Tuesday, August 16, 2016

Conrad Industries Q2 Results


For the quarter ended June 30, 2016, Conrad had net income of $1.3 million and earnings per diluted share of $0.25 compared to net income of $1.2 million and earnings per diluted share of $.21 during the second quarter of 2015. The Company had net income of $3.9 million and earnings per diluted share of $0.74 for the six months ended June 30, 2016 compared to net income of $5.2 million and earnings per diluted share of $.89 for the six months ended June 30, 2015. Results for the three and six months ended June 30, 2016 included research and development tax credits of $0.6 million and $1.2 million, respectively. Conrad's backlog was $248.7 million at June 30, 2016, $211.8 million at December 31, 2015 and $131.7 million at June 30, 2015.
The market capitalization is currently $125 million, which is about exactly 1x book value. The enterprise value is $95 million.

The current backlog is a record high! It includes "an ocean going tank barge, four twin screw tugs, two ATB tugs, four spud barges and a LPG barge".

Regarding the LNG barge, which is a new type of project for them:
Vessel construction gross profit in the 2016 periods reflects a $4.5 million loss recorded in the second quarter on the LNG barge. The losses on the LNG barge primarily relate to vessel changes required by regulatory authorities, which increased costs and caused delays, and higher than expected equipment costs, resulting from the vessel being the first of its kind produced in North America. While most of the regulatory review process has been completed, we continue to have regulatory and execution risk associated with completing the vessel and are in discussions regarding potential late delivery charges. The barge is scheduled for delivery during the first half of 2017.
Results are stronger than I would've thought. Nice to see a company that has no interest expense and no long term debt.

Share repurchases YTD:
During the first quarter of 2016, we purchased 181,075 shares at an average price of $19 per share. During the second quarter of 2016, we purchased 12,955 shares at an average price of $21 per share.


Mr. Gotham said...

Is that LNG or LPG barge?

Curious what the use case is for LNG barge vs LNG ship.

CP said...

It's LNG. The use case is to refuel LNG ships.



CP said...

Bunker barge = ship carrying fuel for at-sea refueling.

CP said...

LNG as marine fuel


"The number of ships using LNG as fuel is increasing fast and more and more infrastructure projects are planned or proposed along the main shipping lanes. 63 LNG-fuelled ships (excluding LNG carriers) already operate worldwide, while another 76 newbuildings are confirmed (as of May 2015). In line with this dynamic development, DNV GL expects LNG to grow even more rapidly over the next ive to ten years. The uptake of LNG as a ship fuel will continue to advance as we head toward 2020, and we firmly believe that we will reach the number of 1,000 non-LNG carrier vessels running on LNG in 2020 or shortly thereafter. At the same time, LNG is commercially attractive and available worldwide in quantities able to meet the fuel demand of shipping in the coming decades."

CP said...

"One bar to the growing interest in LNG-powered ships is the cost to produce them. They are 10 to 25 percent more expensive to build than comparative vessels running on fuel oil, and it will take owners of gas-fueled ships five to eight years to recover those costs, Mikkelsen said. The insulated storage tanks needed for LNG contribute to the higher price tag."


CP said...

LNG Bunker Vessel and Transfer System - TRAV&L


CP said...

The barge will service TOTE’s newbuild Marlin class LNG-fuelled container ships and other LNG-fuelled vessels in and around the Port of Jacksonville, Florida.

The barge will be delivered to Jacksonville in the third quarter of 2016.