Subsea energy cable producer NKT has reported a record-high order backlog for high-voltage cables for 2023, with 45 per cent of orders coming from offshore wind.
On the finish of final 12 months, NKT’s order backlog was at EUR 10.8 billion, greater than double the corporate noticed on the finish of 2022.
In its full-year 2023 outcomes, the cable producer states that this was “pushed by the best annual order consumption in firm historical past”. Orders for high-voltage initiatives that got here in final 12 months alone have a mixed worth of roughly EUR 7 billion.
Interconnector initiatives make up for round 50 per cent of NKT’s year-end order backlog, offshore wind initiatives round 45 per cent, and the remaining 5 per cent is in power-from-shore initiatives, with 75 per cent of all orders positioned by massive European transmission system operators (TSOs).
“Roughly 26-29% of the high-voltage order backlog is predicted to be executed in 2024 and 2025, and the remaining steadiness in 2026 and past,” NKT says.
Among the many firm’s 2023 contracts are the three NKT secured with TenneT for delivering turnkey high-voltage energy cable initiatives for Ijmuiden Ver Beta, Gamma and Nederwiek 2 offshore wind zones within the Netherlands.
Final 12 months, NKT additionally obtained orders for the offshore export cable methods for Ørsted’s 2.9 GW Hornsea 3 offshore wind farm within the UK, ScottishPower Renewables’ 1.4 GW East Anglia Three, additionally within the UK, and the 1.2 GW Baltic Energy offshore wind farm in Poland, developed by PKN Orlen and Northland Energy.
The Danish firm additionally noticed an enormous enhance in its order e book following a contract for 5 energy cable initiatives signed with the German TSO 50Hertz, price a complete of EUR 3.5 billion.
Along with the initiatives within the backlog, NKT additionally signed agreements for additional initiatives in 2023, that are but to be signed as agency contracts.
As reported final 12 months, NKT inked a multi-year framework settlement with Tennet for additional three offshore wind initiatives within the Netherlands with a complete technology capability of 6 GW: Nederwiek 3, Doordewind 1, and Doordewind 2.
“The contracts are anticipated to be known as off in 2025 and may have a mixed worth of approx. EUR 1.5 bn, which covers the vast majority of the mission scope. The framework settlement runs till 2028, with doable extension till 2031. Extra initiatives may very well be added underneath the framework settlement,” NKT states in its 2023 outcomes.
Within the interconnector market, NKT highlighted a contract the corporate signed in 2023 for the Biscay Gulf Interconnector that can join France and Spain. The contract was awarded by INELFE, a three way partnership between the Spanish TSO Crimson Eléctrica and its French counterpart RTE.
The corporate additionally signed capability reservation agreements for 2 Scottish transmission hyperlink initiatives, Western Isles and Spittal-Peterhead, with SSEN Transmission. The mixed worth of those two initiatives is estimated to be above EUR 1 billion. NKT and SSEN additionally intend to enter right into a framework settlement for future initiatives, in line with the cable producer.
“2023 was a profitable 12 months for NKT with natural income progress of 36% and the best annual operational EBITDA in firm historical past,” stated NKT CEO Claes Westerlind.
“Demand for high-voltage energy cable methods was unprecedented through the 12 months. This led to a file order consumption bringing our high-voltage order backlog to EUR 10.8bn and the launch of an roughly EUR 1bn funding program. We enter 2024 with a strong monetary place that types the muse for additional enchancment of monetary efficiency.”
In Could 2023, NKT introduced an roughly EUR 1 billion funding programme in its high-voltage enterprise, which is supported by robust long-term visibility from the high-voltage order backlog, in line with the corporate.
“The growth is progressing in line with plan and can add end-to-end manufacturing capability subsequent to our current facility in Karlskrona, Sweden. As soon as accomplished, the total Karlskrona website would be the largest high-voltage offshore cable manufacturing website on this planet. These investments will additional enhance NKT’s skill to satisfy rising demand for particularly long-length HVDC energy cable options, whereas additionally including a market main cable-laying vessel for offshore set up,” NKT states.
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