Great Lakes Dredge & Dock Corporation (GLDD) was awarded a $23.4 million contract for coastal storm risk management project in New York with an additional $11.2 million in options to construct a beach berm and dune at Fire Island Inlet to Moriches Inlet.
Fire Island is the large center island of the outer barrier islands parallel to the south shore of Long Island, NY. The Island is also known as barrier island that helps protect back-bay communities along Great South Bay and Moriches Bay. However, Super Storm Sandy caused extensive damage to Fire Island, with the majority of the dunes on the island either flattened or severely eroded.
According to the contract, Great Lakes Dredge & Dock will repair the berms and dunes, which will help in preserving the island. It will also assist in reducing the risk of incurring damage from a future storm, both on Fire Island and on the mainland communities.
Great Lakes Dredge & Dock’s dredging revenues for the nine months, ended Sep 30, 2014, were $486 million, compared with $466 million for the same period in 2013, benefitting from the Wheatstone LNG project in Western Australia, the port deepening project in Miami, as well as projects in New York and New Jersey to repair damaged shorelines impacted by Superstorm Sandy.
During third-quarter earnings call, Great Lakes Dredge & Dock stated that the bidding activity for Superstorm Sandy-related coastal protection work will rise. Moreover, the company remains confident about the bid market into next year which will enable it to fill its backlog.
Great Lakes Dredge & Dock Corp. is the largest provider of dredging services and also one of the largest providers of commercial and industrial demolition and remediation services, in the U.S., mainly in the Northeast. Great Lakes Dredge & Dock owns and operates the largest and most diverse fleet in the U.S. industry, comprising over 200 specialized vessels.
Great Lakes Dredge & Dock currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Orion Marine Group, Inc. (ORN), Tutor Perini Corp. (TPC) and Boise Cascade Company (BCC). All these stocks carry a Zacks Rank #2 (Buy).
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