Great Lakes Dredge & Dock, CCL Win LNG Contract in Texas

Zacks

Great Lakes Dredge & Dock Corporation GLDD, the largest provider of dredging services in the U.S. and a major provider of environmental and remediation services, has received a contract in Texas in association with Corpus Christi Liquefaction, LLC CCL.

CCL is a subsidiary of Cheniere Energy, Inc. LNG, an energy company, primarily engaged in LNG (liquefied natural gas) related businesses. Per the contract, CCL will develop an LNG export terminal at a site located on the north shore of Corpus Christi Bay in San Patricio and Nueces Counties.

Great Lakes Dredge & Dock’s part of the LNG project involves the dredging and slope protection of two LNG carrier ship berths, dredging of a material offloading and tug mooring basin and expansion of an existing La Quinta Channel turning basin. The company will dredge approximately 4.3 million cubic yards and the materials will be placed into an adjacent upland beneficial use site.

Great Lakes Dredge & Dock has extensive dredging experience with energy sector clients and a track record for successful completion of huge projects. Its experience, coupled with a versatile fleet of large hydraulic cutter suction dredges and booster pumps will help Great Lakes Dredge & Dock to successfully execute this large and challenging LNG project. The company expects contract work to begin in the fourth quarter of 2015.

Great Lakes Dredge & Dock reported dredging backlog of $602.5 million at the end of second-quarter 2015, up from $594 million in the prior-year quarter. Total contracted backlog at quarter end was a record $752 million.

Great Lakes Dredge & Dock expects the addition of domestic dredging contracts during the second quarter to help in maintaining strong level of dredging backlog. The company anticipates the domestic bid market to accelerate in the third quarter of 2015. Internationally, several opportunities in the Middle East will aid growth.

Great Lakes Dredge & Dock currently holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the sector include China Railway Construction Corporation Limited CWYCY and China Railway Group Limited CRWOY. Both stocks carry a Zacks Rank #1 (Strong Buy).

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