Bonheur ASA
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Bonheur ASA
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Good morning, everybody, and a very welcome to the first quarter presentation for Bonheur ASA. Today, as usual, Richard Olav Aa, our CFO in Fred. Olsen & Co., will present the figures to you. And then afterwards, we will have 3 of our CEOs for 3 different companies talk a little bit more in detail about the different companies.
Today, we have Ivar Brandvold, co-CEO of Fred. Olsen Renewables here with us. In addition, we have Lars Bender on Teams. He will talk to you about Seawind -- Fred. Olsen Seawind. We also have Sofie of Fred. Olsen. She will present Fred. Olsen 1848; and Alexandra Koefoed, who will talk to you about Fred. Olsen Windcarrier.
So hopefully, you will learn a little more today. And now I will give the word to Richard to present.
Thank you, Anette. And also a heartly welcome from me to this first quarter presentation. Before we go into the figures, I think I would like to put the quarter in a little bit of a context. It is a quarter -- it's a good quarter. It's a good quarter on the financial development. It's a good quarter on the strategic development. And it's also a good quarter with very solid execution.
And I will dwell a little bit with each one of these before we take the numbers. On the financial side, we have very good results due to the strong results of Fred. Olsen Renewables with good production and prices. Strategically, I think the award in Scotland that together with the other assets we have in Fred. Olsen Seawind has transformed Fred. Olsen Seawind into a significant player in offshore wind development. And also strategically, which I hope you'll find very interesting, today is the formation of Olsen 1848, which are now aiming to solve significant technology issues within floating wind and solar areas we have worked on for many years.
And on the execution side, I would very much like to highlight that, that will be also illustrated a lot more in detail with Alexandra, a very solid execution in Fred. Olsen Windcarrier with all the 3 vessels now have been at yard space with also Fred. Olsen Cruise Lines that have operated very well during Omicron and also bringing now the third ship into operation. So that's a little bit context to the figures. I think we can be very proud of this quarter's development.
So starting then to the right, on this slide that you've seen many times before, the layout of it with revenues this quarter of close to NOK 2.5 billion and EBITDA of NOK 926 million, a very solid development in the quarter. Then starting with the segments, and these will be covered a lot more in detail, but just the main events in the quarter. Renewable Energy EBITDA of more than NOK 1.2 billion as a result of continued high power prices, good wind conditions in the quarter and also the successful implementation of the Högaliden wind farm adding 18% generation. I already mentioned the importance of the Seawind award in Scotland for the Mara Mohr site, which is a capacity close to 800 megawatts floating offshore wind outside of Aberdeen.
Then Fred. Olsen Wind Service. More of a breakeven result this quarter, but that was actually ahead of expectations as all 3 Tern-vessels were scheduled at yard in the quarter and also in between contracts. But we had a new contract coming in, which led the utilization of 16%. I think what is more important is that now all the 3 vessels are expected to be right before the market with the yard space and coming into a very solid contract portfolio starting now up in Q2 this year and stretching all the way into 2025. So the outlook is very solid.
Just covering quickly. Alexandra will go more in detail. We have Brave Tern, which are in between projects in Taiwan. She's on her class renewal in Singapore, and she will leave the yard next week, expectations. Bold Tern, the main program with the new crane and the conversion of the vessel to be ready for the new and larger turbines, she is now estimated to be completed with some minor delays, but still estimated now to be completed within the quarter, which is a major achievement, and you'll see some other dimensions of that project later in the presentation -- and also at budget. Very important to underscore all these programs are at budget.
Blue Tern, left the yard in Denmark mid-February. Very good, went straight into a new contract in German waters, like Kaskasi contract has led to the utilization of 16%, which was presented much lower. Also on Fred. Olsen Windcarrier adding significant to the backlog, the backlog at year-end was slightly above EUR 300 million. The backlog now stands at EUR 540 million due to among others, a record high contract that Alexandra will say a little bit more about during her presentation. Global Wind Service operated in line with expectations. So a very solid execution quarter in the wind service with now all the 3 major assets being ready or entering the significant backlog.
Then Cruise, financially, very weak. NOK 246 million negative. But operationally, a strong quarter where cruise lines are managed to keep the 2 cruise ships in the waters during the Omicron and has done that without compromising any health and safety issues and keep them now ready for the high season that starts now in the summer. And also Balmoral coming out of yard now and entering her first cruise to canaries now as we speak. And this is important because we see good demand for cruises now in 2022 and 2023 coming out of the COVID pandemic.
On the other investments, not so much to report on the financial side, more or less in line with expectation. But very importantly, and we will come back to that more in detail in the presentation, is that Fred. Olsen 1848 is now a company incorporated directly under Bonheur and the Other investments, which then is focusing on technology, development and innovation, especially within floating wind and solar, and that's where Sofie will cover more in detail in her presentation.
But also adding to our ecosystem of investments and activities within renewables, we also established Fred. Olsen Investments, a small team, which are taking positions in renewable energy-related companies with a aim of strengthening our own ecosystem within Fred. Olsen.
Finally, on this slide, the parent company. Solidity remains strong and also the cash position remains strong with close to NOK 2.1 billion in cash coming back to how the cash is not distributed in the group because that is quite important to understand the overall cash position.
So on the consolidated figures, we already covered the revenues and the EBITDA on depreciation and impairment. There's nothing special to report this quarter. On the net finance, it's a quite good result on net finance that we have unrealized gains on interest swap contracts and also some of our share portfolio.
Taxes, we're now starting to pay significant taxes in the U.K. related to the good results on the wind farms. So the net results end up at NOK 430 million.
A little bit more deep dive into revenues and EBITDA. We see on the revenue side, it's up by more than NOK 1.1 billion compared to last year and -- than close to NOK 2.5 billion in the quarter. The main driver is Renewable Energy, adding almost NOK 1 billion in revenues, but also now Cruise Lines coming back into the waters with close to NOK 200 million in -- or a little bit more than NOK 200 million in revenues in the quarter.
EBITDA. The main contributor to the improved EBITDA is the Renewable Energy segment with an improvement of close to NOK 900 million. We see Wind Service is down by NOK 79 million. We had quite high activity among others on the [indiscernible] campaign in first quarter last year, but now we have all the 3 vessels at the yard or in the complex.
Cruise Lines. You can say, the more we cruise, the more we lose. But you have to take into effect that this quarter is a quarter with very high activity related to mobilizing, marketing and also managing the whole Omicron situation. So I think we have been much worse of now entering into the high season if we haven't taken these costs in the first quarter and having the full fleet ready for the high season. So all in all, a very good EBITDA, NOK 926 million. So yes.
Then on the group capitalization. I will start with the policies because they cannot be reiterated many enough times. They're unchanged from last quarter. But we have the 3 sub-bullet points on the top there, which are very important to us. First of all, that the parent should have a strong financial position with conservative leverage and a solid liquidity position. Second one is that we have some subsidiaries. Now especially within the Renewable Energy area, which have high growth and are very capital intensive, they are now being tasked and we are supporting them heavily from Fred. Olsen & Co. to find the correct and best external capital sources to fuel that growth and considering a broad set of equity options. And then the third bullet point is that the subsidize is to optimize their own funding without any recourse back to Bonheur and also looking at the risks and the cost of capital for each segment.
And I think we walk as we talk here. So if you see the numbers at the bottom, we have the mother company's cash position plus everything Bonheur controls 100% and can access the cash freely. It is a cash position of NOK 2.9 billion by the end of first quarter. Our external debt is NOK 3.3 billion, so almost unlevered on what everything Bonheur owns 100% or what Bonheur has in their own balance sheet.
Then on the joint ventures, on the top, it's quite important this quarter to look especially at the Renewable Energy where we see by the end of first quarter an accumulated cash position of NOK 1 billion -- a little bit more than NOK 1 billion. And you can say why isn't that dividend up to Renewable Energy and then ultimately people know that is related to the bank agreements of the joint ventures where the cash is paid out semiannually. So that is just a matter of timing how that cash will flow up to the owners of the joint ventures.
So I think that covers the numbers.
So Ivar Brandvold, Co-CEO of Fred. Olsen Renewables.
Yes. Good morning, everybody. And I'll go through over, should we say, some of the aspects of the Fred. Olsen Renewables Company and activities. And this is an introduction to our portfolio, so to speak, that we have been in this business now for more than 25 years and have steadily grown the portfolio of wind parks and now today operating 12 wind parks with a capacity of 788 million megawatts. We have added a very strong track record, as also Richard has alluded to, in terms of on-time, on-budget project, which is a proud legacy, I would say. Also, we have a pipeline of around 3.8 gigawatts of development projects. And I would say that our competence is that we cover the entire value chain, from early site investigation up until construction, operations and also then position optimization. The operations of the wind parks are going quite well, and we are trading around 97% availability on a yearly average basis throughout.
I would draw your attention to the bottom left graph where you show the production growth through the years. And just to point out that 2021 was really an odd year with a low production generally on all the wind farms except for Fäbodliden in Sweden, which produced above budget. So 2021 was really affected by the wind and the low winds through the entire season. In 2022, we expect to be more in a normal situation. And then also Högaliden is 100% operating. So that should reflect the results now going forward in 2022. And I think it's fair to say that first quarter, we are on track in terms of these assumptions.
The business model, as has been explained also on previous presentations, covers the entire, should we say, value chain from early site investigation up until operation. And as also been pointed out by Richard and also my colleague Anette Olsen previously, there is also now a strong focus on new technologies, and we believe that offshore solar floating is -- has a high potential and has a high focus in our early stage work. As I mentioned, we have a development pipeline of 3.5 gigawatts, and we are operating 788 megawatts.
And I'll make a comment on as to where we are now in terms construction of new sites. And -- in Northern Sweden, we, just by the end of the year, finalized Högaliden. All the turbines have been installed and are now in operation. And there are some reinstatement work that will be undertaken in the spring after the snow has melted and the ground is stable, so to speak. But for all practical purposes, Högaliden has now been completed.
We embarked also on Fäbodliden II, which is an extension to the Fäbodliden site. But there, we had to go into a re-consenting due to, should we say, a conflict with radio links in the area. So Fäbodliden II has now been reconsented in April this year. And we're now looking at potential development of the Fäbodliden -- construction of the Fäbodliden II.
In Scotland, we have 3 projects which have been consented over the last year, which are now in, what we call, the preconstruction phase. And that is the Crystal Rig IV, it's the Windy Standard III earlier and Brockloch Rig III, and it's Pauls Hill 2, which you can see on the map to the right here. And we are in a scope and specification definition phase just being completed in Q1 and are now embarking on further preconstruction activities, which is pre -- a final investment decision and then at a later stage.
The -- if you look at the top left graph, you will see the capacity factors and generation. The capacity factor is generally how much we are able to utilize the wind farms, and that has been at a very high level in the first quarter, reflecting also the performance of the turbines and the wind. But you can also see that the production in all 3 areas, both Norway, Sweden and Scotland has been at high levels in the first quarter.
And if you then look at the lower slide, you will see the prices in our markets in this period, and it's a very distinct price regimes where there has been a high price, as you know, in Europe, in general, and also in Southern Norway in this period, which is also linked to the interconnector between Southern Norway and the continent. Whereas in Northern Sweden, there is a lower price regime and that is related, but there is capacity constraints in terms of moving the electricity or power out of Northern Sweden.
And if you then look at what other, should we say, the main drivers for the prices generally in the market, in Europe and in U.K., it's very strongly linked to the gas prices and also to the CO2 pricing, which you can see to the top right. And when it comes to Nordic, it's also strongly linked to, particularly in northern areas, it's strongly linked also to the hydrologic, should we say, balance and capacity.
And if you see the graph, down at the right-hand side there, at the bottom, you can see the capacity above or below normal. And we have been through a long period of overcapacity than a period of low capacity and now it's about neutral in terms of the balance in Scandinavia. But there is a concern that because of the dry weather and relatively little snow, that there will be a pressure on the availability in terms of capacity, hydrologically.
So with the price situation on gas and the hydrologic balance, it's a strong market in terms of the power prices as we speak and also going into the next quarters. And then, of course, we have the situation with post-pandemic and Ukraine, which is affecting the markets as such, which is then on top of the general market parameters, as I just mentioned.
So that should cover my part of the presentation, Anette.
Thank you, Ivar. Next one is Lars Bender. He will join us in Teams. He is the CEO of Fred. Olsen Seawind.
Thank you very much, Anette. And I hope you can all hear me. I will give an update on the highlights in Q1 for Fred. Olsen Seawind. So if we go to the first slide. And I will start with updating you on the project activities we have, starting out with the Codling project, as a small recap.
And before I mention the Codling wind farm, it is the largest project in Ireland, offshore. It is also one of the largest in Europe. So a very important strategic project for us. It is a project we are developing in a joint venture together with EDF Renewables on a 50-50 basis. The project is maturing more and more. And particularly in this quarter, we have been happy to see that the legislation is progressing according to the time line set out by the government. So more specifically, the Marine Area Consent Application Framework has been progressed. In addition to that, the TSO in Ireland EirGrid have progressed on grid application regime. Both of these things naturally means that the offshore wind regime, in general, is on track, and it also means that the time line for this CfD auction, which we expect to be in '22 or '23 is still on track. So very positive that we see the government actually delivering on the commitments they've given to the market and to the developers.
The third point, which is important about Ireland in this quarter, is that we do see the Irish market developing into a long-term market. Earlier, it has been mostly around the first projects, the Phase 1 projects, which we are part of with Codling. But we now see the Irish government opening up for a Phase 2 set of projects, a Phase 2 auction, but also an enduring regime, which means that the Irish market will be a long-term offshore wind market. That is naturally very positive for us in Fred. Olsen Seawind. We have a very solid position with the Codling wind project. We are the largest Phase 1 project. So it will be natural for us to look at Ireland as a long-term market, leveraging the position we already have with the Codling project.
Next slide, please. If we then turn to Scotland, it's been another hectic quarter. We have signed the Scotland option lease agreement. That is a very important and positive milestone. We look back at several years of work, preparing a Scotland application, succeeding in the competition and now it's finally signed. That is an important milestone. And of course, it marks that we now have several projects in development where we have security and exclusivity around the development.
As I've mentioned before, the project is an 800-megawatt project or 798. It is developed in a 50-50 joint venture together with Vattenfall. We have an integrated team across the 2 companies. Besides the signing of the agreement in this quarter, it's important also to note that the development activities are speeding rapidly up. We have the integrated team starting to work together, and we are, of course, aiming to develop this project in a very fast and swift manner. So the potential of this project is becoming one of the first commercial scale floating projects. So overall, a positive quarter on this, and we are looking forward to develop the project together with Vattenfall.
Next slide, please. If we then turn to Norway, where we, as we have mentioned before, have established a partnership together with Ørsted and Hafslund Eco. It is a long-term partnership, so not only a partnership around the current leasing rounds, but also the future Norwegian market. The reason for that is -- was and still is, that we have a very good projection on the Norwegian market. We have a long-term belief in the Norwegian market. There is favorable wind conditions. There's a really long coast line. So there's a huge potential for offshore wind in Norway.
Currently, the team is focusing on the upcoming lease rounds, both on Sørlige Nordsjø II and also Utsira Nord. We have around 25 people across the 3 companies working with this. They are working with everything from constraints analysis to business case analysis and also supply chain development. And in this quarter, we made a further step on the supply chain development. We entered into a partnership with Rosenberg, a well known Norwegian yards in Stavanger with a long track record, both in shipbuilding and oil and gas. The reason for this partnership is that we want to be part of developing a supply chain in Norway. We also want to be part of making the right solutions for Norway. It is important that when we develop these projects in Norway that we develop sustainable, competitive supply chains, which are not only able to compete in a Norwegian market but also internationally. And that is part of the purpose to look at such solutions together with Rosenberg. So a positive partnership, and something we'll be working on going forward.
Next slide, please. If we then look a bit on the future, but before doing that, maybe dwelling a bit with where we are because we do now have Codling wind park in very mature development stage, getting ready for a CfD auction later this year or early next year. We have secured exclusive rights over the Mara Mohr site in Scotland. So we currently hold a portfolio of 2.3 gigawatt of offshore wind in partnerships. I think that is a very solid platform as an offshore wind developer, and it gives us the substance to build further from that. And that is also our ambition and attention. So from that platform, we will, of course, look to develop sites and secure exclusive rights in Norway. We will look at developing from our position in Ireland, looking at further sites than the Codling wind farm. That's a very natural step, as I mentioned before, given the position we have in Ireland.
But in addition to that, we also want to use the platform we have, the knowledge we have, to go into new markets. We see, of course, offshore wind from various governments across the world getting a lot of attention. There's a lot of interest in developing offshore wind, and for us, as a developer that is very positive. The knowledge we have and the history we have of developing wind onshore but also offshore gives us a good position to go into such countries. So the potential is definitely there. And we also see that we are able to source opportunities at a good level. So also, on a future pipeline, we have a quite positive outlook.
So to recap the quarter in 3 key points. Point one, the signature is now done for the Scotland agreement, and we secured that site. Second part, the Marine Area Consent Legislation and EirGrid system is progressing in Ireland, which is very positive for our Codling project. And the third, the outlook for securing new sites and opportunities is very positive.
So overall, a good quarter for Fred. Olsen Seawind. And with that, back to you, Anette.
Thank you, Lars. Richard, a few words before we continue?
Yes. I think what we're going to do now is present Fred. Olsen 1848, but -- 1848, sorry, talking in Norwegian. But before we do that, maybe we should dwell a little bit where Fred. Olsen 1848 fits in.
This slide we have developed here, I don't think we have shown this in this audience before, but it's a slide that I think gives a very good overview of the position and the ecosystem that has been built up over the last 25 years and where the new companies fit into this. So in the total system now, we have more than 2,400 employees working with renewables and activities in more than 40 countries. And we have very strong positions, both directly in the renewables where we develop wind farms and solar farms to own and produce electricity. But on the service side, we have very strong companies taking world-leading positions within their fields, and then we have covered before in the mid-section.
And then we have the technology innovation where we have added a few initiatives recently. So but building on what Lars said, the formation of Fred. Olsen Seawind and Renewables, where we now see that floating wind will be a big part of the energy solution going forward and where we see that Fred. Olsen Seawind can be well positioned. And also with the addition of what Ivar covered that over the last few years, they worked a lot on floating solar in harsh weather conditions. So renewable have taken really positions in floating solar and floating offshore wind.
And that leads us to the technology and innovation part where we, a while ago, made a strategic choice to gather all the initiatives we have on the technology front relating to floating wind and floating solar in a new technology and innovation company called Fred. Olsen 1848, that fits very well into both the support of what we're trying to achieve on Fred. Olsen Renewables and Fred. Olsen Seawind, but not at least that we see a strong commercial potential externally for the activities in Fred. Olsen 1848. So I thought it was good for audience to see where now what Sofie is going to present, where it kicks in.
So with no further ado, I give the word to Sofie.
Thank you, Richard. So Fred. Olsen 1848 is a newly established technology and innovation company. And I wanted to start out by showing you this picture, which is one of the technologies we are developing, the Brunel Foundation in the Oslo yard. And what is quite striking about the picture is that the height from the bottom of the foundation and up to the nacelle where the wings are fastened, that's 164 meters. And in comparison, the Oslo Plaza, which is one of the tall buildings in the back is actually 111 meters. So it just shows how large these structures are and why there is a big fuss about getting governments to put frameworks in place, et cetera, for these industries to take off.
So we are a newly established innovation and technology company. And we say that we're dedicated to develop tomorrow's sustainable energy solutions. Actually, we have been working on these solutions for quite a long time. And now, as Richard said, it's put into a separate company to put more focus on them and to be able to commercialize them in a better way. So we are a good environment of engineering and maritime people with long experience. And what we're working on is to try to solve the industry challenges within both floating winds and floating solar. As you see from the right here, at the moment, that is linked to fabrication. It's linked to assembly, integration or installation and also operation and maintenance, which is one of the large challenges in these fields.
Some wonder why by the name Fred. Olsen 1848, and actually, that stems from the year that the Fred. Olsen ship-owning companies were formed -- was formed, in 1848. And we like to say that we've been in the forefront with all renewable or all industry shifts since then. So we've went from sailing ships to -- and then to motorized vessels. We've been in shipyards, in aviation, in tank, in oil and gas, and then in the early '90s entered Renewable Energy again. So we would like to say that we want to continue to stay in the forefront, and that's what Fred. Olsen 1848 is all about, and that's why we have this name.
We have a vision and a mission, and that is that we want to develop tomorrow's energy technologies. And we're creating a really innovative and creative environment to make this happen and trying to inspire our employees as well.
So one of the technologies that I will present to you today is the Mobile Port Solution, which is solving many of the critical infrastructure constraints within floating winds. It is a mobile installation solution for floating wind turbines. As you see from the picture, it centers around a jack-up vessel and a North Sea barge, which they together form a mobile port. And then you have feeder vessels coming in with the different components and installing then the turbine.
And what this solution does is that it frees up land and space for other activities within floating wind. For example, the assembly of these huge foundation structures so that you can actually increase the amount of floating wind activity and local content in the area. And as you all know, the supply chain is highly under pressure at the moment, especially as the industry is building up. So we think this is a very good solution for the -- this phase that we're now going into especially.
And the Mobile Port Solution, it builds on proven and safe methods from bottom fixed offshore wind, which we call, they're ready-to-go, and you can just utilize them in floating wind. And it's important to say also that this is done in a sheltered area. So it's not a lot of waves and other things affecting the installation. And it can be done for all -- or it can work on all semisubmersible foundations.
Furthermore, it has local benefit. You can choose the level of local footprint that you want because you can add the number of local wind technicians, turn both anchoring, mooring and other to adjust that because local footprint is quite important in these projects. This solution was an integral part of Fred. Olsen Seawind's supply chain development statement for the Mara Mohr project that Lars has talked about in Scotland where they won the sites. We had a very good collaboration about that. And furthermore, we see that is supported by the port of Cromarty Firth which is on the East Coast of Scotland, and it brings a lot of benefits to local parties, and we see that, that is also recognized.
The second technology that I wanted to introduce today is the Brunel floating foundation. This is a semisubmersible structure that we are developing. It's designed for harsh North Sea conditions, and it has a modular design based on the steel tubulars, as you see on this exploded view picture. And those are the same steel tubulars that are used for monopiles and wind towers today. It has a turret in front and the structure is weather waning around this turret. And that has a lot of advantages, and it also has a passive balance system.
So the philosophy with Brunel has all the way been to utilize these modular building blocks of tubulars. They already have an existing global supply chain. And this makes it very suitable for serial and mass production, which we believe is one of the key challenges and constraints within floating wind.
Secondly, we're building on existing and proven technology, but we're taking it to a new level and deploying it in floating wind. This is a very good point in time to launch Brunel because we recently just received the statement of feasibility from DNV, which is a sort of a step that the technology works. And we've also performed significant tank test and lab tests in SINTEF Ocean in Norway.
A bit more about the advantages of Brunel. As mentioned, it has a global sort of outreach of manufacturers that can produce these tubulars as you see on this map. And these fabrication facilities are now adjusted to fit the current monopiles and towers with 8-meter diameter. Once the turbine grows, they will -- the facilities will need to be changed. But the existing diameters, that's what we need for Brunel, so we can actually extend the lifetime of these facilities.
Furthermore, Brunel can be deployed all around the globe. As you see from the bottom up here, we can put Brunel in all the green and yellow areas. And it's very easy to scale. We can do that by just adjusting the size of the areas where the red rings are on the other picture here. Brunel also has a low -- sorry, low draft, so we can get it easily in and out of a port. And furthermore, we have a solution for operation and maintenance of Brunel, which involves changing main components at site and not towing it into shore, which is quite costly. Then I think I wanted to show a film which we have produced so that you can get a bit more insight into the foundation. Thank you.
[Presentation]
Very good. Thank you, Sophie. Not often we have the chance to show a small video. So that was very nice. Alexandra Koefoed is next, CEO of Fred. Olsen Windcarrier.
Thank you. Good morning, everybody. Just firstly, very, very briefly, for those of you who might not know Fred. Olsen Windcarrier, we are a leading turbine installation and service contractor with a global track record and strategy. So our strength is a solid organization. As you see on the screen, we have a solid track record. We have executed projects in all 3 continents. The majority, clearly, in Europe with now 60 projects completed but also projects executed in Asia and the U.S. And we have a very solid backlog built on the 3 vessels we have on the water today. So a very brief introduction to Fred. Olsen Windcarrier.
The activity in the quarter that Richard already mentioned, it has been high activity but not on the project generating side, but high activity with 3 vessels in the yard. So Bold Tern, we've talked about that previously. She is doing a major conversion and upgrade, which I'll come back to, but that's an upgrade that will take her into the future with a new crane and suitable for new generation turbines. Brave Tern, she's been between projects, but we've also spent the time on the 10-year class renewal. And then Blue Tern, she finished her 10-year class renewal and some project upgrades and went straight on contract.
So clearly, that impacts the revenue and EBITDA for the quarter because we only had 1 vessel working 16%. So that's total utilization on the quarter. But as mentioned, we have a very solid outlook for the next 3 quarters in 2022, which I'll come back to when we look at the backlog.
The upgrade program is progressing. So we are preparing for the future and new turbines coming to market. So Bold Tern, she is the first vessel. She is currently in Singapore. And the picture you see on the screen is the new crane being installed on Bold Tern. I think last time we had a presentation, we were waiting for her to leave China, and we are very happy that we actually did get her out before we had sort of the lockdowns that we now see. And the crane is now on the vessel. It is commissioning off the crane remaining, but we do expect her to leave yard in Q2, as previously communicated, at budget.
In terms of upgrades from Brave Tern, we do have the crane on order, and the selection of upgrade and conversion yard is initiated. And Blue Tern, we are planning an upgrade for 2025, but still optimizing the concept. And we are still undertaking planning activities for a potential new build.
So I've saved the best for last in terms of the developments in the quarter, and that's related to the backlog, which has significantly improved in this quarter. So firstly, we have now announced our first contract in France, but this contract was actually signed in 2020. So it's been sort of an undisclosed Europe contract for 2 years, more than 2 years now. And I think this exemplifies how we are sometimes limited to what we can say by our clients with various motivations for that. But I think it's -- I can be open enough to say it's not a coincidence that it's announced days after the French election.
Secondly, the backlog we have previously communicated, that has included 2 reservation agreements linked to backlog in '22 and '23. In the last quarter, both contracts are now converted into firm contracts. So what you're now seeing as dark blue on the screen firm contracts, that is firm contracts. And lastly, we have secured a large new strategic contract with a firm revenue of approximately EUR 150 million. That is, by far, the largest contract signed in Fred. Olsen Windcarrier history. It has a significant supplier proportion to it. I think that's prudent to mention. It will be executed with a vessel with a new crane fully converted for the future, and it is linked to next-generation turbines. And we will say more about this contract once our clients actually allows us to. We would like to tell the market about this, but there are reasons why we can't.
So I think that concludes where we are. But we are working on our strategy to be a leading global turbine installation and service provider in a global market, seeing the same good outlook as Lars.
Thank you. Richard?
Yes, thank you. That brings us to a Global Wind Service, which likewise, as Fred. Olsen Windcarrier, which Alexandra said, is a global leading company within offshore wind installation. Global Wind Service has the same position on the manpower, being #1 in offshore wind power installation. And activity level in Fred. Olsen -- sorry, in Global Wind Service is quite high this quarter. It's -- at the end of the quarter, it's 1,431 employees in the company executing large projects both in Europe. But more recently, the last 3, 4 years, we also built up a very strong position in the U.S. and executing some large onshore projects in the U.S. and also being positioned for the significant U.S. offshore market that we expect now to come to fruition over the next years.
A little bit of a challenge in the industry and maybe in particular for Global Wind Service, which are so dependent on the employees is that the lack of manpower in the industry. So we're very happy that we have focused on training and have established a training center in Szczecinska in Poland for a Global Wind Service to be able to train technicians ourselves as we see this is becoming more and more of a challenge for the installation industry.
So then over to Cruise. And I think we are very proud of what the Cruise Lines have achieved in this quarter. It's been now more than 2 years since we had the Omicron, putting all 4 cruise vessels into layup and the cruise lines have undergone tremendous changes in these 2 years while selling 2 ships and also buying 2 new ships from Carnival and then gradually facing the new fleet into the waters and have done that successfully within very difficult operating conditions.
So Borealis and Bolette, they came into the waters last year and were immediately hit with the Omicron outbreak in the first quarter, where we had expected them to have a more smooth operation than we have with Omicron. But having said that, the cruise lines crew and management have managed during the quarter to cater for this Omicron outbreak in a very good way with no health and safety issues. Had to cancel a few cruises, but also were able to contain this in a very good way on the ships.
So they are now ready for coming out of this. They are now ready for the high season cruising and ticket sales are good, good demand for both these vessels. But also very importantly is the third vessel, Balmoral, which is the largest one from the old fleet and a very -- historically had been a very good earner. She's now coming back cruising early May and been successfully taken out of yard and had a trial cruise just now and starting the first 3 crews out to the canaries as we speak. So that looks good. So I think the way the crew and the management in the Cruise Lines have managed in this period and also now bringing all 3 cruise ships in a good shape, back into cruising when they now hopefully done a bit much better cruising environment for the next year. And finally, they can start bringing cruise lines into black figures.
So that was the last slide covering the segments. And again, reiterating a very -- before we go to Q&A, a good quarter financially, a good quarter strategically, maybe especially around Seawind and Fred. Olsen 1848, and on the execution side on the Cruise Lines and added sales.
So with that, I think we can open up for questions.
[Operator Instructions] And the first question comes from the line of [ Anders Rosén from SEB ].
It's Anders here. You are spending -- I presume you're spending quite some money on the development efforts in the Renewable Energy segment. Can you comment on how much that represents of annual spending? And as a follow-up, is development spending expensed or capitalized in your accounts?
Yes. I think, Anders, I can lead you then to the just recently announced annual report. There you will, under Fred. Olsen Renewables, under notes there, see how much we capitalize our development spending. It's specified there. I don't remember the figure exactly now. But I think it's between NOK 400 million and NOK 500 million on the onshore wind and floating solar side being built up over the years. But we typically we capitalized the development costs on the projects, while the management manpower we expense.
When it comes to the Seawind, on the offshore wind, the main expense up to now has been Codling. That is also capitalized. But that is reported under associated companies. So you have to look in the notes and look at how much is capitalized on Codling under associated companies, and then you'll find a number there. And I think when you take those 2 numbers into account, they have covered most of your questions.
Next question comes from the run of John Olaisen from ABG.
A couple of questions to Lars Bender. I wonder if you could elaborate a little bit to us about the auction round in Norway. When do you expect it to take place? And what are the -- what should we expect from the outside? Are there any, like, milestones or announcements from the government? I guess, the next step is for the government to discuss this, so it becomes over the summer, before summer, after, a little bit on details what the process is on auction around in all of these?
Yes, I can try to give a view on that. I think it will be speculative in any case. I think everybody is following this very closely. All the developers are definitely following it. And we are, of course, as a developer in our consortium, offering any knowledge and insight we can, both to OED and others.
I think it's fair to say that it has been delayed a bit compared to the original plan set out by OED. From our perspective, that's probably not unusual in a new market. So we are quite comfortable with that. Our feeling is that OED is progressing just as fast as they can, but also taking into consideration that they need to get it right. The worst thing that can happen for the Norwegian market is that we don't get the first auction system right and that causes further delay to the market.
So the approach they're taking, I think we support that. Naturally, as a developer, we want to see things progress as fast as possible, but we also need to respect that there is a process. To be a bit more specific, I think we see it as unlikely that there will be auctions this year. If there is auction this year, it will be end of year, but more likely early next year. So that's what we are planning for. We have deployed the team. We are also ready if it comes before that. But realistically, end this year or early next year. Does that answer your question?
Yes, good, a little bit of insight on that. Similar in Ireland, the CfD seems to be delayed, continue to be delayed. What are the milestones for the CfD in Scotland? What are the process. If you could elaborate a little bit on the process as well, please, that would be great.
John, you said Scotland at the end. You're meaning Ireland?
Sorry, I meant Ireland, sorry.
Yes. Great. I don't think -- compared to our expectations, you will see that we've guided roughly time line-wise on the same time line for quite a while, which is end this year or next year on the CfD. If you go some years back, I would agree with you, of course, there's been potentially some delay. But when we look at it in the last year or 1.5 years, the government has actually managed to keep track with the schedule they've set up. So our expectation have for a while been either late this year or early next year for the CfD auction. And as I said in my presentation, what is positive now is that we see the legislation and the processes that need to be in place before the CfD auction that the government is delivering on that. That is the grid, and that is the Marine Area Consent Legislation.
Okay. And my final question is regarding Fred. Olsen Windcarrier. I just wonder we're seeing more supply coming into the market. I just wonder if you could give us an update on the -- your appetite to build one more -- a new build after some of your competition has announced new builds and also the failed IPO. If you could elaborate a little bit on the appetite for more turbine installation vessels, please.
As I mentioned in the presentation, we are still working on planning on a new build. We still see a variative positive market, particularly in sort of second half of the decade in front of us. So we -- there is still a supply-demand gap, and we are still working towards that.
Next question comes from the line of Nikolai Ødegaard from Clarksons Platou Securities.
It's Nikolai here. My first question relates to the Renewable Energy segment because the wind farms are now currently benefiting really strongly from elevated power prices, both we see in the U.K. and Norway. So I'm just wondering, is it possible to lock in prices at this elevated levels for a longer period of time? And if so, is that something you are currently considering?
I think we all see present power prices. And I think everybody in the market are, of course, focused on having a good view on what is going to be the market going forward. When it comes to locking in the power prices, we have done some smaller contracts. But presently, when it comes to doing more and how we deal with it, I think this is something that we continually look at and evaluate.
If you look back, it used to be the longer PPAs, that was the norm. Now it's very much a market situation. So far, we are fairly happy that we have the market prices and that we are able to benefit from them.
Okay. And also one more question for me if that's okay. So turning to Cruise because you mentioned that you are seeing good demand for cruises, both in terms to 2022 and 2023. Can you comment some details on where we could expect the segment to breakeven and turn back to positive earnings essentially?
Yes. I mean that depends now a lot on the high season this summer, how that will pan out. Normally, if you look back in history, Cruise Lines had their earnings generation in the second and the third quarter, while the shoulder quarters, quarter 1 and quarter 4, has been more kind of breakeven, a challenging quarter also when all 4 ships started in operations. So it depends how well they are able to now to fill up the 3 vessels during the summer and autumn and at what prices. But what we see so far is solid bookings and at good profits, but it's still a way to go.
Yes. And the bunker price is not helpful at the moment.
Yes, that's a very good reminder, Anette. That we see, of course, that with $100 plus fuel cost, it's more challenging.
Next question comes from the line of [ Emma from Energy Watch ].
I was wondering how do you see the future for Universal Foundation?
Universal Foundation has been through a difficult period. And certainly, we had the 2 monobucket on a demonstration project and they were aborted when put into water. So presently, a lot of headwind. And how we take it forward, we need to really look at that. So I think at the moment, this is where we are.
There are no more questions at this time. I would like to hand the conference back over to the speakers for final remarks.
I don't know if we have more than we have said already, but thank you very much, everybody. I hope you have had a good run-through of the different companies. And certainly, when it comes to the ecosystem in the Renewable Energy segment, very interesting times, both challenges but also lots of opportunities. And first, we have a way to go. But at the moment, very much getting the ships operating in a normal way is the focus. So thank you.