Gulf Island Fabrication Reports Second Quarter Results
Gulf Island Fabrication Inc., Houston, Texas, reported on August 9 a net income of $0.5 million ($0.04 per share) on revenue of $54.0 million for the three months ending on June 30, compared to a net loss of $10.9 million ($0.73 loss per share) on revenue of $45.9 million for the three months ending on June 30, 2017, and a net loss of $5.3 million ($0.35 loss per share) on revenue of $57.3 million for the quarter ending on March 31, 2018.
“The improved results for the second quarter of 2018 include another strong performance from our Services Division, which contributed $3.6 million in gross profit for the quarter as well as other income of $7.1 million from the sale of our Texas South Yard and settlement of our Hurricane Harvey claim,” said Kirk Meche, the company’s CEO and president.
Largest Backlog In Four Years
As stated in prior earnings calls, Meche said the company is focused on managing its balance sheet and building contract backlog in new markets. During the second quarter, Gulf Island Fabrication achieved three significant milestones, with the final completion and delivery of four petrochemical modules, the sale of its Texas South Yard for $53.5 million and successful additions to its shipyard backlog.
On June 6, one of its customers exercised its option for newbuild construction for a second marine offshore research vessel in the amount of $67.6 million. Meche said the company’s current backlog is the largest it has been in four years.
Gulf Island Fabrication’s revenue backlog was $347.6 million as of August 8—including project deliveries through 2022—and has increased since March 31 due to the new awards within the company’s Shipyard Division. Meche noted that the company’s revenue backlog includes approximately $30.2 million subject to a contract termination dispute with a customer for contracts to build two multi-purpose supply vessels. Pending resolution of the dispute, the company said that all work has been stopped and the vessels and associated equipment and material are in the company’s care and custody at its shipyard in Houma, La.
