Cadeler has gone through major changes in the past few years, and 2022 will be “super busy” for the wind carrier as well. CEO Mikkel Gleerup is open to acquisitions in a market that is expected to face consolidation.
With over 15 years of experience in the offshore sector, Mikkel Gleerup would be one to attest to the fact that things are moving more quickly than ever in the fast-growing market.
Cadeler’s offices on the seventh floor of the Copenhagen headquarters are indicative of the growing pains and the expectations that characterize the industry. With a staff of around 70, it’s necessary to get the most out of the space.
“We’re actually running out of room. We’ve started to dismantle conference rooms just to get more office space,” says the chief exec of Cadeler in an interview with WPO, which takes place in his office.
We’re making offers on projects all the way into 2030.
Mikkel Gleerup, CEO, Cadeler
He has just returned from a major conference – Wind Europe Electric City – and several times throughout the interview, his phone buzzes, giving the impression of a chief exec who is in several places at once.
“Things are moving really fast. Whereas there used to be this cyclical effect in the industry, it’s been very difficult to see when it plateaus or goes down. And we’re looking very far ahead,” says Gleerup, who has been part of Cadeler for almost five years – and has served as CEO for the past four.
“We’re making offers on projects all the way into 2030. That’s a complexity in and of itself: how do you make offers so far ahead? What will fuel cost in 2030? Who knows.”
For the moment, 2022 looks to be a “super busy” year. During this year, Cadeler’s two ships will be assigned work on major projects: The 1.2GW Seagreen project in Scotland and the 1.5GW project along the southern coast of the Netherlands.
“We’re doing our best trying to keep up. But there is no doubt that it’s a busy time and that the team is going at 120 percent right now.”
Facing consolidation wave
Cadeler isn’t alone in making strides in the offshore market and with large and costly installation vessels.
Competitors include companies such as Seaway 7 and the former Scorpio Bulkers – Eneti. Earlier this year the latter took over Seajacks, and last week the company announced an order for its second wind installation vessel valued at USD 326 million.
Norwegian Havfram announced a letter of intent regarding a future order for wind installation vessels in a partnership with asset manager J.P. Morgan Global Alternatives.
When asked whether the market will be dominated by many or few players, Gleerup is inclined to believe the latter.
“I believe we’re facing a consolidation wave. That is certain. You cannot scale without any synergies. It’s incredibly important to erect these turbines, and it’s incredibly dangerous to bet on one with a single vessel,” says Gleerup.
We have a few investors who would very much like to see us grow and become more of a one-stop shop in the industry.
Mikkel Gleerup, CEO, Cadeler
Cadeler is ready to buy up, with the company, in Gleerup’s words, looking at both “organic and non-organic growth”. However, it’s not just companies with wind installation vessels that could come into play.
“We have a few investors who would very much like to see us grow and become more of a one-stop shop in the industry. For that reason, there are opportunities for growth. Even outside our own vertical,” says Gleerup, who’s unwilling to go into further detail about what that could be, however.
“That could be many different things.”
“Everything is growing incredibly fast”
In recent years, Cadeler has been listed in Oslo, gained a new majority shareholder in the shape of the BW Group and changed its name from Swire Blue Ocean.
The company has raised money to build new installation vessels and sketched out plans to mount larger cranes on its existing vessels, enabling them to install the increasingly large wind turbines, which are also signs of an industry in development.
“Everything is growing incredibly fast. The turbines we’re installing in April next year are 25 meters taller than Bella Sky [a hotel in Copenhagen, -ed.]. It’s all about looking far into the future right now and having some buffer,” says Gleerup.
There have also been changes in the boardroom, which has BW Chairman Andreas Sohmen-Pao at the end of the table. The others include Connie Hedegaard and Jesper Lok as well as Ditlev Wedell-Wedellsborg and Andreas Beroutsos. The sixth and final member is David Cogman, who recently stepped in to replace Roy Shearer.
In fact, it was only in September of this year that Gleerup got the opportunity to meet the new board for the first time.
“We spent the first year after the listing without meeting our banks, advisors, board. It’s been a huge challenge, but also goes to show what can actually be done,” he says.
In addition to Copenhagen, Cadeler has offices in Western Denmark’s Vejle and in Taiwan Area.
