Gulf Island Fabrication, Inc. Announces Agreement to Sell North Yard
September 27 2018 - 10:45AM
Gulf Island Fabrication, Inc. (“Gulf Island or the “Company”)
(NASDAQ: GIFI), announced today that it has entered into an
agreement for the sale of its North Yard facilities in Aransas
Pass, Texas and certain associated equipment (excluding all crawler
cranes) for $28 million. Final consummation of the sale is
anticipated to occur during the fourth quarter 2018 and is subject
to customary closing conditions, including an inspection period by
the purchaser.
Kirk J. Meche, President and CEO of Gulf Island,
stated, “Our agreement to sell the North Yard is another
significant step in our previously announced plan to rationalize
underutilized assets and strengthen our balance sheet and
liquidity. The ultimate sale of the North Yard will give us
increased flexibility as we continue to strategically reposition
ourselves to more diversified markets and customers. We continue to
market our remaining assets held for sale."
Gulf Island Fabrication, Inc., based in Houston,
Texas, with facilities located in Louisiana and Texas, is a leading
fabricator of complex steel structures and marine vessels used for
Oil & Gas production and transportation, petrochemical and
industrial facilities, power generation and alternative energy
projects. Gulf Island also provides related installation,
hookup, commissioning, repair and maintenance services with
specialized crews and integrated project management capabilities.
Visit us at our website www.gulfisland.com.
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 the 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. Stockton Chief Financial Officer 713.714.6100
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