Gulf Island Fabrication CEO expects Gulf of Mexico projects
Gulf Island Fabrication, Inc. (Nasdaq:GIFI) CEO Kerry Chauvin said the Houma, La.-based company, a fabricator of offshore drilling and production platforms, said the company will be bidding most often on projects in the Gulf of Mexico. Chauvin made the comments during a Friday morning conference call with investors and analysts.
“There will be some deep water projects coming out — probably in the fourth quarter and first quarter of next year,” Chauvin said.
Gulf Island reported late Thursday that its second-quarter earnings rose 51% to $11.9 million, or $0.83 per share, versus $7.9 million, or $0.55 per share, a year earlier. The results beat Wall Street analysts’ estimate of earning $0.77 per share.
Quarterly revenue dipped 14% to $117.9 million, from $137.6 million a year ago. Wall Street anticipated revenue of $116.3 million.
For the third quarter, Wall Street analysts expect Gulf Island to earn $0.77 per share on revenue of $116.3 million.
At the end of the second quarter, Gulf Island’s revenue backlog totaled $437.7 million. For the remainder of 2008, CFO Robin Seibert said the company expects to recognize revenue of about $144.9 million from the backlog. For 2009 and going forward, Gulf Island expects to recognize approximately $292.8 million from its backlog.
Chauvin said company expects a larger third quarter than fourth quarter. This is typical, he said, because Gulf Island’s employees usually work longer hours during the third quarter.
“Now remember, we lost three full days this week because of the hurricane in south Texas,” the CEO said. “It depends on the hurricanes and when they come about and when they have to shut down. As of now, we do have most of production gaps filled up for the third quarter.”
In midday Friday trading, GIFI is up 4.31%, or $1.73, to $41.88.
