Friday, August 21, 2020
Great Lakes Dredge & Dock (GLDD)
New and upcoming awards support 2H2020 backlog rebound
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.
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New awards of $118 million are positive. After the market closed, several additional large awards were announced. The awards on six projects include four Maintenance for $78.6 million and two Coastal Protection for $39.2 million. While ~$48 million of the awards were discussed on the 2Q2020 earnings call, there were several new awards, including the Mississippi River work, that support our constructive view. In addition, there are other low bids pending award outstanding, including a low bid of $15.5 million on work at Freeport (TX) Harbor that was opened on August 10th.
News expected shortly on several large opportunities and Jacksonville C in 3Q/4Q2020. 2H2020 rebound backlog appears likely. While backlog dropped for the third consecutive quarter in 2Q2020, a rebound is expected in 2H2020 due to the announced awards and several upcoming opportunities. Two larger opportunities in Louisiana remain on the immediate horizon, and Jacksonville C is still on track for …
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