Bonheur ASA

OSE:BONHR

Earnings Call Transcript 2021-Q4

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Good

morning,

everybody,

and

a

very

welcome

to

the

Fourth

Quarter

Presentation

for

Bonheur.

Richard

Olav

Aa,

our

CFO,

will

be

part

of

the

presentation.

And

then,

we

will

have,

as

we

did

last

time,

three

of

our

CEOs

for

the

different

companies

to

present

also

their

companies.

So, please, Richard, go ahead.

[Richard Olav Aa]

Thank

you,

Anette.

And

good

morning

from

Oslo

to

everybody.

And

we

can

go

to

the

first

slide.

It's

a

good

result

this

quarter

and

it's

all

across

the

Renewable

Energy

companies,

and

it's

really

related

to

two

factors.

It's

the

high energy

prices

and

that

the

Wind

Service

segment

has

a

good

result

despite

two

out

of

three

installation

vessels

have

been

at yard

in

the

quarter.

So,

those

are

the

really

headlines

driving

the

result

this

quarter,

but

we'll

go

through

them

in

more

detail.

So,

let's

start

with

Renewable

Energy,

which

had

an

EBITDA

of

NOK

1.060

billion,

which

is

an

improvement

of

more

than

NOK

800

million

from

fourth

quarter

last

year.

The

result

is

characterized

by

high

power

prices,

but

also

good

wind

production

in

the

quarter.

And

my

colleague,

Anders,

will

come

back

to

that

in

more

detail

later.

We're

also

proud

to

announce

that

the

Högaliden

project

was

completed

in

the

quarter

and

adding

almost

20%

to

the

expected

power

production

going

forward

within

the

budget.

And

also,

a

major

event

strategically

in

the

quarter

was

the

formation

of

Fred.

Olsen

Seawind

where

we

have

gathered

all

the

offshore

wind

activities

under

the

leadership

of

Lars

Bender,

which

also

will

present

later

today.

Some

major

events

in

the

quarter

also,

of

course,

the

JV

with

Vattenfall,

which

actually

happened

in

January,

but

we

highlighted

this

quarter

as

well

where

we

are

awarded

right

to

develop

what

we

believe

is

a

very

attractive

floating

offshore

wind

project,

just

outside

the

coast

of

Aberdeen

in

Scotland

of

a

capacity

up to

close

to

800

megawatt

in

the

ScotWind

lease

round.

Also,

Codling

is

progressing

at

schedule.

Irish

government

are

shooting

for

an

energy

auction

later

this

year,

and

we

see

a

strong

push

in

Ireland

for

developing

offshore

wind.

Then,

on

Wind

Service,

an

improvement

from

fourth

quarter

last

year

from

NOK

102

million

EBITDA

to

NOK 147

million

this

quarter. And

again,

this

is

despite

two

of

the

three

vessels

have

been

at

yard

in

the

quarter.

So,

it's

a

strong

result

across

the

board

within

this

segment

from

all

companies in

the

Wind

Service.

Bold

Tern

is

going

through

its

conversion

program

getting

a new crane

for

taking

the

next-generation

turbines

in

Singapore.

And

my

colleague,

Alexandra,

will

cover

that

in

more

detail

later.

Also,

Blue

Tern

had

her

class

renewal

in

Denmark

in

the

fourth

quarter

into

also

now

the

first

quarter

and

also

had

a

lengthening

of

the

crane.

That

was

completed

and

she's

now

back

in

at

work.

Also,

very

important,

FOWIC,

we

were

able

to

strengthen

its

backlog

by

close

to

€80

million in

the

fourth

quarter

and

now

up

to

€355

million

in

backlog

over

the

next

three

years.

And

the

planning

activities

for

a

newbuild

to

continue

to

reinforce

FOWIC's

market

position

is

in

progress.

The

IPO

we

unfortunately

had

to

put

on

hold

due

to

the

political

tension

that

we

read

about

every

day

now,

not

least

the

war

in

Ukraine.

On

the

Cruise

side,

we

have

a

small

improvement

in

EBITDA

from

a

minus

NOK 113

million fourth

quarter

2020

to

minus NOK

85

million

fourth

quarter

last

year.

We

have

been

cruising

with

two

new

ships

in

the

quarter,

but

with

low

occupancy

,and

also

quite

discounted

prices

in

the

UK

market

in

the

fourth

quarter.

The

current

plan

for

bringing

the

full

fleet

back into

operation

is

to

bring

Balmoral

into

cruising

in

the

second

quarter

and

Braemar

in

the

spring

of

2023.

We

see

good

demand

for

cruises

both

in

2022 and

2023,

but

we

also

have

to

take

a

little

bit of

a disclaimer here

that

our

first

quarter

sailings

were

impacted

by

Omicron

and

not

at

least

for

[ph]



crew (00:05:01) in

quarantine.

Then,

on

the

Other

investments,

also

a

small

improvement

on

the

EBITDA,

EBITDA

of

minus

NOK 14

million

compared

to

minus

NOK 29

million.

Some

[ph]



prioritizational

cost

(00:05:15) drivers

behind

that,

so

don't

put

too

much

[ph]



note (00:05:20)

into

that.

But

also,

it's

very

important

on

Other

investments

that

finally

this

subscription

revenue

growth

in

the

media

business

is

turning

positive

with

a

healthy

4%

organic

growth

in

the

quarter.

And

NHST is

also

investing

in

the

SaaS

business.

Then,

on

a

consolidated

basis,

we

see

that

operating

revenues

were

up

almost

NOK

1.2

billion

in

the

quarter,

driven

by

the

high

energy

prices

and

also

the

resuming

of

the

cruise.

EBITDA

improved

by

more

than

NOK

900

million

as

the

revenues

in

Renewable

Energy

flows

directly

to

the

EBITDA.

And

the

EBIT

was

positive

by

more

than

NOK

1

billion

that

we

had

some

one-offs

which

also

went

in

the

positive

direction

under

financial

items.

Then,

on

the

parent

company,

the

board

is

proposing

a

dividend

of

NOK

4.30

per share,

which

is

up

from

NOK

4

per

share

for

the

accounting

year

2020,

which

represents

a

dividend

payout

of NOK

183

million. After

that

dividend,

the

equity

in

the

parent

stands

strong

at

more than

NOK

6.8

billion

on

an

equity

ratio

of

66%.

I

come

back

to

the

cash

in

the

parent

and

the

capitalization

of

the

group

of

companies.

We also

have

to

mention

the

post-quarter

event

that

we're

spending

a

lot

of

time

on

monitoring

how

it

may

impact

our

various

businesses

and

that,

of

course,

the

war

in

Ukraine.

But

what

we

say

here

and

where

we

are

is

it's

very

difficult to

assess at present.

Now,

moving

on

to

the

consolidated

summary,

already

covered

the

revenues

and

EBITDA.

Somewhat

lower

depreciation

this

quarter. We

have

no

impairments.

And

like

I

said,

the

net

finance,

we

have

several

one-offs,

both

realized

and

unrealized

items

in

net

finance

that

comes

out to

the

positive

NOK

66

million

compared

to

a

negative

NOK

115 million

fourth

quarter

last

year.

So,

that

is

resulting

in

an

earnings

before

tax

of

NOK

957

million.

And

then,

we

have

quite

heavy

taxes

on

the

Renewable

Energy

in

the UK,

so

the

net

result

is

NOK

647

million.

Yeah.

Going

a little

bit

deeper

into

the

revenue

side,

we

see

an

improvement

in

revenues

of

more

than

NOK

1.1

billion,

up

to

NOK

2.7

billion

this

quarter.

The

main

driver

is

the

Renewable

Energy

with

an

improvement

of

NOK

853

million.

That

is

both

that

we have

higher

wind

speed,

good

wind

production

this

quarter,

but

also

significantly

higher

energy

prices.

And

Anders

Bade

will

cover

the

development

on

the

prices

later

in

the

presentation.

Wind

Service,

again,

despite

two

out

of

three

vessels

at

yard,

revenues

were

almost

at

the

same

level,

NOK

844

million.

And then,

we

see

the impact

of cruising

two

vessels

out

at

sea

in

the

fourth

quarter,

generating NOK

310

million

in

revenue.

And

in

Other,

it's

the

subscription

growth

in

NHST

that

creates

the

small

growth

in revenues.

On

the

EBITDA,

for

the

Renewable

Energy,

we

see

a

direct

pass-through

of

the

improved

revenues

into

improved

EBITDA

with

improvement

of

more

than NOK

800

million

in

the

quarter. And

we

also

see

Wind

Service

improving

NOK

46

million

despite

revenues

being

down

and

two

out

of

three

vessels

being

at

yard.

So,

the

results

of

NOK

147 million

in

the

fourth

quarter

2021

across

the

business

units

in

Wind

Service,

including

Global

Wind

Service

and FOWIC

is

a

good

result

given

the

low

activity.

Then,

on

Cruise, NOK

85

million

negative.

Still

have

lay-up

cost

on

the

two

vessels.

We

have

increased

marketing

spending

as

we

are

going

back

to

cruises

and

with

low

occupancy

and

fairly

low

prices

in

the

quarter.

We

still

have

a

loss

in

the

Cruise

business.

But anyhow,

the

EBITDA

at

the

fourth

quarter

at

NOK

1.1

billion,

an

improvement

by

NOK 900

million from

fourth

quarter

2020.

Final

slide on

the

introduction

on

Bonheur

before

I

leave

the

word

to

the

CEOs,

group

capitalization

per

fourth

quarter,

this

is

an

important

slide,

and

how

we

capitalize the group.

It

all

stands

on

solid

green

financing

framework,

which

is

now

in

place

for

Bonheur

and

all

the

renewable

activities.

So, FOWIC

has

already

green

financing

on

their

fleet

and

also

we

are

using

the

bonds

that

we

raised

under

this

green

financing

framework

to

finance

the

expansion

within

Fred.

Olsen Renewables.

So,

it

stands firm

on

the

green

financing

framework

and

we have

a

very

clear

policy

for

the

capitalization

of

the

group,

which

is

highlighted

in

the

three

points

on

top

part.

I

will

not go

into

detail,

but

just

take

them

one

by

one

what

they

really

mean

and

how

that

relates

to

the

figures

below.

First

of all,

we

have

the

strong

parent,

that's

the

first

point,

that

we

will

not

expose

the

parent

company

in

any

way.

The

second

is

that

we

diversified

the

funding

sources

for

the

subsidiaries.

I'll

come

back

to

how

we

do

that.

And

thirdly

is

that

everything

in

the

subsidiaries

is

non-recourse

to

the

parent.

So,

those

are

the

three

pillars

of

our

financial

policy

going

forward.

And I'll

also

take

them

one

by

one

into

the

numbers

below

and

maybe

start

with

the

one

that

is

absolutely

clear

from

the

table

below,

and

that

is

the

point

three

on

non-recourse.

You

see

at

the

right

hand

column,

we

have

zero

debt

now

that

is

guaranteed

by

Bonheur.

Then,

on

the

second

point,

diversified

funding

sources,

I

would

like

to

point

you

to

the

line

sum

joint

ventures

and

associated

holding

companies

where

we

now

have

NOK 878

million

in

cash

and

NOK 6.5

million

(sic) [NOK

6.5

billion]

(00:11:48)

in debt. That's

where

the bulk

of

the

debt

of

the

group of

companies sits and

that's

where

we

have

done the main

diversification of

the funding

sources by

taking

in

long-term infrastructure

capital on

our

wind

farms

in Scotland

and

also

have

joint ventures

with

strategic partners

like,

for

example,

Keppel

in

Singapore

on

the

Blue

Tern.

And

then, the

third point

is

the

strong

parent

position, which

you

can

see

to

the

bottom, where

we

see

Bonheur ASA

sits now

with

NOK 2.3

billion in

cash

by

the end

of

fourth quarter.

On

top of

that,

we

have

liquid

bonds and

shares and

so

on,

and

external debt

of

NOK

2.7 billion.

And

also,

you

see the

companies above,

the Cruise

Lines,

Wind

Service,

Renewable

Energy,

which

Bonheur

own

100%,

are

a very

low

leverage.

So, by

that,

I

hand over

the word

to my

colleague,

Anders,

that

will

present Renewable

Energy.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

And just

to

introduce you Anders,

Anders

is

one

of

the

two

Co-CEOs

in

Fred.

Olsen

Renewables.

[Anders Bade]

Yeah.

Thank

you,

Anette

and Richard.

And

good

morning

to

all of

you

on

the

call

from

myself.

If

you

go

to

the

first

slide

on

the

Renewable

Energy,

a

brief

recap

of

Fred.

Olsen

Renewables.

We

are

an

early-mover

in

renewables.

We

had

our

first

wind

farm

built

back

in

more

than

25

years

ago.

Today,

we

have

12

wind

farms

in

operation

with

the

completion of

Högaliden.

We

have

a

track

record

of

delivering

[ph]



construction

(00:13:26) activities

on

time

and

on

budget.

And

we

are

growing

our

pipeline

significantly,

now

with

onshore

development

pipeline

of

3.7

gigawatts

in

Europe,

and

with

development

pipeline

we

mean

sites

where

we

have long-term

signed

agreements.

We

are

also

building competitive

edge

within

floating

solar.

We

have

a

full

integrated

in-house

business

model

doing

all

the

steps

from

site

identification,

development,

construction,

operation

and

ownership

optimization,

and

we

clearly

benefit

from

applying

the

learnings

across

the

different

phases.

In

terms

of

production,

in a

normalized

year,

last

few

years,

we

had

around

1.8

terawatt

hours

production.

That

was

somewhat

lower

in

2021

due

to

clearly

unusually

low

wind

speeds

in

Scotland

for

Q3

and

Q2.

With

the

completion

of Högaliden,

we

[indiscernible]



(00:14:27)

approximately

19%

expected

production

to

the

1.8

terawatts.

So,

that

will

be

a

significant

increase

for

2022.

Go

to

the

next

slide.

This

is

an

important

slide

always

and

particularly

interesting

for

this

quarter.

Starting

on

the

upper

left

corner,

see

the

capacity

factors

and

generation.

In

this

quarter,

we

had

good

wind

conditions

in

Scandinavia,

both

Norway

and

Sweden,

and

reasonably

good

in

Scotland.

So,

that

provided

the

production

of

more

than

600,000

megawatt

hours

for

Q4.

That

is,

as

you

can

see,

more

than

twice

as

high

as

it

was

for

Q3.

And it's

also

more

than

100,000 megawatt

hours

more

than

we

had

Q4

last

year.

And

that

was

important

in

a quarter

with

high

power

prices

that

you

can

see

in

the

lower

left

corner.

In

UK

and

Southern

Norway,

on

a

quarterly

basis

over

the

last

year,

the

power

prices

have

been

very

correlated

on

a

quarterly

basis. But

you

can

see

the

two

axis

there

on

the

left

and

right hand

side

that

the

power

price

in

Scotland

has

been

around

£200

per

megawatt

hour

and €130

in Southern Norway. So,

both

markets

very

strong

prices.

Northern

Sweden, SE2,

also

saw

solid

prices,

but

significantly

lower

what

we've

seen

in

Southern

Norway. I'll

come

back

to

the

reasons

for

that.

On

the right hand

side,

in

the

Continental

Europe,

Southern

Norway

and

UK

gas

prices

are

the

main

driver

for the

power

prices. And

you

can

see

during

Q4

last

year,

you

have

the

blue

line,

that's

the

gas

prices

were

very

high

during

the

quarter,

peaking

in

Q4,

December

Q4,

then

they

have

been

somewhat

lower

for

some

months,

but

now

they

are

for

the

reasons

you

know,

with

invasion

of

Ukraine,

going

up

again.

Carbon

prices,

the

orange

line,

also

high,

staying

around

€80.

And

just

to

give

the

impact

of

this

for

for

Continental

Europe,

which

will

then

impact

both

Southern

Norway

and

UK,

you

can

multiply

the

gas

price

with

a

bit

less

than

2

and

you

can

divide

the

carbon

price

by

3

to

get

to

the

marginal

cost

per

megawatt

hour

in

euros

or

power

production

from

gas-fired

power

plants.

So,

it's

the

blue

line,

the

gas

prices

that

has

the

strongest

impact.

Then,

hydrological

balance

in

Scandinavia,

the

down right

graph,

somewhat

improving,

strengthening

the

hydrological

balance

start

of

this

year,

but

very

weak

balance

in

Q4.

This

was

driving

the

high

prices.

The

buildup

is

primarily

in

Northern

Norway

and

in

Sweden

and

with

snow

in

Southern

Norway.

The

reservoirs

in

Southern

Norway

is

still

constrained.

Go

to

the next

slide,

please, then

to

construction

update

with

Högaliden.

We

completed

this

construction

in

Q4

within

budget

of

around

slightly

less

than

SEK

1.2

billion.

This

is

the

second

largest

wind

farm

in

the

portfolio,

and

it's

adding

19%

energy

production

to

our

portfolio. And

also,

the

first

wind

farm

in

the

world

to

be

fully

equipped

with

ZX

Lidars'

turbine-mounted

lidars.

These

lidars

use

laser

technology

to

measure

the

wind

from

approximately

300 meters

before

the

wind

reaches

the

turbine,

that

allows

for

turbine

optimization

in

terms

of how

you

tilt

the

blades

and

maximizing

production.

Then,

to

the

final slide

from

my

side to

update,

we

continue

at

full

speed

to

do

site

identification

in

UK,

Sweden

and

Norway.

We're

also

looking

at

PV

in

the

markets

where

you

find

that

to

be

attractive.

And

we

are

entering

floating

solar.

We

have

an

approach

to

floating

solar

where

we're

building

a

strong

competitive

edge,

and

we're leveraging

that

to

attract

strong

local

partners.

In

this

particularly

we're

going

in

for

markets

with

strong

solar

irradiation,

good

power

prices

and

land

for

onshore

PV.

And

we

find

many

of

those

markets

in

Southeast

Asia

and

also

in

Southern

Europe

where

we

are

able

to

compete.

And

we

also

have now

established Fred.

Olsen

[indiscernible]

(00:19:27)

in

Singapore.

It's a

regional

office.

On

the

development

side,

we

have

two

new

sites

in

Southern

Sweden,

adding

180

megawatt

to

the

portfolio.

We

now

have

a

significant

development

portfolio.

That's

a

long

process

where

we

need

to

do

the

right

things,

all

the

way

from

wind

measurement,

design,

and

then

we

come

to

all

the

local

consultations,

EIAs,

environmental

impact

assessment

and

the

permitting.

So,

that's

a

place

for

a

good

significant

effort

into.

The

same

we

do

for

the

consented

sites

where

we

now

have

three

sites

in

Scotland

consented

over the

last

15

months,

but

we

are

working

hard

to

progress

towards

consent.

And

the

other

update

is

that

we

have

now

Högaliden and operation

[ph]

–

of

course moved

(00:20:17)

construction

to

operation.

So,

that

concludes

my

presentation.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Thank

you,

Anders.

Next

one

out

is

Lars

Bender,

responsible

for

our

offshore

wind

development.

And

we

are

very

happy

to

announce

the

name

of

the

company

now

that

you

are

the

CEO

of,

it's

Fred.

Olsen

Seawind.

So,

please,

Lars,

go

ahead.

[Lars Bender, Chief Executive Officer, Fred. Olsen Seawind ASA]

Thank

you,

Anette.

Yes.

And

as

Anette

already

mentioned,

we

have

in

this

quarter

established

formally Fred.

Olsen

Seawind,

which

will

be

the

company

structure

for

our

offshore

wind

activities

going

forward.

I

will

in

this

presentation

give

you

a

short

update

on

the

main

project

activities, but

also

say

a

bit

about

the

path

going

forward

for

our

company.

So,

first

slide.

First

I

will

do

is a

short

update

on

the

Codling

wind

project

in

Ireland.

And

just

to

recap,

the

Codling

wind

project

is

the

largest

project

in

Ireland.

It

is

the

largest

infrastructure

investment

in

Ireland

and

project

of

up

to

1,500

megawatts.

So,

a

large

offshore

wind

project.

We

are

developing

the

project

together

with

EDF

in

a

50/50

partnership.

And

the

project

is

one

out

of

six

classified

as

a

Phase

One

project.

This

basically

means

that

we

will

have

priority

into the

first auction,

which,

as

Richard

mentioned

before,

is

roughly

a

year

from

now.

We

still

see

a

very

attractive

project

in

Codling.

We

are

by

far

the

largest

project

in

Phase

One.

We

have

around

32%

of

the

capacity

into

that

auction,

and

we

have a

project

which

is

close

to

shore,

favorable

seabed

conditions.

So,

overall,

we

see

a

very

good

competitive

situation

for

our

project

with

economies

of

scale

and

favorable

conditions

on site

driving

that

competitive

situation.

If

we

then

look

a

bit

further

into

what's

happened

in

this

quarter

in

Ireland,

there

are

mainly

three

points

to

be

aware

of.

First

of

all,

our

project

is

on

track.

We

are

running

engineering,

procurement

and

consenting

processes

in

the

project.

We

have

around

40 to

50

employees

working

with

that

together

with

EDF.

So,

we

are

happy

that

we

are

on

track

and

preparing

for

the

auction

later

this

year.

The

second

point

is

that

the

government

is

also

very

much

on

track.

They

have

picked

up

speed

on

all

regulatory

framework.

It's

from

grid

to

the

terms

and

conditions

for

the

auction, but

also

the

rules

around

consenting

is

now

slowly

coming

into

place,

which

is

very,

very

positive.

In

addition

to

that,

the

third

point

to

take

away

from

Ireland

is

that

the

government

has

also

announced

that

there

would

be

a

Phase

Two

and

also

a

Phase

Three,

or

an

enduring

regime,

as

they

refer

to

it

as,

which

means

that

Ireland

now

is

a

long-term

market

for

offshore

wind,

which

for

us,

of

course,

is

important

given

the

position

we

have

now

in

Ireland

and

we

naturally

see

it

as

a

natural

point

country

to

develop

further

in

as

well.

Next

slide.

And

then, to

a

bit

of

good

news,

a

Richard

mentioned

before,

we

were

one

of

the

companies

that

were

successful

in

the

ScotWind

competition

in

Scotland.

We

talked

about

it

on

the

last

quarter

that

the

results

will

be

announced

in

January

and

they

were.

And

we

together

with

Vattenfall

secured

a

site

in

that

competition.

It

has

undoubtedly

been

the

most

competitive

competition

seen

in

offshore

wind.

The

government

received

74

bids.

So,

very

much

unparalleled

competition

we've

seen

and

also

a

[ph]



lot

of

new

constellations (00:24:04)

in

offshore

wind

going

into

that

competition.

A

total

of 17

projects

were

awarded

with

around

10 being

floating

projects. If

we

look a

bit

closer

to

our

project,

it

is

a

project

of

798

megawatt.

It's

a

floating

project.

It

is

situated

in

the

attractive

[indiscernible]



(00:24:27).

So,

we

have

a

project

with

a,

in

our

opinion,

good

location,

close

to

demand,

close

to

grid,

relatively

favorable

wind

speeds

and

also

with

a

good

water

depth

and

soil

conditions

for

[indiscernible]



(00:24:41). So,

overall,

we

see

a

project

with

a

good

[ph]



LCoE (00:24:44)

profile

and

also

competitive

project

when

we

look

at

the

coming

CfD

rounds

in

Scotland.

Naturally, we've

been

very

happy

with

securing

the

site.

It's

been

a

team

across

for those

and

that

has

worked

very

intensely

with

this

over

the

last

1.5

years,

so

winning

there

solidifies

our

position,

but

that

surely

also

gives

us

something

to

build

our

future

on

as

well.

So,

a

very

positive.

We

will

be

looking

at

developing

the project

together

with

Vattenfall

in

an

integrated

team.

So,

both

companies

will

supply

resources

into

that

team

with

base

out

of

Scotland.

And

the

project

will

be

developed

over

the

next

year.

Currently,

we

are

targeting

CfD

in

around

2026

and

FID around

2027

to

2028.

If

we

then

look

at

this

last

slide and

trying

to

put

together,

we

are,

of

course,

very

happy

that

we

now

have

come

across

the

2-gigawatt

mark

for

secured

projects. And

so,

we

have

Codling

[ph]



bought

and

fixed

(00:25:47) in Ireland,

a

very

mature

development

project,

and

now

we've

further

added

almost

800 megawatts to

that

portfolio

of

a

floating

project.

So,

overall,

a

solid

portfolio

of

projects,

which

gives

us

a

good

basis

for

growing

our

business

further.

And

that

will

happen

through

several

tracks.

First

of

all,

we

want

to

develop

in

our

core

markets,

and

that

would

be

Norway,

Scotland

and

Ireland.

And

we

want

to solidify

our

position

in

those

markets

and we

have

already

[ph]



grid

(00:26:18) positions,

but

we

naturally

want

to build

further

on

that.

Then,

we

also

want

to

look

at

the

synergies

we

have

with

our

related

companies.

We

want

to look

at

new

markets

to

take

the

track

record

that we

already

have

and

the

experience

we already

have

to

develop

into

those

new

markets.

There's

a

clear

path

to

a

larger

portfolio

for

us

now,

built

around

a

very

solid

platform

off

of

Codling

Wind

Farm

and

the

Mara

Mohr

Wind

Park

as

well.

So,

overall,

in

recapping

this

quarter,

it's

been

a

very

good

quarter

for

the

offshore

wind.

First

of

all,

we've

separated

our

business

into

a

separate

corporate

structure,

which

gives

us a

platform

to

grow

on;

we

secured

ScotWind

lease;

and,

third,

we

are

on

track

with

the

Codling

project

for

an

auction

later

this

year.

And, with

that,

I

will

give

the

word

back to

you,

Anette.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

The

next one

out

is

Alexandra

Koefoed,

the

CEO

of

Fred.

Olsen Windcarrier.

So,

the

last

one

out,

it's

supposed

to

be

ladies

first,

but

maybe

next

time,

Alexandra.

So,

go

ahead,

please.

[Alexandra Stokkeland Koefoed]

Yeah.

Good

morning,

everybody.

I

will

give

an

update

on

the

[ph]



Fred.

Olsen

Windcarrier (00:27:27)

for

the

last

quarter.

So,

firstly,

just

very

brief

introduction

to

Fred.

Olsen

Windcarrier,

we

are

a

leading

wind

turbine

installation

contractor.

We had 20% market

share

since our

vessels were

delivered.

So, we

have

a very

solid foundation

for

a growing

market.

In

the

last

quarter,

as

Richard

already

mentioned,

we

have

had

two

vessels

in

yard.

I'll

go

in

sort

of

a

little

bit

more

detail

on

the

next

slide.

Brave

Tern,

she

has

been

working

more

or

less

for

the

whole

quarter.

She's

been

on

the

Yunlin

project.

That

contract

was

terminated

by

the

client

in

in

December,

but

that

meant

we

were

still

paid

the

full

fixed

fee

for

the

project.

Bold

Tern,

she's

in

Singapore,

doing

sort

of

the

full

upgrade

to

become

a

future-proof

vessel

for

the

next-generation

turbines.

And

Blue

Tern

has

also

been

in

yard

in

Q4.

That's

been

linked

to

10-year

class

renewal

and

some

project

updates.

We've

done

[indiscernible]



(00:28:43)

we've

done

some

modifications

to

the

[ph]



support cast

and

the

decking (00:28:46)

system

to

make

her

ready

for

projects

up

until

2024,

which sort

of

brings

me

to

the

next

point

where

we

have

secured

additional

work.

So,

Blue

Tern,

she

finished

the

yard

stay as

planned

mid-February

and

she's

now

on

a

new

contract

that

we

secured

in

December.

All

in

all,

we

secured

€80

million

of

new

contracts

in

December,

which

means

the

fleet

is

sold

to

80%,

90%

for

the

next

two

years,

which

we

are

very

happy

with.

And

overall,

we

have

a

€355

million

backlog.

In

terms

of

results

of

the

quarter,

that

was

carried

by Brave

Tern completely

as

the two other vessels were in

yard,

but

still

a

solid

EBITDA

of

the

quarter.

And

looking

at

the

full

year

of

2021,

we

have

an

EBITDA

in

Windcarrier

of

almost

€53

million,

which

is

our

best

year

so

far.

The

contracts

that

was

awarded,

that

was

three

new

contracts.

They

were

linked

both

to

work

in

Taiwan

and

Europe.

They

were

linked

to

existing

and

new

contracts.

At

the

time

when

they

were

signed,

two

of

them

were

reservation

agreements.

One

of

those

is

now

firm

and

we

do

expect

the

second

one

to

be

firm

in

the

near

future.

Further,

in

terms

of

preparing

ourselves,

we

have

secured

an

extension

of

our

existing

facility

with

DNB

and

SpareBank

1 with

€35 million.

This

is

on

the

same

terms

as

the

loan

we

secured

in

summer

of

2020,

which

means

this

is

still

classified

as

a

green

loan

and

on

the same

terms.

So,

this

gives

us

flexibility

in

the

company

because

we

have

some

investments

that

need

to

go

in,

but

that

also

fully

finances

the

upgrade

program

for

the

fleet.

So,

firstly,

we

are

continuing

to

pursue

our

long-term

strategy

to

reinforce

our

position

in

a

growing

market.

We

see

very

significant

growth

in

the

sort

of

range

of

20%

annual

for

the

next

decade.

And

we

are

working

to

be

a

leading

global

turbine

installation

contractor

in

this

market.

And

with

that,

we

need

the

teams

and

assets

to

deliver

the

services

in

that

market.

So,

firstly,

we

have

an

upgrade

program

on

the

fleet,

which

we

have

initiated

some

time

ago.

So,

to

take

it

vessel

by

vessel,

Bold

Tern

is

the

first

vessel,

and

she

is

currently

at

Keppel

FELS

in

Singapore.

And

what

you

see

here

is

pictures

of

the

crane

pedestal

that's

installed

at

Keppel

FELS.

The

crane

is

in

China

waiting

to

be

transported

to

Singapore.

We

have

seen

some

delays

to that,

but

that's

due

to

the

very,

very

strict

requirements

for

vessels

entering

into

China

in

terms

of

COVID.

But

we

are

now

looking

to

have

a

solution.

So,

I

think

we

can

very

soon

share

the

good

news

that

the

crane

is on

its

way

to

Singapore,

and

we

do

expect

to

depart

the

yard

in

early

Q2,

and

then

the

vessel

will

head

straight

for

project

commitments.

Brave

Tern, we

have

in

the

fourth

quarter

placed

a

firm

order

for

a

new

crane.

That's

a

Huisman

1,600-tonne

crane,

exactly

the

same

crane

we

are

installing

on

Bold

Tern

these

days.

And

we

are

expecting

to

complete

the

new

crane

installation

on

Brave

Tern

in

early

sort

of

2024.

And

the

reason

for

the

timing

is

because

she

actually

has

projects

commitments

up

until

then.

And

then,

finally,

Blue

Tern,

she

is

planned

for

an

upgrade

in

first

half

of

2025.

We're

still

optimizing

the

crane

size

on

that

vessel.

But

she

also

has

contract

commitments

up

until

the

end

of

2024.

So,

all

in

all,

good

contract

coverage

for

our

vessel.

And

then,

finally,

we

do

continue

the

work

on

build

to

create

a

diversified

fleet

to

serve

diversified

projects

across

the

globe.

We

do

have

a

clear

ambition

to

be

present

in

all

what

we

see

as

the

three

main

markets

in

the

next

decade,

which

is

Europe,

APAC

and

the

US.

That

was

all

for

me.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Thank

you. Going

back to Richard,

covering

some of

our

additional

companies.

[Richard Olav Aa]

Yes.

Thank

you,

Anette.

I'm

going

from

one

global

market

leader

to

another

global

market

leader,

we

have

Global

Wind

Service,

which

is

clearly

the

market

leader

in

offshore

wind

service,

installation

services,

and

very

often

work

in

tandem

with

Alexandra's

team.

Also

a

good

year

for

Global

Wind

Service,

and

they

are

now up

at

almost

1,400

employees

per

fourth

quarter

last

year.

And

with

the

growth

ahead

of

us,

they

are

now

really

ramping

up

also

for

expand

that

further

into

2022

and

2023.

And

we're

very

happy

that

they

have

created

their

own

training

centers

so

we

can

train

our

own

employees

when

they

see

the

shortages

of

people

in

the

industry

now.

But

back

to

the

market,

we

are

in

Global

Wind

Service

now

a

truly

global

player,

and

we're

working

also

very

in

tandem

with

the

FOWIC

now,

especially

in

the

Far

East

in

Taiwan.

Like

Alexandra

said,

two

out

of

three

vessels

of

FOWIC

are

now

in

the

Far

East.

And

GWS is

also

mobilizing

heavily

for

taking

on

more

projects

in

the

regions.

But

also

a

significant

presence

now

in

the

US.

So,

executed

some

of

the

larger

onshore

projects

in

the

US

the

last

couple

of

years

and

getting

more

and

more

traction

in

the

US

market,

which

is

very

important

foothold for

GWS

on

onshore

presently,

but

also

then

position

then

offshore

finally takes

off

in

the US like

it seems

to do

now.

So,

I

think

I'll leave

it

by

that

for

Global

Wind

Service.

Then,

going

over

to

Cruise.

Yeah, see

a

nice

picture

here,

one

of

the

new

vessels.

And

it's

actually

a

very

good picture

where

it's

a

picture

of

one

of

the

new

vessels

that

we're

actually

able

to

go

to

Iceland

already

in

August

and

one

of

the

first

vessels

out

on

international

voyage.

And

our

customers,

they

are

really

eager

to

cruises.

So,

we

have

had good

bookings

all

through

the

Omnicom

outbreak,

but

obviously

only

two

vessels

in

operations

and

all

the

things

you

have

to

take

care

with

quarantine

and

logistics

and

everything,

the

operation

in

the

quarter

was

only

66%

on

the

two

ships.

And

in

the

first

quarter,

we

had

the

Omicron

effect

where

almost

all

the

crew

had

Omicron

virus

and due

to

safety

reasons,

we

had

to

put

the

ships

idle

for

some

cruises,

but

they

are

now

back

into

operation

again.

So,

hopefully,

the

COVID

situation

in

Cruise

line

is

behind

us,

bookings

are

good

and

restrictions

are

easing

around

the

world.

And

based

on

that,

we

have

now

plans

for

sailing

Balmoral

from

the

second

quarter

as

we

see

strong

demand

for

her

itineraries.

Well,

on

Braemar,

given

the

whole

situation

with

COVID

and

Omicron,

we

decided

to

push

her

sailing

date

back

to

the

spring

of

2023.

We

know

that

fourth

quarter,

first

quarter

is

typically

a

low

season,

so

we

thought

it

would

make

more

financial

sense

to

take

her

back

into

the

waters

next

spring.

But,

of

course,

with

the

world

situation

now

with

the

war

in

Ukraine

and

everything

that

may

follow

from

that,

it's

obviously

a

very

uncertain

time

also

for

the

Cruise

business

going

forward.

But

then maybe

end

where

we

started,

I'm

not

going

through

the

results

again,

but

say

that

in

addition

to

good

results

in

the

quarter,

I

just

want

to

reiterate

that

we

have

had some

good

strategic

advances

in

the

quarter

and

maybe

in

particular

with

the

creation

of

Fred.

Olsen

Seawind

and

the

ScotWind

award,

but

also

the

strong

progress

I

would

say

on

the

strategic

direction

of

FOWIC

with

upgrades

of

the

vessels

and

adding

to

the

backlog.

So,

all

in all,

I

think

it's

been

a

strong

quarter

financially

and

also

strong

developments

on

the

strategic

side.

So,

then,

Anette,

back

to

you.

Should

be open

for

questions?

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Yeah.

Absolutely.

Please

go

ahead.

[Operator]

Thank

you.

[Operator Instructions]



Our

first

question

comes

from

Turner Holm

with

Clarksons.

Please

go

ahead.

[Turner Holm, Analyst, Clarksons Platou Securities AS]

Hi.

Good

morning,

everybody,

and

congratulations

on

a

strong

quarter.

Richard

or

perhaps

Anders,

I

was

wondering

if

you

could

talk

a

little

bit

about

the

power

price

environment

that

you

see

now.

A

lot

has

changed

in

the

world

in

the

last

week,

and

I

think

politicians

have been

pretty

clear

that

moving

away

from

Russian

gas

is

a

top

priority

in

Europe

and

that

seems

to

set

up

an

environment

where

power

prices

may

stay

higher

for

longer.

But

I

just

wondered

if

you

all

could

kind

of

share

your

thoughts

as

what

you

see

going

forward?

Thanks.

[ph]

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Anders

(00:39:38).

Million-dollar

question.

[Anders Bade]

That's

a

million-dollar

question.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Yeah.

[Anders Bade]

It's

very

market-specific

for

our

operations.

I

think,

in

Southern

Europe,

we

will

clearly

be

impacted

from

the

prices

in

Continental

Europe.

And

gas

prices

are

now

also

forward.

Gas

prices,

they

are

around

[ph]



115

(00:40:03). And

so,

it's

the

same

forward

for

the next

few

months

than

they

are

today.

How

that

will

develop,

how

Putin

is

behaving,

I

don't

want

to speculate

on

that.

It

is

obviously

the

gas

prices

that

are

the

biggest

uncertainty

and

how

that

will

impact

the

power

prices

both

in

Southern

Norway

and

in

Scotland.

And

as

you

are

aware,

we

have

most

of

our

operation

production

in

Scotland.

In

Northern

Sweden,

there

is

a

strong

hydrological

balance

and

a

lot

of

onshore

wind.

So,

that

will

be

less

impacted

by

the

gas

prices.

So,

it's

the

gas

prices,

which

we

see

as

the

big

uncertainty.

They

are

– the

forward

prices

are

today

as

they

are

–

forward

prices

are

similar

to

the

current

spot

prices

is

what

we

have

seen

over the

last

few

days.

How

they

will

develop,

I

don't

know,

if

you

want

to speculate

anymore,

Richard?

[Richard Olav Aa]

No.

But you

have a

very

good

point

about

the

long

term

for

the

need

for

more

renewable

energy.

[Anders Bade]

Yeah.

[Richard Olav Aa]

That's

very

clear.

[Anders Bade]

Yeah.

Okay.

[Turner Holm, Analyst, Clarksons Platou Securities AS]

Yeah.

I

understand.

Obviously,

it's

a

dynamic

situation,

but

I

think

that

is,

like

you

said,

the

million-dollar question or a billion krone

question

this

quarter.

In

terms

of

just

Renewable

Energy

for

the

fourth

quarter,

I

think

one

thing

that

positively

surprised

was

the

level

of

generation.

One

of

the

reasons

people

talked

about

for

high

power

prices

during

Q4

was

relatively

low

wind

speeds,

but

the

load

factor

was

quite

good.

First

quarter

seems

to

improve

at

least

kind

of

what

you

hear

in

the

media.

I

mean,

how

does

the

first

quarter

look

compared

to

how

you

did

in

the

fourth

quarter

for

the

Renewable

Energy

business?

[Richard Olav Aa]

Well,

thank

you

for

the

question.

I

think

we

will

comment

on

the

first

quarter

when

we

get

to

the

first

quarter

results.

[Turner Holm, Analyst, Clarksons Platou Securities AS]

Okay.

Right.

One

last

one

for

me

is

just

Seawind,

I

like

the

name,

it's

obviously

very

well-positioned

with

the

project

coming

in,

[ph]



Codling (00:42:13)

in

Ireland

and

the

win

in

ScotWind.

But,

I

mean,

these

are

also

projects

that

require

billions

of

euros

to

execute.

I

understand

you

may

not

have

an exact

answer

now

on

how

you

intend

to

finance

them,

but

what

are

kind of

the

range

of

options

that

you're

considering

and

kind of

how

do

you

see

a

timeline

for

the

future

of

Fred.

Olsen

Seawind

developing?

Thank

you.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Well,

we're

considering

all

options

at

the

moment

and

really

looking

at

the

timeline,

obviously,

the

big

money

starts

being

spent

when

construction

starts

for

the

wind

farms.

So,

I

think

for

now,

it's

a

project

–

steering

the

projects

in

a

good

way.

And

so,

time-wise,

we

have

a

decent

time

in

front

of

us

to

also

deal

with

the

financing.

[Richard Olav Aa]

Yeah...

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Do

you

want

to

add

something?

[Richard Olav Aa]

...I

can

just

add

back

to

our

financial

policy,

the

three

pillars

I

mentioned

earlier

in

the

call,

that

the

second

pillar

is

that

we

developed

diversified

funding

sources

for

the

various

subsidiaries.

And like

we've done

in onshore

wind,

for

example,

where

we've

taken

in

long-term

infrastructure

capital

on

our

Scottish

wind

farms.

And

there

could

be

a

range

of

other options.

And

Renewable

Energy

is

an

attractive

class

to

finance.

So,

we

just

have

to,

like

Anette say, work

on

all

options.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

But

we're

very

glad

you

liked

the

name.

[Turner Holm, Analyst, Clarksons Platou Securities AS]

It's

simple

and

to

the

point. It's

very

good.

Okay. All

right.

Thank

you

so

much,

and

best

of

luck

in

first

quarter.

[Richard Olav Aa]

Thank

you.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Next

question.

[Operator Instructions]

[Operator]

Our

next

question

comes

from

John

Olaisen

with

ABG.

Please

go

ahead.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

Yeah.

Good

morning,

everybody.

A

couple

of questions,

if

I

may.

If

I

start

with

Fred.

Olsen

Windcarrier,

of

course,

you

had

to

put

the

deal

on

hold.

But

I

just

wonder

how

important

is

this

for

you

to

have

control

of

that

company?

The

plan

was

to

have

a

roughly

60%

ownership,

if

I'm

correct,

[indiscernible]

(00:44:53)

after

the

proposed

IPO.

I

just

wonder,

have

you

considered

consolidating

or

merging

with

somebody

else?

I

guess,

as

you

mentioned –

you

said

you

wanted

to

be

a

market

leader,

and

there

are

a

lot

of

players,

but

most

of

them

are

very,

very

small.

Can

you

shed

some

light

and

your

thoughts

of

the

need

for

consolidation

and

the

opportunities

for

you

potentially

and

then

how

do

you

view

that,

please?

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Yeah.

I

think

to

comment

on

what

we

do

when

it

comes

to

future

possibilities

with

other

companies,

we're

not

going

to

do

that,

you

know

that.

But

you

asked

about

how

important

Fred.

Olsen

Windcarrier

is

for

us.

I

think

we

see

Fred.

Olsen

Windcarrier

as

a

very

important

company

with

the cluster

of

companies

we

have

within

Fred.

Olsen

Renewables

companies.

It

certainly

is

in

the

center

of

the

development,

and

we

have

over

the

years

developed

the

services

of

the

company.

We

believe

in

the

quality

the

company

delivers

and

also

feel

that

there

is

a

very

good

possibility

for

making

sure

that

we

also

work

together

with

the

other

companies

that

we

have

in

Fred.

Olsen

Renewables

to

further

add

new

offerings

to

our

customers.

So,

generally,

on

consolidation,

I

think

the

industry

has

been

talking

about

this

for

as

long

as

we

have

been

in

this

part

of

the

industry.

And

we

keep

developing

the

business

as

we

see

right

for

the

business,

but

have

no

further

thoughts

on

consolidation.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

Okay.

And

then,

maybe

a

question

to

Richard.

Now

with

the

high

electricity

prices

and

the

great

results for

that

part

of your

business

and, of

course,

there's

the

minority

interest

position

or

the

non-controlling

interest

is

becoming

a

big

number,

I

just

wonder

if

you

could

outline

a

little

bit

to

us

how

that

impacts

the

balance

sheet?

For

instance,

you

have

a

gross

cash

position

of NOK

4

billion.

I

just

wonder,

is

it

possible

to

discuss

a

little

bit

to

us

how

much

of

those

NOK 4

billion

in

cash

belongs

to

your

partner,

so

to

speak,

and

how

will

that

be

distributed

out,

if

you

could

just

tell

us

a

little

bit

about

the

biggest

impact

on

the

balance

sheet

from

the

minority

interest,

please?

[Richard Olav Aa]

Yeah.

Sure.

Maybe

if

I

could

get

a little

bit

of

help

from

my

colleague

[indiscernible]



(00:48:15)

to

flip

back

to

the

group

capitalization

slides,

I

can

show

you

there,

John.

Yeah.

This

one.

What

you

see here

on

the

two

lines

that

relates

to

Renewable

Energy

at

the

top,

and

then

also

the

fourth

line

from

the

top.

On

the top,

you

have

the

joint

ventures,

where

we

have

brought

in

external

capital,

both

debt

and

equity,

where

we

have

eight

of

the

Scottish

wind

farms,

where

we have

49%

owners

from

TRIG,

a

listed

Renewables

Infrastructure

Group;

and

Aviva,

a

large

UK

insurance

company.

And

so, what

you

see

here,

John, is

that those entities

sits

with

a

cash

position

per

year-end

of

NOK

519

million

and

external

bank

debt

with

a

long

tender

debt

with

Japanese

and

German

banks.

So,

that's

where

that

cash,

and

that

cash

is

then

distributed

out

on

a

regular

basis

to

the

owners.

And

then

you have

Renewable

Energy

[indiscernible]



(00:49:37)

at

the

fourth

line,

and

that's

where

we

have

the

one

Scottish

wind

farm

we

own

100%

and

the

three

Scandinavian

wind

farms

that

we

own

100%,

which

have

no

debt

and

sits

with

NOK

168

million

in

cash.

We

also

have

some

repatriation

of

cash

from

Renewable

Energy

into

Bonheur

in

the

quarter,

but

also

have

outflows

from

Bonheur

into

Cruise Lines

[indiscernible]



(00:50:00)

needed

financial

support

from

the

parent.

So,

that's

I

think

as

far

as

I

can

explain

it

with

these

numbers,

John.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

No,

they're

good

reminder.

Thank

you.

My

final

question

is

regarding

Fred.

Olsen

Seawind.

Maybe to

start

in

Scotland.

I

just

wonder

why

–

and

it's

probably natural explanation

and

I

know

the

lead

times

are

long,

but

if you

could

tell

us

why

do

you

expect

to

see

CfD

auction

to

take

place in

2026?

Why

does

it

take

four

or five

years

between

now

and

the

CfD auction?

Why

is

it

such

a

long

time?

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Yeah.

I

think,

Lars, you

can

answer

better.

[Lars Bender, Chief Executive Officer, Fred. Olsen Seawind ASA]

Yeah.

I

think

actually

Anders

answered

it a

bit

earlier

for

onshore

wind.

There's

a

lot

of

work

going

into

a

project

before

you

can

actually

go

into

an

auction.

So,

the

focus

over

the

coming

years

will

be

to

obtain

a

consent.

In

order

to

obtain

a

consent,

amongst

other

things,

you

need

two

years

of

bird

surveys

at

sites.

You

need

to

do

[indiscernible]



(00:51:09)

work

at

site.

So,

there's

a

lot

of

work

before

you

can

secure a

consent,

and

you

need

that

consent

before

you

can

actually

bid

into

an

auction.

In

addition

to

that,

[ph]



bid (00:51:20)

needs

to

be

secured,

it

needs

to

be

developed.

So,

there's

a

lot

of

development

work

before

you

can

actually

bid

into

an

auction.

I

think

our

timeline

is

fairly

aggressive

actually.

We

do

see

that

we

have

a

project,

which

can

be

developed

quite

quickly.

So,

we

are

actually

on

a

quite

fast-track

timeline

even

though,

as

you

alluded

to,

it

might

not

seem

like

that,

but

that's

basically

because there's

a

lot

of

work

to

be

done

before

you

can

bid

into

an

auction.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

And

then,

even

after

the

CfD auction, it

takes

in

another

two

years

before

you

have

the

final investment decision.

All

in

all,

it's

like seven

years,

isn't

it?

So,

it

sounds

like

a

long

time

especially

now,

like,

with

reference

to

the

earlier

question

with

European

politicians

trying

to

speed

up

renewable

production, but

seems

it's

difficult

for

them

to do

that,

isn't

it, with all

the lead times – these

kind

of

lead

times,

I

guess?

But

that's

just

the

way

it

is,

I

guess,

or

is

it

possible

to

speed

up

if politicians decided

to?

[Lars Bender, Chief Executive Officer, Fred. Olsen Seawind ASA]

Obviously,

you

can

always

speed

up.

You

can, of

course,

look

at

the

regulatory

constraints.

But

as

the

regulations

on

most

countries

now

for

I

think

both

for

offshore

and onshore

wind,

there

is

a

lead

time. And

of

course,

there

are

good

reasons

for

that

lead

time

because

you

want

to secure

the

projects

you

develop.

It

takes

consideration

of

environment

and

all

the

factors

before

you

actually

start

building.

So,

there

are

good

reasons

for

that.

But

yes,

you're

right,

there

is

a

lead

time

to

developing

renewable

energy,

whether

it's

offshore

or

onshore.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

And

my

final

question

in

relation to

this

is

Codling.

You

now

say

you

expect

the

CfD

auction

in

2022/2023,

is

it

possible –

any

chance

it

could

happen

in

2022

or

you

think

it's

slipping

into

2023?

What

are

the

next

milestones

or

indications

that we'll

get?

When

should

we

expect

an

announcement on

when

it

will

happen?

[Lars Bender, Chief Executive Officer, Fred. Olsen Seawind ASA]

I

think

the

last

announcement

the

government

has

made

is

that

they

expected

around

November

of

this

year

for

the

CfD

auction.

So,

that's

currently

also

our

expectation.

Naturally,

a

timeline

of that

can

slide

with

a

few

months,

but

as

I

mentioned

before,

what

we

see

is

declarations

the

government

is

now

doing

on

the

terms and

conditions

for

the

auction,

but

also

in

relation

to

consent

is

on

track

and,

therefore,

we

believe

it's

a

realistic

timeframe.

But

the

government

has

set

up

with

an

auction

late

this

year.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

And

when

will

it

be

– if

it

actually

happens

in

November

2022,

when

will

–

I

guess,

the

government

will

in

advance

say

that

it

will

happen

in

November

2022.

It's

like

– is

it

like

six

months

before

or

is

it

closer

to

November?

[Lars Bender, Chief Executive Officer, Fred. Olsen Seawind ASA]

Yeah.

The

government

is

currently

working

with

a

timeline

where

they

will

do

a

prequalification

sometime

after

summer.

So,

probably,

we

will

have

more

clarity

on

the

specific

timeline

after

summer,

at

least.

Yeah.

[John A. S. Olaisen, Analyst, ABG Sundal Collier Holding ASA]

Okay.

Okay.

That's

all

for

me.

Thank

you.

Thank

you very

much,

everybody.

Thank

you.

[Operator]

At

this

time,

we

have

no

further

questions.

I

will

now

hand

back

to the

speakers

for

a

final

remark.

[Anette Sofie Olsen, Managing Director, Bonheur ASA]

Well,

thank

you

very

much.

I

hope

you

have

gotten

the

information

you

need.

So,

thank

you

for

today.