Among offshore wind contractors, Jefferies prefers Cadeler, Eneti over Seaway 7

Cadeler A/S

13/09/2022 07:37

** Jefferies says a renewables-growth end market gives a
positive starting investment case for offshore wind contractors
and initiates Cadeler  CADLR.OL  and Eneti  NETI.N  with "buy"
and Seaway 7  SEAW7.OL  with "underperform"
    ** The brokerage estimates overall installed offshore wind
power capacity (ex-China) could reach about 180 GW by 2030, but
continues to flag potential for material offshore wind turbine
installation capacity bottleneck
    ** Jefferies says Cadeler provides exposure to a tightening
vessel market, which is driving day rates materially high
    ** The group's market share is growing rapidly, with jack-up
fleet expanding from two to five and contractual coverage on
full fleet until 2026, it adds
    ** The brokerage notes Eneti also stands to benefit from
significant tightness in vessel capacity in 2025-30
    ** "Established track record in Europe, growing market share
in Asia and a connection to the U.S. market makes Eneti the most
regionally diverse play for offshore wind installation," it adds
    ** For Seaway 7, the brokerage notes the execution of the
installation campaign at what will be the world's largest
offshore wind farm - DoggerBank - without the delayed new-build
"Alfa Lift" vessel creates a material risk for margin
disappointment through 2023

 (Reporting by Jagoda Darlak)
 ((jagoda.darlak@tr.com))