Eneti (NETI) 8 Dec 212021 Q3 Earnings call transcript

Hello, and welcome to the Eneti Incorporated Third Quarter 2021 Conference Call. I would now like to turn the call over to Hugh Baker, Chief Financial Officer. Please go ahead, sir.

Thank you, operator. Thank you for joining us today.

Analyst; me Bugbee, Lauro, Chief and our James Senior with Executive and Operating Sebastian call Director; Doyle, Robert Managing Officer Officer; President; Financial Brooke, the Chief are Managing of Chairman Emanuele Chief Officer; Tim Operating On Sanger, Morant, Seajacks. Director; David Cameron Mackey, this today, press discussed of of December XXth on based which release The presentation the earnings morning, call information release on the forward-looking involve and our contain Wednesday is this information and press as statements of and risk may XXXX, as that uncertainty. events materially statements. Actual may results in forth those such and differ from set

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

Reports In under uploaded and presentation today, Presentations. to addition to Investor there been page the short that our the has call is a Relations website on

to Now like introduce I’d Emanuele Lauro.

today. company the the turbine We’ve Thank on itself you, length leading the in placed raise us equity recently thanks, business. base foot of building discussed with has joining and front our in The installation wind raise. Hugh, for everybody most at world conjunction us

time, would the on what And execute on the continues we plans. mean said of do. we We’re integration business Seajacks looking well. forward to In the our

the people. extremely run the personally business of found said flows. and cash flows. is We it to customers. to with I’m happy the The quality business strong generate the by platform specifically reputation great and to also And enjoys in profitable There and at strong industry have pertaining the are delighted I which cash is remains continues profitable as generating volatility, but ironing, the

about we markets offshore for in. general, for which outlook in optimistic wind and more operate the specifically We’re the in

before, slash project will execution the at equity not the this discussions XXXX. which project U.S. option us following has deliver exciting we tangible said The development you the or for too early focused exercised far to look have the vessel for as we’re future. accelerated update is distant area the I we continue have as local is in it already As at customers as and concerned, an on capital providers actually This Daewoo. stage we And expect soon Jones option second news, content Act and certainly the partners. as second recent with raise, and forward in

services So in of continues flow and turbine XXXX. delivery and XXXX we of perspective, also expect builds is an XXXX of steepen curve an contract QX day. supply our From to every demand new and industry clearer news the QX beyond wind announcement The to for against point vessels. the under ongoing inflection getting visibility through the installation a with steady flow the

register. market in any I do execute from now it feels do look that the not really. forward we we U.S. We’re conventional before, now leading starting as business the have as importantly, and legacy more look transition, good to concerned. about more our forward, to listed offshore going years far our market have many with partnership many I of raise. new as concluded forward the exited U.S. is shipping mentioned opening substantial as plan equity wind our remarks. excited prospects our company the to merged international on industry our Seajacks We After both with shareholders And growth so of the

turn to think can the I call operator, questions. we So

We Thank Instructions] a from you. Giveans Randy [Operator question of have Jefferies. with the line

line open. line Your open. is your is Randy,

is taking on for our for this thanks Robertson Chris guys, call. Randy, Hey

Sure. Hi.

just I preserve maintain guess it point new safe? wanted uncertainty the of about with why to I on up. ask dividend Hi, this cash hand come Why around to things be just stands as not at the program, building just kind it just can that

a it’s think minimal very dividend. I

around. changing I think rather of chopping that sort than it’s a and

I reasonably all have time. savings. people I we I And expect we I in to with that appropriate question – think at in there coming cash it the it’s with we another we balance to have don’t for over dividend And increases revenue may the the it’s forward. things in that in And and think shape this sheets enough to months to relevant think we liquidity now as related have the moment. committing clear have moment. that be are – going think cash and it’ll keep much shortly now, various And forward. been commitments the the clearly at would deal better to enough going to good secure if it’s clear announce people that not the will an

That’s All Yes. Okay. fair. right.

next our question. Moving on to

use guess and with of of I Just can the raised the proceeds? proceeds you in terms talk that about the offering, why the amount that specific were

put us a were we defined Act moment the American have a to on Jones try of and position to to in balance a in create move proceeds use in a and permanent shipyard. more at venture. sheet to which than and the position put from in to forward financing solid to go us put Daewoo the to Well, the exercise in in option a And the money

if if and was for Got the you. recently in vessels market in markets I they’re higher a there Asian market European have they that Do WTIV over out could in. just Is demand quick they’re on water in? question you market. market of a Asian talking terms the third right vessels one taking And the There any not vessels the can any article might chance on earn in already some shifted Asia sneak be that where about there? of commentary of to operating the that one they rate now the an the

would increase a that this might short-term, a and more said detailed now, as that, developing the be longer-term, Sebastian, be the two opportunities just you think see question. vessels vessels are of said, you’re you I projects think continuation comment do I sort from the especially see or that market you’ve more likely in so as answer Europe, Asian on more of to that, of Yes. likely and in the chats broader United is world Sebastian the time you the that in Sebastian in one that in if there’ll will But context, need markets more activity time regions before in of to many whatever says tighten I market, States going between more. could be extended to a arbitrage and in projects

with there. think couple of America, that Robert Yes. big said, is and we as we’ve last area. opportunities the end the demand supply in prepared available even markets seller, Asia-Pacific I and kind I high it a market characteristics order will will of we’ve markets, change be in on one now regional the happened that’s gone having to markets create to Europe, whether And shown as those couple based and supply having local to to demand. each local the dynamics four over rates just Asia-Pacific, the transit yes, that up of on based their mean Asia-Pacific And were achieve in own core from day the within of kind of years

yes, will which obviously as the shift of areas they create it’s economics, which fleet people and So out shortages mobile and a the best go. towards regions, offer will opportunities

great. older just for current hear it’s to Okay, our be questions. dry Thanks fleet. to as going that as taking are Yes, bulk the mobile good fleets the

you. Thank

Thank you. Lewis have from Greg We BTIG. [Operator with Instructions] question

Your question, please.

for clarity believe. quarter. talk performance Could full little bit the thank you, around I the financials the good you that deal hoping morning, closed about guys, around everybody. Hey, a and more I Seajacks mid-August, that? was realizing I this quarter Hey

for And in X, of August presentation that show really we’ve with Greg, can’t bought $XX.X you’ll go too that period, the of to terms see you’ll which million the you we we’re about time aware in but quarter, Seajacks revenue from is in and the our XX, we uploaded been detail that revenues performance of earned showing July the the if the provided million. that much revenues only of that’s to prior is, period the detail. between from financials July that acquisition. $XX we’ve around shown that X see And But obviously talk Seajacks website, the it. additional that that in

expenses we revenue I’m for the with So same and have costs. provide combined quarter time. can afraid what a we that’s the project at figure and this operating

timing about coming kind believe, can progress a with for enough. ING the I Thanks right around I and facility the retired. And That’s and new recently new I color – forma, Okay. a voice guess, any that about, up got the facilities or the I facility you you was I bit a kind now. give believe replace more talk you’ve talked fair saw little of that. I existing Could your two – any of guess, Hugh. pro while to

and supplement, facilities into to about drag existing proposals Yes, developing it other in are position a issuance, a debt our I quarter, potentially first quarter. refinance that and in to but we we prospective we’d think we second can equity certainly proposal received in our the the the talked might proposal be

process refinancing that a is is there a underway So we’re in and not hurry.

is but to more So quarter. report probably that going certainly process able be next we’ll on,

Hey, thank perfect. for much time. you very guys the Okay,

you. Thank

of William question we with And you. Riley. a the from Thank have B. line Burke

Your line is open.

you. Thank

the quick a have Does balance the subordinated. Greg’s on unencumbered? question is facility, mean ING your follow vessels are left that the sheet current you debt to on on Just that

the have debt that fleet the operating is water. balance by we No, no. Liam, on on sheet own that secured the we the

and that So Seajacks loan. there it’s acquired security that specials are for the five we

It secured. it’s So subordinated. we – not is

Okay.

current So secured all the by vessels are you that have debt.

Yes.

a guess, state directionally, as give didn’t shaping number, is the backlog sense you Okay. backlog but how you up? us And a to could I

to I think, probably, Brooke. I’ll push that Sebastian

Yes.

do the the contracting calendar are relatively short. high year the inquiries the regards with on is end end follow next about and year the than It’s a On discussed and year. builds, we work year Changhua discussions that the the Greater contract given and from But we ongoing with she’s to beyond or of into at coming moment. onwards. also the awards message NGXXXX And next first for much see next for on announcements the year of I multiple through a fleet out – projects of Zaratan to can’t previously, kind quarter to project. following this that for contracted give with regards and detail backlog projects budget And in the quite the delivery There regards fleet, into I the that number of of new or of And the horizons compliant. year. as that conversations think installation we’re With the year Scylla, expect we to next made the previously next we key existing pursued year. are more perspective, about turbine advanced being

you, thank you, Well, thank Sebastian. Okay.

Thank Clarksons Platou. Turner comes with you. question And next Holm our from

Your line is open.

question. taking Hey, for gentlemen. Thanks the morning, good

the project. with Jones I you’ve first guess of just the was you So kind secured on project. concept, then the been And from sort piece project your kind from one feedback next all project. outline that could kind far progressing Thanks. the of but raise, of share of kind to is equity wondering I of the issue, equity the the now the client that you’ve what if of steps if your announced November after there’s eventually milestones the question so contract. deal, partners mean, the second I finding Act just for part of any is are announced

don’t repeat My Turner. the I please? was… line you question know I it apologize. Can why was Sorry, disturbed.

it Okay. headphones. was my Yeah, issue with maybe an

the response is that is expect has then just deal. all could corollary you new question and that I Forgive wondering through the to we the if share with build that. through ahead us your the equity Jones developments that, that Act No, with from on of raise just November was guide the concept? project for to now me milestones issue are coming U.S. on events the But if of first kind of question. and the my regards portion of in you project. for should kind a customers kind What your Act Jones been Thanks. what in

Thanks very much. can they I’ll start. please. And then in chime as my colleagues

to Jones partner, as for of what number a I guidance project. yard, on are think position in things being of there with parallel contractual the the the are milestones employment. the the are the discussed of that namely Because financing U.S. it’s well as difficult give the clear it,

So the side. contractual employment position on the

and to we’re soon expect my it news depict this stage. have I at that little as come not as difficult vague going we give really details together is we was to this get back promptly. expect these aspects So relevant future is distant That’s on a saying what opening remark too to all in in the why – we relatively to topic

of And more difficult guidance question stage – to detail at I we the your really this second anything as detail. part cannot in is and or it Turner? said, where However, more depict you then was give disclose

the to Act the just second Jones only customer build, second was end new around response unit It’s market. It right?

was customers I the point how curious the just reacting to are project. So of

very to phone Tim, you Sebastian, do you want this? want take on but the Tim keeps do take ringing, well, this to or

Sure.

developers that a minimizes about I there think It’s of the available. risk at expensive think of excited Act, a are very attractive WTIV project. I installation other highly having the Jones a one solutions are end long and opportunity

with phone very receiving been and of advanced of we’ve lot a calls a So of a number customers. discussions

Understand.

Okay.

some competitors on, the hearing we’ve moving that some Just to and been market. of market from your hearing maintenance talking

XXXX, Hydra, year assets, what you’ve to opportunities that’s up difference, experienced last been market some a guess, well. XXXX, of And terms of in two? into maybe in for bit over rates. WTIV heating I what Leviathan, been for is or as you the end are actually compared Kraken kind the any So there’s maybe day seeing the quite the the improvement market Are little lower look of those you the forward all has

It’s Sebastian. Definitely.

the are think the of last But of going from through I next a which projects one So And that X,XXX and this of year market some factors and/or that is year. year deferred number there go into is following year the into previous that to is, turbines yes, this and first of with useful in increasing approaching I lot of amounts chatter life market what COVID. of maintenance. a years would requiring due which the addition, generation their agree is are XX

of that more inquiries hearing generally multiple and with them indications years. there across are we are seeing or some So and they’re

in So direction to the yes, I maintenance. with the for regards direction of us, travel is right think,

Seajacks. Thanks. regards you believe the outlook report strong in you like the Very it’s is was and three, of been if then terms wondering directional there’s and Especially, it for one the close to I’m of when assets good. difference what the new been kind high Scylla And as there but transaction the you just level to I this period question. Zaratan. the for market. Eneti a higher transaction? it any just Is of, end builds or mean, it’s now I know four change and closed any in short months between And time, since

that’s been changes think have confirmation. than Turner more that I

cement as direction us the on quarters you remains had be frustrating able understand same. not couldn’t well, really the starting the And go execute, the coming has remains travel allowed being is to to disclosure looking being shouldn’t to can there. us we for to really our the equity when the And able to to we ago, the outage of busy, be sort three we raise, we’re of get execute and two, that We that us. we we So ASAP but weeks long step we which were of three same. take pieces of able to the first give are transformative – back do to we’re it us on weeks give – start very and it’s when forward what closed to chance now doing. which the And level working ago, want details, The two together. plan position as

it’s exciting. So

forward position through. things the push and have now look We to

of thanks luck Thanks. and Okay, so much best year. next

Thank you.

the Mr. not for I And to questions. final further any pass remarks. Baker showing will call I’m any

Thank you, operator.

We further have no comment.

on we call. everyone thank for So being the

concludes today’s great you a participating. disconnect. And conference you. call. now day. Thank Thank Have for This may you