GLDD Reports Strong First Quarter Earnings, Bright Outlook
Great Lakes Dredge & Dock Corporation (GLDD) reported sharply higher net income for the first quarter of 2024 compared to a year earlier. GLDD announced May 7 that its first quarter 2024 net income was $21 million, compared to a net loss of $3.2 million for the same quarter in 2023.
The company reported revenue of $198.7 million for the quarter, an increase of $40.7 million from the first quarter of 2023.
“Great Lakes ended the first quarter with strong financial results, including net income of $21.0 million and adjusted EBITDA [Earnings Before Interest, Taxes, Depreciation and Amortization] of $42.9 million, which is the best adjusted EBITDA quarter since the fourth quarter of 2021, supporting a return to normalcy,” said Lasse Petterson, president and CEO. “The majority of our dredges were actively engaged on projects, and our new hopper dredge, the Galveston Island, was successfully placed into operation, contributing to the first quarter’s strong project performance.
“Our dredging backlog at the end of the quarter was $879.4 million, with 77 percent of our backlog in capital projects,” Petterson continued. “Notably, in 2023, we secured four major awards, including the Freeport Deepening Project and the Sabine-Neches Waterway Channel Improvement Project, both of which are currently underway.”
The company said the record 2024 Corps of Engineers budget of $8.7 billion will keep the bid market robust, particularly in GLDD’s capital and coastal protection target markets.
GLDD was awarded two large liquefied natural gas (LNG) projects in 2023, the Port Arthur LNG Phase 1 project for marine dredging and disposal and the Brownsville Ship Channel project for Next Decade Corporation’s Rio Grande LNG project. The Rio Grande LNG project is the largest undertaken in the company’s history. Subcontractor work has begun on both projects with dredging expected to commence mid-year 2024.
“We continue to make progress on our new build program, and as stated previously, we have taken delivery on our newest 6,500-cubic-yard-capacity hopper dredge, the Galveston Island, which is currently in operation,” Petterson said. “Her sistership, the Amelia Island, is expected to be delivered in 2025. These dredges will work on projects that redevelop and improve our shorelines, which are subject to continual damage due to storms, rising waters and the effects of climate change. In addition, the Acadia, the first and only U.S.-flagged Jones Act-compliant, inclined fallpipe vessel for subsea rock installation, is under construction with expected delivery in 2025.
“We remain resolute in our long-term growth strategy to enter the U.S. offshore wind market. In early 2024, New York state held its fourth bid round of additional Power Purchase Agreements (“PPAs”). Both of Great Lakes’ contracts, Equinor’s Empire Wind I and Ørsted’s Sunrise Wind, were awarded offtake agreements and are expected to make significant contributions to the state’s clean energy goals,” he said.
“… Our outlook remains positive, and we expect the dredging bid market to continue to remain strong in 2024,” Petterson said. “With our substantial backlog, enhanced fleet and strategic initiatives, we firmly believe that our company is well-prepared for the future.”
