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Great Lakes Dredge & Dock (GLDD) – Windward Ho! FID on Jones Act Offshore Wind Installation

Industrials
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Wednesday, November 17, 2021

Great Lakes Dredge & Dock (GLDD)
Windward Ho! FID on Jones Act Offshore Wind Installation

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Final investment decision (FID) reached and shipyard engaged to build first Jones Act qualified incline fallpipe rock installation barge. Yesterday, a contract for $197 million was announced with Philly Shipyard, a publicly traded Norwegian company that is majority owned by Aker Capital. The goal is to construct the first Jones Act complaint vessel to assist in the installation of the wind turbine towers in US offshore areas beginning in 2025. The primary function of the rock dumping barge will be the placement of rock around the wind tower foundations for scour protection. The state of the art vessel will have all of the latest technology and should be well positioned to serve a growing market. Given the likelihood of government support (federal/state/local) for high local content on the construction of offshore wind farms, the outlook for this type of vessel appears promising.

    Payment schedule is favorable.  The shipyard contract has attractive payment terms that spread out the significant capex commitment over the next three years. A deposit of ~$15 million (8%) will paid in 4Q2021 and the remainder will be spread out over the next three years, with ~$35 million (18%) in 2022, ~$80 million (41%) in 2023 and $67 million (33%) in 2024. Owner furnished equipment in the $20 …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

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