The financial results of Louisiana-based shipyard Conrad Industries was negatively affected by losses in a project to construct a liquefied natural gas (LNG) bunker barge, says its President and CEO.
“Our 2017 and 2016 operating results were affected by losses of $11.9 million and $13.2 million, respectively, on the LNG bunker barge,” says Johnny Conrad.
“Despite the losses we have incurred on the construction of the LNG barge, we believe that we have developed the resources to establish ourselves as a leader in LNG marine-related construction in North America.”
The yard posted net loss of $3.4 million for the quarter ended December 31, 2017 (Q4 2017), compared to net loss of $836,000 in Q4 2016.
New business added during the first quarter of 2018 includes the signing of contracts totalling $35.2 million in the form of four 30,000 bbl. tank barges, two LPG tank barges, four spud barges, three 24,000 bbl adiponitrile barges and two anchor barges.
To date, the yard’s estimated current backlog is approximately $107.0 million, compared to $111.3 million at December 31, 2017, and $216.5 million at December 31, 2016.
“During 2017 our new construction segment continued to be adversely affected by a soft market for energy transportation, increased pricing pressure, and low demand for large barge project orders, while our repair and conversion segment continued to be impacted by low oil prices and depressed Gulf of Mexico activity,” said Conrad.
“These factors had a negative impact on our operating results in 2017, and they may continue to impact our operations during 2018.”
Moving forward, Conrad expects 2018 to be another challenging year for the company.
“We have met these types of challenges in the past, and we remain confident that with our talented and dedicated employees, strong balance sheet and diversified customer base we can effectively respond to changing market conditions,” he says.
Photo credit: Conrad Industries
Published: 9 April, 2018
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