Gulf Island Fabrication reports Q2 results
Gulf Island Fabrication, Inc. ("Gulf Island" or the "Company") (NASDAQ:GIFI) says its net income totaled $0.5 million ($0.04 per share) on revenue of $54.0 million for the three months ended June 30, 2018, compared to a net loss of $10.9 million ($0.73 loss per share) on revenue of $45.9 million for the three months ended June 30, 2017, and a net loss of $5.3 million ($0.35 loss per share) on revenue of $57.3 million for the quarter ended March 31, 2018.
Kirk Meche, the Company's CEO and President, commented, "The improved results for the second quarter of 2018 include another strong performance from our Services Division which contributed $3.6 million in gross profit for the quarter as well as other income of $7.1 million from the sale of our Texas South Yard and settlement of our Hurricane Harvey claim.
As stated in prior earnings calls, we are focused on managing our balance sheet and building contract backlog in new markets. During the second quarter, we achieved three significant milestones with the final completion and delivery of four petrochemical modules, the sale of our Texas South Yard for net cash proceeds of $53.5 million and successful additions to our Shipyard backlog. On June 6, 2018, one of our customers exercised their option for newbuild construction for a second marine offshore research vessel in the amount of $67.6 million. As of today, our backlog is the largest it has been in four years.
We continue to market for sale our Texas North Yard, and we are in negotiations with one potential buyer and continue discussions with a number of other interested parties. We hope to have a contract for the sale of this property in the near future."
The Company's revenue backlog is $347.6 million as of August 8, 2018, including project deliveries through 2022, and has increased since March 31, 2018, due to the new awards within our Shipyard Division discussed above. Our revenue backlog includes approximately $30.2 million subject to a contract termination dispute with a customer for contracts to build two MPSVs. Pending resolution of the dispute, all work has been stopped and the vessels and associated equipment and material are in our care and custody at our shipyard in Houma, Louisiana. Revenue backlog excludes options on contracts of $562.7 million which include deliveries through 2025 should all options be exercised. The Company remains focused on adding profitable backlog to balance our portfolio of projects, executing our existing projects and managing our costs.
Gulf Island is a diversified, publicly traded corporation that has grown to be a worldwide leader in the project management, construction, and servicing of offshore and onshore facilities within the energy sector and beyond. Construction facilities of Gulf Island are located in the United States along the Gulf Coast.