Eneti CEO Bullish on Offshore Wind Market as Subsidiary Inks Contract for Newbuild WTIV

Offshore Wind October 24, 2023

Credit: Seajacks (file image)

Eneti, a company providing offshore wind installation vessel services, said Tuesday its subsidiary Seajacks had signed a contract with an undisclosed client to transport and install wind turbines.

With mobilization starting in the second quarter of 2027, the contract will be performed by one of the company’s two NG16000X Wind Turbine Installation Vessels currently under construction at Hanwha Ocean (ex-Daewoo Shipbuilding & Marine Engineering) in South Korea.

Including mobilization and demobilization, the engagement is expected to be between 180 and 210 days and generate approximately $73 million to USD 84 million of gross revenue. Project costs are expected to be USD 8 million in aggregate.

Emanuele Lauro, CEO of Eneti, says, “This contract emphasizes our position that market fundamentals remain strong. As with our previous newbuilding contract, we have secured optionality in providing either of our newbuildings to service the contract, which maximizes vessel utilization and generates accretive cash flows. All in all, this contract serves both the needs of our customer and returns required of our shareholders.”

Eneti's under-construction jack-up units are an NG-16000X design by GustoMSC and include a 2,600-ton leg encircling cranes to be supplied by the Dutch crane maker Huisman.

The vessels will be capable of installing up to 20-megawatt turbines at depths of up to 65 meters of water, and they can be adapted to operate on the alternate fuels of liquefied natural gas (LNG) or ammonia.