Cadeler A/S and Ørsted Terminate Agreement for Wind Turbine Installation Vessel

Copenhagen-based offshore wind installation specialist Cadeler A/S (NYSE: CDLR / OSE: CADLR) announced today that Ørsted A/S has terminated their long-term agreement for a newbuild A-Class wind turbine installation vessel. The agreement, initially disclosed on April 8, 2024, had secured vessel capacity from Q1 2027 through the end of 2030.

According to Cadeler, the termination stems primarily from Ørsted’s decision to discontinue work on the Hornsea 4 offshore wind farm. While the termination marks the end of what was expected to be a four-year utilization period, Cadeler will receive agreed compensation and reports that the vessel is now available for deployment on alternative projects currently under discussion with third parties.

Orsted announced it would be discontinuing the 2,400 MW Hornsea 4 project in May, citing an increase in supply chain costs, higher interest rates, and an increase in the risk to construct and operate the project on the planned timeline. “In combination, these developments have increased the execution risk and deteriorated the value creation of the project,” the company said.

The terminated agreement involved one of Cadeler’s new A-Class vessels, which feature a hybrid design capable of transporting and installing both XXL monopile foundations and the world’s largest wind turbines. The company has three A-Class vessels on order in China.

The company stated that it “does not believe that the termination of the Long-Term Agreement will adversely affect Cadeler’s long-term financial performance.” In fact, the termination compensation has led Cadeler to revise its 2025 financial guidance upward. Full-year revenue is now expected to be within the range of EUR 588-628 million, up from the previous projection of EUR 485-525 million. Similarly, full-year EBITDA is now forecast between EUR 381-421 million, increased from EUR 278-318 million.

Cadeler remains one of the leading players in offshore wind installation, operating what it describes as “the industry’s largest fleet of jack-up offshore wind installation vessels.”

The company is listed on both the New York Stock Exchange (CDLR) and the Oslo Stock Exchange (CADLR).