Gulf Island Provides Operational Update Following Hurricane Ida
September 03 2021 - 8:50AM
Gulf Island Fabrication, Inc. (“Gulf Island” or the
“Company”) (NASDAQ: GIFI) today provided an update on the
status of operations at its Houma, Louisiana facilities.
On August 29, 2021, Hurricane Ida made landfall
near Gulf Island’s Houma, Louisiana facilities as a Category 4
hurricane. The storm caused severe flooding, significant property
damage and power outages in the surrounding areas.
Gulf Island has a long history of conducting
operations in South Louisiana and substantial experience managing
through catastrophic weather events and their aftermath. The
Company’s initial assessment of damage to the Houma facilities
indicates no significant flood damage; however, multiple buildings
experienced high winds damage and there is significant debris
throughout the facilities. Cleanup and restoration efforts at the
Houma facilities have commenced to enable employees and contractors
to safely return to work. Based upon this initial assessment, the
Company expects to be able to recommence certain project activities
in approximately one week. The Company’s ability to fully
recommence project activities will be dependent in part on the
restoration of power and other infrastructure in Houma and the
surrounding area. The Company maintains insurance policies designed
to protect it from material financial losses associated with
adverse weather events such as Hurricane Ida and is currently
assessing the full extent of the damage and applicable insurance
coverage amounts. The Company currently does not expect the
financial exposure associated with damage caused by the storm to be
material to its overall liquidity.
“Our top priority has been and will continue to
be the safety of our employees. Many of our employees suffered
significant damage to their homes and we continue to encourage them
to focus on the well-being of their families,” said Richard Heo,
Gulf Island’s President and Chief Executive Officer. “We are
working to assist our employees who have experienced damage or have
otherwise been displaced by the storm and plan to coordinate
volunteers to support recovery and cleanup efforts in Houma and the
surrounding areas.”
“Hurricane Ida was a historic storm, and our
thoughts and prayers are with all affected by its impact. We are
grateful for the support from local authorities and the heroic work
of first responders who are dealing with the aftermath of the storm
as conditions allow. I am confident that the resilience of our
employees and the residents of South Louisiana will enable us to
get through these difficult times,” concluded Heo.
ABOUT GULF ISLAND
Gulf Island is a leading fabricator of complex
steel structures and modules and provider of project management,
hookup, commissioning, repair, maintenance and civil construction
services to the industrial and energy sectors. The Company’s
customers include U.S. and, to a lesser extent, international
energy producers; refining, petrochemical, LNG, industrial and
power operators; and EPC companies. The Company is headquartered in
Houston, Texas and its operating facilities are located in Houma,
Louisiana.
CAUTIONARY NOTE ON FORWARD-LOOKING
STATEMENTS
This Release contains forward-looking statements
in which the Company discusses its potential future performance.
Forward-looking statements, within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995, are all statements other than statements of historical facts,
such as projections or expectations relating to diversification and
entry into new end markets, improvement of risk profile, industry
outlook, 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.
The Company cautions 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 its actual results to differ materially from
those anticipated in the forward-looking statements include: the
final assessment of damage at its Houma facilities and duration of
power outages and other infrastructure challenges in the Houma area
following Hurricane Ida; the duration and scope of, and
uncertainties associated with, the ongoing global pandemic caused
by COVID-19 (including new and emerging strains and variants), and
the corresponding weakened demand for, and volatility of prices of,
oil and the impact thereof on its business and the global economy;
its ability to secure new project awards, including fabrication
projects for refining, petrochemical, LNG, industrial and
sustainable energy end markets; the Company’s ability to improve
project execution; its inability to realize the expected financial
benefits of the Shipyard Transaction; the cyclical nature of the
oil and gas industry; competition; consolidation of its customers;
timing and award of new contracts; reliance on significant
customers; financial ability and credit worthiness of its
customers; nature of its contract terms; competitive pricing and
cost overruns on its projects; adjustments to previously reported
profits or losses under the percentage-of-completion method;
weather conditions; changes in contract estimates; suspension or
termination of projects; its ability to raise additional capital;
its ability to amend or obtain new debt financing or credit
facilities on favorable terms; its ability to generate sufficient
cash flow; its ability to sell certain assets; any future asset
impairments; utilization of facilities or closure or consolidation
of facilities; customer or subcontractor disputes; its ability to
resolve the dispute with a customer relating to the purported
terminations of contracts to build two MPSVs and the dispute with a
customer related to contracts to build two seventy-vehicle ferries;
operating dangers and limits on insurance coverage; barriers to
entry into new lines of business; its ability to employ skilled
workers; loss of key personnel; performance of subcontractors and
dependence on suppliers; changes in trade policies of the U.S. and
other countries; compliance with regulatory and environmental laws;
lack of navigability of canals and rivers; systems and information
technology interruption or failure and data security breaches;
performance of partners in any future joint ventures and other
strategic alliances; shareholder activism; focus on environmental,
social and governance factors by institutional investors and
regulators; and other factors described in Part I, Item 1A “Risk
Factors” in the Company’s 2020 Annual Report as updated under “Risk
Factors” in Part II, Item 1A in its quarterly report on Form 10-Q
for the quarter ended March 31, 2021, and as may be further updated
by subsequent filings with the SEC.
Additional factors or risks that the Company
currently deems immaterial, that are not presently known to the
Company or that arise in the future could also cause the Company’s
actual results to differ materially from its expected results.
Given these uncertainties, investors are cautioned that many of the
assumptions upon which the Company’s forward-looking statements are
based are likely to change after the date the forward-looking
statements are made, which it cannot control. Further, the Company
may make changes to its business plans that could affect its
results. The Company cautions investors that it undertakes no
obligation to publicly update or revise any forward-looking
statements, which speak only as of the date made, for any reason,
whether as a result of new information, future events or
developments, changed circumstances, or otherwise, and
notwithstanding any changes in its assumptions, changes in business
plans, actual experience or other changes.
COMPANY INFORMATION
Richard W. Heo |
Westley S. Stockton |
Chief Executive Officer |
Chief Financial Officer |
713.714.6100 |
713.714.6100 |
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