Gulf Island reports loss making quarter

OCTOBER 29, 2015 — Gulf Island Fabrication, Inc. (NASDAQ:GIFI) reported a net loss of $12.1 million ($ 0.84 diluted loss per share) on revenue of $67.5 million for its third quarter ended September 30, 2015, compared to net income of $7.6 million ($0.52 diluted income per share) on revenue of $118.0 million for the third quarter ended September 30, 2014.

Included in the net loss for the quarter were the following:

$6.6 million ($4.4 million after-tax, or $0.30 per share) for a non-cash asset impairment charge related to assets held for sale associated with a partially constructed topside, related valves, piping and equipment that we acquired from a customer following its default under a contract for a deepwater project in 2012. “This adjustment is due to the sustained downturn in the Oil and Gas sector, significantly limiting our ability to effectively market the assets, says the company.

$14.3 million ($9.5 million after-tax, or $0.65 per share) related to the company’s inability to recover certain costs related to a large deepwater project which was recently delivered.

The company had a revenue backlog of $135.1 million and a labor backlog of approximately 1.3 million hours at September 30, 2015, including commitments received through October 26, 2015, compared to a revenue backlog of 126.2 million and a labor backlog of 1.3 million hours reported as of June 30, 2015. It expects to recognize revenue from its backlog of approximately $62.8 million and $72.3 million during the remainder of 2015 and during 2016, respectively.