Cadeler A/S has received a termination notice from Ørsted A/S regarding a multi-year agreement for the use of an A-class installation vessel for offshore wind turbine projects. The agreement, which was announced in April 2024, applied to the period from the first quarter of 2027 to the end of 2030. The wind turbine company stated this in a statement.
The termination is due to Ørsted's decision in May to discontinue work on the 2.4 GW offshore wind farm Hornsea 4, due to poor market conditions, which according to Ørsted impaired the value creation of the project.
Despite the termination, Cadeler does not expect a negative impact on the company's long-term financial results, and is already seeing interest in using the vessel from other parties.
"Cadeler is entitled to the agreed compensation as a result of the termination of the long-term agreement. In addition, Cadeler is now free to use the vessel on alternative projects, which are currently being discussed with third parties," reads the announcement from Cadeler.
Cadeler does not disclose the amount of compensation, but at the same time as announcing the termination, the company has adjusted its financial expectations for 2025 as a result of the compensation. The expected annual revenue is now between 588 and 628 million euros, compared to previously 485 to 525 million euros. The EBITDA expectation has been raised to between 381 and 421 million euros, from previously 278 to 318 million euros.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
