Denmark-based Cadeler Faces Termination Notice from Ørsted
Denmark-based Cadeler has recently received a notice of termination from compatriot utility Ørsted for a long-term agreement involving one of its wind farm installation newbuilds.
The terminated newbuild was initially scheduled to install turbine foundations at Ørsted’s Hornsea Three offshore wind farm, with the work set to commence in 2026. Subsequently, the vessel secured a deal in April for the Hornsea Four project, with a fixed term from the first quarter of 2027 through the end of 2030.
The termination of the agreement for the A-Class windfarm turbine installation vessel comes as a result of Ørsted’s decision to discontinue work towards the Hornsea Four offshore wind farm.
The vessel, designed to transport up to six XXL monopile foundations per round trip, can also be converted into a wind turbine installation unit capable of carrying and installing seven complete 15 MW turbine sets per load or five 20 MW+ turbines, thereby reducing the number of trips required for each project.
Cadeler has stated that it is entitled to agreed compensation due to the termination and now has the flexibility to deploy the vessel on alternative projects currently under discussion with third parties.
The receipt of termination compensation will have a positive impact on Cadeler’s financial guidance for the 2025 calendar year. The company now expects its 2025 full-year revenue to fall within the range of €588m and €628m ($692m and $739m), an increase from the previous projection of €485m to €525m ($571m and $618m).