Great Lakes Dredge & Dock Corporation reports second quarter results

News – August 18, 2008

Great Lakes Dredge & Dock Corporation in the US has reported financial results for the second quarter and six months ended June 30, 2008.

Douglas B Mackie, President and Chief Executive Officer, said: “During the second quarter we virtually completed the redeployment plan which positioned four of our vessels for international assignment. It enables us to take advantage of the attractive opportunities in that market until demand in the US warrants maintaining additional capacity here.”

“With our hydraulic cutterhead dredge Texas fully operational for the third quarter and two additional dredges, Ohio, a hydraulic dustpan dredge, and Reem Island, a hopper dredge, coming on line in the third quarter, our utilization rates should show nice improvement for the remainder of the year.”

“Domestically, the recent re-activation of the dredge New York which was damaged in a collision earlier in the year, will significantly improve utilization and margins.”

“Domestic capital revenues increased 64 per cent to US$76.3 million in the first half of 2008, despite the loss of the dredge New York for nearly that entire period. The increase was driven in large part by our work in the Columbia River, Oregon, the New York/New Jersey harbors and Barbour’s Cut, Texas. With the dredge New York back online and US$164 million in backlog and US$59 million in options pending for the New York and other mechanical dredges, we expect to be working steadily in the New York/New Jersey area for the next three years.”

“Despite the continuation of funding issues, the domestic dredging bid market had US$188 million of projects awarded during the quarter driven by capital work in New York/New Jersey and emergency maintenance projects along the Mississippi River and the Gulf Coast.”

“Through the first six months of 2008, we won 46 per cent of the work awarded, adding US$183 million to our domestic backlog. As a result, our total dredging backlog at June 30 was US$356 million, nearly 50 per cent more than at this time last year. With our increased backlog, a significant portion of our dredging fleet is booked through the remainder of 2008.”