Conrad Industries Reports Second-Quarter Loss

Conrad Industries, Morgan City, La., on August 14 reported a net loss for the second quarter of $5.9 million or $1.18 per share, compared to a net loss of $3.4 million or $0.67 per share for the second quarter of 2022.

Conrad, which provides both repair and new-construction services at its five shipyards in Texas and southern Louisiana, said it added $191 million of backlog to its new-construction segment in the first half of this year. The company’s backlog as of June 30 was $323.7 million.

In its quarterly report, Conrad said its results for the first six months of 2023 “reflect a continued challenging operating environment,” citing high steel prices, inflationary price increases in other materials and equipment, supply chain disruptions, a tight labor market and rising interest rates. However, the company believes it is well positioned to take advantage of opportunities when market fundamentals improve.

Conrad noted several large contracts it has been awarded recently, including a Yard, Repair, Berthing and Messing barge for the U.S. Navy, with an option for seven more, four of which have been exercised; a second 6,500-cubic-yard-capacity trailing suction hopper dredge, which is the largest contract in the company’s history; four 180-foot cargo/passenger ferries; and two large deck barges, one 286 feet and one 365 feet, both for repeat customers.

The company said it is also actively exploring projects in the offshore wind industry as it moves into the Gulf of Mexico.