US dredging contractor Great Lakes Dredge & Dock (GLDD) expects to make significant profits in 2015 despite taking a first quarter loss of USD8.4 million.
The NASDAQ-listed dredger revealed on 5 May that its 1Q15 performance was affected by losses in its environmental and remediation segment, as well as pending change orders and claims that are currently being negotiated.
However, “we do not expect the first quarter results to be indicative of the company’s annual results,” commented GLDD CEO Jonathan Berger. While providing full year guidance is “not our typical practice”, Berger said the company expects to generate adjusted earnings before interest, taxes, and depreciation in the range of USD97-107 million in 2015.
Chief among the dredging projects expected to increase profits is a USD135 million contract, awarded in the first quarter, to begin deepening the Savannah River. The project to dredge 64 km (40 miles) of the river down to 14.3 m (47 ft) will allow the Port of Savannah to compete for deep-draught containerships. Deepening is expected to begin this summer.
The Savannah River project was part of the USD208 million – or 84% of the US domestic dredging bidding market – awarded to GLDD in 1Q15.
GLDD’s USD8.4 million loss compared with a loss of USD5.2 million in 1Q14. Revenues of USD174.6 million during the quarter were roughly the same as last year.