Orion Marine Group, Inc., a leading heavy civil marine contractor serving the infrastructure sector, today is providing its investors an update on the Company’s outlook and end markets.
“The Company remains pleased with the sustained increases in construction equipment utilization seen over the past few quarters. The outlook for bid opportunities utilizing marine construction equipment over both the medium and long term remains favorable. As the Company expected, first quarter dredge utilization fell sequentially as compared to the fourth quarter of 2012. Contributing to this decrease were gaps in the schedule of projects involving dredging services along with the typical seasonality seen this time of the year. Dredge utilization should improve as the Company moves into its seasonally stronger quarters in the back half of the year.
The Company is pleased with the level of bid activity seen in the first quarter. Private sector bids made up a significant portion of the total bids submitted in the first quarter and the Company is encouraged by the direction of this sector. For the quarter, the Company bid on approximately $340 million worth of opportunities and was successful on approximately $35 million, representing a win rate of approximately 10%. Additionally, the Company has approximately $242 million worth of bids outstanding of which it is the apparent low bidder on approximately $40 million.
The Company reminds investors that the timing of awards can and does affect the win rate in any particular quarter. During the first quarter, the Company strategically pushed up bid margins on certain projects, which was met with limited success.
This contributed to a win rate that was below that of recent quarters. However, the Company is comfortable with its current backlog level, low bids outstanding, and bid market outlook. The Company remains committed to its strategy of offsetting lower job margins with a higher volume of work. While the Company continues to face some short term challenges it remains focused on project execution and a commitment to its proven bidding strategy. The Company is confident in its ability to find success in the current market conditions,” they announced in its Market Outlook.
Press Release, April 5, 2013