Tekmar Share Discussion Threads

[benbay001] 30/4/2021 19:00

hxxps://www.offshorewind.biz/2021/04/30/orsted-points-at-possible-reason-for-eur-403-million-cable-problem/

”For the first many wind farms we built we had another solution. First we had rocks around a monopile, then we had a cable coming out, and then we put rocks on top again,” Marianne Wiinholt, Ørsted’s Chief Financial Officer, said in a conference call about the company’s Q1 2021 results.

”Then, together with the industry, we thought that there was a better solution, and therefore we did not put the additional second rock layer on top. That was believed to be the best solution and we used that for ten of our wind farms. We have now found out that this is not a good solution, so for the wind farms we are constructing now, Hornsea Two and Changhua 1 & 2a we are stabilising the cables again.”

I take "together with the industry" to mean in collaboration with Tekmar.

I think in times like this its best to think of the worst case scenario and be pleasantly surprised to the upside.

[chrisdgb] 30/4/2021 18:36

Lots of speculation clearly but it could be good news for the replacement market, key looks to be who did the design with the rocks.....?

[diku] 30/4/2021 18:28

Maybe it was the stingray?...

[1tommyt] 30/4/2021 17:42

We are still all working on the assumption it was a fault with the product, if it was wouldn't the insurance cover a design? We have also seen some major contracts for them doing cable repair? https://www.tekmargroup.com/subsea-innovation-delivers-first-of-kind-retrofit-cps-to-operational-offshore-wind-farm-in-the-uk/Anyway getting a bit scary without any update might need to rein back a bit.

[pugugly] 30/4/2021 17:34

This should have been known about by TGP for several months - It would appear to significant - unless "watertight" exemption clauses in place - So an rns should have been issued under market regulations.

Now I wonder if change of Nomad might be significant - "4 February 2021
TEKMAR GROUP PLC Appointment of Nominated Adviser.

Tekmar Group (AIM: TGP), a leading provider of technology and services for the global offshore energy markets, is pleased to announce that is has appointed N+1 Singer as the Company's Nominated Adviser ("Nomad") with immediate effect

[phone] Rick Thompson/ Rachel Hayes

[soulcold] 30/4/2021 16:26

@pinemartin9 Tekmar will most probably have agreed terms with the Installation Contractor who may well have passed down the liability to them, the CPS supplier. As I predicted things might be starting to unravel for Tekmar hence the sudden departure of James Ritchie.

[benbay001] 30/4/2021 15:47

I have this afternoon emailed TGP investor relations regarding getting an update on the issue.

I copy pasted the emails i sent to the LSE board if you want to read.

But id encourage others to email as this does create extreme uncertainty and we still have a month to wait before the interim results.

[pinemartin9] 30/4/2021 15:43

I guess it relates to the layout and wind farm size (MW). Racebank is 573 MW so one of the larger ones. I'm not sure what contracts Tekmar won with other Orsted assets. Equally, I don't know if this problem will arise with other owners that Tekmar won contracts with. Also we don't even know if they are on the hook for anything at all! Seems unlikely to me that they would sell something to go under the water and provide extensive guarantees. Could probably find out easy enough on their website but I'm lazy at the moment. It could be a perception thing though...the way they react could affect future orders, or cast doubts on the quality of their product. I would have thought a statement should be issued to clear anything up.

You can bet your bottom dollar that Orsted will seek to claim back some form of damages/losses here if it can be pinned on the product. Who wouldn't? Equally, the Tekmar terms should hopefully be watertight (no pun intended!) if they've done their contracting correctly. Equally Orsted would now have quite a bit of leverage in future negotiations with Tekmar.

My gut feeling is that we will hear about this issue much more in the future. The industry is relatively young and growing rapidly.

[sebass] 30/4/2021 15:23

10 Windfarms how many CPS per windfarms anyone know?

[elsa7878] 30/4/2021 13:47

March 10, 2016
Subsea cable protection specialist, Tekmar Energy won a contract with DONG Energy to supply 189 cable protection systems (CPS) on its Race Bank offshore wind farm in North Norfolk. Orsted was called Dong....

[pinemartin9] 30/4/2021 13:17

Hmmmm. I'm not sure what guarantees they would have been sold with. Also depends on if it is 100% down to the cable or if the erosion was a construction issue. It mentioned about rocks being placed around the base of the turbine foundations somewhere. Orsted are very big and will have a good commercial team on this you can bet. Also if this has happened for Orsted it will definitely happen for other offshore wind farms. Remember, they pride themselves on governance, transparency and a leadership position in the offshore wind sector. They were the first company to acknowledge the much greater than modelled/anticipated blockage effect and the deviaiton from pre-constructin energy yield estimates. That resulted in a significant drop in the Orsted share price a few years ago. This development has added a lot more uncertainty for me. Yes, the share price is cheap, but does the risk/reward stack up at this price. I was very close to buying some today but have decided to wait.

[benbay001] 30/4/2021 12:58

My worry is if Tekmar's supplied CPS is what has caused the proplem then TGP could be liable for fixing the $400m in damages. That wont be very good for a £40m company

[imperial3] 30/4/2021 10:34

Should the company make a statement then?

[charlie9038] 30/4/2021 10:14

No mention of TGP, cables can get damaged, but quoted from the Guardian article:

The government expects offshore wind to play a major role in the UK’s future electricity system, and aims to quadruple the UK’s offshore wind capacity to generate enough electricity to power every home in the UK.

Time to top up.

[pinemartin9] 30/4/2021 09:29

Yes, could reflect badly on Tekmar if that's the case. Not sure if there would be any economic impact risk to future sales though?

[benbay001] 30/4/2021 08:46

Is this a Tekmar CPS installation?

hxxps://www.windpowermonthly.com/article/1714401/orsted-plans-solve-offshore-wind-cable-challenge

"She also said that a different cable protection system was in place at wind farms built prior to this batch of ten European projects."

Im guessing the earlier ones were definitely Tekmar?

[bobdouthwaite] 30/4/2021 08:40

Cable protection system at Orsted's Race Bank wind farm reported damaged in the Times to-day

[charlie9038] 29/4/2021 18:16

I thought it was just my shares that were a bit flat at the moment, sea of red ATM

[chrisdgb] 29/4/2021 11:54

Think we are well placed here, not many shares have done nothing recently, let us hope our time is soon...........

[scooper72] 27/4/2021 11:58

There holding wasn't small in the first place either.

[rampmeister] 27/4/2021 11:42

Looks like trimming rather than dumping. Not alarmed by behaviour normal for schroeders

RM

[currencytrader1] 27/4/2021 10:11

Schroders definitely starting to reduce ahead of results in June, and they will know far more than us!

[dangersimpson2] 27/4/2021 09:20

I think you may want to read that TR-1 again! It means that Shroders continue to sell.

23/12/20 19.065%4/3/21 18.889%5/3/21 18.743%19/4/21 17.897%23/4/21 17.692%


It's a pretty slow rate, but they are selling not buying.

[charlie9038] 27/4/2021 08:57

looks like schroders bought a load. Happy days