Great Lakes Dredge Reports Multiple Updates

Great Lakes Dredge & Dock Corporation (GLDD) has announced a number of developments since the company released its second quarter earnings report.

According to Chief Executive Officer, Lasse Petterson, GLDD has performed extensive analysis regarding its portfolio composition and asset utilization.

The goal of the analysis is to improve the company’s financial results in both domestic and international operations enabling debt reduction, improvements in return on capital and the continued renewal of GLDD’s extensive fleet with new and efficient dredges to best serve the domestic and international clients.

Among others, the company also reported that its new ATB hopper dredge Ellis Island began sea-trials on October 5, following which the vessel will be delivered to Great Lakes.

“Sea-trials are expected to take approximately ten days but may be delayed by Tropical Storm Nate, which is projected to impact the Gulf of Mexico. The Ellis Island will commence commercial operations immediately upon delivery on the Mississippi Coast Improvements Program project in the Gulf of Mexico,” said Petterson.

“Our dredging operations on the East Coast and in the Gulf of Mexico were impacted by the three major hurricanes (Harvey, Irma and Maria) that recently made landfall in the U.S. Although we are pleased to report no safety issues, injuries or damage related to our crews and vessels, all three storms caused delays at multiple ongoing projects which will impact our third quarter results,” added Petterson.

“Going forward, we see positive trends in the market with both domestic and international bidding opportunities increasing. We recently announced the award of $87 million in new work, including the $47 million Charleston I port deepening project. Additionally, GLDD is the low bidder on the Charleston II port deepening project, which at approximately $279 million, is expected to be the largest dredging project awarded in Army Corps of Engineers’ history. We expect this project to be formally awarded in October 2017.”

Petterson concluded, “Finally, we expect several new port and harbor deepening projects coming for bid in the next year, including the Boston Harbor port deepening project, which is expected to bid before the end of 2017, the Jacksonville port deepening project and multiple additional coastal protection bid opportunities also expected throughout 2018.”

The company will provide greater details related to this announcement on its third quarter 2017 earnings call in early November.