Eneti offshore wind turbine installation vessel

An illustration showing Eneti's Wind Turbine Installation Vessel (WTIV) under construction at DSME. Illustration courtesy Eneti Inc.

Eneti Lands First Contract for Newbuild Wind Turbine Installation Vessel

Mike Schuler
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December 19, 2022

Offshore wind-focused Eneti (NYSE: NETI) has announced an initial contract award for its first newbuild Wind Turbine Installation Vessel (WTIV) under construction in South Korea.

The contract was signed with an undisclosed customer and location and will commence in the first half of 2025 utilizing Eneti’s first of two NG1600X WTIV under construction at Daewoo Shipbuilding and Marine Engineering. The WTIV, to be named Nessie, is due for delivery in the fourth quarter of 2024.

The contract, which is in inclusive of mobilization beginning early in the first quarter of 2025, is expected to be between 226 and 276 days and generate approximately EUR 60 million to EUR 73 million of net revenue after forecasted project costs, Eneti said in a statement.

“Securing this charter for our first newbuilding WTIV is an important milestone for the Company,” says Emanuele Lauro, CEO of Eneti. “It represents a proof of concept for our newbuildings and reflects the improving fundamentals of the installation market and the expanding capability of our fleet. With open vessel capacity, we are well positioned to contract the fleet in a tightening market and a rising rate environment.”

Eneti was previously in talks with a U.S. shipyard for the construction of a WTIV for the Jones Act market, but in February 2022 announced it was discontinuing those talks.

Eneti’s two WTIVs on order at DSME cost an aggregate $654.8 million. As recently as November, deliveries had been planned in the third quarter of 2024 and second quarter of 2025, respectively. The company’s first WTIV was originally planned for delivery in third quarter of 2023.

Eneti currently operates a market-leading fleet of five WTIVs through its wholly-owned subsidiary Seajacks UK Limited, which it acquired in 2021. Eneti debuted in early 2021 as pure-play offshore wind turbine installation vessel shipowner after transitioning away from the dry bulk shipping sector, in which it operated under its former handle “Scorpio Bulkers”.

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