Last night, some more news came out, which was probably hinted at during the investor call:
So, the plan is to acquire two new T-class vessels from Cosco Shipyard (essentially A-class vessels with technical improvements - delivery in 2030 and 2031) and convert one used heavy-lift vessel into a fall-pipe vessel. For this purpose, a maximum of 10% new shares will be issued in a directed placement (accelerated procedure).
Due to this, trading is halted today until the results of this are released.
These always stir up mixed feelings because it means dilution of one’s own position. On the other hand, the company’s fleet is growing, and I am quite convinced that the need for these has been discussed with customers. So, these will very likely increase the company’s earning potential in the future more than the dilution will affect it.
But still, this overall situation is starting to have elements about which I am more skeptical. The company talked a lot in Tuesday’s presentation about the full-service turbine installation service. While this increases the company’s share of the entire field construction, the risks also increase. So far, very little has been said about managing these risks. I also understand that customers are happy to push these risks away from themselves, but is the price attractive enough? In my opinion, yesterday’s presentation, for example, regarding the Hornsea 3 project, left many questions open. When I looked at the CFO during that part of the presentation, I was left wondering if he saw things the same way as the CEO?
So, in the graph below, the area would appear significantly larger, but because the revenue will be recognized later (due to customer-related reasons), the money will appear in the company’s cash later. What does all this mean for financing needs?
Based on Tuesday’s presentation, I thought they would proceed cautiously on this front. But then came the news last night about these new vessels (many things from the presentation were seen in a new light). Presumably, the company will elaborate on this a bit more in the near future.
I guess I’ll have to try to outline the impact of this on the overall picture in a bit more detail over time. But I believe this is, in its own way, linked to the previously reported commitment of the North Sea states (as the CEO said, this brought the necessary visibility for the future → making it easier to invest).