Wednesday 25 January 2023

Integrated Wind Solutions ASA has announced that it has, through its fully owned subsidiary, IWS Fleet AS, entered into shipbuilding contracts for the construction of two additional Walk-to-Work Commissioning Service Operations Vessels (“CSOV”).

The Company today also updates the market on the progress of the CSOV’s currently under construction as well as an update on the contracts already entered into for the aforementioned CSOV’s.

Finally, the Company hereby announces a contemplated private placement of new shares in the Company (the “Offer Shares”) in order to raise gross proceeds of NOK 350 million (the “Private Placement”).

Two additional Skywalker class CSOV newbuildings

The Company’s wholly owned subsidiary IWS Fleet AS has exercised options and entered into construction contracts with China Merchants Industry Holdings Co., Ltd. (“CMI”) for the acquisition of two additional Walk-to-Work Commissioning Service Operations Vessels (“CSOV”). The two newbuilds are scheduled for delivery in Q2 2025.

The firm yard price is about EUR 52.5 million per vessel. Approximately 50% of the vessel value is related to Norwegian export companies providing advanced technology ensuring safe and efficient operations during operations of the vessel.

After delivery, IWS will have a fleet of six identical Skywalker class vessels designed specifically to support commissioning works during the construction of wind farms, as well as supporting operations and maintenance during the lifetime of offshore wind farms, bottom fixed and floating.

“We are pleased to order two additional CSOVs and increase our fleet to six identical sister vessels. Our fleet will be uniquely positioned for a strong and growing offshore wind market with the first vessel commencing the charter contract to the Dogger Bank Offshore Wind Farm later this year. We see increased interest in our vessels and the integrated services IWS provides through its subsidiary IWS Services A/S.

This newbuilding order is in line with the communicated strategy and business plan and is a further step towards our ambition of providing efficient services to the offshore wind industry” says Lars-Henrik Røren, CEO of Integrated Wind Solutions ASA.

These hybrid powered vessels will be among the first vessels in the industry capable of zero-emission operations. The vessels are designed by Kongsberg Maritime and equipped with the latest generation fully compensated gangway and 3d crane. The vessels have several “industry firsts”, such as the largest battery pack with solar panels for additional charging, hull and propulsion design increasing operability and reducing emissions, and an energy consumption estimated to be 20% lower than comparable CSOVs currently under construction. The vessels are also the first in the industry to have the “DNV SILENT” notation, which focuses on minimising the impact on marine life below water.

IWS has also secured options for an additional two Skywalker class CSOVs from the shipyard CMI.

Operational update

In December 2022, the Dogger Bank consortium and IWS Fleet AS signed the final, binding contract for the charter party for Dogger Bank C, with a start-up in 2025 and a duration of 304 days.

The Company has received a term sheet for a Green Senior Secured Credit Facility from Skandinaviska Enskilda Banken AB (“SEB”) and SpareBank 1 SR-Bank ASA (“SR Bank”) for the debt financing of IWS Seawalker and IWS Starwalker (vessels #3 and #4).

Due to global supply chain issues affecting the delivery of the walk to work gangway system, the Company expects changes to the delivery schedule of the first two vessels. It has been agreed with the charterer of the first vessel, IWS Skywalker, that it will commence its contract in Q4 2023. The Company expects the second vessel, IWS Windwalker to be ready for commercial operations in early Q1 2024. The revised delivery schedule will have minor financial impact on the Company.