Eneti Inc. reported its fourth-quarter results of 2021. The company is focused on the offshore wind and marine-based renewable energy industry. Moreover, Eneti invested in the next generation of wind turbine installation vessels.
Among the 4Q results involve the impact of Seajacks International Limited’s earnings. Since the completion of the acquisition, the company’s operations are primarily those of Seajacks. Additionally, Eneti completed its exit from the dry bulk sector of the shipping industry in July 2021.
4Q results of Eneti Inc.
Firstly, the company’s GAAP net loss was $28.3 million, or $1.00 per diluted share. This includes a loss of approximately $12.3 million and cash dividend income of $0.2 million, or $0.43 per diluted share from Eneti’s equity investment in Scorpio Tankers Inc. In addition, approximately $1.5 million, or $0.05 per diluted share, in acquisition integration costs of Seajacks.
In contrast, the company’s GAAP net income was $26.1 million, or $1.60 per diluted share. This includes a gain on bargain purchase of Seajacks of $57.4 million, or $3.53 per diluted share; transaction costs related to the acquisition of Seajacks of approximately $49.6 million, or $3.04 per diluted share; a gain of vessels sold of roughly $22.7 million, or $1.40 per diluted share, among others.
Secondly, the total revenues were $16.5 million, compared to $50.1 million for the same period in 2020. Seajacks Scylla’s transportation and installation services for an offshore wind farm project in China; the Seajacks Hydra’s maintenance on an offshore gas production platform in the Southern North Sea and consultancy, generated the revenues.
Thirdly, EBITDA for the 4Q was a loss of $24.3 million. Adjusted EBITDA was a loss of $22.8 million. Furthermore, total revenues for 2021 were $139.2 million.
Moreover, the company’s adjusted net income was $2.7 million, or $0.15 adjusted per diluted share. Also, it had approximately $52.1 million in cash and holds around 2.16 million common shares of Scorpio Tankers inc.
Contracts
Additionally, Seajacks UK Limited, a wholly subsidiary of Eneti, signed four contracts with customers in NW Europe; they are expected to generate between $11.6 million to $14.3 million in revenue in 2022. Another agreement in NW Europe will generate between $4.8 million to $6.2 million in revenue this year. Finally, in December 2021, the subsidiary signed a contract with Van Oord to employ Seajacks Scylla in Europe in 2023. The firm charter duration of the contract will generate around $60 million of revenue in 2023.
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Quarterly Cash Dividend
During the Fourth-quarter of 2021, Eneti’s Board of Directors declared a quarterly cash dividend of $0.01 per share. The company paid this same amount per share, totaling approximately $0.4 million. Moreover, on February 23, 2022, Eneti’s Board of Directors declared a quarterly cash dividend of $0.01 per share payable on or about March 15, 2022; to all shareholders as of March 7, 2022. As of February 18, 2022; 39,741,204 common shares were outstanding.
