Eneti Inc. (NYSE:NETI) Q1 2023 Earnings Conference Call April 27, 2023 10:30 AM ET

Company Participants

James Doyle – Head-Corporate Development and Investor Relations

Emanuele Lauro – Chief Executive Officer

Robert Bugbee – President

Hugh Baker – Chief Financial Officer

Sebastian Brooke – Chief Operating Officer, Seajacks

Conference Call Participants

Ben Nolan – Stifel

Vikram Bagri – Citi

Liam Burke – B Riley

Adam Forsyth – Longspur Capital

Operator

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

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

James Doyle

Thank you for joining us today. Welcome to the Eneti Inc. first 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; Sebastian Brooke, Chief Operating Officer of Seajacks.

Earlier today, we issued our first quarter earnings press release, which is available on our website, eneti-inc.com. The information discussed on this call is based on information as of today, April 27, 2023 and may contain forward-looking statements that involve risks and uncertainty. Actual results and events may differ materially from those set forth in such statements. 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 eneti-inc.com and sec.gov.

Call participants are advised that the audio of this conference call is being broadcast live on the Internet, and it 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. We will be giving a short presentation today. The presentation is available at eneti-inc.com on the Investor Relations page, under Reports and Presentation. The slides will also be available on the webcast. After the presentation, we will go to Q&A.

Now, I'd like to turn the call over and introduce our Chief Executive Officer, Emanuele Lauro.

Emanuele Lauro

Thank you, James, and welcome and thank you for joining us today to all. In the first quarter, the company generated $13.8 million of revenue and a loss of $17.6 million. Our business is seasonal and we optimize the seasonality in the first quarter to perform necessary maintenance of the fleet ahead of what's going to be a busy reminder of the year. Looking forward, revenue is expected to increase throughout the year as our vessel begin employment on several contracts. Our two largest assets, Scylla and Zaratan, are contracted for the reminder of the year, and there is availability for additional employment on the NG2500s, which we're currently working on. We are now starting to actively market for sale the NG2500s whilst we are benefiting from higher day rates on these assets. Until now, we had openly said that we thought these were non-core assets to our fleets. More or less a year into this statement, the market has favorably developed both on the rate and utilization side. And as I just mentioned, we have decided to actively market the vessels for sale going forward.