GLDD Report Solid Q2 2014 Dredging Sector Performance

By George Backwell
Wednesday, August 13, 2014
Dredger: Image courtesy of GLDD

Great Lakes Dredge & Dock Corporation (GLDD) the largest provider of dredging services in the United States and a major provider of environmental and remediation services, has reported financial results for the quarter ended June 30, 2014, excerpted as follows:

For the three months ended June 30, 2014, Great Lakes reported Revenue of $184.7 million, Income from continuing operations of $3.9 million and Adjusted EBITDA from continuing operations of $19.8 million.

"Dredging had a solid quarter with $157.1 million in revenue, driven by increased activity in all of our domestic markets, and improved gross profit margin to 14.4%. During the second quarter, we benefited from improved weather and higher productivity as well as greater fixed cost coverage. Although foreign revenue was down from the second quarter in 2013, we worked on projects in Saudi Arabia, Brazil and Australia during the quarter and are pleased to have been recently awarded a $35.5 million land reclamation job in Bahrain that will utilize four of our vessels through the rest of the year," stated Jonathan Berger, Chief Executive Officer.

Mark Marinko, Chief Financial Officer, added, "The environmental & remediation segment continues to successfully execute on several large projects across the United States and has backlog booked to meet our 2014 expectations. Having sold our demolition business, we are looking forward to focusing on strategically and methodically growing this segment and pursuing opportunities that leverage our combined platform of expertise."

Dredging

  • Dredging revenues were $157.1 million for the quarter, a 15.1% increase over the prior year revenue of $136.5 million on higher maintenance and rivers & lakes revenue partially offset by lower foreign revenue.
  • Gross profit margin was 14.4% versus 9.1% in the same quarter last year. Gross profit margin increased primarily due to strong contract margin on several jobs, somewhat offset by higher fixed costs.
  • Operating income decreased to $11.0 million for the quarter from $14.6 million in the same period in the prior year. As noted above, the second quarter of 2014 had improved gross profit margin, however the prior year period benefited from the $13.3 million loss of use claim noted above.

Environmental & Remediation

  • Revenue increased 168.7% to $29.3 million from $10.9 million in the same period of the prior year driven by the inclusion of several large-scale projects, including a larger phase of work for Enbridge and more revenue generated at a brownfield redevelopment project in New Jersey.
  • Gross profit margin of 12.4% for the second quarter slightly increased from 12.0% in the prior year with overall gross profit margin higher on the increase in revenue.
  • Operating loss was $0.7 million, a significant improvement over the prior year period loss of $2.9 million. Higher gross margin was offset by an increase in G&A, which is attributed to additional headcount to manage the segment's substantial growth

People & Company News

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Finance

SOS from Hanjin Shipping

The creditors' extended help is crucial for survival of Hanjin Shipping Co as its negotiations with owners of chartered ships over a cut in leasing rates and to

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Dredging

Royal IHC Upgrades TSHD Pump for Van Oord

Royal IHC informs it has completed the upgrade of the underwater pump and jet water system on trailing suction hopper dredger (TSHD) VOLVOX TERRANOVA for Van Oord.

Damen Repairs Two Van Oord Barges

Damen Shiprepair Vlissingen recently completed a broad scope of maintenance and repair works on the Van Oord-owned Split Hopper Barges Jan Blanken and Jan Leeghwater.

ROV Dredger Goes to Work in Singapore

Ellicott Dredge Technologies (EDT) announced the successful start up and installation of a state-of-the-art Mud Cat brand remotely operated vehicle (ROV) at the

Underwater Engineering

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0851 sec (12 req/sec)