Good morning, everybody, welcome to the second quarter presentation for Bonheur ASA. My name is Anette Olsen, and I am the CEO of Bonheur. I have with me today, Richard Olav Aa , our CFO, and he will do the majority of the presentation. In addition to that, we will introduce to you today Lars Bender, who is heading up our new business unit for offshore wind. In addition to that, Alexandra Koefoed, who is the CEO of Fred. Olsen Windcarrier, will also talk to you about that segment. Hopefully, we will all feel that we give you sufficient information. With that, Richard.
Yes. Thank you, Anette, and a hearty welcome from me as well. We have sent out the presentation. The first few slides in that presentation is part of our general investor presentation. I think we can skip directly to slide 6, which is the highlights of the quarter. Before going into the details of this slide, I would like to start saying it's been a good quarter. Last quarter, we indicated that our markets were improving, that we have seen coming into fruition in this quarter. Energy prices are up. We have increased backlog in wind service. Also, the cruise business have mobilized and have one ship back in the water. In general, the market is pointing into a favorable direction for our business segments. It's also been a very hectic quarter, with a lot of positive stock exchange releases.
I cannot recall that we've had such an active quarter in number of stock exchange releases. They are in particular related to the business areas where Lars Bender and Alexandra is going to present later today, both on the offshore wind development side and also on FOWIC. On that backdrop, I will take you through then the more detailed figures and events in the quarter. Starting to the top right in this slide, we see operating revenues slightly above NOK 1.6 billion in this quarter, which is an increase of more than NOK 300 million from the similar quarter last year. EBITDA in the quarter was NOK 330 million. That was a significant improvement from a negative EBITDA of NOK 57 million second quarter last year. Also a strong improvement on EBIT of positive NOK 80 million compared to NOK 329 million negative last year.
Net result after tax still at slight loss due to still that the cruise business is making quite considerable losses while they are mobilizing back into the waters. That's on the consolidated level. Parent company stands very solid with an equity close to NOK 7 billion and equity ratio close to 70% and cash in the parent company of NOK 2.1 billion. Taking the business segments one by one, starting with renewable energy, a strong improvement in EBITDA compared to second quarter last year. That is due to higher prices in all the markets, but maybe U.K. in particularly, and I come back to that in more detail, the drivers between the market prices on electricity.
Maybe most importantly within renewable energy in this quarter is what Lars is going to talk about later today, is that we have decided to establish a separate business unit for offshore wind with a dedicated management team. This is on a backdrop of a very strong project pipeline. We have worked with the Codling project for a long time, which is a very mature offshore wind project and the largest energy infrastructure project in Ireland in this decade, where we have a partnership with EDF that was established more than a year ago. Also in this quarter, we have further developed our ScotWind project, where we have entered also a partnership with Vattenfall.
We, with our long track record in Scotland being our home market and Vattenfall being one of the first offshore developers in Scotland, we think that combination can really be a winning concept in the ScotWind auction. We have the Norwegian situation where we already had a very solid partnership in place with the Hafslund, complementing us with their hydro competence and their grid competence with our renewable competence. That partnership has been further strengthened this quarter by adding Ørsted to the partnership. We have Icebreaker, the only consented offshore wind project in the lakes in the U.S. We have decided to gather these four projects and develop a dedicated business team, a dedicated business unit for this. We're also saying today that we will explore alternative possible financing opportunities for this new unit, including potential listing.
Moving on. Lars Bender will come back to this in more detail. Moving on to wind service, where we have the strongest improvement in earnings and EBITDA of NOK 271 million compared to only NOK 50 million second quarter last year. We have a new partnership with Shimizu Corporation in Japan. Fred. Olsen Windcarrier is already a global leader, being a global leader in Europe, being one of the first movers into the U.S., first mover into the APAC region in Taiwan, and also now creating a position in Japan with Shimizu Corporation. Alexandra Koefoed will cover that partnership in more detail under her presentation. Also very positively, adding new contracts of a total value of EUR 124 million, adding solidly to the backlog of Fred. Olsen Windcarrier that now stands above EUR 300 million. Alexandra Koefoed will also come back more into detail into that backlog.
The results are significantly impacted in a positive way by solid utilization, close to 100%, really excellent execution of the Fred. Olsen Windcarrier team in the quarter on these large projects, both in Europe and in Asia. We have spent a lot of time also this quarter further develop the strategy plan for Fred. Olsen Windcarrier and especially the crane upgrades and how we're going to have a growth program. We're saying we're aiming for a new build. Alexandra will also cover that more in detail under her presentation. A lot of great work also been put into that in this quarter. Global Wind Service continued their solid performance in the quarter, both in Europe and the U.S. The cruise lines, still large losses, negative EBITDA of NOK 179 million, which is on par with second quarter last year.
Second quarter last year, we had significant demobilization costs, taking the cruise ships out of service. This quarter, we have significant mobilization costs, bringing cruise ships into service. The first ship went sailing 5th of July from Liverpool on a short cruise around the U.K. That was done successfully. We're now also then planning to launch the second ship, Bolette, in the middle of August. We see strong and substantial demand for the cruises. What we also see with the new fleet, and I'm coming back to that under the cruise section, the new composition of the fleet, that we should expect an improved EBITDA for the cruise business compared to what it performed at pre-COVID-19. On the other segments, also there an EBITDA improvement related to NHST. NHST also continued to improve their digital products and services.
Maybe most importantly around NHST in this quarter, it's been decided to create a new media division combining all the global publication with Dagens Næringsliv to utilize synergies, both on content, subscription, advertising, and also efficiencies. On other investments, Bonheur successfully placed a new NOK 700 million green bond, the second green bond that we have issued on the green finance framework. That are the big events in this quarter. We'll continue then going into a little bit more detail on the numbers. On the revenues and EBITDA that we have already comment, a solid improvement on both and especially on EBITDA with an improvement of NOK 370 million. We also see net finance that we have quite low net finance expenses this quarter.
Interest expenses and other financial expenses are quite normal, but we have some unrealized gains and especially on the interest rate swaps related to renewables as interest rates have ticked up first in the U.K. in the quarter. Other than that, I don't think it's anything more special to comment on the consolidated P&L. A little bit more deep dive into the revenues. We see some changes on the currency side with pounds strengthening quite a bit compared to the dollars and Norwegian kroner also strengthening compared to euro and pounds, but not impacting the revenues significantly in this quarter. Renewable energy, the NOK 128 million change is mainly driven by price, but we also had very low wind speeds this quarter, so the revenues could have potentially been quite a bit higher if we had normal wind speeds.
With the current electricity prices. We should expect, in fact, an even higher result than what we have in Renewable Energy at the current electricity prices. Wind Service is up NOK 210 million. That is really on the backdrop of strong utilization for the three Tern vessels, but also some improvements in UWL and Global Wind Service. The other segments are more or less in line with the second quarter last year. EBITDA Renewable Energy, a positive change of NOK 137 million and an EBITDA close to NOK 200 million. Cost performance in this quarter was good compared to second quarter last year. Also Wind Service, the better utilization of the Terns translates directly into a much improved EBITDA. Cruise and Other, I don't need to comment further on. Going into the segments before handing over to Lars and Alexandra. Starting with Renewable Energy.
This is a slide we developed also in connection with last quarter's presentation. It gives you the overview of Fred. Olsen Renewables in brief. I think this is an important backdrop now when we are setting up a separate business unit. We have been into the renewables and into wind since 1996 and established ourselves in the home markets in Scandinavia and the British Islands. It's on the back of this and also a long maritime heritage that we are now establishing a separate business unit for offshore wind. I think we cannot underscore more how important this fully integrated in-house business model is, that we possess all the skills from the site investigations and all the way through construction, operation and ownership optimization, and that we are a long-term developer and operator on all these skills.
It's on the backdrop of that and our strong history within maritime and energy, we now set up a separate business unit within offshore wind. Going to the electricity market, which on the short term is the main driver of profitability in Fred. Olsen Renewables. Starting to the top left where you have the production illustrated with the black line and the capacity factors illustrated by the bars. This is the production in this quarter was quite low, only 300 gigawatt hours, which is well below the norm. You see on the capacity factors, it's really the U.K. where you have very long wind speeds in the quarter. On the other hand, prices have been very good.
Moving to bottom left, we see the price curves for U.K. in the blue and the Swedish one in the orange one and the Norwegian one in the gray one. Starting with U.K., we've seen, compared to a year ago in the midst of the COVID-19 outbreak, that we had prices down towards GBP 30 per megawatt hour, which have now increased to more than GBP 70 per megawatt hours. In addition, you have the Renewables Obligation Certificates for Scottish wind farms, makes them very profitable at the moment when it blows normally. We see the same trends in Scandinavia, maybe particularly in Norway, where we've seen the prices were touching 0 last summer due to the high hydro positions in Norway and lack of transmission capacity.
That hydro position is now being utilized, and we see Norwegian prices now more in line with German prices up towards EUR 40 to EUR 50 per MWh. Swedish prices have also improved materially, but have a little bit of a slower development than Norway due to the grid capacity from north to south in Sweden. What are the main drivers behind these strong electricity prices? I think we will find the answers on the two charts to the right. Starting on the top, we have in the blue line gas prices and in the orange line CO2 quota prices. What really sets the electricity prices in Europe these days is the cost of running a gas turbine producing electricity. You have two cost factors. It's the gas and it's the quota.
We see the gas prices have tripled since the middle of COVID-19, and the quota prices have more than doubled on the back of very strong political measures in Brussels on the concept of polluter pays. Adding those factors and transforming that into what a gas power plant would need in electricity prices just to pay for quota and gas, you easily get to the pricing we see in the market today. You also have the very positive development on the hydrological balance that it's been not so much rain and not so much snow in the mountains. Now the hydrological balance, as illustrated to the bottom right, is back to normal. We have on the construction side, an update on Högaliden.
We are in fact finished, but the supplier had some faulty blades, especially around the inserts of the blades that needs to be repaired, and that takes some time. They are shipped to Denmark and are being repaired. We expect now that all 25 wind turbines should be in production by October this year. We already have 11 turbines up and generated. We are covered contractually on this, so it does not expect any negative financial consequences from this delay.
Maybe what is maybe more importantly, looking forward, is what you see on the picture to the bottom right is this is the first wind farm in the world where you have a turbine mounted LiDAR, i.e., a wind measurement equipment that is seamlessly integrated with the control systems of the turbine, where the purpose is to optimize the performance of the turbine by reading the wind early on. This is a new invention, again, with ZX Lidars, Vestas, and Fred. Olsen Renewables, which we have high hopes for. On the business model and project portfolio of for us, there are a few development this quarter. The most important one is the continuing development of strong partnerships, to the left, where we have the additional Vattenfall in Scotland, additional Ørsted in addition to Hafslund in Norway.
The establishment of a separate business unit that Lars will cover. That's maybe the most significant development on this slide this quarter. We also have good progress on the development side in Scotland and Sweden. Scotland adding another 100 MW to their portfolio, and Sweden adding more than 100 MW to their portfolio. We have built another 200+ MW on the development portfolio this quarter, which is very positive. On the consented side, there are no new developments this quarter. On the construction side, we already gave you an update on the Högaliden site. Yes. Move on. I think it's time for me to hand over to Lars Bender, which is in Denmark, and will present our thoughts around the separate business unit for offshore wind.
Thank you very much, Richard. As a short introduction to myself, my name is Lars Bender. I joined Fred. Olsen Renewables roughly a year ago, where I have been focused on offshore wind, working mainly with strategy, but also the partnership which Richard mentioned earlier. I have a background in offshore wind, working in offshore wind the last roughly eight years. Latest as part of the management team in a company in Denmark, which is a global leader within production of foundations and top sides. I'm naturally very happy to present what I am going to present today. It's a fantastic venture into offshore wind. Before diving into the details of what's going to happen, I thought it would be a good idea to provide a bit of context, and history in relation to why are we here today and why are we taking these next steps.
The context is that we have a solid platform to stand on in relation to a mature project in Ireland, Codling Bank, which I'll come a bit back to. We have a well-established position in Norway and Scotland. In addition, we have entered into partnerships with industry leading players. Over the last years, we've worked intensively in relation to creating this platform, and that is the basis of why we are now taking a step into a new phase, so to speak, putting more effort and more dedication into offshore wind. What we are going to do is what Richard mentioned earlier. We are going to establish a separate business unit with a dedicated management team.
This we are naturally doing to put dedication and effort into offshore wind, but also to build a strong and solid organization around our already existing activities, but also to create more activities going forward. The task of this team will be to follow up and develop existing projects and positions in home markets. That is, of course, Ireland, Scotland, and Norway, but it will also be to expand the portfolio of projects further. In addition to that, as Richard already mentioned, we will also investigate possible alternative financing opportunities, including public listing. These are the next step for us into offshore wind, based on the platform which we have established over the last years. Next slide, please. To give a short background to offshore wind in Fred. Olsen.
First of all, very important is that we are standing on the basis of an existing attractive portfolio of projects and positions. The Codling Bank project in Ireland is the largest offshore wind project. It's very well-positioned, and no doubt a strategically important project for us and a project which we have high belief in. It is a mature project, so focus will be on developing that in the coming years. In addition to that, we have created a position in Norway around Sørlige Nordsjø II and Utsira Nord together with Hafslund and Ørsted as partners. We will end up this week submit a bid into ScotWind together with Vattenfall. We have the Icebreaker project, as Richard mentioned, is the only consented project in the Great Lakes and a position for us in the U.S. in relation to offshore wind.
Based on this platform and portfolio, we will use this to position to establish ourselves even further in home markets, building on the existing portfolio. Focus will naturally be to expand in Ireland and Norway and Scotland, going further and building a further and stronger portfolio. Obviously, when we are able to do this, it's because we are basically standing on the shoulders of the Fred. Olsen system. We have a long time experience within wind development, understanding wind resource analysis, which we've done for many years on onshore wind, and that experience we are now taking offshore. In addition to that, we have over the years developed various technological solutions. An example could be a concept around mobile port, where we are developing a concept for installation of wind turbines floating.
That is some of the things which we expect in the future will be a differentiator for us in relation to offshore wind, that we are an industrial player which has an additional ability to develop technology and other things in our related companies. Next slide. As mentioned before, just to give you a view of how will a timeline look in relation to developing the portfolio. As mentioned, the first project which is mature in development is Codling Wind Park. That will over the coming years be developed, and ready for CFD and later FID. Next focus will time-wise be extensions in Ireland to the Codling Wind Park.
Of course, leveraging on cost synergies from the Codling Wind Park project and using the existing knowledge we have around the Irish regulatory system, but also of course, what we have learned from the current project we are doing in Ireland. Then the next phase will be in Scotland and in Norway. We expect that at the end of this decade, build-out will start in Norway, but also in Scotland. Then we'll use the same strategic approach that when we develop the first projects in these home markets, we will then extend and develop further projects based on that experience in those existing home markets. In addition to that, we will look at new markets as well. Of course, leveraging the experiences across the companies in relation to offshore wind, but also from onshore wind. Next slide, please.
Just to give an impression of what Richard also said a bit about in the beginning, we've had a busy quarter in relation to stock exchange notices and partnerships. That is fantastic. Obviously, that's the product of a lot of work within the companies from a very strong team who has been, over the last months and almost years, working with an approach to develop partnerships and to create a strong position for us in home markets. That has resulted in what you see on the slide now, that we in Ireland are partners with EDF around the Codling Wind Park in a 50/50 joint venture. In Scotland, we are partnering with Vattenfall in a 50/50 joint bidding agreement. In Scotland, we are leveraging the Fred. Olsen experience and heritage. We've been a part of the onshore environment in Scotland for many, many years.
In the system, there are significant jobs created in Scotland on that basis, we now take that experience into offshore wind. Vattenfall is bringing their experience from, amongst other things, Aberdeen Bay, which is one of the offshore wind projects in Scotland. Together we want to create a strong position in creating local value in Scotland to the benefit of Scottish government and of course, creating Scottish jobs. We have Norway, where we've entered into a partnership with Hafslund and Ørsted. It's a long-term partnership together with those for both floating and bottom-fixed wind. The reason for a long-term partnership is that we believe that Norway will develop into a significant offshore wind market, and we believe that creating value for Norway is important, and therefore it's important to look long-term on value creation for Norway as well.
Firsthand will of course, be focused on the lease rounds coming up for Sørlige Nordsjø II and Utsira Nord, where we together will submit a bid into those rounds. Our focus in Norway have been around creating subsidy-free offshore wind in Sørlige Nordsjø II, combining offshore wind with a transmission concept. On Utsira Nord, we will focus on creating bottom-fixed wind, sorry, floating wind, which is based on creating jobs and also new technologies for the Norwegian market. In all three areas, we believe we created strong positions together with partners, and we believe we have a really good position of bringing this forward, and also of course, winning in these respective countries. Thank you for that, and back to you, Richard.
Yes. Many thanks, Lars, for a very good presentation of this new initiative. I think we can go then straight to Alexandra, and then I will do the rest after Alexandra's presentation.
Thank you. I will present a little bit about what Fred. Olsen Windcarrier have been up to in the last quarter. I will start with just reiterating who are Fred. Olsen Windcarrier. We are a market leader in the growing offshore wind market. Looking outside China, we've installed 20% of all offshore wind turbines, which I think we can be proud of. We are currently installing turbines, the numbers you're looking at the screen are being outdated every single day. By the end of the year, we expect those to have passed 800 GW and also 5 GW installed in total. As mentioned in the beginning, we are a global company. Our main activity and foothold have been in Europe as for offshore wind. We installed the first offshore wind farm in the U.S. back in 2016.
The U.S. has been a little bit slow since then, but it is now starting to move very fast. We also were one of the very first movers out in APAC in Taiwan, where we located a vessel last year. As mentioned, we have now strengthened our foothold in APAC with a MOU with Shimizu, which is a large contractor in Japan. Just to mention what we're currently up to, Brave Tern is in Taiwan installing turbines. Bold Tern is on her way to yard, and Blue Tern is in Scotland installing turbines. I would like to touch a little bit up on the offshore wind market and the offshore wind turbine installation vessel market in particular.
Some of the growth or most of the growth we're seeing in this offshore wind market is driven by increased turbine sizes, which have reduced the cost of energy, which again have made offshore wind possible to build subsidy free. These large turbines result in current equipment being outdated, which I'll come back to. Generally what we see up until now, we've had an offshore wind market with slightly variable activity from year to year. What we see from 2024, 2025 going forward is a very significant uptick in activity. Also we expect a much more level activity. The numbers you see on the screen, this is not gigawatt, but numbers of turbines, which we are mainly occupied with because we install turbines. Reiterating out there working today, there are actually non-existing on the way. There are none of the best.
As of today, that can install these 14, 15 MW turbines that we see coming to the market. There will be necessary, it can change the fleet. Handful there will be an upgrade even with what's announced today. Coming to 2024, 2025, 2026. Which is good news, I guess, for us as vessel operators. I'll touch upon one of the notifications that came out earlier this quarter, and that was related to the backlog, which we then stated was at approximately EUR 350, including options. That number is a little bit smaller as of today because we have generated revenue over the past quarter. I think what's worth mentioning is this backlog is all related to the years 2021 to 2024. This is all before the sort of major uptick in the market, and it's a mix between upgraded vessels and vessels that's not upgraded.
The other table on this slide shows a little bit sort of on the magnitude of our tender activity at the moment. I think it also very well illustrates the timelines. 2022 and 2023 is very little activity, not necessarily because it's little activity, but these jobs are already booked. For 2024, there are a couple of projects still in tender phase. Looking into 2025, it's a huge bulk of work which is tendered at the moment. Looking at 2026, that doesn't say that the market is going down. It just says that those tender processes are not in full swing yet. Our focus at the moment is contracts for 2024 and mostly 2025. How are we positioning in this market? We have, since the first quarter this year, been communicating that we have initiated a upgrade program for our fleet.
Bold Tern, she will be upgraded this winter, and the others will follow, which means our existing vessels will be on par with some of the new builds announced in terms of capacities. We also communicated that we are aiming to construct a fourth vessel to basically keep our market share and grow the company with the growth of the market. I would like to say a little bit more about the partnership with Shimizu. Shimizu is a large contractor in Japan. They have a large wind turbine installation vessel under construction, which will be completed late next year. This partnership has come about because they have access to the Japanese market, and we know how to operate these vessels.
We found each other on those terms, and basically, it means Fred. Olsen Windcarrier and our sister company, Global Wind Service, will be preferred suppliers to Shimizu in Japan. The companies will be looking at financing solutions going forward. Just a short iteration about what we're doing to our vessels. I think the crane upgrades or crane replacements, which is more correctly, have been very well communicated. I think it's worth mentioning as well, we are upgrading the jacking system, which will give us increased variable deck load, which means we can carry more turbines, which is important. To have the stability to do that, we're also installing sponsons on the vessel, and we are upgrading the accommodation area to welcome these wind turbine technicians. Just to show some pictures of steel. The first upgrade is happening this winter.
It's well on the way on the crane prefabrication. Prefabrication of steel structures in the yard has started. Bold Tern is on route to yard, and we do expect to be ready for the first project in Q2 2022, early Q2. I would like to finish off with that people, systems, track record, client relationships, and the execution capabilities is as important as the vessels. We have a picture from a project behind us that actually managed to end up in Ørsted's yearly report because of excellent execution from the Fred. Olsen Windcarrier team. This is important in this industry, and it's because we do very, very repetitive work. It's 50 to 100 turbines per week on, and probably more in the future. That can be a very painful magnifying loss if you do mistakes and don't have your execution in order.
This is done in harsh offshore conditions where your wind, waves, currents. You have plans, but you need the people. We have the systems in place, we have the capability in-house, we manage to do this with excellent HSE track record. That concludes my comments.
Yes. Also thank you to Alexandra for an excellent presentation. We can move on. Just a few words on Global Wind Service. Another major operating company within this segment. They continued their good execution in this quarter, executing a lot of offshore and onshore projects in Europe and also most recently, large projects in the U.S. for the last four years in the East. Operating company within the wind service segment is United Wind Logistics. The market for those vessels are strong. We have one vessel working in the spot market, VestVind , that is buoyant now, and a strong fleet utilization and also a positive market outlook for United Wind Logistics. That ends the wind service segment. Moving into Cruise, and we can just move two slides, please. This one is more background.
In the quarter, a really hectic quarter also for our cruise company, and it's been a lot of hurdles that they've been able to overcome to get the Borealis into the water at the 5th of July. You can only imagine all the issues there have been around the teams, around the logistics connected with the Brexit and so on. The team have worked day and night to launch Borealis in excellent way that resulted in the first cruise since the pandemic out of Liverpool on the 5th of July. That was successfully executed. The ship was operating at 90% occupancy. That's not because we could not have sold out the ship. There is a strong demand for cruises in the U.K. It's due to COVID-19 guidelines from the British government until the pandemic is coming even more to an end.
What are the current plans going forward now? Is that depending on that things doesn't go in the wrong direction again, that we will phase the ships into operation, the three other vessels, and Bolette plan to start now sailing already from mid-August, and then Balmoral and Braemar coming in towards the end of the year and next year. The fleet build is planned to be fully utilized by summer next year. Of course, this is pending on that we cannot just have four ships cruising around the U.K. It depends on that other countries are opening up for cruising, and that we continue to overcome all these practical challenges are caused by the pandemic.
On the result side, we already covered that we have had the extra cost this quarter in connection with mobilization, similar to the demobilization cost second quarter last year, and also safety related to getting back at sea. I'm on this last bullet point on this slide to give you also a more long-term perspective of what has really happened with Fred. Olsen Cruise Lines during the pandemic, and how we see is now coming out of the pandemic. I think we utilized the COVID-19 situation quite well to acquire Bolette and Borealis at favorable pricing, and with favorable financing packages attached to it. In the middle of the COVID-19, we also were able to sell the two oldest cruise ships. By that, we not only increased the fleet capacity by approximately 25% or 1,000 passengers.
What we also see now, when we have studied the vessels even more in detail, we see that the cabin mix is better than the ships we sold. That should give a higher yield. We see that the ships have large, attractive public spaces, and that we have now upgraded with both exterior and interior to fit the Fred. Olsen customers appreciated line of style. I think these vessels, of course, this is not a guarantee, but an expectation that based on the higher capacity, better yielding cabin mix, and the whole look and feel of the exterior and interior, it point to stronger earnings when we get the fleet back into the water and the pandemic is coming to an end.
I would very much like also to end this part of the presentation before we go to Q&A on a little bit positive on the cruise, because outstanding effort and the fleet is well positioned now to know. I think we are at the end of what we plan to say, we can maybe open up for Q&A.
Thank you. We now begin the question and answer session. If you wish to ask a question, please press star one and wait for your name to be announced. If you wish to cancel your request, please press the hash key. Once again, star one if you wish to ask a question. We are taking our first question from the line of John Olaisen. Please go ahead.
Yes. Good morning. A couple of questions to the investigation into alternative financing opportunities, including an IPO of the offshore wind business. Can you tell us a little bit more about the potential or the timing of this? Also, what you see, what's the financial need? Maybe also a little bit more details. In the case of an IPO, I presume Bonheur would remain the largest shareholder in such a company. Could you elaborate a little bit around these things, please?
I think probably you should answer, Richard, but just to say, this is certainly something that we are starting to work on now. I think a lot of the questions you are asking needs a bit of work internally before we.
I can just supplement on that, our main focus now over the past months have really been to position ourselves in the best possible way in our markets and also focusing on partnerships that we have announced and also should be included in this. Also, very importantly, how should the management of this unit be in place? We have now established all of that and established a strategy and a business plan for this. Now it's very natural to take the next step and lay out the more detailed implementation plans. That's where we are. I don't think we should go any further than that today before that is being further firmed, John.
It's fair enough. I give some comment on it. Next, when it comes to Bold Tern, this quarter, you said that it's on transit to yard now. Will it take the rest of the year for the installation of the new crane? Is that correctly?
You will see that possibly upgrade, not only the crane, but also the other elements that Alexandra explained about.
All right. In this segment, could you remind us what you said about the of the new build? Cost and then financing for it, please?
No, I think, John, we see some data points out there on the new build of the competitors. I think what is very important for us is what Alexandra had on her last slide, is that we need to utilize our detailed relationships with the customers and our detailed knowledge from seafarers and all the engineers on how such a future vessel should be designed in detail. We would not like to compare to these competitors because we need to utilize all our experience to design what we believe is the optimal vessel. That potential cost and how efficient that will be, we will need to revert to you about when that detailed work is done. For us, it's easy to kind of put out a number and compare it to competitors.
Okay. Fair enough. The last question is just a detailed question. What exactly the problem with the blades on the Högaliden? What was the issue actually on the blades?
Yeah, I don't think we should go in deep on that, but on that comment.
I just see that there is a need for repair. Certainly, the supplier has taken that responsibility and is working on it. It has meant that we have a delay on delivery.
Okay. That's all from me. I'd like to just finish off. Congratulations with the great development, basically all the segments over the last 12 months. It's interesting to see. Thank you. Have a nice day.
No, thank you for asking.
Yeah. It couldn't have been done without very hard work across all companies. Thanks very much to all our people.
Next question, please.
Yes. We are taking our next question from the line of Jonas Ganning. Please go ahead.
Thank you for having me today. Congrats on the results. What's the reason for the great result in the segment?
I don't know whether that's NHST improved the result. I would think, also hear that if you go to NHST, you get their quarterly report. It's a settlement in those numbers, a legal settlement that makes it maybe a little higher than you could expect going forward. You have to maybe adjust for that.
Okay. It's basically maybe a one-off then. What do you expect for the upcoming quarters for the segment?
We don't guide for any of our segments, but I think you will find in the NHST quarterly report, they have a separate reporting line for EBITDA before other items. You can see the more underlying recurring EBITDA in NHST in their quarterly report. I think it's more efficient and prudent that I point you in that direction.
Okay. Thank you. I have one last question. Do you expect the capacity factors to be significantly better for the new onshore wind farms as Högaliden? Do you expect them to be in line with very sort of capacity factors?
That's a very good question. Högaliden will have a much higher capacity factor than the average. I think if I recall correctly, on a normal wind speed or normal wind resource, the megawatts will increase by approximately 15%-16% by adding Högaliden. Expected production will increase by close to 19%, 20%. It's very good wind speeds in Högaliden because you're up north with good wind resource, but there are also larger turbines going higher up where there are stronger wind speeds. I think we have specified these numbers in the fourth quarter reports. You'll find them more specifically there.
Good. Thank you.
Next question, please.
Thank you. We are having our next question from the line of Victor Smith Solvang. Please ask your question.
Congrats on the great results. I was wondering how you look to reactivate the cruise segment and how the trajectory towards recovery looks like.
Well, I think it all depends on the development of COVID-19, of course. The U.K., which is our main market, has been hesitant in opening up for international cruising. Certainly, it very much depends on that. Presently, we are cruising in the U.K. waters, and hopefully slowly and surely we will be able to expand internationally.
Thank you.
Next question, please.
Thank you. There are no further questions on the line. Please continue. Oh, yes. We do have one other question from the line of Anders Roslund. Please ask your question.
Thank you. Well, this carved-out segment offshore wind, it's a segment which could potentially be extremely capital heavy. Sort of venturing into offshore wind is a challenge for smaller companies without strong cash flows from other operations. How do you think about the difference between being a developer and being an owner and operator of offshore wind assets post-construction, and how should we think about the way you think about it?
I think we can combine talking about that question, Richard. I think if you look at where we are in the wind segment, we have been a developer, owner, and operator onshore for many years now. We have a lot of experience. The Codling Wind Park is a wind park we have worked on now for many years. Certainly, you are quite right in your questioning. It is very capital-intensive offshore, building offshore wind parks. That is also why we have now separated this out into a special business unit to get that focus and also to be able to look at various alternatives for financing. Would you like to add something, Richard?
No, I can just say that to be in the full value chain is very important, because cost and operational excellence is very key, to possess those skills. To just be a financial player in these markets, I don't think really is an option. Having said that, what we see in offshore wind that we also see in onshore, which we have also utilized, is that you can attract financial capital down the road, which can help you finance your activities in a very solid way. Because it's a strong inflow of capital that really wants to invest into renewable energy and invest in partnerships with experienced operators like ourselves. We have financial partners, we have industrial partners, and we have a long history of managing such partnerships in a very good way.
You don't necessarily need to own 100% post-construction to have the experiences and track records and the knowledge transfer that you need to be a successful offshore wind developer and asset owner over time.
Okay. Thank you for that. I have a follow-up question as well. Well, not a follow-up, but on a different topic. I don't know if you've received a detailed report on the first cruise. It's just nine days since it's commenced. Do you expect to see differences in the spend patterns from your customers, i.e., more onboard spending than what we have seen in the past? You've talked about pent-up demand before. If we walk around in Oslo city, people are lining up to get into stores to be able to spend money. Is that something that you're seeing in the cruise operations as well? I appreciate it's only been nine days, but still.
It's a very short time, but I think it's fair to say that presently we are hoping that we will be able to come into different ports and have certainly the passengers enjoy also onshore activity. I think from what we have seen. The spending on board is good. It's really too early. People have to take it from there. I can tell you that we have worked a lot on making sure that the passengers are happy on board and are engaged. Hopefully that will also reflect in spending.
Thank you.
Okay. Any more questions? Operator.
Yes. We have a question from the line of Jonas Shum. Please go ahead.
Good morning, Richard and Anette. I have another question on cruises. You mentioned that due to these COVID-19 guidelines, you are limited your occupancy to 50%. I was just wondering if that 50% threshold is a limit. Are you able to generate a positive margin on that utilization level?
Yeah. Over time, it's not a satisfactory utilization, obviously, but it's miles apart from being in layup. As long as we have our eyes that we'll get back into the waters, it's much better to get back short-term in the waters at 50% than being in layup. This is a temporary measure from the U.K. government to get experience and get into the water and not have any uncontrolled outbreak situation to really test systems and procedures. We clearly see this as a temporary measure, but it depends. When will this temporary measure be lifted? It depends what Anette talked about on how the pandemic now evolves further. Over time, it's clearly way below what you can have a sufficient return on cruises on.
Yeah. I understand. Just as a kind of extension of that, do you think that you will be able to compensate for somewhat lower utilization levels with some higher ticket prices? Or the realized prices that you have seen so far, are they higher than pre-COVID levels?
Yes, if you look at our, you can look at the Fred. Olsen Cruise Lines homepages, and you can actually do it yourself if you want to compare the selling prices for the same type of cruise we're booking now compared to what we booked in 2018 and 2019 for 2019 and 2020 cruising, and you clearly see an uplift. That is as it should be expected as we're coming in with two new ships now with larger cabin, more attractive public spaces, larger restaurants, totally modernized with a look and feel that Fred. Olsen Cruise Lines customer segment will appreciate. We see that is reflected in both the pricing and bookings, and that's why we also point to that we expect a higher EBITDA when we are back into the waters with the four ships than we had pre-COVID.
Okay. Very good. Thank you very much, and have a good summer.
You too.
Next question, please.
Yes. Next question comes from the line of Victor Smith Solvang. Please go ahead.
Yes. Hi again. With regards to the crane replacements, how much CapEx is left on both ends?
Yeah. We haven't disclosed that in detail, so it would not be prudent to disclose that now without doing it broadly. Sorry about that.
That's fine. Thank you.
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There are no further questions on the line. Please continue.
I think we will just wish everybody a very nice summer, and thank you for joining us.