Eneti Issues $200M in Stock to Fund Wind Vessel Newbuilds

On Monday, offshore wind vessel company Eneti - formerly Scorpio Bulkers - announced that it will be selling an additional $200 million in stock to support its newbuild construction program. Its share price fell sharply on the news, losing about 20 percent of its value by the closing bell. 

Eneti has rapidly transformed itself from the Scorpio group of company's publicly-listed dry bulk affiliate into the group's publicly-listed offshore wind vessel affiliate. It has sold off the last of its bulkers; taken a $500 million write-down on the value of its previous fleet; changed its name to Eneti; and acquired a major player in the European offshore wind market, Seajacks, for $500 million. 

It has also signed a $330 million contract with Daewoo Shipbuilding and Marine Engineering to build one high-spec wind turbine installation vessel (WTIV), its first offshore wind newbuild developed and ordered in-house. In announcing the project, the company said the WTIV would be one of the most sophisticated dedicated turbine installation vessels in the world. It will have the capacity to install the largest wind turbines currently envisioned, up to and including giant 20 MW models, which are widely expected but do not yet exist. Eneti says that the vessel will also be able to do the work more quickly than predecessor designs. 

Eneti has the option to purchase one additional vessel from DSME, and it is reportedly in talks for the construction of a Jones Act qualified newbuild. The extra capital from the stock offering will help underwrite this program, according to Eneti. 

Eneti is one part of the empire of chairman and CEO Emanuele A. Lauro, who is also the director and CEO of Scorpio Holdings and Scorpio Tankers, among other related companies. Scorpio Holdings is bolstering Eneti's new stock offering with a purchase of $30 million of the shares.