Cadeler A/S $CADLR (+2.52%)
- Offshore potential 2024

Brief overview

Cadeler A/S (formerly known as "Blue Ocean Ships") from Denmark is a major player in the offshore wind industry. The company specializes in the installation and maintenance of wind turbines and has a modern fleet, including vessels such as the "Wind Orca" and "Wind Osprey". The vessels can carry out transportation and installation of offshore foundations, towers and nacelles, platform topsides and substations, maintenance of offshore wind turbines, structures and platforms, subsea and offshore construction work, offshore decommissioning and accommodation, salvage assistance and heavy lift and project cargo. With the increasing demand for renewable energy $CADLR (+2.52%) well placed to grow further [2].

Market and opportunities

The offshore wind market is booming, driven by ambitious climate targets and the global trend towards sustainability. Cadeler has concluded promising orders in Europe in particular, with a focus on the North Sea [3]. The company is also planning to open up new markets in Asia and North America. The modernized fleet is ready for the installation of next-generation turbines with an output of up to 20 MW [1].

Financial strength

Cadeler shows solid growth:

EBITDA margin: Over 40% - a strong figure (€48m [Q3/24]) compared to the competition [2].
Order backlog: Increase of €500 million to €1.9 billion) secures future sales.
Investments: High expenditure on new ships, but secured in the long term by contracts.

Risks: High investment costs

High investment costs: Fleet expansion requires large capital expenditure [4].
Competitive pressure: Competitors such as DEME Offshore and Jan De Nul are fighting for market share [1].
Regulatory uncertainties: Approval processes could cause delays [5].

Conclusion

Cadeler is a promising player in the offshore wind sector and ideally positioned to benefit from market growth. For those interested in green energy (and that includes me :) ), Cadeler offers an exciting opportunity - but risks should be considered.

Sources:

[1] - Global Wind Energy Council - Market reports and growth forecasts (gwec.net)
[2] - Cadeler A/S - Official company reports and press releases (cadeler.com)
[3] - Industry analysis by Renewables Now (renewablesnow.com)
[4] - Offshore Wind Journal - Insights into investments and technology (offshorewindjournal.com)
[5] - EU climate strategies and offshore wind initiatives (europa.eu)
[6] - Figure (cadeler.com)

Note:

No investment advice. All information is at all times and without exception my personal opinion and assessment.

Shiya@Shiya

4Mon

Great presentation :) I've just become aware of the company and it's definitely going on my watchlist.

Possible risks:

Customer composition: Three customers each account for more than 10% of $CDLR 's turnover.

One-off events that could temporarily affect the figures: Economic turmoil, labor shortages, supply chain issues, strikes, embargoes, political instability or unfavorable weather conditions.

Sales volatility: Due to the nature of the business, there can be significant fluctuations in sales from quarter to quarter, e.g. due to ship maintenance, repairs or upgrades. The cancellation or postponement of major projects and possible delays in their implementation can also contribute to this, even if this is not expected given the company's history to date.

Capital-intensive industry: The development of new ships requires considerable investment. This is probably one reason why the company is currently trading at relatively low multiples, as it is investing considerable funds in expanding its operational capacity. At the same time, however, this also strengthens the company's competitive position.

Management Involvement: I am not a fan of the management team having minimal financial exposure to the company. The CEO first bought shares in December 2024.

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