Eneti Inc. (NYSE:NETI) Q3 2022 Earnings Conference Call November 8, 2022 9:00 AM ET

Company Participants

James Doyle - Head, Corporate Development and Investor Relations

Emanuele Lauro - Chairman and Chief Executive Officer

Robert Bugbee - President and Director

Sebastian Brooke - Chief Operating Officer, Seajacks

Conference Call Participants

Greg Lewis - BTIG

Turner Holm - Clarksons

Ben Nolan - Stifel

Ethan Widell - B. Riley

Operator

Good day and welcome to the Eneti Inc. Third Quarter 2022 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 IR. Please go ahead, sir.

James Doyle

Thank you for joining us today. Welcome to the Eneti Inc. Third Quarter 2022 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 third 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, November 8, 2022. It 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 & Presentations. These slides will also be available on the webcast. After the presentation, we will go to Q&A.

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

Emanuele Lauro

Thank you, James. Good morning or afternoon to all. Thank you for joining us today for Eneti’s third quarter 2022 results. In the third quarter, the company generated more than $69 million of revenue and close to $28 million of net income. And this excludes a realized meaningful gain in our investment in Scorpio Tankers. The demand has increased, rates are trending higher and utilization is picking up. And this is true for all different sizes of WTIVs. In addition, also the COVID related challenges like long quarantines or crew movements that have been affecting a global player like Eneti, who's operating assets worldwide have started to show signs of normalization. I am referring more specifically to Asia where a few of our assets are operating, that is gradually going towards a more westernized COVID approach. But recently, we have contracted one of the NG2500 for employment in 2023. And we're optimistic about further contracts at higher rates and longer duration in this class, but also in our bigger classes. We are in a fortunate position as these assets the 2500 more precisely can generate positive cash flow whilst we are exploring alternative solutions, including potential sale of the 2500. We are excited to contract our existing assets base and newbuildings at higher rates in what appears to be a very undersupplied market going forward.