With the US firmly in place to build at least eleven large offshore wind farms, the additional capability to service this growth platform will continue to set GLDD apart from its peers. Just as with its new hopper dredgers, management has an option for a sister ship, which could be delivered in 2027. As wind farms are constructed onshore and assembled offshore, the Jones Act requires a US-flagged ship to be utilized, and GLDD with have the first of its kind when delivered in late 2024. In addition, Great Lakes Dredge and Dock is expanding into new markets with the $197 million order for the first U.S.-flagged Jones Act compliant subsea rock installation vessel used in the construction of offshore wind turbine installation. These two vessels will add to GLDD’s capabilities in harbor and channel maintenance assets. Last week, GLDD announced it was exercising its option for an additional hopper vessel which will be a sister ship to the Galveston Island, with delivery in early 2025. GLDD is also taking delivery in early 2023 of a new 6,500 cubic yard trailing suction hopper dredge, the Galveston Island. The Ellis Island has one of the largest capacity hoppers in the US. In late 2017, Great Lakes Dredge and Dock took delivery of the $150 million Ellis Island vessel, a 15,000 cubic yard trailing suction hopper dredge. Management has been buying new dredging ships and upgrading many of its vessels. #2 - Getting into markets that are very close to what we do, like offshore wind Since his hiring, Petterson has set out new corporate priorities, as outlined in a 2020 conference call: In 2017, there was a management change and CEO Lasse Petterson was hired to turn the company around. In the mid-2010s, the company attempted to expand into coastal environmental remediation and failed miserably. Great Lakes Dredge & Dock has a 130-year history in the dredging business. GLDD specializes in harbor and coastal projects, mainly along the Gulf of Mexico and East Coast. The dredging market is split between inland lakes & rivers, such as the Mississippi River, and open-water harbors and coastal areas, such as Houston Ship Channel and beach restoration. The HMTF is under congressional direction to not only annually spend the incoming revenue but to work off its $9 billion surplus which had built up over the past 20 years.Īccording to its most recent investor presentation, Great Lakes Dredge & Dock believes it has realized a 3-yr average of 35% market share on a typical US bid pool of $1.8 billion annually and is more than 50% higher than the next largest competitor. Much like the Highway Trust Fund, the Harbor Maintenance Trust Fund earmarks ~$800+ million a year for maintenance dredging projects. In addition to annual appropriations, the federal government collects an import ocean-going harbor maintenance tax which funds dredging projects. These factors are expected to contribute to a steady growth of the US dredging market of 2% to 3% annually.įunding for dredging projects mostly comes from the US Government, through the US Army Corps of Engineers ACE as they are authorized to manage harbors and coastal areas. The heightened severity of ocean storms causes coastal erosion to become a critical issue in coastal protection. In addition, the natural movement of sand and silt works against the need to keep channels open, creating a maintenance opportunity for dredging firms. The need to widen and deepen ports and navigable channels is rising as ocean-going trade utilizes wider and deeper-draft ships. Dredging is the “simple” task of moving the sea bottom from Point A to Point B.
Great Lakes Dredge & Dock is the largest provider of dredging services and the only publicly traded US dredging company. Great Lakes Dredge & Dock sits right in the middle of these opportunities. The soon-to-be boom in US East Coast offshore wind power generation adds a new dimension to firms specializing in ocean bottom work. The replenishment of barrier coastal areas due to natural and storm-induced erosion is critical for protection of coastal areas. The need to maintain and expand navigable shipping channels is essential to ocean-going trade. Most investors would not think of dredging as an essential service mostly supported by the US Government.
Great Lakes Dredge & Dock ( NASDAQ: GLDD ) is as unique as the unlikely Jones-Joplin duet. The result was a most unique collaboration of Raise Your Hand, one of Joplin’s concert repertoires.
GREAT LAKES DREDGE TV
Who would have dreamt of raunchy, pop singer Tom Jones matching up with rock-blues legend Janis Joplin? In late 1969, Jones, of It’s Not Unusual fame, headlined a popular tv show and asked Joplin to join him.
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