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Dutch fabricator said any cancellation or hold up of BP and Equinor project would be significant
Dutch foundation fabricator Sif has warned any cancellation or delay of Equinor and BP’s Empire Wind 1&2 complex in the US would have a “material impact” on its outlook for the coming years.
The company said monopile and transition piece deals for the project are its only confirmed US orders and are lined up for manufacturing in various production slots from the second half of next year until 2026.
However, the developers have been refused a request to amend their off-take agreement by NYSERDA and recent legislation has ruled out a portion of land for an export cable. Equinor and BP are “evaluating the impact” of both, said Sif.
Sif chief executive Fred van Beers said in third quarter results on Friday it is also “considering the impact of a possible delay or cancellation of these projects which could have a material impact on Sif’s order book, factory utilization, results, prospects and outlook for 2024 and beyond”.
“Uncertainty around several offshore wind projects in mainly the United States of America and the United Kingdom due to higher interest rates and material costs, have resulted in turmoil in the industry and a distraction from the progress made elsewhere.”
Sif recorded adjusted EBITDA of €7.1m in the three months to end September, down from €7.8m in the year-ago period.
Output of 50Kton in the third quarter of 2023 was “satisfying”, said the chief executive, given the summer holiday effect, and takes year-to-date output to 144Kton.
In total 29 monopiles were completed and 42 transition pieces (32 and 28 respectively in third quarter 2022).
“We expect to end the year 2023 with a total output of approximately 200 Kton compared to 169Kton for the full year 2022. This is below our earlier anticipation of 208Kton,” he added.
“Lack of qualified personnel due to continued tight markets for technically skilled labor, relatively high sick leave numbers combined with the limited size of our production facilities in Roermond while assuring a safe working place, puts pressure on our output.” |
