GLDD president and CEO Lasse Petterson: “As expected, 2023 was a year of positive transition from a difficult 2022.”
Houston-headquartered Great Lakes Dredge & Dock Corporation (Nasdaq: GLDD), the biggest supplier of dredging providers within the U.S., in the present day reported monetary outcomes for the quarter ended September 30, 2022, that included a web lack of $9.9 million, in comparison with a web revenue of $13.8 million within the prior 12 months third quarter. Adjusted EBITDA was $1.3 million in comparison with $32,194 million within the 2021 third quarter
“We continue to see the effects from a significantly delayed bid market the last three quarters, which has impacted vessel utilization for 2022,” stated President and CEO Lasse Petterson. “In addition, the quarter was impacted by elevated inflationary stress, follow-on affect from second quarter website situation claims and a few dredging undertaking challenges. Great Lakes has delivered sturdy efficiency over the previous years, we’ve got demonstrated our potential to handle by means of a difficult setting and we consider the present difficult situations will enhance over the subsequent quarters.
“The bid market did begin to achieve momentum within the third quarter and Great Lakes was awarded $338.9 million in dredging initiatives and open choices, ending the quarter with $452.6 million of dredging backlog, which doesn’t embrace roughly $50.0 million {dollars} of efficiency obligations associated to offshore wind contracts. In addition, we ended the quarter with $625.7 million in open choices pending award. This signifies that the bid market is within the strategy of restoration from the bidding difficulties that we’ve got seen in 2022. The firm’s awarded work represents 50.1% of the third quarter bid market.
“Our newbuild program is on schedule, with the brand new hopper dredge, the Galveston Island, anticipated to be prepared for operations within the first half of 2023 and her sister ship is predicted to be prepared for operations within the first half of 2025. The supply of the Galveston Island will present us with added capability and the chance to doubtlessly retire a few of our older dredges which is predicted to have a optimistic affect to our general margins within the coming years. In addition, the liquified pure fuel export initiatives which can be bid however not but awarded are getting nearer to ultimate funding choices.
“Our not too long ago introduced offshore wind award by Equinor and BP, with anticipated graduation in 2025, solidifies Great Lakes’ objective of collaborating within the U.S. offshore wind market. We presently have 5 extra bids tendered for different offshore wind initiatives, which we anticipate will add to our offshore wind backlog throughout 2023.
“As we enter the fourth quarter, we expect results to improve as our fleet is expected to be busy this quarter and in the first quarter of 2023. We believe the fundamentals are in place for a return to a normal dredging market in 2023 and that the ongoing demand for dredging, combined with our strategy for overall improvement is a solid path to long term growth.”
