Orion Marine Group, Inc. (ORN) received a contract from a private Caribbean customer to design and build a new dock facility. The contract is valued at $19 million and the work on the same is expected to begin in the first quarter of 2014. However, the onsite construction work is expected to begin in the second quarter and is expected to last for 14 months.
Orion had received a similar contract worth $20 million from a private client in the Gulf Coast region. The scope of the contract primarily involved constructing and dredging a new ship dock.
On Dec 27, the company received three contracts to demolish and construct a fuel pier, a vessel bulkhead and a cargo dock. The three deals have a combined value of approximately $45 million.
Orion – a leading heavy civil marine contractor – is believed to have one of the strongest dredging equipment in the industry. The company is one of the leading providers of a broad range of marine construction and contracting services. Some of the company’s main customers include the U.S. Marine Transportation System and the cruise industry.
However, of late, Orion’s share prices witnessed a downturn after it reported third-quarter earnings on Oct 31. The company’s return since then to date has also been a disappointing -2.78%. Nevertheless, in the third quarter, the company reported net loss per share of 3 cents, narrower than the Zacks Consensus Estimate of a loss of 7 cents.
Orion currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the marine and heavy construction and diversified operations sector include Chicago Bridge & Iron (CBI), ITT Corp. (ITT) and Tyco International Ltd. (TYC). All three stocks carry a Zacks Rank #2 (Buy).
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