Earnings call transcript Q2 2023

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Operator

Hello, and welcome to the Eneti Inc., Second Quarter 2023 Conference Call.

I would now like to turn the call over to James Doyle, Head of Corporate Development and IR. Please go ahead, sir.

James Doyle

Thank you for joining us today. Welcome to the Eneti Inc.'s Second Quarter 2023 Earnings Conference Call.

CEO me Cameron Lauro, Hugh Mackey, Financial Sebastian with Robert Executive Baker, call Officer; President; Bugbee, Chief Brooke, the are Chief Emanuele Officer; Chief On Seajacks. of Operating Officer;

available is statements issued XXXX, we and August uncertainty. information earnings which enetiInc.com. second Earlier that information and on this as today, website, call our our on X, forward-looking involve on press risk may quarter release, contain is based discussed today, The of

materially from differ set results forth statements. may Actual and such those in events

discussion of the enetiinc.com as at fillings, a release the these For SEC you risks available today should forward-looking earnings and and sec.gov. review well issued in Inc.'s are uncertainties, as Eneti statement disclosure which press

is being live is webcast website Call the Internet XX Relations and for being recorded will the on Investor participants archive of advised conference page broadcast be the are on of also that purposes. audio playback days. our An of available the approximately made call for this

While presentation. we and presentation Investor reports through and is will Relations page under there going our website on not the be an earnings slides,

After opening will remarks, to Q&A. we go

I'd Now introduce Executive Chief Emanuele to our Lauro. Officer, like

Emanuele Lauro

the the James, quarter. $XX net In you, us thank Thank the $X first welcome, million. close of million income strong generated everybody, joining from second a for and you, of improvement and revenue adjusted quarter, Company to today. and represents This

that sale marketing announced previously million. discussed During for on the we fact all These we had which contracts. the for of assets them noncore identified we quarter, a this five were and sale. were of are vessels NGXXXX the Today, as price $XX employment

turbine commitment installation. to sale nation The and reinforces pushing on our wind itself

close with to we million repayments. remains as subject we on and we've it announced, agreement expect of proceeds schedule, of the to June, importantly, into while the regulatory previously combination a this after fourth year. creates transaction during quarter approval. liquidity, more have remains cash In it entered we've combination addition, Cadeler, debt business In and $XX The

shareholders, We is for customers believe combination and as the right our our previously also all we employees. stakeholders, for our for for discussed

the partners think capabilities will a reliable offer. solutions, our As create and which a needs time and significant will at reliable offshore when be wind able we combined entity, value we to respective scale

The shared that offshore Offshore built has Cadeler record [indiscernible] track of been Wind a tireless values. on creating is vision unwavering of Seajacks to future same the The the we're for and of commitment to efforts and value. combination our delighted shares testament our professionals, and our

will combined remain largest as Vice I of one in Chairman. be Senior Eneti to shareholders management the as will the of nominated entity, serve and

much this and customers positive We will on forward your very and combined the employees, the outcomes look continue future are for about together. entity for confident further Thanks and on support progress to continued that updating to our -- you excited progress upcoming we're quarters. drive shareholders, the in

please? I'd to to like call turn James, now the

James Doyle

Thank you, Emanuele.

We Q&A. will go now to

Operator

Sherif [Operator Elmaghrabi first is BTIG. from Instructions] question of The

Sherif Elmaghrabi

that than broadly. just has anyway. fleet them not focused So many are Pretty I WTIV WTIV much other a Cadeler. your maybe operator pretty every smaller And think of

So you are guys could consolidation in this combination the about at is this industry? time? spark that something thinking And further that

Emanuele Lauro

further the anybody we process in I'll the that second Thanks the is on which We're take I'll this think cavalry facing. don't for question. consolidation. time, -- it's take are about first. Emanuele. I focused question At thinking

think for this other it see what is the looking open which about and The And opportunity after will stage. front closing closed, at may I day transaction. is put doors in to us that, market this Having think we all premature said of this be Cadeler. transaction

the on. And first from this part I is actually We the what was what of away transaction, meaningful remind a are months focusing closing question a couple we're missed and me because of it. please

Sherif Elmaghrabi

The Eneti Cadeler. a than smaller same, because fleet just else broadly has industry the more or everybody for but

Emanuele Lauro

you I'm do any on not sure Sebastian, views have this.

Sebastian Brooke

and I important. don't obviously, I having have think any big industry it's growing very scale views other is specific than, a

some either from competitors. from may again, the that the prompt at Cadeler So activity, or point, side

Sherif Elmaghrabi

Okay. And I'm ahead. interested foundation go I'm -- in sorry, vessels how the installation

Robert Bugbee

in I and benefits for has that's Cadeler tremendous going think to important -- was what to the as that, the it here. relative Eneti I competitors at is customers well that I pointing just going to And look, going is I it's combined advantages a was think sale in you're operations. just Rob the to out say of most show part industry. as

Sherif Elmaghrabi

curious Okay. packaged installation of a any work deal their And typically the be does to exclusive? Or with And Are a Transocean? have chartered combination to bearing they fleet. on foundation WTIV tend on sort it two-parter, into of make WTIVs? with kind vessels, the JV foundation does how figure installation they the in your

Emanuele Lauro

because we foundation foundation to has assets the coming will two company are as domain, the their building know that from on have think focusing foundation that I current standpoint, Cadeler assets new in space. two the exposure

Eneti which today, possible. we're As concerned, what are is is far foundations as about still talking

are foundations. buildings new of capable installing Our

of are they or with the is time course, that progressing. at is the -- focus not being, However, least not. not -- that's transaction this at the for But stage,

closure. from expanding Eneti We the company, stand-alone stand-alone foundation are not an looking -- at

commitment We the of our energy at end this year. company the we expect into putting we which, would by and be all post as looking discussed, combined closing,

Operator

Burke is from Riley Liam B. The next question FBR. of

Liam Burke

for larger particular, your for fiscal XXXX? or Charter, vessels, pretty done booked 'XX. much any been at Looking there in Have for they're Zaratan discussions

Sebastian Brooke

Yes, there a this Can that? was made release Sebastian. you just confirm you there Sorry, press think Can I around are just James. -- that. and Zaratan discussions with is

James Doyle

for a the signed to agreement thanks reservation year, vessels, Liam, larger Yes. Zaratan for We've the Scylla is... next the

Sebastian Brooke

in Zaratan just are highlight a the year. fact we limited haven't year. in just reservation lot to made with about said, And of is that, piece, about next for I that as of so very Sorry, contracts regards the agreement there Scylla, for there announcement next very, is, dialogue availability James And vessels. on but we an multiple

else. than a the tight so to vessels well of anything so So placed dynamics. next opportunity benefit I'd largest of very see water, and It's that one those from on year here's the more rather very, an market

Liam Burke

guess, I for And James. is this Great.

see there's on where the European some ESG, mean, rumblings macro at On in I that focus market Or losing to shows more would Southeast still? it's do you front, a little anything want Does the Europe. in seen -- interest Asia? you opportunities have you

James Doyle

gas. what you in oil working know, from perspective, Well, which, I as we've noncore offshore think assets, done disposed we're but an also and the ESG of is wind,

as vessels as the offshore in Eneti Emanuele for sale, will our and that on be operating And all focusing fleet turbine we in highlighted complete foundation installation. so wind and

an very well ESG perspective. fare So we would from

Operator

next The is Ben of from Nolan question Stifel.

Ben Nolan

first my really my MGXXXXs. guess I own maybe question question the around of is sale the

been that while. talking about have a for guys You

through assets? what was the the or incremental thinking had also deal in lower winning curious about and been cash trigger have the I thought. successful if on that? it been pull have walk those pretty math maybe the thinking Cadeler just a on Although pretty for you were how little -- me Was deciding of part -- than to selling price generative bit business flow those was I sales was the

Emanuele Lauro

Thank Ben, good it's question. a you.

and especially leaving seen coming space. the business some and I contracted just the on James the legacy to widely of renewable brought of were services assets there. We've employment think the oil part the play, in going the on may oil the on business of demand referenced wind was of was the though focusing exposure, the yard do for gas side -- on the from an sort exploration, and that on decision that maintenance into discussed the with demand mainly which the space fact offshore have these that Arabian on we into demand they uptick in and industry even

to as we to far lower of On a environment what And where have we decided to have a was volatile focus it the gauge there a a than difficult been there how past not the and have able in space showed at over concerned, been conclude many what where on. even to were sale. sale, were have buyers is market higher than in we number interested -- numbers really that number price really to the months changing able go the parties in interest somewhat the as

the up assets the delivery with in focus the stand-alone a that So were to with legacy out reliable decision buyer could in could these pull buildings, the to get that We a that trigger company. away performed actually thought also the a the company from combined order combined most we've buyer and moving have taken which free business thought crew XXXX. new in the in we crew out there on a that

buyer. time have which factors trigger of combination fact a pulling this to were this the at of there So contributed the with

Ben Nolan

That's for the going And and some that the probably about in about be it, back with foundation what post I'm that, Is company talked since combination working even with would vessels helpful. that thinking the Transocean. Okay. arrangement continue combined the would thinking still just you to way Transocean.

Emanuele Lauro

meetings have going this in September will cooperation to Transocean how discuss going want and parties Eneti's continued regarding are We forward. what is with a

answer parties, premature the is we this table in discussion yet. all this detailed same haven't me stage had it to question at for So at sitting because with

Operator

Clarkson is next [indiscernible] The from of question Securities.

Unidentified Analyst

question on Just back Ben's to first to circle the NGXXXX.

any sort on -- sales color helpful. process the give that sale of you discussions be a would Were any can of on bilateral was around So or there? there details result the -- any bidding more

Emanuele Lauro

discussions to number outright, equity all raising the chosen to acquiring As I one, in We order said, And perform only private. to entertain debt were acquisitions. buyers, specific outright buyers funds, has there the which the were which desire remain were buyers that those in buyers, the not interested both subject expressed of we've and a assets. with

disclosed So the to we haven't buyer.

that can that specific well-established the experience decades tell has is I in very a Eastern segment. -- buyer However, you Middle of it's

Unidentified Analyst

summer. wind seen And canceled delayed the multiple then have projects or over being offshore we

also do over how the and affecting see years? and the on delays to you So four outlook utilization terminations three next rates these potential potentially

Sebastian Brooke

Yes, sure.

growing think it's I So a industry.

in I days of in think the that Europe. some we issues early had the

forecasted think capacity has the think years. to the been and that the time or line possible a of I capacity to have desired date that all would it in install don't aggressive of while. well been been for been or ever next the it I of all aware we're to as kind possible couple We've -- hasn't aware

think while of have going part short-term has I And point, think will some Robert's think will from back for if to I that of impact Company. that it markets meaningful at create don't being every of I the you. projects on contractors, being the every my point that, again, view, Asia entity from of combined you're that look headaches I number various a and months, up But at we're have new couple South opened a about delayed. we're talking looking what in or it actually areas macro in whole perspective, -- America month scale,

overall the the the of robust. see very I remain industry dynamics So overall

combined entity storms. I meaningful in think, think of to is there going impact healthy, long-term that And rates. and/or the a I think very to small I the said, like will I so utilization any don't be well be prospects, kind weather on positioned

it We yet. haven't seen

Operator

The question Adam from next is Forsyth Longspur Research. of

Adam Forsyth

rather question, one question, I wider narrow may. if One

XXX% narrow these one, sale those, benefit income get NGXXXX. just on ahead? goes new of of contracts, the the before the contracts likely the of that again it you is Firstly, The will timing on the the

I canceled. of just new wind the decision-making so, being earlier competing sale Are it in wind installation is turbine adjustment on And wonder your of competitors? from being wider sort going early? price? conclude group back projects also any there. seeing if any on out to competitive will for installation possible the of the vessels question sale of is kind any decisions turbine is what with delayed further situation Or mechanism you're in then that terms response the And there

are regard? seeing that in you What

Emanuele Lauro

for Thanks want you Cam, the question. part? to first the do take

Cameron Mackey

Sure. XXXXs delivery Emanuele. Thank discussion. under the The are you, of

again, adjustment delivered, will And has for the so we expect we moment. cannot be year. outside calendar be sure on mechanism, within the they at to if this when it any, moment but been agreed And not say for at the

Emanuele Lauro

to want you maybe second question. the part Sebastian, take the of

Sebastian Brooke

being we So heard be built future assets are is the what new going I the question? there's likelihood think is competitors in that a that -- do the to reduced of

Adam Forsyth

Yes, that's correct. Yes.

Sebastian Brooke

will. it think I

said before barriers the in been reasons. to a for there of always very high I think business we variety this have entry that that

or for queries just as I projects. delays in we which as adds think that start to [indiscernible], more [mass]. bringing again existing a with creates questions positive such player It environment

leave going your is combined think well question? So Cadeler again, us that actually I the answer positioned, timing very entity very well the to and Does of be the positioned.

Unidentified Analyst

No, Yes, confirmation. it does. Yes. that's helpful

Operator

I remarks. conference question-and-answer Lauro turn our any to closing concludes the would for over back like Emanuele This to session.

Emanuele Lauro

Thank to apart your Thanks do remarks, the We lot. and for you today any speaking thanking closing very not time future. in Goodbye. everybody much, operator. from have a look forward

Operator

now The conference concluded. you for Thank attending is today's presentation.

may disconnect. You now

Eneti (NETI) 8 Aug 232023 Q2 Earnings call transcript