Eneti Inc (NETI) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Eneti Inc. Third Quarter 2023 Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to James Doyle, Head of Corporate Development and Investor Relations. Please go ahead.

早上好，歡迎參加 Eneti Inc. 2023 年第三季電話會議。 （操作員說明）請注意此事件正在被記錄。我現在想將會議交給公司發展和投資者關係主管詹姆斯·多伊爾 (James Doyle)。請繼續。

Thank you for joining us today. Welcome to the Eneti Inc. Third Quarter 2023 Earnings Conference Call. On the call with me are Emanuele Lauro, Chief Executive Officer; Robert Bugbee, President; Cameron MacKey, Chief Operating Officer; Hugh Baker, Chief Financial Officer; Michael Ferrante, Chief Accounting Officer; and Sebastian Brooke, Chief Executive Officer of Seajacks.

感謝您今天加入我們。歡迎參加 Eneti Inc. 2023 年第三季財報電話會議。與我通話的有執行長 Emanuele Lauro；羅伯特‧巴格比，總裁；卡梅倫‧麥基，營運長；休‧貝克，財務長；麥可‧費蘭特，首席會計官；和 Seajacks 執行長 Sebastian Brooke。

Earlier today, we issued our third quarter earnings press release, which is available on our website, enetiinc.com. The information discussed on this call is based on information as of today, November 14, 2023, and may contain forward-looking statements that involve risk and uncertainty. Actual results and events may differ materially from those set forth in such statements.

今天早些時候，我們發布了第三季收益新聞稿，該新聞稿可在我們的網站 enetiinc.com 上取得。本次電話會議討論的資訊是基於截至今天（2023 年 11 月 14 日）的信息，可能包含涉及風險和不確定性的前瞻性陳述。實際結果和事件可能與此類聲明中闡述的結果和事件有重大差異。

For a discussion of these risks and uncertainties, you should review the forward-looking statement disclosure in the earnings press release issued today as well as Eneti Inc.'s SEC filings, which are available at enetiinc.com and sec.gov. Call participants are advised that the audio of this conference call is being broadcast live on the Internet and is also being recorded for playback purposes. An archive of the webcast will be made available on the Investor Relations page of our website for approximately 14 days. After opening remarks, we'll go to Q&A.

要討論這些風險和不確定性，您應該查看今天發布的收益新聞稿中披露的前瞻性聲明以及 Eneti Inc. 的 SEC 文件（可在 enetiinc.com 和 sec.gov 上取得）。請通話參與者註意，本次電話會議的音訊正在網路上現場直播，並且也被錄製以供回放。網路廣播的存檔將在我們網站的投資者關係頁面上提供約 14 天。開場白後，我們將進入問答環節。

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

現在我想介紹一下我們的執行長 Emanuele Lauro。

Thank you, James. Welcome, everybody, and thank you for joining us today. The third quarter was a productive quarter for the company on many different levels. We have generated more than $53 million of revenue and an adjusted net income of $18.5 million. Since September, we have announced 3 employment contracts which are expected to generate between $250 million and $330 million of revenue. This is figures after project costs. For our new buildings, we have secured 2 major contracts at rates in excess of $350,000 per day. And even more impressively, we've secured $255,000 per day contract for the Scylla, which is starting in 2024 with a perfectly timely start upon conclusion of our current employment.

謝謝你，詹姆斯。歡迎大家，感謝您今天加入我們。第三季對於公司的許多不同層面來說都是富有成效的季度。我們創造了超過 5300 萬美元的收入，調整後的淨利潤為 1850 萬美元。自 9 月以來，我們已宣布了 3 份僱傭合同，預計將產生 2.5 億至 3.3 億美元的收入。這是扣除項目成本後的數字。對於我們的新建築，我們已獲得 2 份主要合同，日費超過 350,000 美元。更令人印象深刻的是，我們已經獲得了每天 255,000 美元的 Scylla 合同，該合同將於 2024 年開始，在我們當前的僱傭關係結束後完美地開始。

Recently, the increasing attention on the U.S. offshore wind market and its challenges has somewhat overshadowed the strength in Europe and Asia for offshore wind. We do expect the U.S. to overcome these challenges, but we must highlight that this is a global market and one in which the U.S. represents only a portion of the overall demand. And this is where our Eneti via Seajacks makes a difference with its global presence in markets like Asia and Europe as well as the United States. The day rates on our new contracts are reflecting a tightening of supply and demand for offshore wind on a global level. And in addition, they are rates which generate significant returns on equity. Today, our total contractual backlog, including options for 2024 to 2027, it is just shy of $450 million.

最近，人們對美國離岸風電市場及其挑戰的日益關注，在一定程度上掩蓋了歐洲和亞洲離岸風電的實力。我們確實期望美國能夠克服這些挑戰，但我們必須強調，這是一個全球市場，美國僅佔整體需求的一部分。這就是我們的 Eneti via Seajacks 憑藉其在亞洲、歐洲以及美國等市場的全球影響力發揮作用的地方。我們新合約的日費率反映了全球離岸風電供需趨緊的情況。此外，它們是能產生顯著股本回報的利率。如今，我們的合約積壓總額（包括 2024 年至 2027 年的選擇權）僅略低於 4.5 億美元。

On the operational front, we expect to close very shortly, the previously announced $436 million new building financing for our 2 vessels, which are currently under construction in Korea. In October, so last month, we completed the sale of the first NG 2500 vessel, the Seajacks Kraken, and we've delivered her to our new owner. In conjunction with this, the company has repaid $12.6 million of debt related to all 3, the NG 2,500s. And thus, the subsequent delivery of the 2 additional sister vessels will not have any further debt repayments.

在營運方面，我們預計很快就會完成先前宣布的 2 艘船舶的 4.36 億美元新建築融資，這些船舶目前正在韓國建造。 10 月，即上個月，我們完成了第一艘 NG 2500 船 Seajacks Kraken 的銷售，並將其交付給我們的新主人。同時，該公司也償還了與所有 3 架 NG 2,500 相關的 1,260 萬美元債務。因此，後續交付的另外兩艘姊妹船將不會再有任何債務償還。

On the merger front, as we all know, in June, we've entered into a business combination agreement with Cadeler, the transaction remains on schedule. All antitrust and foreign direct investment regulators have either cleared the transaction or confirmed that they have no intention to do more work on this file. Last week, Cadeler announced the commencement of the share exchange offer for Eneti's outstanding shares. The merits and rationale of the transaction remain the same as a combined entity. The scale and our respective capabilities will create significant value at a time when offshore wind needs reliable partners and reliable solutions. We are confident that this combined entity will continue to drive positive outcomes for our shareholders as well as our customers. Scorpio Holdings will remain the second largest shareholder after the BW Group in the combined entity. And I myself will be nominated to serve as Vice Chairman of the company.

在合併方面，眾所周知，今年6月，我們與Cadeler簽訂了業務合併協議，交易仍在按計劃進行。所有反壟斷和外國直接投資監管機構要么已批准交易，要么確認無意就此文件做更多工作。上週，Cadeler 宣布開始對 Eneti 流通股進行換股要約。交易的優點和理由與合併後的實體相同。當離岸風電需要可靠的合作夥伴和可靠的解決方案時，我們的規模和各自的能力將創造巨大的價值。我們相信，合併後的實體將繼續為我們的股東和客戶帶來正面的成果。 Scorpio Holdings 仍將是合併後實體中僅次於 BW Group 的第二大股東。我本人將被提名擔任公司副董事長。

Before turning the call over, I would like to ask you to continue to support us by tendering your shares in the exchange offer in support of the business combination. Thank you very much, and I would like now to open the call for questions, if any. Thank you.

在轉交電話之前，我想請您繼續支持我們，在交換要約中提供您的股份以支援業務合併。非常感謝您，如果有任何問題，我現在想開始提問。謝謝。

(Operator Instructions) And our first question comes from Greg Lewis of BTIG.

（操作員說明）我們的第一個問題來自 BTIG 的 Greg Lewis。

James, maybe you could remind us, as we go through the tender process, how much of the shares need to be tendered to push the merger forward?

詹姆斯，也許你可以提醒我們，當我們進行招標程序時，需要招標多少股份才能推動合併？

85%.

85%。

Okay. And so in the event week -- is the event date, is that 85% of total shares outstanding?

好的。那麼，在活動週中——即活動日期，流通股總數是否達到 85%？

Of Eneti total shares outstanding, that's correct. 85.01% according to the prospectus.

就 Eneti 已發行股票總數而言，這是正確的。招股書顯示，佔85.01%。

Okay. And so in the event, just for clarity in the event that we're unable to get to that, does then the time line expand which could then result in maybe -- I guess if we don't get to the 85%, how long of an extension do we get to kind of track down the other outstanding shares for the vote?

好的。因此，如果我們無法達到這一目標，那麼為了清楚起見，時間線是否會延長，這可能會導致 - 我想如果我們沒有達到 85％，如何延長期限很長，我們是否可以找到其他流通股進行投票？

There are mechanism -- it's Emanuele here, Greg. There are mechanism to address that. However, at this stage, we are confident that we're going to reach that threshold. So we are looking forward to reaching that threshold very soon.

有機制——這是埃馬努埃萊，格雷格。有一些機制可以解決這個問題。然而，在現階段，我們有信心達到這個門檻。因此，我們期待很快達到這個門檻。

The next question comes from Ben Nolan of Stifel.

下一個問題來自 Stifel 的本諾蘭。

Great. Mine are -- I have 2 actually. So first of all, could you give a little bit of clarity with how the vessel reservation agreement works? At what point does that turn into a firm contract or maybe just a little detail around that.

偉大的。我的是——實際上我有兩個。首先，您能否稍微解釋一下船舶預訂協議的運作方式？在什麼時候這會變成一份確定的合同，或者可能只是圍繞它的一些細節。

Sebastian, do you want to take this?

賽巴斯蒂安，你想要這個嗎？

Yes. I think without getting into any more detail than -- has been made public already, it depends on the specific contract. But typically, you will have a period of months during which time you will conclude the charter contract around prearranged terms effectively to the main commercial terms and what have you, and that period of time varies depending on the client.

是的。我認為，無需透露更多細節——已經公開，這取決於具體合約。但通常情況下，您將有幾個月的時間，在此期間您將圍繞預先安排的條款有效地根據主要商業條款和您擁有的條款簽訂包機合同，並且該時間段根據客戶的不同而有所不同。

Okay. And I guess, in this case, it's -- you're not able to disclose that time frame. Is that correct?

好的。我想，在這種情況下，你無法透露那個時間範圍。那是對的嗎？

Correct. It's -- yes. Maybe you can disclose what's been made public.

正確的。這是——是的。也許你可以透露一下已經公開的內容。

Yes. All right. Actually, for you, Sebastian, the second question -- or my second question here is, obviously, in the last month or so, there's been all sorts of turmoil as it relates to U.S. offshore wind, it's been a challenge for a while. Does it -- in your opinion, are we getting to that point where things are finally starting to reach the level of rationalization where pricing is going to be adjusted accordingly, and we're -- this is a sort of rip the band-aid off moment. And finally, the industry is in a position that it should be able to move forward? Or is it just going to take a lot longer, do you think?

是的。好的。事實上，對你來說，塞巴斯蒂安，第二個問題——或者我的第二個問題顯然是，在過去一個月左右的時間裡，出現了與美國離岸風電相關的各種動盪，一段時間以來一直是個挑戰。在你看來，我們是否已經到了這樣一個地步：事情最終開始達到合理化的水平，定價將進行相應調整，而我們——這就像撕破創可貼一樣關閉時刻。最後，該產業是否處於能夠向前發展的位置？還是你認為這會花更長的時間？

No. I mean I think the way I look at it is if you -- is the way that all the other markets have evolved. So there were these kind of turbulences in Europe in the early years when again, the industry is trying to rationalize itself. But in the end, it works itself through. You see the same in the Asia Pacific markets, in Taiwan. So I think that the U.S. is just kind of -- it's just a reflection of those other markets and it will be -- it will study itself and it will perpetuate itself but on a kind of more reliable footing. So I don't have any worries that it's going to continue to develop like the other markets have. It's just you have a few tumultuous moments early on.

不，我的意思是，我認為我看待它的方式是所有其他市場的發展方式。因此，早年歐洲曾出現過此類動盪，當時該行業再次試圖自我合理化。但最終，它會自行解決。在亞太市場和台灣，你也會看到同樣的情況。所以我認為美國祇是——它只是其他市場的反映，而且它將會——它會自我研究，並且會在更可靠的基礎上自我延續。所以我不擔心它會像其他市場一樣繼續發展。只是你在早期經歷了一些動盪的時刻。

Okay. And I guess, the -- does this feel like a tipping point? Maybe as my question, is it like finally things can begin to move forward from here.

好的。我想，這感覺像是個轉捩點嗎？也許就像我的問題一樣，事情終於可以從這裡開始向前發展了嗎？

Yes, I think so. I mean I think like you said, it's rip the band-aid off and not just trying to find a constructive way forward where it just becomes sustainable business. Yes. So I think it is a tipping point.

是的，我想是這樣。我的意思是，我認為就像你所說的，這是撕掉創可貼，而不僅僅是試圖找到一種建設性的前進方式，使其成為可持續的業務。是的。所以我認為這是一個轉捩點。

The next question comes from Liam Burke of B. Riley.

下一個問題來自 B. Riley 的 Liam Burke。

On the new builds, the projects proceeding on schedule and on budget, Emanuele?

關於新建築，專案按計劃和預算進行，埃馬努埃萊？

The short answer is yes, Liam. Proceeding on schedule and on budget so far. I don't know if any of my colleagues want to add something, but that's the short version.

簡短的回答是肯定的，利亞姆。到目前為止，正在按計劃和預算進行。我不知道我的同事是否想添加一些內容，但這就是簡短的版本。

That's fine. That will work. And on the last 2 assets, will they be sold or will you deliver them before the end of the fiscal year.

沒關係。那可行。對於最後兩項資產，您會在本財年結束前出售還是交付它們。

The expectation is to do so. We have time, I think, a month into the new year, but the expectation is to deliver a bit before the end of the year. But it may vary for one ship. For the last vessel, it may vary, but it's largely relevant to the meaning of the transaction, right? It depends on the employment positioning and when the owner can step on board. So that's a variation which is not going to be meaningfully impacting Eneti.

我們的期望是這樣做。我想，新年一個月後，我們還有時間，但期望在年底前交付一些成果。但對於一艘船來說可能會有所不同。對於最後一艘船，它可能會有所不同，但它在很大程度上與交易的含義相關，對吧？這取決於就業定位以及業主何時可以加入。因此，這種變化不會對 Eneti 產生有意義的影響。

The next question comes from Adam Forsyth of Longspur Capital.

下一個問題來自 Longspur Capital 的 Adam Forsyth。

Just some more questions probably around what we might describe as wider market turbulence. I just wonder what you're seeing in terms of competitors. Do you think there's any slowing down in terms of the competition putting on new orders for vessels? And actually, beyond that, do you think this could actually see a slowdown in the development of new turbine sizes? Do you think we might start to sort of cap around maybe slightly higher than current levels before we move to the next stage. I wonder also more specifically, are developers now building in longer contract lengths as a result of supply chain issues. Are they taking a more conservative view? And could that actually be beneficial to you. And then related to that, are you seeing any longer setup times between your own contracts? I know you spoke of Scylla moving effectively seamlessly between these next 2 contracts. But could that be a rarity going forward? Or do you think that's something you should be able to continue to achieve in the future?

還有一些問題可能與我們所說的更廣泛的市場動盪有關。我只是想知道你在競爭對手方面看到了什麼。您認為新船舶訂單的競爭是否有所放緩？實際上，除此之外，您認為新渦輪機尺寸的開發實際上會放緩嗎？您是否認為在進入下一階段之前，我們可能會開始限制略高於當前水準的上限。更具體地說，我想知道開發商現在是否由於供應鏈問題而簽訂了更長的合約。他們的觀點是否較保守？這實際上對你有好處嗎？與此相關的是，您是否發現自己的合約之間的設定時間更長？我知道您談到 Scylla 在接下來的兩份合約之間有效地無縫移動。但未來這種情況會很少見嗎？或者您認為這是您將來應該能夠繼續實現的目標嗎？

If I start at the beginning of that, let me address the first 2. So the first one was, do we -- can you just walk through the first question you have.

如果我從頭開始，讓我解決前兩個問題。所以第一個問題是，我們可以嗎——你能解決你的第一個問題嗎？

Do you think given obviously, turbulence in the wider market...

您是否認為考慮到更廣泛市場的明顯動盪...

Yes, sorry. So this is related to new buildings, right? So it's due to additional supply. I think, ironically, that the current turbulence improve our market dynamics for exactly that reason is that those who are not already operating and don't have a big footprint have got more queries rather than [queuer] queries over the last 6 months and that actually kind of strengthens the existing operators footprint. And I think the future kind of -- yes the future profitability and what have you because it's just going to limit supply side and additional supply side.

是的，抱歉。所以這跟新建築有關，對嗎？所以這是由於額外的供應。諷刺的是，我認為當前的動盪改善了我們的市場動態，正是因為那些尚未運營且業務規模不大的企業在過去6 個月中收到了更多的查詢，而不是[queuer] 查詢，而且實際上有點加強了現有運營商的足跡。我認為未來的情況是——是的，未來的獲利能力以及你所擁有的東西，因為它只會限制供應方和額外的供應方。

Sorry. And then the second question was?

對不起。然後第二個問題是？

Slightly more tangential, I suppose. But do you think in terms of (inaudible) do you think sizes would just keep going up or again, this turbulence, they're under a bit of pressure now, maybe best is accepted.

我想，稍微有點切線。但你認為（聽不清楚）你認為尺寸會繼續上升還是會再次出現這種動盪，他們現在面臨一些壓力，也許最好是接受。

Yes, I've actually thought for a while that all this, they're going to continue to grow and grow and grow was kind of questionable theory, to be honest. And the basic premise of that is that it costs hundreds of millions of euros to develop a platform, a turbine platform. And over the last 10 years, the turbine suppliers haven't been able to effectively get a decent return on that investment. That was my understanding on the very kind of basic level so that it was going to plateau anyway? But yes, I think you're going to see much more disciplined probably, given their results recently from the big turbine suppliers. And as part of that, you have to deliver on -- I'm sure they will have to generate profits on the existing platform before they start developing the much larger ones. I've also kind of been pretty consistent in my view that I think that even if you do see some very large turbines going out, the scale of this market means that you don't or won't necessarily have to install the biggest turbines in the deepest water depths to be successful. Covering 80% of the market or 90% of the market will be just fine. So yes, so that's what I think on the turbines.

是的，老實說，我實際上已經思考了一段時間，所有這些，他們將繼續成長，成長，成長是一種值得懷疑的理論。而其基本前提是，開發一個平台、渦輪機平台需要花費數億歐元。在過去的十年裡，渦輪機供應商一直未能有效地從這項投資中獲得可觀的回報。這是我對基本層面的理解，所以無論如何它都會趨於穩定？但是，是的，考慮到大型渦輪機供應商最近的結果，我認為您可能會看到更嚴格的紀律。作為其中的一部分，你必須兌現——我確信他們必須在現有平台上創造利潤，然後才能開始開發更大的平台。我的觀點也相當一致，即即使你確實看到一些非常大的渦輪機淘汰，這個市場的規模也意味著你不需要或不一定必須安裝最大的渦輪機在最深的水深處才能成功。覆蓋80%的市場或90%的市場就可以了。是的，這就是我對渦輪機的看法。

And then sorry, the third question?

抱歉，第三個問題？

Contract lengths, are you seeing any change in your own contract lengths for a like-for-like project partly driven by supply chain issues, which are still seem to be out there in the wider development industry?

合約長度，您是否發現自己的同類專案的合約長度有任何變化，部分原因是供應鏈問題，而這些問題似乎仍然存在於更廣泛的開發行業中？

Yes. Well, I think Scylla was an interesting data point, right? She's got direct continuation from the current employment and for an extended period, which again, we can't go into the detail, but she could be used to cover multiple projects. So it's -- yes, I think the lack of supply of installation vessels means that the utilization and the rate structures should improve for the contracts, the installation contractors.

是的。嗯，我認為 Scylla 是一個有趣的數據點，對吧？她可以直接繼續目前的工作，並持續很長一段時間，同樣，我們無法詳細說明，但她可以用來負責多個專案。所以，是的，我認為安裝船舶供應的缺乏意味著合約、安裝承包商的利用率和費率結構應該得到改善。

And with regards to length of contracts kind of generally are we seeing length of contracts extend, yes, yes, you've still got developers trying to find out how do they secure a kind of critical part of the supply chain. And it is a critical piece. So yes, the more coverage they can give for themselves, the more comfort it gives them that they can deliver the projects that they've got on the books. And so yes, I think, again, the opportunities are improving from the contractor side and whether that be long-term projects or us being able to determine what the start dates are of projects, but up until now, someone may say, you can't compete on our project unless you are available from July 1. Suddenly, we might be able to say, well, actually, we're not available until September 1, but that's still good enough for the client because there aren't any other options. So I think just across the board, yes, you'll see improvements in utilization term, the ability to tie together projects, which has been exemplified by what we've just seen with Scylla.

關於合約期限，我們通常會看到合約期限延長，是的，是的，開發人員仍然試圖找出他們如何確保供應鏈的關鍵部分。這是一個關鍵部分。所以，是的，他們為自己提供的報道越多，他們就越能放心地交付他們帳面上的項目。所以，是的，我再次認為，承包商方面的機會正在改善，無論是長期專案還是我們能夠確定專案的開始日期，但到目前為止，有人可能會說，您可以除非您從7 月1 日起有空，否則不要參與我們的專案。突然之間，我們可能會說，好吧，實際上，我們要到9 月1 日才有空，但這對客戶來說仍然足夠好，因為沒有任何可用的時間。其他選項。因此，我認為，是的，您會看到利用率、將項目結合在一起的能力等方面的全面改進，我們剛剛在 Scylla 中看到的就是例證。

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

我們的問答環節到此結束。我想將會議轉回埃馬努埃萊·勞羅 (Emanuele Lauro) 發表閉幕詞。

Thank you very much. We don't have any closing remarks. We just thank you all for listening and look forward to speaking to you soon. Have a good day.

非常感謝。我們沒有任何結束語。我們只是感謝大家的聆聽，並期待很快與你們交談。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，您現在可以斷開連接了。