U.S. offshore facilities fabrication company Gulf Island Fabrication has completed the sale of its North Yard facilities in Aransas Pass, Texas and certain associated equipment for $28 million.
When first announcing the agreement to sell the yard back in September 2018, Gulf Island said the sale was a step to rationalize underutilized assets and strengthen its balance sheet and liquidity.
The company, based in Houston, Texas, with facilities located in Louisiana and Texas, said the sale of the North Yard would give it increased flexibility as it continues to strategically reposition itself to more diversified markets and customers.
To remind, Gulf Island earlier this year sold its South Yard in Ingleside, Texas, to a subsidiary of Buckeye Partners for $55 million.
Commenting on the completion of the North Yard sale, Kirk J. Meche, President and CEO of Gulf Island, said: “The sale of the Texas North Yard is complete and is consistent with the timeline and proceeds previously announced in September of this yard.”
Consistent to what was said in September, Meche said: “The sale proceeds provide us with greater flexibility as we continue to strategically reposition ourselves to more diversified markets and customers. We continue to market our remaining assets held for sale.”
Gulf Island fabricates complex steel structures, modules and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation, alternative energy and shipping, and marine transportation operations.
Largest backlog in Shipyard Division
The company operates and manages its business through four operating divisions: Fabrication, Shipyard, Services, and EPC.
Gulf Island presented its third-quarter results earlier in November. The company reported a net loss of $10.9 million on revenue of $49.7 million for the third quarter 2018, compared to a net loss of $3.1 million on revenue of $49.9 million for the third quarter 2017,
“Results for the third quarter 2018 reflect our previously discussed challenges with the underutilization of our Fabrication and Shipyard Divisions. However, awarded backlog is set to ramp up over the next several quarters within our Shipyard Division and we expect to realize improvement in the overall utilization of our facilities,” the CEO said earlier this month.
The company’s revenue backlog was $370.3 million at September 30, 2018, which includes deliveries through 2021, and represents an increase of $33.8 million from June 30, 2018. Backlog by operating segment at September 30, 2018, was $313.1 million for Shipyard, $44.7 million for Fabrication, $11.7 million for Services and $0.8 million for EPC.
Offshore Energy Today Staff