ENETI – Positioning for Growth in the Fast-Expanding Offshore Wind Sector

By
Anna Wichmann
-
eneti

New York, January 12, 2023.

By Capital Link

Senior management of ENETI Inc. outlined the company’s shift to the offshore wind market, its current challenges, opportunities, and the path ahead during the opening day of the Capital Link Company Presentation Series.

Capitalizing on the remarkable room for growth in the field of renewable energy, particularly offshore wind turbines, ENETI made the decision to enter the fast-growing field in 2020, moving away from its long history in the dry bulk sector. This came with the awareness that there were simply not enough vessels capable of installing the larger, more powerful wind turbines that had taken over the industry. ENETI aimed to fill that gap, and soon acquired Seajacks, a leading owner and operator of wind turbine installation vessels (WTIVs).

ENETI Aims to Cover Cost of Newbuilds by Selling Vessels

  • ENETI owns and operates a fleet five WTIVs today and has ordered two high specification newbuild WTIVs, Nessie and Siren, which are being constructed by DSME in South Korea.
  • These high specification newbuilds are not only be capable of installing next generation wind turbines, but also of installing foundation pieces.
  • Nessie is expected to be delivered in 2024, and Siren in early 2025.
  • ENETI has received a proposal from Crédit Agricole and Société Générale for a $436 million dollar term loan facility to finance approximately 65% of the purchase cost of the newbuilds.
  • The company’s focus is “getting the return on the capital and the assets that we have…We clearly have enough size operationally to make the company function properly and attract the solid customers,” according to Robert Bugbee, President and Director of ENETI.

Tremendous Growth in Wind Sector Could Lead to WTIV Bottlenecks

  • One the major issues in the field of wind turbine installation is the lack of vessels capable of installing next generation wind turbines.
  •  Offshore wind is expected to expand tremendously in the near-term, and the number of vessels capable of installing cutting edge wind turbines must keep up with this growth.
  •  “The market is clearly undersupplied, there’s going to be more supply needed than what is currently built, as well as any that can be upgraded,” James Doyle, Head of Corporate Development & Investor Relations, stated when asked about the sector’s biggest challenges.
  • This lack of adequate vessels could lead to a delay in the installation of wind turbines
  • “We are talking about bottlenecks in the WTIV segment, but there are also significant bottlenecks in the foundation installation vessel segment… for installing a turbine, you need a foundation,” Carl Erik Gurrik, Managing Director of ENETI, said
  • ENETI has decided to outfit its newbuilds with cranes that are useful for both turbine and foundation installation

The complete presentation with its extensive Q&A session can be accessed here:

It details the company’s development and strategy, the outlook for wind turbines, and milestones that investors can expect in the New Year from Robert Bugbee.

ABOUT ENETI INC.

Eneti Inc. is a leading provider of installation and maintenance vessels to the offshore wind sector and has invested in the next generation of wind turbine installation vessels. The Company is listed on the New York Stock Exchange under the ticker symbol NETI. Additional information about the Company is available on the Company’s website: www.eneti-inc.com.

CAPITAL LINK – DISCLAIMER

Capital Link is hosting a series of online Corporate Presentations, whereby the Senior Management teams of leading listed maritime companies present their business development, strategy, growth prospects, and overall sector outlook. The presentations are approximately 45 minutes and consist of a company presentation followed by live Q&A between company management and webinar participants. All presentations in the series can be accessed at https://webinars.capitallink.com/2023/company_presentation/. Founded in 1995, Capital Link provides Investor & Public Relations and Media services to several listed and private companies, including companies featured in these webinars. The webinars, including the ones mentioned above, are strictly for informational and educational purposes and should not be relied upon. They do not constitute an offer to buy or sell securities or investment advice or advice of any kind. The views expressed are not those of Capital Link which bears no responsibility for them. For additional information, please visit: www.capitallink.com.

CONTACT

For more information on the Corporate Presentations Series and for webinar hosting and opportunities, please email forums@capitallink.com or call +1 212 661-7566.

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