Prolonged dry dockings, supply chain woes, fuel inflation and poor weather combined to hurt financial results in 2022's first half for Great Lakes Dredge & Dock, the largest dredging contractor in the U.S.
Bidding for beach and maintenance projects also was slower than usual in the first half of the year, said Lasse Petterson, company CEO, in a conference call with investment analysts on Aug. 2.
The Houston-based company (GLDD-NASDAQ) recorded a net loss of $4 million on revenue of $149.4 million in the second quarter ending June 30, compared to net income of $2.1 million on revenue of $169 million in the same quarter last year.
Great Lakes Dredge & Dock ranks at No. 130 on ENR's Top 400 Contractors list, reporting $726.2 million in construction related revenue last year.
Supply chain delays impacted drydockings of two dredges, slowing mobilization for projects, the firm said. Inflation drove up costs for labor and supplies, too. The company now says it will account for inflation and supply chain risk in bids and for severe weather in earnings estimates.
Gross profit margin percentage declined to 7% in the second quarter, down from 13.5% in the same period in 2021.
The company continues to see market opportunities, it says, and is building one new dredge while starting work on another in anticipation of new projects.