Norway's Bonheur reports Q2 losses for renewables, offshore

Norwegian group Bonheur ASA (OSL:BON) booked significant losses across its renewables and shipping/offshore wind units in the second quarter of 2020, while the half-year results came mixed.

The renewables business, which the group conducts through Fred. Olsen Renewables AS and Fred. Olsen Green Power AS, posted a net loss of NOK 164 million (USD 17.6m/EUR 15.4m) in the second quarter, expanding it from NOK 46 million in the same period last year.

During the quarter, power generation levels decreased by 2% year-on-year, while electricity prices in the group’s wind markets plunged. In the UK, where the Fred. Olsen Renewables (FOR) group owns and co-owns wind farms, electricity prices dropped by 42% on the year.

FOR’s 100%-owned wind farms in Sweden and Norway had to contend with prices that were lower by around 75% and 88%, respectively, Bonheur said.

Financial results of the renewables business are presented in the table below:

Bonheur runs the shipping/offshore wind business through wholly-owned company Fred. Olsen Ocean Ltd with subsidiaries that serve the offshore wind industry. These provide transport and installation (T&I) and operation and maintenance (O&M) services and develop offshore wind turbine foundations.

The division’s T&I and O&M vessels were 68% utilised during the second quarter compared to the utilisation rate of 99% in the same period of 2019.

Financial performance of the shipping/offshore wind business is presented below:

Bonheur said the COVID-19 pandemic left no negative operational impact on the renewables business during the second quarter. However, the global outbreak of the coronavirus disease did present challenges to moving vessel personnel between countries and crew changes.

(NOK 1.0 = USD 0.107/EUR 0.094)

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