Johnny Conrad, President & CEO of Conrad Industries, says the results reflect a "difficult operating environment."
Conrad Industries, Inc. (Conrad Industries), in its financial report for the 2016 third quarter (Q3) and nine month period to the end of September 30, 2016, said that it has sustained a $12.5 million gross loss on the construction of a liquefied natural gas (LNG) bunker barge.
"Although we have incurred losses on the LNG barge, we believe we have developed resources to position our Company as a leader in LNG marine-related construction in North America," said Johnny Conrad, President and CEO of Conrad Industries.
The company says that its repair and conversion segment achieved a gross profit of $2.8 million during the nine month period, which compares to a gross loss of $108,000 during the same period of the previous year, reflecting a "continued solid performance" within the context of a highly competitive environment.
"Our results reflect a continued difficult operating environment. Our bid activity has been good and we see some opportunities, but we have also seen many new construction customers continue to delay projects and the environment remains very competitive," said Conrad.
Johnny Conrad, President & CEO, Conrad Industries
Our results reflect a continued difficult operating environment
"We are cautiously optimistic in the vessel construction segment due to our record backlog at September 30, 2016."
As Ship & Bunker has previously reported, a 2,200 m3 LNG bunker barge is currently under construction at Conrad Industries' shipyard in Orange, Texas.
In June, Conrad Industries said that it believes that the further development of LNG bunker market is "of critical importance," and sees the fuel's use as "the next logical progression" for the company's history.