Great Lakes Reports Second Quarter Results
Great Lakes Dredge & Dock Corporation (GLDD) today reported financial results for the quarter ended June 30, 2017.
For the three months ended June 30, 2017, GLDD reported revenue of $176.9 million, net loss from continuing operations of $1.1 million and Adjusted EBITDA from continuing operations of $17.6 million.
Chief Executive Officer Lasse Petterson commented, “Operationally, as expected, our margins in dredging have increased compared to the first quarter of 2017, but based on project mix for the current year, we do not expect margins to reach the levels we experienced in 2016.”
“We are currently in the midst of a deep-dive review to address overall company performance including operating margin, asset efficiencies and G&A expenses. The goal of this review is to align our production and support functions with the current and future market conditions,” said Petterson.
“We expect that this review will position us in our market as we welcome the Ellis Island to our working fleet in the third quarter of 2017 and prepare to bid on multiple large and complex port deepening projects in which we are well suited to perform,” added Petterson.
According to him, the domestic dredging bid market totaled $328 million during the first half of 2017. “Our dredging segment won 52% of our addressable bid market, which is above our three year average win rate of 42%.”
Most notable were the awards of the following projects: the $88 million Mississippi Coastal Improvement Program (MsCIP) project, the $26 million Myrtle Beach project and the $18 million West Coast Hopper project (inclusive of $2.7 million of options).
“We look forward this quarter to the Ellis Island starting commercial work. She is scheduled to start on the Mississippi Coastal Improvements Program (MsCIP) project and has a full backlog to keep her busy for the remainder of 2017 and into the third quarter of 2018. Final payments during the third quarter are expected to be $12 million with a total spend over the project of $159 million,” said Petterson.
“As we look to the 2018 fiscal year, we expect a strong bid market in the second half of 2017, including phases of both the Jacksonville and Charleston deepenings in the coming weeks, and potentially Boston before year end. As is typical of capital projects, each of these projects presents unique challenges in terms of complexity, soils to be dredged, environmental restrictions, and execution windows. These deepening project bids are in addition to the historically active bidding load in the third and fourth quarter leading into the Corps’ new fiscal year,” he concluded.