Introduction & Market Context
Bonheur ASA (OB:BONHR) presented its first quarter 2025 results on May 9, showing improved EBITDA performance despite revenue challenges across several business segments. The company’s stock closed at NOK 247 on May 8, down 1.4% ahead of the results announcement, and currently trades well below its 52-week high of NOK 287.5.
The Norwegian conglomerate, which operates across renewable energy, wind service, cruise, and other investment segments, demonstrated resilience in a challenging market environment characterized by volatile power prices and operational challenges in its renewable energy portfolio.
Quarterly Performance Highlights
Bonheur reported total revenue of NOK 2,896 million for Q1 2025, representing a slight decrease of NOK 77 million compared to NOK 2,973 million in the same period last year. Despite this revenue decline, the company achieved a significant improvement in EBITDA, which increased by 22% to NOK 728 million from NOK 596 million in Q1 2024.
As shown in the following consolidated summary, the company’s net result declined substantially to NOK 92 million from NOK 304 million in the prior year, primarily due to negative net finance results of NOK 199 million compared to a positive NOK 114 million in Q1 2024:
The results for shareholders of the parent company turned negative at NOK -42 million, compared to a positive NOK 171 million in Q1 2024, representing a significant deterioration in profitability at the bottom line despite the improved operational performance.
Segment Analysis
Bonheur’s performance varied significantly across its business segments, with Wind Service showing strong improvement while the Cruise segment faced challenges. The following chart illustrates the revenue and EBITDA contribution from each segment:
The Renewable Energy segment delivered EBITDA of NOK 506 million, a 6.5% increase from NOK 476 million in Q1 2024, despite challenging conditions. Power prices were 72% higher in the UK but 66% lower in Sweden, while generation was 21% below P50 estimates due to low winds and technical issues. The segment benefited from the commencement of operations at Mid Hill in January and the sale of 49% of Crystal Rig IV to Wind Fund I.
The Wind Service segment was the standout performer, with EBITDA surging 61% to NOK 280 million from NOK 174 million in Q1 2024. This improvement came despite a revenue decline of NOK 109 million, indicating significant operational efficiency gains. The segment reported a utilization rate of 57% with a backlog of EUR 426 million, down from EUR 514 million in the previous year.
As shown in the quarterly financials for the Wind Service segment:
The Cruise segment faced the most significant challenges, reporting a negative EBITDA of NOK 33 million compared to a positive NOK 2 million in Q1 2024. Occupancy declined to 63% from 69% in the prior year, while net ticket income per passenger day remained relatively stable at GBP 171 compared to GBP 172. Despite these challenges, booking numbers were up 11% year-over-year, suggesting potential improvement in future quarters.
Strategic Initiatives
Bonheur continues to advance several strategic initiatives across its business segments, with particular focus on renewable energy projects. The company reported progress on two wind farm construction projects:
Crystal Rig IV (49.1 MW) in Scotland is advancing well with 8 out of 11 foundations completed:
Windy Standard III (88 MW), also in Scotland, commenced construction with site mobilization in early March:
In the offshore wind sector, Bonheur is progressing with two significant projects through its Seawind division:
1. Codling Wind Park: A 1.3 GW bottom-fixed project in Ireland (joint venture with EDF (EPA:EDF)) that has secured site exclusivity, grid access, and won a Contract for Difference for 1300 MW in the ORESS 1 auction. The project submitted its consent application in Q3 2024.
2. Muir Mhor: A 1000 MW floating project in Scotland (50/50 joint venture with Vattenfall) that has secured site exclusivity and submitted consent applications in Q4 2024, positioning it as one of the first Scotwind projects to do so.
The company is also advancing innovative technologies through Fred. Olsen 1848, including the BRUNEL floating wind platform and BRIZO floating solar solution, which recently completed model testing at SINTEF OCEAN, confirming expected performance and achieving significant cost reductions.
Financial Position
Bonheur maintains a strong financial position with substantial cash reserves and manageable debt levels. The following chart details the group’s capitalization as of Q1 2025:
For 100% owned entities, the company reported cash of NOK 5,175 million against external debt of NOK 3,523 million, resulting in a net cash position of NOK 1,652 million. However, less than 100% but more than 50% owned entities had a net debt position of NOK 4,472 million, primarily in the Renewable Energy segment.
This strong financial foundation provides Bonheur with flexibility to pursue growth opportunities across its business segments while maintaining financial discipline.
Forward-Looking Statements
Looking ahead, Bonheur’s Wind Service segment maintains a solid backlog of EUR 426 million, providing visibility into future revenue streams:
In the renewable energy market, power prices reached a two-year high in February but are expected to weaken in the short term. The company noted that demand is increasingly covered by cheaper renewables, suggesting that prices will be more influenced by available renewable resources going forward.
For the Cruise segment, despite current challenges, the 11% increase in booking numbers year-over-year indicates potential recovery. The company has hedged 75% of its estimated bunker consumption for 2025, providing some protection against fuel price volatility.
Bonheur continues to focus on its long-term strategy of expanding its renewable energy portfolio while maintaining operational excellence across all business segments. The advancement of innovative technologies like floating wind and solar solutions positions the company to capitalize on emerging opportunities in the renewable energy sector.
Full presentation:
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