Gulf Island Announces Favorable Federal Court Ruling in Navy Bid Protest
December 26 2018 - 11:44AM
Gulf Island Fabrication, Inc. (“Gulf Island” or the “Company”)
(NASDAQ: GIFI), announced today that the U.S. Court of Federal
Claims has ruled in favor of the Government and Gulf Island with
respect to the Company’s detail design and construction of up to
eight (8) towing, salvage, and rescue ships (“T-ATS”) for the U.S.
Navy. As a result, the partial stop work order previously
issued by the U.S. Navy has been cancelled and all performance
under the first T-ATS contract, which was previously awarded to the
Company by the U.S. Navy, may proceed in accordance with the terms
of the contract.
“We are clearly happy with the ruling from the
U.S. Court of Federal Claims,” said Kirk Meche, President and CEO
of Gulf Island. “Pre-construction activities for the first T-ATS
vessel have been ongoing and we are ready to move forward with
construction. We look forward to working with the U.S. Navy on this
very important project and in the future on the remaining
optionable T-ATS vessels if exercised.”
Gulf Island is a leading fabricator of complex
steel structures, modules and marine vessels used in energy
extraction and production, petrochemical and industrial facilities,
power generation, alternative energy and shipping and marine
transportation operations. The Company also provides project
management for EPC projects along with installation, hookup,
commissioning and repair and maintenance services. In addition, the
Company performs civil, drainage and other work for state and local
governments. The Company operates and manages its business through
four operating divisions: Fabrication, Shipyard, Services and EPC,
with its corporate headquarters located in Houston, Texas and
fabrication facilities located in Houma, Jennings and Lake Charles,
Louisiana.
Cautionary Statement:
This press release contains forward-looking
statements. Forward-looking statements are all statements other
than statements of historical facts, such as projections or
expectations relating to such topics as oil and gas prices,
operating cash flows, capital expenditures, liquidity and tax
rates. The words “anticipates,” “may,” “can,” “plans,” “believes,”
“estimates,” “expects,” “projects,” “targets,” “intends,” “likely,”
“will,” “should,” “to be,” “potential” and any similar expressions
are intended to identify those assertions as forward-looking
statements.
We caution readers that forward-looking
statements are not guarantees of future performance and actual
results may differ materially from those anticipated, projected or
assumed in the forward-looking statements. Important factors that
can cause our actual results to differ materially from those
anticipated in the forward-looking statements include the cyclical
nature of the oil and gas industry, changes in backlog estimates,
suspension or termination of projects, timing and award of new
contracts, financial ability and credit worthiness of our customers
and consolidation of our customers, competitive pricing and cost
overruns, entry into new lines of business, ability to raise
additional capital, ability to sell certain assets, advancement on
the SeaOne Project, ability to resolve dispute with a customer
relating to a purported termination of contracts to build MPSVs,
ability to remain in compliance with our covenants contained in our
credit agreement, ability to employ skilled workers, operating
dangers and limits on insurance coverage, weather conditions,
competition, customer disputes, adjustments to previously reported
profits under the percentage-of-completion method, loss of key
personnel, compliance with regulatory and environmental laws,
ability to utilize navigation canals, performance of
subcontractors, systems and information technology interruption or
failure and data security breaches and other factors described in
more detail in “Risk Factors” in Item 1A of our annual report on
Form 10-K for the year ended December 31, 2017, as updated by our
subsequent filings with the U.S. Securities and Exchange
Commission.
Investors are cautioned that many of the
assumptions upon which our forward-looking statements are based are
likely to change after the forward-looking statements are made,
which we cannot control. Further, we may make changes to our
business plans that could affect our results. We caution investors
that we do not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in our
assumptions, changes in business plans, actual experience or other
changes, and we undertake no obligation to update any
forward-looking statements.
For further information
contact:Kirk J. Meche Chief Executive Officer
713.714.6100 |
Westley
S. StocktonChief Financial Officer713.714.6100 |
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