Orion Marine Group, Inc. (ORN) recently received a contract award of around $20 million in the Gulf Coast region. The scope of the contract primarily involves constructing and dredging a new ship dock for a private client in the region. Financial details of the contract were not disclosed.
Orion expects to begin the procurement phase immediately and plans to start the onsite construction in the third quarter of 2013. The construction work may take roughly 11 months.
Orion is believed to have one of the strongest dredging equipments in the industry. Some of Orion’s main customers include the U.S. Marine Transportation System and the cruise industry. Orion is positive about its dredging activity in 2013, as the expected increases in cargo volume and future demands from larger ships transiting the Panama Canal will require the services of ports along the Gulf Coast and Atlantic Seaboard. This requirement will lead to additional dredging services and expanded port infrastructure.
Therefore, Orion continues to invest heavily in dredging and dredging equipments, which comprised 64.3% of the total property and equipment value in 2012.
Prior to this, in May 2013, Orion received a contract to dredge 2 million cubic yards of soil on Houston Ship Channel for about $9 million. The contract was awarded by the U.S. Army Corps of Engineers.
Orion Marine is one of the leading providers of a broad range of marine construction and contracting needs. The company currently has a Zacks Rank #2 (Buy). Also, companies in the same industry such as EMCOR Group Inc. (EME), Primoris Services Corporation (PRIM) and Willdan Group Inc. (WLDN) are good options for investment now and they carry a Zacks Rank #2 (Buy).
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