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Dec 31, 2022
Great Lakes Q4 2022 Earnings Report
Great Lakes' Q4 results were impacted by a significantly delayed bid market combined with high inflation, significant weather delays on projects in the Northeast, fewer high margin capital projects, dredging project production issues, higher than anticipated drydock costs, and the retirement of the Terrapin Island.
Key Takeaways
Great Lakes Dredge & Dock Corporation reported a fourth quarter net loss of $31.2 million and a negative adjusted EBITDA of $24.2 million. The company ended the year with a dredging backlog of $377.1 million and is adjusting to the current situation by taking swift and proactive action on cost reductions and fleet adjustments.
The fourth quarter was impacted by a significantly delayed bid market and high inflation.
The company experienced significant weather delays on projects in the Northeast.
Great Lakes ended the year with $377.1 million of dredging backlog.
The company is taking proactive action on cost reductions and fleet adjustments.
Forward Guidance
Great Lakes expects to see the dredging bid market pick up in the first half of the year. The port deepening and widening projects that were delayed in 2022 are expected to bid in the first and second quarters of 2023, with dredging anticipated to start in the second half of the year.
Positive Outlook
- Improved market conditions are expected in 2023.
- Fleet adjustment and cost reduction initiatives are in place.
- Port deepening and widening projects are expected to bid in the first and second quarters of 2023.
- Dredging is anticipated to start in the second half of 2023.
- One or two Liquified Natural Gas (LNG) projects could achieve final investment decision in 2023.
Challenges Ahead
- The fourth quarter continued to be impacted by a significantly delayed bid market.
- High inflation continues to impact the company.
- The company experienced significant weather delays on projects in the Northeast.
Historical Earnings Impact
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