Great Lakes Dredge & Dock Corporation
) announced that it has been awarded a $51.9 million option for
the Miami Harbor Deepening Project by the U.S. Army Corps of
Engineers - Jacksonville District. With this, the total value of
Great Lakes Dredge & Dock's Miami contract has gone up to
$174.1 million. There are $31.6 million remaining to be awarded
under the current plan of the Corps.
In May 2013, Great Lakes Dredge & Dock had announced that
it had been awarded a $122 million contract for deepening of the
Miami Harbor by the U.S. Army Corps of Engineers. The deal had
options of further contracts, which were expected to be awarded
by January 31, 2014.
The project was begun in the fourth quarter of 2013. It
entails the deepening of the Port of Miami to 50 or 52 feet and
to equip the port to accommodate the next generation post-Panamax
vessels that will transport cargo through the expanded Panama
Canal, starting early 2015.
The base work of the project includes excavation of the
offshore entrance channel to the Port. The option that has been
currently awarded, which is the first of two options for the
project, covers the dredging of Fisherman's Channel and Lummus
Island Turning Basin as well as dredging the adjacent berthing
The project will take place in the environmentally sensitive
waters of one of the busiest ports in the United States. Thus,
important aspects of the project include seagrass and coral
resource health monitoring and water quality and sedimentation
Great Lakes and other environmental partners will be liable
for safety of the public, crew employed on the project, vessel
traffic as well as the marine environment. In order to excavate
the hard limestone found in Miami and other East Coast ports,
Great Lakes will employ the best-in-class heavy-duty rock cutter
Great Lakes reported earnings per share of 2 cents in the
third quarter of 2013, reversing the year-ago quarter's loss of 9
cents. The increase was due to strong performance in the dredging
segment. Total backlog as of the quarter-end stood at $606
million, up significantly from $505 million as of the prior-year
The Dredging segment delivered another strong quarter. This
momentum is expected to continue, going forward. Bidding activity
was particularly strong in the quarter, bringing the year-to-date
domestic dredging bid market total to $1.1 billion for the year,
of which Great Lakes won 55%. Great Lakes will benefit from its
record backlog and strong short-term bidding activity in the
The market has seen over $400 million in coastal protection
work in 2013, primarily in response to Superstorm Sandy. Great
Lakes foresees numerous coastal restoration projects. The company
expects more Sandy work to be up for bidding in 2014, for
long-term coastal protection projects.
The company is currently assessing strategic alternatives to
its demolition business. It intends to take a measured approach
and selectively target those demolition and environmental
remediation projects that it can execute well.
Great Lakes Dredge & Dock Corporation is the largest
provider of dredging services in the United States. Great Lakes
is also one of the largest U.S. providers of commercial and
industrial demolition and remediation services, mainly in the
Great Lakes currently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the same sector include
Jacobs Engineering Group Inc.
Chicago Bridge & Iron
). All of these retain a Zacks Rank #2 (Buy).
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GREAT LAKES DRG (GLDD): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
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