Good morning, everybody, and welcome to the Second Quarter Presentation for Bonhoehr Assa. My name is Enne Holtsen, and I am the CEO of Monner. I have with me today, Eric Bakht Blanc Orr, our CFO. He will do the majority of the presentation. In addition to that, We will introduce to you today Lars Schrendy, who is heading up our new business unit for Offshore Wind.
And in addition to that, Alexander Kukot, who is the CEO of Red Oce and Wind Carriers, We'll also talk to you about that segment. So hopefully, You will all feel that we give you sufficient information.
With that, Wigert? Yes. Thank you, Anne Te, and a hearty welcome from me as well. We will we have sent out the presentation. And the first few slides in that presentation is part of our general Investor presentation.
So 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 and also the cruise business have mobilized and have on ship back in the water. So 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 have had Such an active quarter in number of stock exchange releases. And they are in particular related to the business areas where Lars Wendel and Alexander is going to present later today, both on the offshore wind development side and also on Voorheek.
So 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 SEK1.6 billion in this quarter, which is an increase of more than €300,000,000 from the previous quarter last from similar quarter last year. And EBITDA in the quarter was SEK313,000,000 and that was a significant improvement from a negative EBITDA of SEK 57,000,000 2nd quarter Also a strong improvement on EBIT of positive SEK 80,000,000 compared to SEK 329,000,000 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. As on the consolidated level, parent company Stands very solid with an equity close to SEK7 billion and equity ratio close to 70% and cash in the parent company of SEK 2,100,000,000.
Then taking the business segments 1 by 1, starting with Renewable Energy, a strong improvement in EBITDA compared to Q2 last year. That is due to higher prices in all the markets, but maybe U. K. In particularly, And I'll 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.
And this is on a backdrop of a very strong project pipeline. We have worked with the Kotlin 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. But also in this quarter, we have further developed for Scotland project, where we have entered also a partnership with Battenfell. We, with our long track record in Scotland being our whole market, Waffenfall being one of the first offshore developers in Scotland, we think that Combination can really be a winning concept in the Scott Wind option. And then we have the Norwegian situation where we already have a very solid partnership in place with Hafslund, complementing us with their Hydro competence and their grid competence with our renewable competence and that partnership have been further strengthened this quarter by adding Ostrand to the partnership.
And then we have Icebreaker, the only consented offshore wind project in the lakes in the U. S. So we have decided to gather these 4 projects and develop a dedicated business team, a dedicated business unit for this. And we're also saying today that we will explore alternative possible financing opportunities for this new unit, including potential listing. Moving on, and Lars will come back to this in more detail.
Moving on to wind service, where we had the strongest improvement in earnings and EBITDA of SEK 271,000,000 compared to only SEK 50,000,000 2nd quarter last year. We have a new partnership with Shimizu in Japan. Furvik is already a global leader Being in a global leader in Europe, being one of the first movers into U. S, 1st mover into the APAC region in Taiwan And also now creating a position in Japan with Shimizu. And Alexandra will cover that partnership in more detail under her presentation.
Also very positively adding new contracts of a total value of €124,000,000 and adding solidly to the backlog of Voorhevik that now stands about €300,000,000 And Alexander 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% and really And the execution of the FUVIC team in the quarter on these large projects, both in Europe and in And we have spent a lot of time also this quarter further develop The strategy plan for FUVIC and especially the crane upgrades and how we're going to have a growth program And we're saying we're aiming for a new bid. And Alexander will also cover that more in detail under her presentation, but a lot of great work also have been put into that in this quarter. Then Global Wind Service continued their solid performance in the quarter, both in Europe and the U. S.
Then the cruise lines, still large losses, negative EBITDA of SEK 179,000,000, which is on par with 2nd quarter last year. 2nd quarter last year, we had significant demobilization costs, taking the cruise ships out of service. This quarter, we have significant mobilization cost, bringing cruise ships into service. The first The ship went sailing 5th July from Lilleberg on a short cruise around the U. K.
That was done successfully. And we're now also then planning to launch the 2nd ship, Bulleuten, in the middle of August. We see strong and substantial demand for the cruises. And 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-nineteen. On the other segments, also there an EBITDA improvement related to NHST.
NHST also continued to improve their digital products and services. But maybe most importantly around NHST In this quarter, it's been decided to create a new media division, combining all the global publication with targeting Snagensolid to utilize synergies both on content, subscription, advertising and also efficiencies. Finally, on other investments, Bonhoe successfully placed a new SEK 700,000,000 green bond, the 2nd green bond that we have issued on the green finance framework. So that is that are the big events in this quarter. So 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 SEK 370,000,000. 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 kicked up for us 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 and L.
Then a little bit more detail 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. But Renewable Energy, the SEK 128,000,000 change It's mainly driven by price, but we've also had very low wind speeds this quarter. So The revenues could have potentially been quite a bit higher if we have had normal wind speeds. So with the current electricity prices, We should expect, in fact, an even higher result than what we have in renewable energy at the currently registered prices.
Wind service is up SEK 210,000,000. That is really on the backdrop of strong utilization for the 3 turn vessels, but also some improvements in Uwl and Global Wind Service. The other segments are more or less in line with the Q2 last EBITDA in Renewable Energy, a positive change SEK137,000,000 and then an EBITDA of close to SEK 200,000,000. Good cost performance in this quarter was Good compared to Q2 last year. And also in service, the better utilization of the turns Translates directly into a much improved EBITDA.
Yes, and Clus and other, I don't need to comment Then 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 It gives you the overview of FedRUs and Renewables in brief. And I think this is an important backdrop now when we of 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. And it's on the back of this and also our long maritime heritage that we are now establishing a separate business unit for offshore wind.
And 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 That we are a long term developer and operator on all these skills, and 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. Then going to the electricity market, which on the short term is the main driver Stability in Fedorsten Renewables. Starting to the top left where you have the production illustrated with the black line and the capacity factors illustrated by the bars.
The production in this quarter was quite low, only 300 gigawatt hours, which is below the norm. And you see on the capacity factors, it's really the U. K, where you have very low wind speeds in the quarter. But then on the other hand, prices have been very good. Moving to bottom left, we see the price curves for UK in the blue and the Swedish one in the orange one and the Norwegian one in the gray one.
Starting with UK, We've seen compared to a year ago in the midst of the COVID outbreak that we have prices down towards £30 per megawatt hour, which have now increased to more than £70 per megawatt hours. And then in addition, you have the renewable obligation certificates for our slot machine We see the same trends in Scandinavia, maybe particular in Norway where we've seen the prices A very touching 0 last summer due to the high hydro positions in Norway and lack of transmission capacity. That hydro position is now being utilized. We see Norwegian prices no more in line with German prices up towards €40,000,000 to €50,000,000 per megawatt hour. 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 in Sweden.
So what is what are the main drivers behind this strong electricity prices? And 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. And what really sets the electricity prices in Europe these days It's the cost of running a gas turbine producing electricity, and we have 2 cost factors. It's the gas And it's the quota.
And we see the gas prices have tripled since the middle of COVID, And the quota prices have more than doubled on the back of very strong political measures in Brussels on the concept of polluter pays. So adding those factors and transforming that into what it 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. And then we 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. So now the hydrological balance, as illustrated to the bottom right, is back to normal. Then we have on the construction side an update on Hogaliten.
We are in fact Finished, but the supplier had some faulty blades, especially around the inserts of the blades that needs to be repaired. That takes some time. They are shipped to Denmark and being repaired. And 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. And maybe what is maybe more importantly looking forward is what you see on the picture to the bottom right is this is the 1st wind farm in the world where we 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 VIN early on. So this is a new invention, again, with ZEP ex LIDAR, Vestas and of Fotas. There are a few developments this quarter.
The most important one is The continuing development of strong partnerships to the left, where we have the addition of Wattenshall in Scotland, The addition of Oersted in addition to Hafslund in Norway and then the establishment of a separate business unit that Lars will cover. That's Maybe the most significant development on this slide this quarter. But we also have good progress in on the development side in Scotland and Sweden. Scotland adding another 100 Megawatts to their portfolio and Sweden adding more than 100 Megawatts to the portfolio. So we have built another 200 plus megawatt on the development portfolio this quarter, which is very positive.
On the consensus side, there are no new developments this quarter. And on the construction side, we already gave you an Update on the Hogalinden side. Yes, move on. Then I think it's time for me to Hand over to Lars Bendel, 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 Firdaus 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 last roughly 8 years, latest as part of the management team in a company in Denmark, which is a global leader within production of foundations and topsides. I'm naturally very happy to present what I am going to present today.
It's a fantastic venture into offshore wind. But 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? And the context is that we have a Solid platform to stand on in relation to a mature project in Ireland, Codman Bank, which I'll come a bit back to. We have a well established position in Norway and Scotland.
And in addition, we have entered into partnerships with industry leading players. So 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. And 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 The 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. So 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 Firdausen, first of all, Very important is that we are standing on the basis of an existing attractive portfolio of projects and positions.
The Kotlin 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's a mature project. So focus will be on developing that in the coming years. Then in addition to that, we have Created a position in Norway around Sirlin Orchardov and Ocneur together with Hafslon and Ocsted as partners.
We will end of this week submit a bid into Scottwind together with Wachtenfeld. And then 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. Then 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.
So focus will naturally be to expand in Ireland, 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 Otten 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.
So that is some of the things we expect in the future will be a differentiator for us in Racing 2 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 and just to give a view of how will a timeline look in relation to developing the portfolio. As mentioned, the first project, which is mature and in development is Koffing 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 Kotlin Wind Park, of course, leveraging on cost synergies from the Kotlin Wind Park project And using the existing knowledge we have around the iris 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. And just to give an impression of what Richard also said a bit about in the beginning, we have 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 Yes, months and almost years working with an approach to develop partnerships and to create a strong position for us in home markets. And that has resulted in what you see on the slide now that we in Ireland Our partners with EDF around the Kotlin project in a fifty-fifty joint venture. In Scotland, we are Partnering with Wattenfall in a fifty-fifty joint bidding agreement. Of course, 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, and we now take that experience into offshore wind.
Waffenfell is bringing their experience from, amongst other things Aberdeen Bay, which is one of the offshore wind projects in Scotland. And 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. Then we have Norway, where we've Entered into a partnership with Hafslund and Hersted. 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 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. First hand, we'll, of course, be focused on the lease routes coming up for Schirley Nordsche 2 and Utea Noa, where we together will submit a bit into those rounds. Our focus in Norway have been around creating subsidy free offshore wind in Surline or Chouteau, combining offshore wind with a transmission concept. On Oteonnuo, 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.
So in all three areas, we believe we created strong positions together with partners, and 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 And 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 Firdaus and Wind Carrier have been up to in the last quarter, but I will start with just reiterating who are Firdos Wind Carrier. We are a market leader in the growing offshore wind market. So 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.
So the numbers you're looking at the screen are being outdated every single day. And by the end of the year, we As mentioned in the beginning, we are a global company. Our main activity and foothold have been in Europe as for offshore wind. But we installed the 1st offshore wind farm in the U. S.
Back in 2016. The U. S. Has been a little bit slow since then, but it's now starting to move very fast. And we also were one of the very first movers out in APAC in Taiwan where we located a vessel last year.
And as mentioned, we have now strengthened our foothold in APAC with a MiU with Shimizu, which is A large contractor in Japan. And just to mention what we're currently up to, Brayton is in Taiwan installing turbines, Bolt Ernes is on her way to YARN and Bluetern is in Scotland installing turbines. Then I would like to touch a little bit 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 results in current equipment being outdated, which I'll come back to.
But 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. And also, we expect a much more level activity. And 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. So then reiterating As of today, that can be these 14000000, 15000000 turbines that we see coming to the market.
Announced today, the EPS guidance comes to 2024, 2025, 26, Which is good news, I guess, for us as vessel operators. I'll touch upon all of the notification that came out earlier this quarter and that was related to of the CapEx backlog, which we then stated was at approximately €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. So 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.
And the other table on this slide shows a little bit sort of on the magnitude of our tender activity at the moment. And I think it also very well illustrates the timelines. So 2022 and 2023, it's very little activity, Not necessarily because it's little activity, but these jobs are already booked. For 2024, there are a couple of projects It's still in tender phase. And then looking into 2025, it's a huge bulk of work, which is tendered at the moment.
And Looking at 26, that doesn't say that the market is going down. It just says that those tender processes are not in full swing yet. So our focus at the moment is contracts for 2024 and mostly 2025. So how are we positioning in this market? We have, since Q1 this year, We've been communicating that we have initiated an upgrade program for our fleet.
So bolt turn, she will be upgraded this winter And the others will follow, which means then our existing vessels will be on par with some of the new builds announced in terms of And we have also communicated that we are aiming to construct a 4th vessel to Basically, keep our market share and grow the company with the growth of the market. And then 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. And this partnership has come about because they have access to the Japanese market And we know how to operate these vessels.
So we found each other on those terms. And basically, it means for a Dolson Wind Carrier and our sister company Global Wind Service will be preferred supplies to Sumitu in Japan. We're looking at financing solutions going forward. Just 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, means we can carry more turbines, which is important. And 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. And then just to show some pictures of steel. The first upgrade is happening this winter. It's well underway on the grade fabrication, Prefabrication of steel structures in the yard has started.
Volturn is en route to yard and we do And then 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 Erstej's yearly report because of excellent execution from the Eiffel's Norway carrier team. But this is important in this industry. And it's because we do very, very work. It's 50 to 100 turbines per for Wipan and probably more in the future.
So that can be a very painful magnifying glass if you do mistakes and don't have your Execution in order. And this is done in harsh offshore conditions where your wind, waves, currents. And if you don't have wind, We have the systems that we have capabilities in house and we managed to do this That concludes my comments.
Yes. Also thank you to Alexandra for an excellent presentation. Then we can Bjorn, just a few words on Global Wind Service, another major operating company within this segment. They continued their good execution in this quarter and a lot of Offshore and onshore projects in Europe and but also most recently, Large projects in the U. S.
Over the last 4 years.
The
last operating company within the wind service segment is United Win Logistics. The market for those vessels are strong. We have 1 vessel working in the spot market, West Wind, that is buoyant now and strong fleet utilization and also a positive market outlook for United That ends the Vehicle Service segment. Then moving into cruise. And we can just move 2 slides, please.
This one is more backdrop. But in the quarter, a really effective quarter also And it's been hurdles that they have been able to to get Borealis into the water at the 5th July. You can only imagine All the issues there have been around vaccines, around the logistics connected with Brexit, but The ship is having 50% occupancy. That's not because we could not have sold out the ship. There is a strong demand for cruises in the U.
K. But is due to COVID-nineteen guidelines from the British So 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 face the ships into operation, the 3 other vessels and Bullek plan to Starting already from mid August and then Balmoral and bremb are coming in towards the end of the year and next year. And the fleet is planned to be utilized by somewhere next year. Well, of course, this is pending on that we cannot just have 4 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 caused by the pandemic. On the results side, we already covered that we have had the extra cost this quarter in connection with mobilization, similar to the demobilization cost 2nd quarter last year and also sales and marketing related to On this last bullet point on this slide to give you also A more kind of long term perspective, what has really happened with Fred Olsen Cruise Lines during the pandemic and how we see is now coming out of of the pandemic. I think we utilized the COVID situation quite well to acquire Borletta and Borealis at favorable pricing and with the favorable financing packages attached to it in the middle of the COVID and also were able to sell the 2 oldest and smaller 2 oldest cruise ships. By that, we not only increased the fleet capacity by approximately 25% of 1,000 passengers, But what we also see now when we have studied the vessels even more in detail, we see that The capping 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 Orson customers appreciated line of style. I think these vessels, I think we can of course, this is not a guarantee, but an expectation But based on the higher capacity, better yielding cabin mix and the whole look and feel of the The exterior and interior, it's a point stronger earnings when we get the feedback into the water and the pandemic is coming to an end. So I will very much like also to end this part of the presentation before we go to Q and A on a little bit positive on the cruise because I think then we are at the end of what we plan to say, and then we can maybe open up
for Q and A. Thank you. We now begin the question and answer And we are taking our first question from the line of Jean Olaisen. Please
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? And also what you see, what's the financial Need and maybe also a little bit more detail.
In the case of an IPO, I presume Bollinger 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, Rekha, but just to say, I mean, this is Certainly, something that we are starting to work on now. So I think a lot of questions you are asking Needs a bit of work internally before we come
back. Just to comment on that, Our main focus now over the past months have really been to position ourselves in the best So very importantly, how should the management of this unit be in place. So we have now Established all of that and established a strategy and a business plan for this. And I know it's very natural to take the next step and lay out a more detailed implementation plans. But that's where we are.
So I don't think we should go any further than that today before that is being further affirmed.
John? That's fair enough. I'll give some color on it. Next question comes from Volkswagen. This quarter, you said that it transits to Yarna.
We'll see All right. In this segment, Could you remind us what you said about the newbuild, cost And then finally for it, please.
No, I think Jan, we see some data points out there On the new business of the competitors, I think what is very important for us is what Alexander 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 holds such a future vessel should be designed in detail. So we would not like to contrast and compare Because we need to utilize all our experience to design what we believe is the optimal vessel That potential
cost and
how efficient we will need to revert you up and that detailed work is So it's for us, it's easy to kind of the number and to do to competitors.
Okay. Fair enough. My last question is just a detailed question. What exactly the problem with the blades on the The issue actually on the blades. Yes.
I
don't think we should go in the
Okay. That's all from me. And actually, very good congratulations with the great development, basically all the segments over the last 12 months
We have been done without very hard work across all companies. Thanks very much to
Next question, please.
Yes. We are taking our next question from
the line of Andreas from Bernstein. Please go ahead.
Thank you for having me today and congrats on the results.
Quarterly report settlement in those numbers, a legal settlement that makes it maybe a little higher than you could Expect going forward. So you have to maybe adjust for that.
Okay. So it's basically maybe one What do you expect for the upcoming quarters for the segment?
We don't guide in there for any of our segments, but I think you will find in the NHST quarter report there They have a separate reporting line for EBITDA before other items. So you can see the more underlying recurring EBITDA in NHST in their quarterly report. So I think it's more efficient and prudent that I point you in that direction.
Okay. Thank you. So I have one last question. Do you expect the capacity factors to be significantly better for the new onshore wind farms as settled in? Would you expect them to be in line with the historical capacity factors?
Also very good question. Helgoliden will have a much higher capacity factor than the average. I think if I recall correctly, On the normal wind speed or normal wind resource, the megawatts will increase by approximately 15% to 16% by adding Hoegh Gallatin, but expect the production will increase by close to 19%, 20%. So it's very high very good wind speeds in Hoegh Gallatin because you're not north with good wind resource, but there are also large turbines going higher up where there are stronger wind speeds. I think we have specified these numbers In the Q4 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. And I was wondering how you look To reactivate the crew segment and how the trajectory towards recovery looks like?
Well, I think it It all depends on the development of COVID, of course. The U. K, which is our main market, Certainly, it very much depends on that. So Presently, we are producing in the UK 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. Yes, we do have one other question from the line of Anders Rocel Lund. Please ask your question.
Thank you.
This Carved out segment offshore wind. It's a segment which is could potentially be extremely Capital Heavy. And sort of venturing into offshore wind is a challenge for 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, Rickard. 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. So we have a lot of experience. The coddling wind park It's a wind park we have worked on now for many years. And certainly, You are quite right in your questioning.
It is very capital intensive offshore, Building Offshore Wind Parks. And 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?
No, I can just say that to be in the full value chain is very important Because cost and operational excellence is very key, we possess those skills. To just be a financial player in these markets, I don't think really is an option. But having said that, what we see in offshore wind that we also see in on Sure. 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. And we have financial partners, we have industrial partners, and we have a long history of managing such partnerships in a very good way.
So you don't necessarily need to own 100% post construction to Have the experiences and track records and knowledge transfer that you need to be a successful of Sjogren, developer and asset owner over time.
Okay. Thank you for that. If I have a follow-up question as well. I'll have to follow-up on a different topic.
I don't know if
you've received detailed reports on the first cruise. It's Just 9 days since it's commenced, but do you expect to see differences in the spend patterns from your customers, I. E. More on board spending than what we have seen in the past. Our people You've talked about pent up demand before.
And if we walk around in Oslo City, people are lining up to get into source to get 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 9 days, but
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 It's good, but it's really too early. We will 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. So hopefully, that will also reflect in spending.
Thank
you. Okay. Any more questions?
Operator? Yes, we have a question from the line of Jonas Schum. Please go ahead.
Good morning, Riccardo and Amit. I have another question On cruises, you mentioned that due to this COVID-nineteen guidelines, you limited your occupancy to 50%. I was just wondering if that 60% threshold is kind of our limit. Are you able to generate a positive margin on that utilization kind of level?
Yes. Over time, it's not a satisfactory The utilization obviously, but it's miles apart from being in layup. So As long as we have our eyes that will get back into the waters, it's much better to get back short term in the waters at 50% than being in layup. And we this is a temporary measure from the U. K.
Government to kind of get Experience and get into the water and not have the final any uncontrolled outbreak Situation to the 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 Annette talked about on how the pandemic now But over time, it's clearly way below what you can have a sufficient return on pre ships on.
Yes, I understand. And just as a kind of an extension of that, do you think that you will be able to kind of compensate Somewhat lower kind of utilization levels with some higher ticket prices? Or have you seen the realized prices that you have seen so far, are they higher than kind of pre COVID levels?
Yes. If you look at or you can look at the Fred Olsen Cruise Lines home pages 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 'eighteen and 'nineteen for 'nineteen and 'twenty And you clearly see an uplift. And that is as it should be expected as we're coming in with 2 new ships now with Larger cabin, more attractive public spaces, larger restaurants, Totally modernized with the look and feel that the Orest and Prufans customer segment will appreciate. So 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 4 ships than we had pre COVID.
Next question, please.
Yes. Next question comes from the line of Victor Smith, Sordang.
Please go ahead.
Yes. Hi, Jan. With regards to the crane replacements, how much CapEx is left on bolt on?
Yes. We haven't disclosed that in detail. So It would not be prudent to kind of disclose that now without doing it broadly. So Sorry about that.
That's fine. Thank you.
Next question please.
There are no further questions on the line. Please continue.
So I think we will just wish everybody a Very nice summer, and thank you for joining us.