renewable on the renewable side. I think it's been demonstrated by the four presentations. Then turning back to where we have some challenges. Going a little bit more in detail on the cruise side, we have a lot of work to do there. Going a little bit more in the details what happened in the quarter. All three ships, they were operating, although Balmoral had a propeller issue where we had to cancel one cruise of 11 days in the high season. That, of course, impacted the quarter quite a bit on occupancy, on revenue.
We ended the quarter with an occupancy of 73%, which is clearly on the low side where it should have been. Normally, like I said earlier, we should have been north of 85% in third quarter, but we see increased uncertainty in the U.K. economy and the customers then being more cautious. Net ticketing income though, we're at 191 per diem. We also hope that to be higher, but that was more in line, I think, with expectation. We have a clear plan to drive up the net ticket income, especially with the two new ships which should cater for a higher per diem going forward.
We came out with a negative EBITDA this quarter and, it's fair to say that, it was more negative than we also expected ahead of the quarter. We, of course, had this Balmoral propeller issue that we had the 11-day outage. We were taken a little bit by surprise by a lot of customers transferring cruises to later dates, especially transferring from 2022 cruises to 2023 cruises, both due to COVID, but I also think in general about uncertainty in the U.K. economy. On the latter, if that was the main effect for the cancellations to or transfers, you would expect people to request their money back, but they actually didn't do that. They moved the cruises to later dates, showing their confidence in Fred. Olsen Cruise Lines.
On the fuel side, we have a quite dramatic increase in the operating costs compared to previous quarters. It's really due to the increase in the fuel cost. But if you just look at Brent alone, that doesn't explain it. You have to look more in detail on the various fuel grades we're actually operating on. We can scrub the heavy sulfur fuel, but the availability of the heavy sulfur fuel in Europe has been very limited over the summer, and we have run more on the expensive marine gas oil during the quarter. For example, Balmoral have been operating out of Scotland, where the gas oil prices have been very high during the summer.
In addition, we acquire a lot of our goods in U.S. dollars, bunkers, food, a lot of the crew costs are in dollars, and it didn't help that the British pound really tanked from around 1.30 against the dollar to around 1.10, effectively driving up the cost in dollar with 20%. A lot of winds in the wrong direction for cruise lines, both with this technical issue, transfers and especially then on the fuel cost side and the currency. As cruise has been struggling for a while, we had a hard look at the book values this quarter, and we developed three types of scenarios for the cruise business going forward, as it's a lot of uncertainty.
Looked at those scenarios and based on those scenarios and taking a somewhat of a cautious approach, given the market situation, the fuel cost, and also long-term interest rates going up, we decided to impair the cruise lines ships with the GBP 39 million. That's been allocated to the two older cruise ships. The two new ships are unaffected by the impairment. Again, that brings us to the end of the presentation. Again, quite good quarter on both for renewable energy and in service, but challenges on the cruise is the kind of the main theme.
Good.
Yeah.
Thank you. We will then open up for questions.
At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Anders Rosenlund. Anders, your line is now open.
Thank you. On Fred. Olsen Windcarrier, when is the next yard stay? Which vessel is it? How long will it last? I have a couple other questions as well, if I may.
Do you want to answer?
In terms of the yard stays, the next big yard stay planned is for Braemar. We ordered a new crane for Braemar in December last year, and that is due to be installed after the 2023 season. It will last a pproximately the same period as for Bold Tern because what we are doing to Braemar is more or less a copy-paste or it is a copy-paste of Bold Tern. That took us a pproximately six months, plus minus.
On page 28, it's also a Fred. Olsen Windcarrier question. On the lower left-hand side, there is a chart which shows revenues and EBITDA in million euros. So is that full year 2021 and only third quarter 2022 that you're showing on the left-hand side chart there?
No, that's up until-
Year to date.
... up until Q3. It's Q1, Q2, and Q3.
Yeah. I think in the chart it's year to date.
Yes.
In the text it's the quarter.
Yes. Correct.
Isn't that the explanation?
Exactly.
Yeah.
Exactly. Okay. Good. Okay, thank you.
Your next question comes from the line of Jamie Franklin. Jamie, you may go ahead.
Hi there. Thank you for taking my questions. I just have a couple of questions on Windcarrier. So firstly, just in terms of the vessel upgrades, could you give us a sense of how the day rates in the backlog for the upgraded vessels will compare to the existing fleet? The second question is on the MOU you have in place with Shimizu in Japan. Just wanted to know what exactly that covers. If you could tell us a bit more about your current presence and activity in Japan to date and what you're seeing in that region in terms of tendering activity. Thank you.
Alexandra Koefoed, I think you are the best one to answer these questions.
Just Jamie, a quick question back from me. Which company are you representing? Just so we know.
This is Jamie Franklin from Jefferies.
Okay. Thank you.
In terms of day rates on the upgraded vessel versus the existing vessels, we have seen for contracts we secured in the period 2022 through 2024. The average of the contracts for Bold Tern for that period, which will be upgraded for the complete period, is 40% higher than the average for the two other vessels in the period 2022-2024. It gives you an indication that the clients are willing to pay more for the upgraded vessel. As I mentioned, we also see a general market tightening, so we do see a general increase in rates overall. In terms of the cooperation with Shimizu, that is an agreement where Shimizu is a large construction company. They have a wind turbine installation vessel under construction that will be ready next year.
They have two projects that vessel will do in Japan next year. The agreement is we will, as they are not a vessel operator, they came to us because we are experienced in this market. We know how to operate these vessels, and we also have the commercial insight outside Japan. We will likely do projects together with Shimizu in Japan. There are some cabotage rules in Japan that makes it very difficult to operate in Japan without a Japanese partner, so that was our motivation. Outside Japan, we will actually market and are marketing the Shimizu vessel for projects, where we will be the contract counterpart for the client, so they can work with a partner they know, but we have effectively added an additional vessel to our fleet.
That's great. Thank you very much.
Thank you. No more questions?
Your next question comes from the line of John Olaisen from ABG. John, your line is now open.
Yeah, thank you. Good morning, everybody, and thanks for taking my question. I got two questions. First, starting with Fred. Olsen Seawind. I wonder if you could tell us a little bit more about the expected CFD auction around in April 2023. How does it work? Is it a bidding among current acreage holders? And how many gigawatt of capacity is expected to be auctioned? Maybe how many, like, bidders are there, et cetera. If you could talk a little bit more about that CFD auction, please.
Lars is the expert, so please, Lars.
Yes. Well, first of all, the auction is a CfD auction, and it's expected in April. That's the frame. There are some other terms and conditions still outstanding on a lot of them, so we still are waiting for them. The frame around the conditions is that six projects are qualified to participate in that auction that are the so-called phase one projects, which we are one of. As I mentioned before, we are the biggest ones. It's going to be a competition between those six projects on the CfD. Obviously what we expect is a 15-year secured price as we see in other places in the market.
Our expectation is of course also, giving the competition, given that it's an early phase development country, that the CfD will be attractive compared to what we see in other regions that are more developed. I don't know if that answers fully your question, but given that terms and conditions are still outstanding, it's difficult to kind of comment on the details.
Sorry, is it possible to say how many gigawatts of capacity is expected to be auctioned or is it the number? How many of those six projects do we know are targeted to be awarded the CfDs? Is it all six or could it be only one? A little bit color on that, please. Be great.
That's a good question. That detail we do not know. The competition ratio, for example, is one of the things we of course are waiting to hear more about. What Ireland have announced is that they have a 7 GW target until 2030. If you compare it to that, there is around 4.4 GW going into that auction. If they are to deliver on their 2030 target, then a significant part of the projects going into that competition needs to have an award. That's for sure. The exact competition ratio, we don't know yet.
Okay. Thank you. Thanks a lot. That was very useful, by the way. My second and last question is regarding Fred. Olsen Windcarrier. Is it possible to give a kind of indication of how much of the capacity for the three vessels are now sold out for 2023 and 2024, i.e., how much available capacity do you need to sell for 2023 and 2024, please?
The question was on capacity in 2023 and 2024 for the vessels. Yes. We have quite limited additional capacity. There is some additional capacity between 2023 and 2024 only the shoulder season. Other than that, when you sort of include that, we have a yard stay coming up. Once we finish our project in 2023, there's very little capacity.
All right. Basically sold out for 2023 and 2024. How about 2025, 2026? When do you start getting more capacity available, sorry?
2025, we have one vessel fully sold out. The two other vessels, we are working several tenders at the moment, and we will of course. If significant enough, we will inform the market.
All right. As follow-up to this question, what's the status of a potential fourth vessel being ordered from you guys?
We-
Interest in bringing, building a new build?
Yeah. We have been talking about a new build for a long time, and then we were also very public about it last or early this year. We are still working on those plans. I think it's fair to say this spring was turbulent. We had a turbulent market both on the financial side and also in terms of CapEx investment. We are still working on it. We know exactly what we want to build. I guess we will inform the market once we have news.
Okay. Thank you very much for taking my questions. Have a nice day, everybody.
Thank you.
Your next question comes from Roald Hartvigsen from Clarksons Securities. Roald, your line is now open.
Hi. Thanks for taking my questions. So first, I wanna talk a little bit about the cost plus revenue limit. So my understanding is that a possible legislative framework will first be adopted in England and Wales and then likely extended to Scotland if implemented. The government in London is said to be consulting with their counterparts in Edinburgh to see if the cost plus cap should be extended to Scotland. So do you have any color on, like, if it's implemented in Scotland, do you believe it's gonna be like an exact copy of the one in England and Wales, or could there be any differences there?
It was a little hard to hear the question, but Ivar, I think, would you-
Can you repeat that question?
No.
I think the question he was just checking with you is that if there is legislation around taxation of renewable energy in the U.K., and that is applicable to England and Wales, will it also be automatically applicable to Scotland? Was that the question?
Yes, and if so, like, could we see any potential differences on, like, the level on the cap or, like, when it's implemented?
I think it's very easy to answer that. Ivar, I mean, the situation is that there is no certainty at the moment of how this will be handled. I think certainly Ivar has outlined what we know presently. When it comes to Scotland and how they will deal with this is too early to say.
Okay. Thank you. I have one question on the cruise line. Some of your peers on cruise have reported that lately, you had Royal Caribbean, for instance, reporting last week, and they were pretty much back to pre-COVID levels, forecasting record yields and record EBITDA for 2023. You guys don't seem quite as optimistic on 2023. Maybe you can give a little bit of color on sort of what's causing the difference here. I know you mentioned the U.K. pound currency, which obviously you can't control. Are there other factors like could demographics be a factor here? Could like the attractiveness of the assets be a factor? Can you please give some more color on that?
I think you have to remember that the U.K. is a different market than the total market that they are reporting on. Our ships cater for the U.K. market specifically. Richard.
I think we're also seeing that, of course. I think when you come to the ships themselves, the two new ships, we're very happy with the ships. The customers or the customer feedback on the ships and the service and the product is really good. I think the core product, we don't see any issues with the core product. It's more how do we approach a market that is now a lot more cautious, given the state of the U.K. economy? How do we approach that market without giving away the product in discounting? That's a very important point.
Of course, the fuel side is very difficult for our ships because the availability of the high sulfur fuel, which we can scrub, we have scrubbers on both Braemar and Borealis, has been very limited availability. I think we have been a little bit handicapped on the fuel side and then also the U.K. economy. That having said, it's quite strong bookings looking forward for 2023. There's a lot of uncertainty, and that's why we said that we have developed three scenarios for the impairment, low case, a base case and a high case. Which of these scenarios that will pan out for the cruise is very hard to say. What we are signaling here is that there is a lot more uncertainty going forward now, given the state of the U.K. economy.
I can assure you we are focused on the operation and also on the cost side.
Okay. Thank you for answering the questions.
Thank you.
Okay. Our next question once again comes from Anders Rosenlund from SEB. Anders, your line is now open.
Excellent. I just discovered that I had a follow-up. Well, not really a follow-up, but when it comes to accounting of this sale of 49% of the Nordic assets to this new investment company. Maybe I'm not the best when it comes to accounting, but I would expect that to generate a profit on the sale of the stake. Is that not the case because it continues to be accounted for according to historcal costs?
Yeah. No-
Any flexibility there?
Yeah. No, it's a very good question. If you go into the details of the report, and obviously that was released this morning, so you haven't had time to do that, you will see that the equity of the group has strengthened with some NOK 771 million. So that's the profit from the sale of the 49%, and that's taken directly to equity. That's the same way as we did with the transactions with TRIG and Aviva as well, because we're not selling a majority, then we don't take it through the profit and loss, but take the book gain directly to P&L. But there is a significant book gain on the 49% sale of Lista, Fäbodliden, and on Högaliden.
On the cash, we see it on the cash of the parent company, but we do not see it yet on the equity in the parent company because it's been taken out as a loan from Fred. Olsen Renewables in the third quarter. It's now already been converted to dividend in the fourth quarter. You'll see a significant strengthening of the equity in the parent and the equity ratio of the parent in the fourth quarter. We have long debates about whether or not the profits from the sale of 49% in the wind farms, both with TRIG and Aviva and also these ones, whether it should be taken out of P&L or direct to equity. The right accounting treatment is to take it to equity. You will find the numbers.
Okay. Appreciate that.
Yeah.
Yeah. You didn't comment on the number, but it's a very significant number. It's closing up on four digits, isn't it?
Yeah. I think I mentioned it. It's slightly less than NOK 800 million. The profit of 40%.
Thank you.
Okay. Our last question comes from the line of Bård Rosef from Pareto. Bård, your line is now open.
Bård, on onshore wind, could you talk a little bit about potential timing of construction start for the consented projects? Aside from the two you have added this quarter, a few of them have been consented for a while now. Talk a bit about your thinking around that. Thank you.
The question was on, should we say, the timeline for bringing the consented projects forward to construction. What I can say is that the first project that we think is going to move into that process is the Crystal Rig IV. Fäbodliden II, we have already made an investment decision, as I mentioned, and it's being constructed as we speak. The next project is going to be the Crystal Rig IV, we believe. There are several conditions in the consents that we need to clarify, so that's something that's a little bit unclear.
The potential next project, or projects, to be brought into the construction phase is the Paul's Hill II and the Windy Standard III, also previously named Brockloch Rig. That could be brought into this phase in 2023. Then Fetteresso and Lotus will follow later. There are several conditions there that needs to be met before we can bring it into construction. I think that's as clear as I can be, as you speak.
That's very helpful and very clear. Just to follow up, just to confirm, you're probably gonna build those projects with full merchant exposure? Or are you planning any PPAs?
Well, it's a very good question, Bård. That's clearly been our policy up to now, and that's been a policy over time that's has been beneficial. I think what is happening now on the government taxation side is so unclear. The U.K. government, it's fair to say, Ivar, they first tried to implement a CfD system also for onshore wind.
Yes. Yeah, voluntary CfD system.
Yeah. Which failed.
So far.
Yeah.
Yeah.
We just have to see, but if the market construct as it will remain as it is today, it's fair to say that we'll remain with our policies. But it's quite uncertain. If legislation change and it, for some reason, which we cannot foresee today, makes more sense to do a CfD, of course, we will have to consider that.
Understood. Thank you for answering my questions.