New Edda Wind inexperienced time period mortgage corresponds to a leverage ratio of 60% of the ready-for-sea price of 4 CSOVs ordered at Vard. [Image: Vard]
Haugesund, Norway, headquartered Edda Wind ASA has agreed for contracts 4 newbuild commissioning service vessels) with Fincantieri’s Norwegian-based subsidiary Vard. The worth is EUR 63 million (about $67 million) per ship, unique of owner-furnished tools and constructing supervision prices and will likely be paid on a foundation of 5 20% installments.
Deliveries of the primary two ships is anticipated in first quarter 2025, the third in second quarter 2025 and the fourth in first quarter 2026.
Edda Wind has additionally secured choices for two+2 further CSOV vessels, with anticipated supply dates in 2025 and 2026 (if declared).
According to an Edda Wind presentation, the hulls of two of the ships will likely be constructed at Vard’s Romanian shipyard and outfitted in Norway. Two of the ships will likely be each constructed and outfitted in Vietnam.
Edda Wind says that “newbuilds are not looking to get cheaper,” saying within the presentation that:
- Few high-quality yards specialised on C/SOV vessels with the right configuration
- Global yard capability down ~60% from its peak round 2010 mixed with very robust orderbooks
- Limited yards with robust relationships to suppliers of scarce crucial tools and gangways
- Higher requirement for expert engineering labor as C/SOV design complexity will increase
- Activity in O&G and different maritime segments consuming yard capability and focus
Noting that it has had good entry to debt financing and expects to safe debt financing for the 4 newbuilds forward of supply, Edda Wind says that it’s recurrently tendering and negotiating with purchasers for brand spanking new contracts.
“Currently, Edda Wind is in an advanced stage of negotiations with an industry major in relation to contracts for about 750 firm trading days in 2023 and 2024 at rates above historical levels and in the range as forecasted by analysts,” it says.
The firm is planning to lift NOK 1,200,000,000 (about $115 million) by way of a personal placement of latest strange shares.
The firm’s 4 largest shareholders have pre-committed to subscribe for brand spanking new shares, with Østensjø Wind AS committing to NOK 120 million (about $11.5 million), Wilhelmsen New Energy AS to NOK 300 million (about $29 million), with John Fredriksen related Geveran Trading Co Ltd and EPS Ventures Ltd (an funding arm of Idan Ofer’s Quantum Pacific Shipping every committing to NOK 275 million (about $26.5 million).
