William H Hidalgo News

With the next "offshore boom" looming on the horizon, many of the vessel repair and conversion yards, particularly but not limited to the Gulf of Mexico region, are projecting good times in the coming year. Quite simply, the sustained high price of oil will eventually push oil majors - which have been sedate to date due to continued consolidation and a fear of extending too far, too soon - to start spending again on exploration and production, particularly in deepwaters. In conjunction with this is the expected decision of the U.S. MMS on the use of Floating Production Systems in the Gulf of Mexico, a development which will further drive down the cost of recovering product from record depths and have a resulting positive effect on the companies which build…

Conrad Industries, founded in 1948, specializes in the construction, conversion and repair of marine vessels for commercial and government customers and the fabrication of modular components of offshore drilling rigs and floating production, storage and off-loading vessels. The company currently operates three shipyards located along the Gulf Coast in Morgan City and Amelia, Louisiana and Orange, Texas. William H. Hidalgo, president and CEO of Conrad said, “We are pleased with our profitability for the year 2000, particularly considering that a large portion of our vessel construction effort was spent building our new dry-dock which was a non-revenue generating project. The new dry-dock is being tested at this time and should be ready for its first project by February 25, 2001.

The U.S. Gulf of Mexico region is again poised to prosper, spurred by the buzz of activity surrounding the oil patch, and specifically the renewed vigor with which companies will explore and develop deepwater fields for the production of natural resources. Though the resumption of business at "full throttle" has taken perhaps a bit longer than many observers would have initially predicted, particularly given the continued high price of oil and gas and the "pro" oil industry political team occupying the White House, it is a safe bet that, at least for the next several years, the offshore oil business will ensure that the marine business in the GOM region is a prosperous one.

Conrad Industries, Inc. announced the appointment of Kenneth G. "Jerry" Myers, Jr. as president and CEO, effective Aug. 27, 2001. Myers has spent the past 21 years with Avondale Industries serving in various senior management positions. Most recently, he served as vice president in charge of managing Avondale's largest shipbuilding program. While at Avondale, Myers has also held positions including: chief information officer; vice president - business review, in charge of government program accounting, where he managed over $10 billion in government contracts; assistant vice president responsible for mergers and acquisitions; and assistant controller. John P.

Conrad Industries Inc. expects to report earnings per share for the quarter ending Sept. 30 of between $.01 and $.03 compared to earnings per share of $.10 for the quarter ending June 30. For the quarter ending Dec. 31, earnings per share are expected to be between $.05 and $.08. The company expects earnings per share of between $.28 and $.33 for the year ending Dec. 31. William H. Hidalgo, president and CEO, stated, "Our earnings for the third and forth quarters will be below the levels we had previously anticipated. Our repair and conversion segment continues to experience weak demand, and price pressures due to the energy market, and we have not experienced the increase and activity that we anticipated, nor do we see any significant increase until the first part of next year.

Conrad Industries Inc. expects to report earnings per share for the quarter ending Sept. 30 of between $.01 and $.03 compared to earnings per share of $.10 for the quarter ending June 30. For the quarter ending Dec. 31, earnings per share are expected to be between $.05 and $.08. The company expects earnings per share of between $.28 and $.33 for the year ending Dec. 31. William H. Hidalgo, president and CEO, stated, "Our earnings for the third and forth quarters will be below the levels we had previously anticipated. Our repair and conversion segment continues to experience weak demand, and price pressures due to the energy market, and we have not experienced the increase and activity that we anticipated, nor do we see any significant increase until the first part of next year.

Conrad Industries, Inc. reported net income of $71,000 for the quarter ended September 30, 1999, compared to net income of $1.3 million for the quarter ended September 30, 1998. The company had net income of $1.6 million for the nine months ended September 30, 1999. Revenues for the quarter and nine months ended September 30, 1999 were $6.9 million and $25.1 million, respectively. Revenues for the quarter and nine months ended September 30, 1998 were $12.8 million and $36.8 million, respectively. "Overall, all vessel construction projects were profitable through this third quarter, however, two projects did not perform as anticipated," said William H. Hidalgo, president and CEO.