ZITON ANNUAL REPORT 2024

Poised for the next
phase of growth

Overview

01

Overview

01

”To date, we have successfully repaired turbines with a total capacity of 6.2 GW, a remarkable achievement that underscores ZITON's essential role in enhancing energy security for Europe.”

Looking forward

Thorsten Jalk, CEO at ZITON, presents the annual report of 2024, and shares his perspectives of ZITON’s role in the transition towards a more sustainable future as well as the prospects for the company.

Highlights

02

Highlights

02

ZITON is the market-leading service provider in offshore wind operations and maintenance, specialising in major component replacements. We have completed over 1,850 MCRs at 84 wind farms across 8 countries.

Major component
replacements
0
Weighted average
uilisation
0 %
EBITDA
(Eur´000)
0
Cash flow from
operating activities
(Eur´000)
0

Key moments of the year

Key moments
of the year

01. WIND ENTERPRISE_r1
02. WIND ENERGY_r1_flatten
03. WIND SERVER_r1_flatten
04. Turbine decom_r2_flatten
05. WIND PIONEER_r2_flatten
06. Met mast decom 1_r2_flatten
07. Macquarie logo_sort
08. WIND SERVER_r1_flatten
09. WIND DISCOVERY_r1_flatten
10. Met mast decom 2_r2_flatten
11. WIND DISCOVERY_r1_flatten
12. Met mast decom 3_r2_flatten - Copy
13. WIND DISCOVERY_r2_flatten
14. Major component replacement_r2_flatten
01. WIND ENTERPRISE_r1

JANUARY - DECEMBER

J/U WIND ENTERPRISE working on time charter.

02. WIND ENERGY_r1_flatten

FEBRUARY - DECEMBER

J/U WIND ENERGY initiated her 6-year charter with SGRE.

03. WIND SERVER_r1_flatten

APRIL - MAY

J/U WIND SERVER working on time charter.

04. Turbine decom_r2_flatten

MAY

Turbine decommissioned at the Nysted wind farm in Denmark.

05. WIND PIONEER_r2_flatten

JUNE - JULY

J/U WIND PIONEER working on time charter.

06. Met mast decom 1_r2_flatten

JULY

Met mast decommissioned at the Gwynt y Mor wind farm in the UK.

07. Macquarie logo_sort

SEPTEMBER

Macquarie Asset Management entered into an agreement to acquire ZITON.

08. WIND SERVER_r1_flatten

SEPTEMBER - OCTOBER

J/U WIND SERVER working on time charter.

09. WIND DISCOVERY_r1_flatten

NOVEMBER

J/U WIND DISCOVERY was acquired by DiscoveryCo Aps, a sister company to ZITON A/S.

10. Met mast decom 2_r2_flatten

NOVEMBER

Met mast decommissioned at the Stora Middelgrund wind farm in Sweden.

11. WIND DISCOVERY_r1_flatten

NOVEMBER - DECEMBER

Docking of J/U WIND DISCOVERY in China for removal of existing living quarters and upgrades.

12. Met mast decom 3_r2_flatten - Copy

DECEMBER

Met mast decommissioned at the Rampion wind farm in the UK.

13. WIND DISCOVERY_r2_flatten

DECEMBER

Departure of J/U WIND DISCOVERY from China to Denmark.

14. Major component replacement_r2_flatten

DECEMBER

247 major component replacements completed throughout the year – new industry record.

Market

03

Market

03

With the currently known and relevant projects, the number of installed offshore turbines in Europe is expected to reach a total of 10,250 within the next five years, and all of these will require servicing during their lifespan of at least 30 years.

Direction

04

Direction

04

The strategic direction
for ZITON contains
four key elements.

1. Zero emission1
2. Value added services1
3. Fleet expansion1
4. Digitalisation1
1. Zero emission1

Zero-emission

Results achieved in 2024

During 2024, we focused on aligning our operations with the ESG targets outlined in the ESG loan agreement signed in June 2023. Key priorities included preparing progress reports for these targets to ensure transparency and accountability.

Focus areas for 2025

We remain committed to reducing emissions through SEEMP and are exploring solutions like hybrid systems and operational improvements to optimise fuel usage. In addition to that, the Executive Management Team and the newly appointed Board of Directors is actively working on a revised long-term strategy, which is expected to include emission targets for new build programs, adopting new propulsion systems, and incorporating alternative fuels.

2. Value added services1

Value-added services

Results achieved in 2024

In 2024, we saw a significant increase in demand for full-service solutions for major component replacements and decommissionings, with a more than doubled number of replacements compared to 2023. This surge reflects the growing preference for comprehensive service offerings. We have consistently achieved high customer satisfaction, successfully delivering projects as full service solutions that address complex needs and mitigate risks for our clients.

Focus areas for 2025

The focus for 2025 remains on further enhancing and expanding our full-service solutions for major component replacements, aiming to deliver greater value to customers and strengthen ZITON’s market differentiation.

3. Fleet expansion1

Fleet expansion

Results achieved in 2024

In 2024, J/U WIND ENERGY completed her yard-stay in Denmark after being acquired in China and began her long-term charter with Siemens Gamesa Renewable Energy. Additionally, ZITON expanded its fleet with another vessel capable of servicing 6-10 MW turbines through the acquisition of J/U WIND DISCOVERY. J/U WIND DISCOVERY is operated by ZITON A/S, but owned by its sister company, DiscoveryCo ApS.

Focus areas for 2025

The initial focus for 2025 is to have J/U WIND DISCOVERY complete her yard-stay before beginning her time charter in mid-April. Additionally, we are committed to minimising unexpected off-hire days by ensuring J/U WIND ENTERPRISE, J/U WIND ENERGY, and J/U WIND DISCOVERY remain in optimal condition. Furthermore, we will continue exploring opportunities to expand our fleet to support the growing demand for servicing larger turbines.

4. Digitalisation1

Digitalisation

Results achieved in 2024

During 2024, we revisited our machine learning platform to leverage Microsoft’s advancements in artificial intelligence and integrated the latest developments in the market for major component replacements. Our analysis confirms a clear correlation between turbine age and failure rates older turbines experience more failures, driving increased demand for major component replacements. Additionally, we strengthened our cybersecurity measures to safeguard our digital infrastructure, ensuring the integrity and security of our data-driven operations.

Focus areas for 2025

In 2025, we will continue to invest in digitalisation and the development of our data platform to enhance operational efficiency and strengthen decision-making processes. We aim to streamline workflows, improve data accessibility, and enhance collaboration across our operations. Additionally, as cyber threats continue to evolve, we will further strengthen our cybersecurity measures to ensure the protection of critical systems, operational data, and customer information.

Company

05

Company

05

ZITON’s core business is to own and operate specialised jack-up vessels. ZITON provides full-service solutions for major component replacements, including maritime project planning & execution, lift planning & execution, specialised tools & lifting equipment, and technicians in addition to jack-ups with experienced crews.

CAN DO. WILL DO.

We care for our environment, and our vessels are less harmful to the environment compared to many of the other vessels in the market.

Port stay
control detentions
0
Accidental oil spills
over board
0
Lost-time injury
frequency
0
Bribery and
corruption cases
0

"Our customers are increasingly asking us to provide full-service solutions for major component replacements. This is leading to good utilisation of our vessels, which has resulted in strong improvement of financial performance in recent years."

Jens Michael Haurum, CFO

Guidance for 2025

Guidance for 2025

95-
100%
Weighted average
utilisation
60-
65
EBITDA
(Eur´000)
58-
63
Cash flow from
operating activities
(Eur´000)
24-
28
CAPEX
(Eur´000)

More information

06

More information

06

Want more details?

Annual report for ZITON

Want to get the full overview of our 2024 financial results? 

You can download the annual report below.

CEO letter

Poised for the next phase of growth

Dear stakeholders,

As CEO, I am delighted to present ZITON’s Annual Report for 2024.

This year marks a pivotal moment in ZITON’s journey. As part of our ongoing development, our former owners recognised that the time had come to find a new, stronger partner who could help propel us forward and support our continued growth. In September 2024, we were thrilled to announce that Macquarie Asset Management would be acquiring ZITON, with the deal successfully closing in January 2025.

This is a significant milestone for ZITON, as Macquarie’s investment is a testament to the strong foundation we have built. With our solid market position, exceptional customer relationships, and some of the brightest talent in the industry, we are well-positioned for the future.

Macquarie has made a strategic investment in equity to acquire J/U WIND DISCOVERY, which is capable of servicing some of the largest installed turbines, up to 10 MW. Operated by ZITON and owned by our sister company, this addition enhances our fleet, which now includes three vessels in the up to 5 MW segment and three vessels in the up to 10 MW segment. As a result, ZITON proudly operates the largest fleet of vessels dedicated to major component replacements. With such a robust fleet, we can offer our customers flexibility and versatility, enabling us to service virtually every offshore wind farm in the northern Europe, ranging from 2 MW to 10 MW turbines. Looking ahead, we are committed to further investing in larger vessels to meet the growing demands of the offshore wind industry.

We are living in a time of geopolitical uncertainty, which naturally causes concern for many people and businesses. However, I am encouraged by the proactive approach taken by European politicians to ensure energy security through initiatives like the Clean Industrial Deal, which also supports the growth of renewable energy. This forward-thinking strategy is crucial for Europe’s future. At ZITON, we are proud to be part of this transformative journey, contributing to the vital work of keeping turbines running. To date, we have successfully repaired turbines with a total capacity of 6.2 GW, a remarkable achievement that underscores ZITON’s essential role in enhancing energy security for Europe.

Thank you for your ongoing support as we continue to grow and innovate in this exciting industry.

Sincerely,

Thorsten Jalk,

CEO, ZITON A/S

Table overview

Key figures

Set out below are the key financial figures we use in decision-making and to evaluate our performance including prior-year comparative figures.

ZITON presents its consolidated financial statements in accordance with generally accepted accounting practices (IFRS). Accordingly, key figures and ratios have been prepared in accordance with CFA Society Denmark’s online version of ”Recommendations & Ratios”. In addition, ZITON presents APMs according to the Directives of European Securities and Markets Authority (“ESMA”).

Want more details?

Want to get the full overview of our 2024 financial results?
You can download the annual report below.