Norway’s Edda Wind has contracted Fincantieri-controlled compatriot shipbuilder Vard for the construction of up to eight commissioning service operation vessels (CSOVs) making it the top player in the offshore wind service vessel arena.
The Oslo-listed company has booked four firm vessels, of which two are set to deliver in the first quarter of 2025, one will follow in the second quarter of the same year, and the final one is scheduled for delivery in the first quarter of 2026 at a price tag of €63m (66.8m) each. The deal is structured on 5×20% installment milestones, in addition to owner-furnished equipment and building supervision costs.
Edda Wind has also secured options for two plus two additional CSOVs, with expected delivery dates in 2025 and 2026 if declared. All ships will come with fuel-saving systems combined with a methanol- and hydrogen-ready design.
The company said it expects to secure debt financing for the four newbuilds ahead of delivery. It has already secured financing for nine of its ten pre-existing newbuilds, including a recently announced green loan for the pre-and post-delivery financing of four vessels under construction.
Additional private placement of new shares is on the cards to raise NOK1.2bn ($115m) expected to be used to fully finance the equity portion of the currently estimated total construction costs relating to the contracts for four CSOV newbuilds and general corporate purposes.
Edda Wind’s four largest shareholders, Østensjø, Wilhelmsen, and shipping magnates John Fredriksen and Idan Ofer have pre-committed to subscribe for NOK120m, NOK300m, NOK275m and NOK275m worth of new shares, respectively.
The construction/service operation vessel (C/SOV) segment is where most analysts anticipate the largest growth in numbers to accommodate the growing offshore wind sector. Prior to this order, Edda Wind and Denmark’s Esvagt shared the top spot with 10 ships each.
In addition to newbuilds, new contracts are in the works at Edda Wind, with the company revealing advanced talks with an undisclosed industry major for about 750 firm trading days in 2023 and 2024 at rates “above historical levels and in the range as forecasted by analysts”, but noting that “no assurance can be made that any such agreement will be entered into”.
