Movers and SHAKERS
Great Lakes Dredge & Dock (GLDD)
Can't Win Them All - Houston Move Creates Some Turnover
Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only's operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Bids on large project opened yesterday and a competitor bid much lower. Bids were opened at 2pm CST yesterday by CPRA on the Barataria Basin Ridge and Marsh Creation — Spanish Pass Increment (BA 0203). Weeks Marine submitted the low apparent base bid of $80.8 million, or $42.5 million below GLDD. The work should move forward even though the low base bid was $16.0 million (~25%) above the designer's estimate. A lost bid is certainly a lost opportunity, but the silver linings are bidding discipline remains intact and some of Weeks' dredging equipment should be tied up for two years. Moreover, the dredging market outlook remains robust and other projects, including Lake Borgne, are moving forward.
Offshore wind dedicated investment expands fleet renewal program into the $200-$220 million range. In our view, the most likely fleet renewal program includes the first hopper dredge and the rock dumping barge, while the option on the second hopper dredge new build for $93 million adds optionality. Late last week, GLDD moved forward on long-standing plans to enter the offshore wind construction ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.