How long will it take Gulf Coast shipyards to return to pre-Katrina activity levels?

3 months
6 months
9 months
1 year
More than 1 year

October 12, 2005

Tug orders for Conrad Industries

Conrad Industries, Inc. with yards in Morgan City and Amelia, La., and Orange, Texas, has been awarded contracts totaling $9.4 million to build a 99 ft, 4,200 hp Z-Drive Tug for South Puerto Rico Towing Corporation and its 16th ST Tug for the U.S. Army.

The two new contracts are scheduled to be constructed at Conrad's Orange, Texas, facility and take the company's current backlog to approximately $40 million.

President and CEO Johnny Conrad said he does not expect any significant impact on the two new contracts from Hurricane Rita.

"Hurricane Katrina did not have a direct impact on any of our four shipyards," he said. "Unfortunately, Hurricane Rita did not spare our Orange employees from loss and damage. Our Orange facility has sustained minor wind damage to our buildings that can be repaired but did not receive any water damage. Our equipment and jobs in progress were not damaged. The costs to clean up and repair our facility will in large part be covered by our insurance program. Power has been restored to our Orange yard and we are gradually returning to normal operations as employees are able to return to the area after three weeks of limited activity."

Conrad further commented, "These events have also impacted our vendors' and subcontractors' abilities to supply us with necessary goods and services. Consequently, it is not yet possible to determine the amount of delay and additional cost that will result from these hurricanes. Conrad is working with suppliers and others to insure that materials continue to flow to our facilities."

"We at Conrad Industries have been very fortunate to escape disruption in service at three of our four locations," he said," and with Orange back on line we are fully operational at all of our facilities. In addition, we have openings for qualified welders, fitters, supervisors and project management personnel.