Conrad takes a loss on LNG bunker barge

Conrad recorded $12.5 million gross loss on LNG bunker barge,

NOVEMBER 12, 2016 — Morgan City, LA, based shipbuilder and repairer Conrad Shipyard (OTC Pink Sheets: CNRD.PK) reported net losses in its third quarter and nine months 2016 financial results for the period ending September 30, 2016. However, Conrad had a record backlog of $251.1 million at September 30, 2016. Backlog was $211.8 million at December 31, 2015 and $91.1 million at September 30, 2015.

For the quarter ended September 30, 2016, Conrad had net loss of $4.7 million and loss per share of $0.92 compared to net income of $2.0 million and earnings per share of $0.35 during the third quarter of 2015. The vompany had net loss of $858,000 and loss per share of $0.17 for the nine months ended September 30, 2016 compared to net income of $7.2 million and earnings per share of $1.24 for the nine months ended September 30, 2015. Results for the three and nine months ended September 30, 2015 included research and development tax credits of $0.8 million and $2.5 million, respectively. 

Johnny Conrad, President and CEO, stated, “The net loss for the nine-month period was primarily the result of a $12.5 million gross loss recorded on the LNG bunker barge. Our repair and conversion segment achieved gross profit of $2.8 million for the nine months ended September 30, 2016 compared to a gross loss of $108,000 during same period of 2015, reflecting continued solid performance in a very competitive environment. Although we have incurred losses on the LNG barge, we believe we have developed resources to position our company as a leader in LNG marine-related construction in North America.”

Mr. Conrad continued, “Our results reflect a continued difficult operating environment. Our bid activity has been good and we see some opportunities, but we have also seen many new construction customers continue to delay projects and the environment remains very competitive. We are cautiously optimistic in the vessel construction segment due to our record backlog at September 30, 2016.

“The repair segment has shown improvement; however, there continues to be little visibility due to the short-term nature of this work. Management continues to focus on effectively executing our backlog, adding new contracts, improving efficiencies, and controlling costs so that we can continue to perform profitably during the current environment and be well-positioned for improved profitability as our markets improve in the future.”