Integrated Wind Solutions, part of Awilco, has confirmed its fully owned subsidiary Awind AS has secured a contract from an undisclosed European company for of one of its newbuild commissioning service operation vessels (CSOVs)
The contract will commence in mid-2023 with a firm contract duration of 546 days excluding options. The company said the contract value is in line with rates it forecast in a March 2021 investor presentation.
Through its subsidiaries, the company has placed newbuild construction contracts with China Merchants Industry Holdings for the construction of two UT5519DE SOVs. The deal also includes options to acquire a further four vessels.
The vessels ordered by Awind AS, Awind 1 and Awind 2, are scheduled for delivery in Q1 and Q2 2023 respectively from China Merchants Industry Holdings. In addition, Awind has secured an option agreement for up to four additional vessels.
The vessels have an innovative design with flexible mission equipment to handle a variety of tasks required to support offshore windfarms during the installation, commissioning and operations/maintenance phase. They will have a 3D motion-compensated crane, motion-compensated gangway and can accommodate up to 120 people, primarily in single cabins.
Clarksons Platou Securities said the rate quoted by the company suggests a figure of around €30,000/day (US$36,000/day). “This level is consistent with our €35,000/day estimates for market rates in 2023, after accounting for the assumed 85% spot utilisation,” said Clarksons Platou.
“The contract demonstrates the expected tightness in the offshore wind vessel market, and validates the company’s vessel design and operational credibility.
“IWS is targeting the market for offshore wind vessels and services due to its status as the world’s fastest growing major energy source, with installed capacity expected to grow from ~32 GW today to over 250 GW by 2030,” said the broker.
“This market growth should propel demand for the company’s vessels, which house windfarm technicians during the installation phase of offshore windfarms.
“In addition, the company is considering M&A targets in complementary service segments, that could provide cash flow until the delivery of vessels begins in 2023, as well as a stable return profile.”
Clarksons Platou said no further information has been provided on M&A since the March listing, but it understands there are a number of potential targets in what it described as "the unconsolidated construction and maintenance services market."
“Based on this, we expect the company may announce its first deal later in 2021,” the broker concluded.