Adam Forsyth: Just some more questions probably around what we might describe as wider market turbulence. I just wonder what you’re seeing in terms of competitors. Do you think there’s any slowing down in terms of the competition putting on new orders for vessels? And actually, beyond that, do you think this could actually see a slowdown in the development of new turbine sizes? Do you think we might start to sort of cap around maybe slightly higher than current levels before we move to the next stage. I wonder also more specifically, are developers now building in longer contract lengths as a result of supply chain issues. Are they taking a more conservative view? And could that actually be beneficial to you. And then related to that, are you seeing any longer setup times between your own contracts?
I know you spoke of Scylla moving effectively seamlessly between these next 2 contracts. But could that be a rarity going forward? Or do you think that’s something you should be able to continue to achieve in the future?
Sebastian Brooke: If I start at the beginning of that, let me address the first 2. So the first one was, do we — can you just walk through the first question you have.
Adam Forsyth: Do you think given obviously, turbulence in the wider market…
Sebastian Brooke: Yes, sorry. So this is related to new buildings, right? So it’s due to additional supply. I think, ironically, that the current turbulence improve our market dynamics for exactly that reason is that those who are not already operating and don’t have a big footprint have got more queries rather than queries over the last 6 months and that actually kind of strengthens the existing operators footprint. And I think the future kind of — yes the future profitability and what have you because it’s just going to limit supply side and additional supply side. Sorry. And then the second question was?
Adam Forsyth: Slightly more tangential, I suppose. But do you think in terms of [indiscernible] do you think sizes would just keep going up or again, this turbulence, they’re under a bit of pressure now, maybe best is accepted.
Sebastian Brooke: Yes, I’ve actually thought for a while that all this, they’re going to continue to grow and grow and grow was kind of questionable theory, to be honest. And the basic premise of that is that it costs hundreds of millions of euros to develop a platform, a turbine platform. And over the last 10 years, the turbine suppliers haven’t been able to effectively get a decent return on that investment. That was my understanding on the very kind of basic level so that it was going to plateau anyway? But yes, I think you’re going to see much more disciplined probably, given their results recently from the big turbine suppliers. And as part of that, you have to deliver on — I’m sure they will have to generate profits on the existing platform before they start developing the much larger ones.
I’ve also kind of been pretty consistent in my view that I think that even if you do see some very large turbines going out, the scale of this market means that you don’t or won’t necessarily have to install the biggest turbines in the deepest water depths to be successful. Covering 80% of the market or 90% of the market will be just fine. So yes, so that’s what I think on the turbines. And then sorry, the third question?
Adam Forsyth: Contract lengths, are you seeing any change in your own contract lengths for a like-for-like project partly driven by supply chain issues, which are still seem to be out there in the wider development industry?
Sebastian Brooke: Yes. Well, I think Scylla was an interesting data point, right? She’s got direct continuation from the current employment and for an extended period, which again, we can’t go into the detail, but she could be used to cover multiple projects. So it’s — yes, I think the lack of supply of installation vessels means that the utilization and the rate structures should improve for the contracts, the installation contractors. And with regards to length of contracts kind of generally are we seeing length of contracts extend, yes, yes, you’ve still got developers trying to find out how do they secure a kind of critical part of the supply chain. And it is a critical piece. So yes, the more coverage they can give for themselves, the more comfort it gives them that they can deliver the projects that they’ve got on the books.
And so yes, I think, again, the opportunities are improving from the contractor side and whether that be long-term projects or us being able to determine what the start dates are of projects, but up until now, someone may say, you can’t compete on our project unless you are available from July 1. Suddenly, we might be able to say, well, actually, we’re not available until September 1, but that’s still good enough for the client because there aren’t any other options. So I think just across the board, yes, you’ll see improvements in utilization term, the ability to tie together projects, which has been exemplified by what we’ve just seen with Scylla.
