The Company also announced that on
Results for the Three and Nine Months Ended
- For the third quarter of 2023, the Company’s GAAP net income was
$18.3 million , or$0.48 per diluted share, including transaction costs of$0.2 million or$0.01 per diluted share, consisting primarily of legal and tax services related to its pending business combination with Cadeler A/S. These transaction costs are recorded in General and Administrative expenses. - Total revenues for the third quarter of 2023 were
$53.2 million , compared to$69.2 million for the same period in 2022. The primary driver of revenue during the third quarter of 2023 was the revenue generated by Seajacks Zaratan, which continued to perform the Yunlin contract throughout the third quarter of 2023 and generated charter hire revenue of$12.7 million recognized, as was mobilization / demobilization revenues of$5.7 million .
- For the third quarter of 2023, the Company’s adjusted net income was
$18.5 million , or$0.49 adjusted per diluted share, which excludes the impact of approximately$0 .2 million of transaction costs incurred related to the pending business combination with Cadeler A/S (see Non-GAAP Financial Measures below).
- For the third quarter of 2022, the Company’s GAAP net income was
$36.2 million , or$0.95 per diluted share, including a gain of approximately$8.1 million and cash dividend income of$0.2 million , or$0.22 per diluted share, from the Company’s former equity investment in Scorpio Tankers Inc. - Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the third quarter of 2023 was
$22.9 million and EBITDA for the third quarter of 2022 was$45.0 million . Adjusted EBITDA for the third quarter of 2023 was$23.1 (see Non-GAAP Financial Measures below). - For the first nine months of 2023, the Company’s GAAP net loss was
$49.2 million , or$1.34 per diluted share including:- a write-down of the NG 2500X Vessels, which were classified as held for sale, of
$49 .3 million or$1.35 per diluted share, - transaction costs of
$3 .5 million or$0.09 per diluted share, consisting primarily of legal and consulting services, related to the pending business combination with Cadeler A/S.
- a write-down of the NG 2500X Vessels, which were classified as held for sale, of
- Total revenues for the first nine months of 2023 were
$105.9 million compared to$152.7 million for the same period in 2022. First nine months 2023 revenues were generated primarily by the Seajacks Scylla, which worked at an offshore wind farm project inthe Netherlands , as well as the Company’s three NG2500Xs which performed maintenance on offshore gas production platforms and wind turbine gear maintenance, and consulting revenue. The Seajacks Zaratan began work on the Yunlin project offshoreTaiwan inJune 2023 . - For the first nine months of 2023, the Company’s adjusted net income was
$3.7 million , or$0.10 adjusted per diluted share, which excludes the impact of the write-down of the NG2500Xs, which were classified as held for sale, of approximately$49 .3 million and the$3 .5 million of transaction costs incurred related to the pending business combination with Cadeler A/S (see Non-GAAP Financial Measures below). - For the first nine months of 2022, the Company’s GAAP net income was
$93.1 million , or$2.41 per diluted share, including a gain of approximately$54.9 million and cash dividend income of$0.6 million , or$1.44 per diluted share, from the Company’s equity investment in Scorpio Tankers Inc. - EBITDA for the first nine months of 2023 was a loss of
$24.8 million and EBITDA for the first nine months of 2022 was$119.4 million . Adjusted EBITDA for the first nine months of 2023 was$28.0 million (see Non-GAAP Financial Measures below).
Liquidity
As of
Newbuildings
The Company is currently under contract with
HanwhaOcean1 | HanwhaOcean2 | ||||||
Q4 2023 | $ | — | $ | — | |||
Q1 2024 | 33,036 | — | |||||
Q2 2024 | 33,036 | — | |||||
Q3 2024 | — | 32,441 | |||||
Q4 2024 | — | 32,441 | |||||
Q1 2025 | 198,217 | — | |||||
Q2 2025 | — | — | |||||
Q3 2025 | — | 194,644 | |||||
Total | $ | 264,289 | $ | 259,526 |
(1) These are estimates only and are subject to change as construction progresses.
Sale of NG 2500X Vessels
During
In
Award of New Contracts
During
During
During
During
Debt Overview
The Company’s outstanding debt balances, gross of unamortized deferred financing costs as of
As of | As of | ||||||
Credit Facility | Amount Outstanding | ||||||
$ | 56,250 | $ | 43,650 | ||||
Total | $ | 56,250 | $ | 43,650 | |||
The Company has undrawn availability under a
Quarterly Cash Dividend
In the third quarter of 2023, the Board of Directors declared, and the Company paid, a quarterly cash dividend of
On
Conflict in
As a result of the conflict between
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue: | ||||||||||||||||
Revenue | $ | 53,196 | $ | 69,193 | $ | 105,861 | $ | 152,723 | ||||||||
Operating expenses: | ||||||||||||||||
Vessel operating and project costs | 20,916 | 22,048 | 58,417 | 58,899 | ||||||||||||
Vessel depreciation | 4,521 | 6,079 | 16,656 | 18,530 | ||||||||||||
General and administrative expenses | 10,797 | 10,220 | 30,086 | 31,087 | ||||||||||||
Write-down of vessels classified as held for sale | — | — | 49,336 | — | ||||||||||||
Total operating expenses | 36,234 | 38,347 | 154,495 | 108,516 | ||||||||||||
Operating income (loss) | 16,962 | 30,846 | (48,634 | ) | 44,207 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 759 | 212 | 2,443 | 223 | ||||||||||||
Income from equity investments | — | 8,340 | — | 55,538 | ||||||||||||
Foreign exchange (loss) income | (828 | ) | (2,334 | ) | 648 | (4,655 | ) | |||||||||
Financial expense, net | (10 | ) | (85 | ) | (774 | ) | (2,037 | ) | ||||||||
Total other (expense) income, net | (79 | ) | 6,133 | 2,317 | 49,069 | |||||||||||
Income (loss) before income tax provision | 16,883 | 36,979 | (46,317 | ) | 93,276 | |||||||||||
Income tax (benefit) expense | (1,443 | ) | 794 | 2,855 | 205 | |||||||||||
Net income (loss) | $ | 18,326 | $ | 36,185 | $ | (49,172 | ) | $ | 93,071 | |||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.50 | $ | 0.95 | $ | (1.34 | ) | $ | 2.41 | |||||||
Diluted | $ | 0.48 | $ | 0.95 | $ | (1.34 | ) | $ | 2.41 | |||||||
Basic weighted average number of common shares outstanding | 36,651 | 38,104 | 36,621 | 38,573 | ||||||||||||
Diluted weighted average number of common shares outstanding | 37,902 | 38,140 | 36,621 | 38,620 | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Dollars in thousands) | ||||||||
Unaudited | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 78,989 | $ | 119,958 | ||||
Restricted cash | — | 7,269 | ||||||
Accounts receivable | 44,836 | 35,776 | ||||||
Inventories | 5,177 | 5,795 | ||||||
Prepaid expenses and other current assets | 7,564 | 4,740 | ||||||
Contract fulfillment costs | 1,368 | 634 | ||||||
Total current assets | 137,934 | 174,172 | ||||||
Non-current assets | ||||||||
Vessels, net | 399,433 | 521,331 | ||||||
Vessels under construction | 152,918 | 110,969 | ||||||
Assets held for sale | 69,300 | — | ||||||
Intangible assets | 4,518 | 4,518 | ||||||
Other assets | 2,214 | 3,514 | ||||||
Total non-current assets | 628,383 | 640,332 | ||||||
Total assets | $ | 766,317 | $ | 814,504 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities | ||||||||
Bank loans, net | $ | 12,110 | $ | 12,039 | ||||
Contract liabilities | 5,195 | 6,706 | ||||||
Corporate income tax payable | 1,061 | 2,637 | ||||||
Accounts payable and accrued expenses | 19,524 | 23,629 | ||||||
Total current liabilities | 37,890 | 45,011 | ||||||
Non-current liabilities | ||||||||
Bank loans, net | 43,171 | 52,253 | ||||||
Deferred tax liabilities | 12,455 | — | ||||||
Other liabilities | 1,313 | 1,926 | ||||||
Total non-current liabilities | 56,939 | 54,179 | ||||||
Total liabilities | 94,829 | 99,190 | ||||||
Shareholders’ equity | ||||||||
Preferred shares, | — | — | ||||||
Common shares, | 1,136 | 1,134 | ||||||
Paid-in capital | 2,069,512 | 2,064,168 | ||||||
Common shares held in treasury, at cost; 2,328,179 shares at | (17,669 | ) | (17,669 | ) | ||||
Accumulated deficit | (1,381,491 | ) | (1,332,319 | ) | ||||
Total shareholders’ equity | 671,488 | 715,314 | ||||||
Total liabilities and shareholders’ equity | $ | 766,317 | $ | 814,504 | ||||
Condensed Consolidated Statements of Cash Flows (unaudited) | ||||||||
(Amounts in thousands) | ||||||||
Nine Months Ended | ||||||||
2023 | 2022 | |||||||
Operating activities | ||||||||
Net (loss) income | $ | (49,172 | ) | $ | 93,071 | |||
Adjustment to reconcile net (loss) income to net cash provided by | ||||||||
operating activities: | ||||||||
Restricted share amortization | 6,503 | 5,778 | ||||||
Vessel depreciation | 16,656 | 18,959 | ||||||
Amortization of deferred financing costs | 598 | 351 | ||||||
Write-down of vessels held for sale | 49,336 | 896 | ||||||
Net (gains) on investments | — | (54,890 | ) | |||||
Dividend income from equity investment | — | (646 | ) | |||||
Drydocking expenditure | — | (504 | ) | |||||
Deferred taxes | 2,339 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Increase in accounts receivable | (9,060 | ) | (18,948 | ) | ||||
Decrease in inventories | 618 | 985 | ||||||
(Increase) decrease in prepaid expenses and other assets | (2,492 | ) | 1,556 | |||||
Decrease in accounts payable and accrued expenses | (6,229 | ) | (11,401 | ) | ||||
Decrease in taxes payable | (1,001 | ) | (1,964 | ) | ||||
Net cash provided by operating activities | 8,096 | 33,243 | ||||||
Investing activities | ||||||||
Sale of equity investment | — | 82,497 | ||||||
Dividend income from equity investment | — | 646 | ||||||
Payments on vessels under construction and other fixed assets | (45,802 | ) | (39,375 | ) | ||||
Net cash (used in) provided by investing activities | (45,802 | ) | 43,768 | |||||
Financing activities | ||||||||
Proceeds from issuance of long-term debt | — | 130,000 | ||||||
Repayments of long-term debt | (9,375 | ) | (201,915 | ) | ||||
Common shares repurchased | — | (16,952 | ) | |||||
Debt issuance costs paid | — | (3,235 | ) | |||||
Dividends paid | (1,157 | ) | (1,196 | ) | ||||
Net cash used in financing activities | (10,532 | ) | (93,298 | ) | ||||
Decrease in cash and cash equivalents and restricted cash | (48,238 | ) | (16,287 | ) | ||||
Cash and cash equivalents and restricted cash, beginning of period | 127,227 | 153,977 | ||||||
Cash and cash equivalents and restricted cash, end of period | $ | 78,989 | $ | 137,690 | ||||
Conference Call on Results:
A conference call to discuss the Company’s results will be held at
There will also be a simultaneous live webcast over the internet, through the
Webcast URL: https://edge.media-server.com/mmc/p/24tnahbd
About
Non-GAAP Financial Measures
To supplement the Company’s financial information presented in accordance with accounting principles generally accepted in the
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net income and adjusted EBITDA are non-GAAP financial measures that the Company believes provide investors with a means of evaluating and understanding how the Company’s management evaluates the Company’s operating performance. These non-GAAP financial measures should not be considered in isolation from, as substitutes for, nor superior to financial measures prepared in accordance with GAAP. Please see below for reconciliation of EBITDA, adjusted net income and adjusted EBITDA.
EBITDA (unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||
In thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income (loss) | $ | 18,326 | $ | 36,185 | $ | (49,172 | ) | $ | 93,071 | |||||
Add Back: | ||||||||||||||
Net interest (income) expense | (943 | ) | (346 | ) | (2,266 | ) | 1,463 | |||||||
Depreciation and amortization(1) | 6,965 | 8,363 | 23,758 | 24,659 | ||||||||||
Income tax (benefit) expense | (1,443 | ) | 794 | 2,855 | 205 | |||||||||
EBITDA | $ | 22,905 | 44,996 | $ | (24,825 | ) | $ | 119,398 |
(1)Includes depreciation, amortization of deferred financing costs and restricted share amortization.
Adjusted net income (loss) (unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||
In thousands, except per share data | 2023 | 2023 | |||||||||||
Net income (loss) | $ | 18,326 | $ | 0.48 | $ | (49,172 | ) | $ | (1.34 | ) | |||
Adjustments: | |||||||||||||
Write-down on vessels held for sale | — | $ | 0.00 | 49,336 | $ | 1.35 | |||||||
Transaction costs | 213 | $ | 0.01 | 3,503 | $ | 0.09 | |||||||
Adjusted net income | $ | 18,539 | $ | 0.49 | $ | 3,667 | $ | 0.10 | |||||
Adjusted EBITDA (unaudited)
Three Months Ended | Nine Months Ended | ||||||
In thousands | 2023 | 2023 | |||||
Net income (loss) | $ | 18,326 | $ | (49,172 | ) | ||
Impact of adjustments | 213 | 52,839 | |||||
Adjusted net income | $ | 18,539 | $ | 3,667 | |||
Add Back: | |||||||
Net interest income | (943 | ) | (2,266 | ) | |||
Depreciation and amortization(1) | 6,965 | 23,758 | |||||
Income tax (benefit) expense | (1,443 | ) | 2,855 | ||||
Adjusted EBITDA | $ | 23,118 | $ | 28,014 |
(1)Includes depreciation, amortization of deferred financing costs and restricted share amortization.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and asset values, changes in demand for Wind Turbine Installation Vessel (“WTIV”) capacity, the continuing impacts of the ongoing novel coronavirus (COVID-19) pandemic, including its effects on demand for WTIVs and the installation of offshore windfarms, changes in our operating expenses, including fuel costs, drydocking and insurance costs, the market for our WTIVs, availability of financing and refinancing, counterparty performance, ability to obtain financing and the availability of capital resources (including for capital expenditures) and comply with covenants in such financing arrangements, planned capital expenditures, our ability to successfully identify, consummate, integrate and realize the expected benefits from acquisitions and changes to our business strategy, fluctuations in the value of our investments, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including conditions resulting from the ongoing conflict between
Please see our filings with the
Contact Information:
Tel: +1 646-432-1678
Email: Investor.Relations@Eneti-inc.com
https://www.eneti-inc.com
Source:
2023 GlobeNewswire, Inc., source