EUR 87.30 For Business Accounts Only

Takeaways from WindEurope

At the WindEurope event in Copenhagen, we met with companies representing approximately 75% of the global offshore wind installation fleet, gaining insights that support a constructive outlook for the sector. Addressing recent investor concerns related to market growth, the industry has already reflected and anticipated recent downward adjustments in third-party forecasts. With respect to a slowdown ahead in the US market, a second investor concern lately, near-term vessel demand could surprise to the upside, while the industry participants were not concerned that vessels currently in the US market (only 11% of global supply) would affect the wider market when released. Overall, the vessel market is fairly balanced near-term, while an undersupply (particularly of foundation vessels) is expected later this decade. Despite this, vessel owners are cautious about newbuilds due to high construction costs, long lead times, and uncertainty over future turbine sizes. Contract economics have improved significantly, with still some upside potential, and more favourable risk-sharing, especially in foundation installation. There is also a trend toward longer-term contracts and earlier commitments, with some developers looking to secure vessels for projects as far out as 2032. Overall, we see the industry dynamics with tightening supply, strong dayrates, and industry discipline on newbuilds, as supportive of the investment case in Cadeler and Subsea 7 (through Seaway7).