I was just reading a Citi research piece that was very bullish on offshore oil services including the Gulf of Mexico:
"The Gulf of Mexico, which saw deepwater backlog fall 10% in 2011 following the Macondo moratorium, is back at record backlog and we expect further supply commitments in the coming months."As we've discussed in past posts, fundamentals are bullish for the inland barge business. Jeffboat commented that "new dry barge builds required to replace retiring barges may strain the capacity of barge manufacturing during the next five years."
Historically, oil and gas related work was a big component of Conrad's business. However, the oil price crash and then the post-DWH moratorium resulted in a string of bad years for this stream of business.
Luckily they were able to replace this business with other types of projects. But if both inland barges and energy related business are booming at the same time, revenue and profit margins should both increase substantially.