Gulf Island Fabrication, Inc. (GIFI) CEO Kirk Meche on Q3 2018 Results – Earnings Call TranscriptNovember 12, 2018
This project will be executed by our Fabrication Division and puts needed backlog back into our Fabrication yard.
The impact of lower margin backlog within our Shipyard Division due to competitive pricing and bad debt expense of $2.8 million for an accounts receivable reserve recorded during the quarter for our Fabrication Division.
Revenue for our EPC Division continues to consist pricing, planning, and scheduling work for the SeaOne Project.
Our backlog by operating segment at quarter end was $313 million for our Shipyard Division, $45 million for our Fabrication Division, $12 million for our Services Division and $800,000 for our EPC Division.
With respect to our liquidity, we ended the quarter with cash and short-term investments at $54.5 million, an increase of $15 million from the second quarter 2018.
So with that, I will now turn the call over to Todd, who will provide an update on our operations and major projects.
And then on the SeaOne Project, not a lot to update in terms of what’s available in the SeaOne website or the Port of Gulfport website, can you maybe talk about the status of that project and where it’s at terms of actually moving forward?
So we’re still working with those guys to try and move this project forward.
So again, we become very competitive in that market space and again with the track history behind some of these guys from offshore oil and gas, it’s spilling into – it start with West Texas market so – it’s making Gulf Island a very attractable facilities in terms of helping them meet their needs.
But, I think as part of that agreement, we had an opportunity to really get to know the Bechtel folks and I think that is helping us, as we push forward with some bidding opportunities.
We have been performing some work associated with the project. As you can see, there is little bit of revenue that’s being generated by us. Gulfport, we did do some geotechnical work in the Gulfport facilities. I know we’re looking to do some work in one of the other facilities as well, waiting for approval from SeaOne to start the process there.