Gulf Island Fabrication Reports Significant Financial Improvements in Q3 2024

Gulf Island Fabrication, Inc. reported significant financial improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue surged to $37.6 million for the third quarter, a substantial increase from $5.0 million in the prior year, while year-to-date revenue reached $121.8 million, up from $106.5 million. This growth was primarily driven by the Shipyard Division, which saw a revenue increase of $33.2 million due to the reversal of previously recognized revenue related to the resolution of MPSV Litigation. The Fabrication Division also contributed with a $2.1 million increase in small-scale fabrication activity, although the Services Division experienced a decline of $2.7 million due to reduced offshore services work and delays caused by hurricanes.

Gross profit for the third quarter improved to $4.7 million, compared to a gross loss of $29.9 million in the same quarter of 2023. For the nine-month period, gross profit was $14.9 million, a significant recovery from a gross loss of $20.4 million in the previous year. Operating income for the third quarter was $1.7 million, reversing an operating loss of $33.6 million in 2023, while year-to-date operating income reached $8.7 million compared to an operating loss of $32.6 million.

Net income for the third quarter was $2.3 million, a stark contrast to a net loss of $33.2 million in the same period last year. For the nine months, net income totaled $10.4 million, compared to a net loss of $31.5 million in 2023. Basic income per share for the third quarter was $0.14, compared to a loss of $2.04 in the prior year.

Total assets increased to $130.8 million as of September 30, 2024, from $120.6 million at the end of 2023. Current liabilities decreased significantly to $22.3 million, down from $29.8 million. The accumulated deficit improved to $(30.9 million) from $(41.4 million) at the end of 2023, and total shareholders’ equity rose to $88.8 million from $79.0 million.

Strategically, Gulf Island has focused on diversifying its operations and reducing reliance on offshore oil and gas construction. The company has made efforts to enhance project execution and has expanded its service offerings, including cleaning and environmental services. The wind down of the Shipyard Division was completed in Q4 2023, which is expected to reduce overhead costs. Additionally, a share repurchase program was approved, allowing for the repurchase of up to $5.0 million in common stock, with $0.9 million already utilized in the nine months ended September 30, 2024.

Overall, Gulf Island's financial performance reflects a strong recovery and strategic repositioning within the market, despite challenges posed by external factors such as oil price volatility and macroeconomic conditions.