Eneti (NETI) 2 Feb 212020 Q4 Earnings call transcript

Hello and welcome to Scorpio Bulkers Inc. Fourth Quarter 2020 Conference Call. I would now like to turn the call over to Hugh Baker, Chief Financial Officer. Please go ahead sir.

Thank you, operator. joining for all you us today. Thank the conference call. to Scorpio Bulkers earnings XXXX of quarter fourth Welcome

X, On with Cameron which press Executive this and issued Officer; results Officer; of and the our and on available Doyle, David our Robert Chairman call James of This Bugbee, February and me is Morant, today, is as set on information uncertainty. materially are; fourth information forward-looking on Managing website. our contain statements. those based morning, Financial call discussed quarter release, President; risk Senior Tuesday, Mackey, Director. Operating in statements Lauro, Chief Analyst; may Emanuele XXXX may we involve such forth Chief from The earnings that differ Actual XXXX

you also SEC of the is www.sec.gov. is www.scorpiobulkers.com are the release for have the will this To today’s Relations made on live recorded that for archive a on and the posted For Internet on these call, be review available the audio disclosure the well uncertainties, and conference purposes. approximately as filings, are Call webcast Bulkers' our today, of presentation of call XX being website page Investor of website. participants and playback days. broadcast we risks An support being our as earnings should in discussion Scorpio which we press advised statements that forward-looking at a available issued

offline. later you we If financial specific these questions, contact have any and can modeling can discuss you me

to to Now, you introduce Lauro. like I'd Emanuele

with world due the I the for afternoon continue Thank challenging the energy despite today. of being to us Good times the Hugh. Thank and morning you or everybody. pandemic. facing the commitment you, to this is be pleased organization with to

exiting as bulk. have significant company dry progress in We made a

equities, accelerating Deliveries of about in our dry some of have allowing and the started sheet cargo days and biggest the me us balance exposure Allow found March, which full slides XXX ago. balance we sale today. and are us clarification with a to in timing becoming fleet process as and our exit. flexibility balance the million February cash partially see reported sale simple our on of This net sale proceeds not proceeds the has allowed assets more XXX most four figure the have cash sale since debt of our have to received. the the million has been or can are $XX more vessels read, market, constructive The purchase repaid, which from from excludes already dispose today. been where we is provided but small to as We you sheet being repaid

end We sales are the nearing of process. the

able As time target a announce vessels which of further the mentioned, we the February for to all expect as to And sale. of realistic sold sales remains be end will either the be committed shortly. in or

the terms period wind uncertainty I on passes, during time has In only pivot stronger before, accelerating of even as focus the have really. justification of our stated this economic for significant become energy, as

of amount an side on we work all As a wind incredible fronts. group, have done on the

identifying and organizational front, sourcing been On personnel. the we've key

actively will the technical commercial and performance. processes. the restrictions optimize we've specific geographical participating requirements tuning we've exploring vessel, improved tender the design, different the finally, on On specification And in of been the front, which to to fine front, lead been an

a lot. learned have We

company ticker Tomorrow going and name will the combining holding the available with feel to lot, for these in this shareholders change. an the Extraordinary a we vote Meeting expertise, learn of industry can and forward. play continue significant the change General be will a role where we we We readily the

shares EGM. so, do will before this, if outstanding so to find they thank far, turn new whoever new which ticker, I have We has the a voted tomorrow's and majority time NETI. you. represent our to and Robert. Inc. the shareholders Eneti will With under like name strong resurface Thank yet next I'd our who voted the not of encourage call to week the

Thank much, very you Emanuele.

the bulk speak we to So, symbol you be changed, time and have Name view will by mirror. rear in new our operation be dry will next, underway. ticker have changed, would would our the hopefully

move we as with considered, phase, Our but with moving the patience. and into are carefully we execution wind move to also is purpose,

any of from Rather, patience. lost have We with have moving we it. gained by our tremendously not optionality

that live, experience market we gained a work see in you work. time in relationships you knowledge, have government to, what in forward importantly, not try continuing benefit seen significant and relatively know, continue the support, formalization contract. significant to changes, on fashion. and is improve. things projects we, done a this in a most building of more the certainly favorable and and can of We've can't theory gain And and but We have watched anything losing risk We've develop gained not operations, know, our we've to build space government moving related new to format. We've the that through what delaying had low

through the growth laid We we've changes. stability We've seen government new to can't second. fully halfway from uncertain; to to the to doing after the whilst divesting vaccinations in And We're our without having November, things the caught election. became now project back favor. position or three it, long-term are had we've to commit our going almost capital back the two the to industry. early, before And happened economic election, been have seen go the the we and things the U.S. more things haven't transition. sales. We If be ultimately however, were uncertain for bring a

however, company's we're want For not the it much plans. modeling that wind be near this answer the like any anything keep future. like really to to, you answering your would And the you what really, our dry to renaming relate we'd there. the answer you know, etcetera in to a know able to remaining like of in We'd we're after questions to, position in we seeing call, to cargo wind on shortly, to installation

questions. we'd that, very to So much. for up like open with thank And you

you. [Operator from go come Thank Clarksons. ahead. Nokta Omar Our first Please with question will Instructions]

I month? Sure. of so of guys. back at I'll And say towards to first the least. try regarding by morning. fleets heard Hey, sell it months afternoon. for has the comment your that agreements to just Good your all make since sold more on in And if the Clearly correctly to did count very you've few past expect correctly, ships the dry XX August remaining you call, heed keeping you bulk, guys. to Robert, Good been busy question. you I earlier conclude that's sure the announcement I [Emanuele] and transition. wanted this the end you

one, you Thank and in to has selling is, in you. purchase just The us since the you follow ships maybe discuss you know, market and give been could a flavor is sale second first up the reception how September or started today? it how

for Omar, thanks question. the

are On correct. first question, the you

right. Your understanding is

general you days. done the realistic We the committed This S&P executing market, for in weak in on actually the we dry have remaining that XX, the expect sold been, market – market, and XX defined get And I that we has a strong is that the month. end a commented to seasonally helped seasonal XX sale cargo us before, this our way, know, quarter or think the the usually comment I to in what and vessels of the you surprised market right. as far expect expectation, has are has been as next as constructive, in constructive dry by – and this and industry on first a cargo constructed the was we how fact instead, this QX as sales in

seen the I which [arising] possible quiet, that have selling been to exactly with that, the their – a we not button, you of we I've We're but question dispose we existing stocking little really], want wouldn't two, it accordingly number where we've think has of actually bit On easy, so and positions was what many the push was Omar. prices consideration. at markets pleased when couple know we of throughout. a allow top that’s which if exit that. have, will with on ships and answered have actually been taken announced vessels happy players, us transactions [but say we've we're And reason So, of in to it you've flexibility with as

equity of last the you or Yeah, hedge that shares? no a you outright? a ownership just you have follow-up did. period equity way Thank something that you. there Maybe point, maybe restriction on And just is taken, owning you position? the to comfortable on the Is desire is there feel of, thought you've the a on the

as market reasons given happy stock. that mean, – consider the you we I kind but market the the very think is cost. is you and their so public I out quality number know, it's of any you bulk work far Star we're is, trying leader, tree know, is why, as a of size, we to concerned, always the cap, feel, who dry terms certainly to, it that's Bulk of, doesn't of have in earnings company top the to – one, top you that, there's many know, know, take

going we getting to beginning, the bulk, we the right that out felt into post-COVID from you going felt economic We improve weren't isn't an the or this that also know, believe and and crash dry dry a, fall of where bulk We it and you that improve from to post-COVID. said because was expectation was we beginning, know, rally, apart. of

shell we've It's into dynamics think ability market, are, cash you improved our we're good to a to not transition were get panning that And, being greater as only assets. seen, net investment. seeing a the know, sale fortunately a, – wind. is us in forward very also there's you sell to for all a curve as the that know, no purchase selling the the good, that the to know, steadily been improved our to, cash, that's reason very the or ability know, you've time, prove you to asset that value in move going You rising out it know, not you that's and that

shareholders certainly the no position. to investment. we we no or strong number the to the private stock where need pro us the again, right group or take new other is at it straight know, you And, as clearly desire a hedge is sheet the sell balance a moment. building, Company you that have company's know need group, ahead The shareholder down know, to one the cash that, The for than in doesn't to plans more away. us doesn't if were the there's enough now. So, for also shareholder, itself go

feel know, certainly we not can we a means it be trend, moving a you our time, we upward that which nothing that know, within, constructive you stock say deal long, you it and, a is is you dealt the seller an to clearly, would in over So, [doesn't a got but there's clearly with be] take year have long-term time, but over in I know, investment, it. very know to which

that. appreciate on to on. wait pass the contract I one, the – until Robert. answer under and umbrella of able I'll you're not if if to then just Thanks, And week, one sense timing Eneti prefer And this but it any or sure signing? next official maybe final you

we wind under the we’ll on I say the the and what said to Eneti think I it’s want moment think that, umbrella. until at wait subject we

what conclusion about, at out bookending is right call I right you on second. sector, let's as we name say the change know, to dealing Scorpio of I time the dry in the which about let's on wind this comes, top this selling as think much final looking to chapter going Emanuele the know, this bulk spend very the the forward as focused in with is of come then say, And the as moment. of, that market. the you soon you discussing that. is page want know, is says, that's we’re said, of And Bulkers. turn to we're company This And to about, installation

Good here, years. the clear. these pretty next That's the next Robert. several several luck Thanks, with into weeks and transition good. Very Thanks.

you. Thank

you. Thank

Our Stifel. Please question come Nolan next go from ahead. will Ben with

questions. you're or our Is the hi. around Yeah, continuing smaller have no pay thought a for assets of but In I question, the Frank to around is two to years? Galante where what's for a world around that? to anticipated plus a on the dividend? taking This on for going earning what's thought Ben. Thanks dividend, guess that Kind stay

that's a I great think question.

to You you know, thoughts the itself pay much minimal. or high. that the the The, very know, there cash aren't about ability is the super dividend dividend at moment, is

let's view that. rush that's the haven't, So, to a moment we why say seen at

say you we'll will new leave that's I up Eneti be that and, taken later. something venture, that the to think in that let's know,

Okay. That sense. makes And then…

– official discussed on cutting the there no or the basis, dividend. But an of the all are not board stopping has at

a Okay. That as lot on not but the sense. guess, like far XXXX. And continue of, it did happened it into of sort much share then goes? makes as it repurchase seems I [indiscernible] program, again,

at that's the it no, is, know these results in I that, No, the terms end, look, vessels. come was with company, asset results clear not The buying give you going part trading a of higher think the of And to were reopen stock we'd now, tomorrow very we're may the the as is think for course, the in to of let’s value. once of of really giving, I undervalued any all make closed to I in will has think going stock window would we the to the going And still were, company you that and window, to, Sure. than to know, to very its you, came, morning. since. where you year show know, second have, once expect window that of – of know, as explanations closed you calculations as sold all into different not you're you say that but much it's will detail, are number been the discuss to but And out that. cash say of have we what week a the net all that much we're it aware you we could. stock and simply, and closed delivered very on it like allowed as that was, That again, went company end and you

That's Okay. have. That makes sense. all Thanks very I much.

Thank you.

Thank you.

Jefferies. question come Please Randy from Thank with Giveans will you. And ahead. next our go

it Hi going? gentlemen, how's

Good. Randy Thank your family. and Congratulations congratulations. to you,

Thank you so much.

discount get vessels to a what’s of again. you kind as not thanks Anyway, me. what taken was that what value says SBLK to If taking the at? there, some block Slide those crying, for for shares total trying the hear only of million X, X, And price of you're, XXX sense those sale? debt, of values, the kind the SBLK it's Slide footnote amount on vessel

– sorry deal I the where you it's think Hugh, as can different know, moment, right, and I But may if may probably at do [better [indiscernible], that the because you way], us, on. is, if it have been quickly for carry it's struck itself at they It’s times. are

actually it. Robert’s think I captured

value straightforward amounts obviously existing going shares. the in Star debt the be Bulk you know, the that for Star current obligations receiving are You interpretation in of that own worth. lease Bulk million. and Bulk price, you $XXX very the the or around obviously, stock to which you if make you And, transaction X what whatever the it's of your a we're ships, million that sense monetized Star the can taking to over know, are can what, we you of transaction be return, see do math, is or And know, basis, receiving

I guess… Okay.

would, think unless fair over and through we that the well that I say trade felt would continue the time, it stocks to know, higher. itself the structure you sale you that, trade is wouldn't that to delivery, through to and do stock

Sure.

[$XXX SBLK done using – price. know share I've math, current You it's and and the around million]

worth vessels probably So, you [XXX], in our know, are right. view, the

their or true when million $XX discount and million, [indiscernible]. an a kind is some SBLK to block appreciation shares $XX expected due either that what of sale variance doing So end of

Randy, your here. would, relook Emanuele I valuations the actually would of at actually. I vessels in

Okay.

know if just you don't XXX, sales ourselves, else, enough our, Scorpio find I where or prices, the but value have will or know we anything the if you we benchmarking invest take in created right. take you

But by you constructive divide seems – it don't [high You you the discuss get So, you can, you know, your the wish me]. you your those into but seven that? if the know and offline, look you I more see extremely know, that, XXX XXX. really vessels or go to XXX, your details, we – at where constructive valuations, if to XXX today, are you well said

But partly It you're also, things. somewhere other there. between you know, lies you're in

a a, specifically be wouldn't you'd the that is have on looking much that surprise values Bulk the more Emanuele know, expectation, don't the etcetera. was you market Star market You I in are under mean, say deal I you've looking And wouldn't to I be somewhere And think I you talking on the that that at seen, is if know, selling because as themselves. ships, ships NAV was, all. discount part, think up. you're X. But the sell. is know, it between share for my based block a There going is at NAV and and up me think opposite, moving at But vessels. you're a strongly. construction would trading vessel let's that

if in actually vessels at higher total and come you to know, of just you're the And struck. our was And my because a be whole the value is well, into the rest that the putting calculations. that trading itself XXX. a case are model those will model, coming with time So, particular valuation, related is Star individual have say, you're right would under the then vessels Emanuele than Bulk modeling and NAV to going contract in of then back you those then your out

And Yeah, as it. below we trading also undervalued NAV. that’s fair. here SBLK view Got

that's fair. So,

that I to rising able assets so in wanted a companies. to take assets, it's to at two certainty deal able around. of time I whilst continue mean, were and and that's know, good. think to vessels the the I the opportunity currency. these time. the grow wanted were of didn't mark use were in great you And disposal. that participate deal the at they to And values same We felt they have the probably we beauty at least time, the mean, over we the of the situation between to terms where a a,

a I great both. for think it's So, win win,

Perfect.

heard And then making I just right. you, Okay. sure

have Hamish wonderful up. to you feeling and It's just working can for Anytime him you. [indiscernible] – beat Norton

you sure right That is true. And timing, right. heard just the I on making

vessels won't that there your completely said? WTIV So, dry bulk unwind you what until be is contract you any construction

don't we've No, comment we've once hope just – on Eneti to we but ticker we to to the to wind shortly, want shortly etcetera, we symbol. as become that be to its discuss until – that company with has be happen said, want able will able new

Are Got And for call, on that. what focusing are that bulk it. vessels Are lastly, maximize owning? upcoming operating on quarter-to-date dry remaining we're are operating those you since those best sales? you I’d ask your for thought you I this cash four flow? those to rates guess I positioning

you're a do It's your maximize cash is trying because everything, upon combination exit. to what of

it’s to closer now door of selling it? the versus in getting Sure. getting And that cash combination a Sure.

Yeah. And you a have to of that. blend have

that’s deal. if Good Well again. Thanks me. from

having business you that know think with new in make that much we've otherwise it. we'd that, So, moment interested that a know, more cash if have we've we cash able learned from invest time which to in much friends, the will [indiscernible] that business, I exactly into to, wouldn't long-term the we been It's know you gained rushed we've how far our so learned, in we what business? you a markets not do terms [Indiscernible] is to know, you we're multi-year and Assuring have – that really developing? from,

[EGM]. and that's it Well, from me. again with Thanks good luck Sure.

Thanks.

you. Thank

will Please Liam B. Our come next with Burke go question Riley. from ahead.

you. Thank

timeline anticipate and the a Star you did of a with Eagle? You cash to when them expected set consider you like all offer XX vessels, Bulk be would final you the you for sale did stock would or

comment not you've stage know, but, on done. this ongoing we what are you that at sure we've can because I'm seen Liam, negotiations

are to happy stock and from given know, for of because the – the So further with larger we a have of from were Eagle majority the smaller far comment portion the take Star negotiations size been portion you sold ongoing. cash Bulk, stock we liquidity cannot

Okay.

sales? you but mean, of stock I the the vessel XX taking consider would final So, transaction final then and

we You we I actually are whether or with public company know, not. as a cannot even comment. I is said, cannot negotiating say who is

know, So, negotiations at stage. take comment are this please are said – we know, Because, no I you as you the ongoing.

much. very That's fine. you Thank

Sure.

I think that during would know, buying a the I what regard buy. mean, can not, earlier allowed you to question we the we just bought in back the it's with nearly I us company stock, of to quarter quickly XX% window were I and to refer last back

So, question. a next that – I think good was anyway,

the And call. this speakers, queue further this you your Ladies I'm at time. showing concludes conference participation. for and no in gentlemen, Thank today's questions

You may now wonderful day. a have disconnect and

you. Thank