NASDAQ-listed Gulf Island Fabrication has sold the assets and certain long-term vessel construction contracts of its shipyard division to Louisiana-based Bollinger Shipyards for US$28.6M
Gulf Island Fabrication said the move will allow it to focus on its specialty fabrication business, remove risk associated with existing long-term contracts and strengthen its liquidity.
As a result of the sale, Gulf Island president and chief executive Richard Heo said the company would be able to “pursue new, higher-margin opportunities” within its fabrication and services division.
The sale covers the shipyard division property and assets in Houma, Louisiana, including all four of the division’s drydocks. Those drydocks have capacities ranging from 15,000 to 1,500-short tonnes.
Additionally, Bollinger will acquire the shipbuilding contracts and all related obligations for the construction of three research vessels for Oregon State University and five towing, salvage and rescue ships for the US Navy.
Gulf Island Fabrication said excluded from the transaction are the contracts and related obligations for the construction of two 40-vehicle ferries for the North Carolina Department of Transportation, a 70-vehicle ferry for the Texas Department of Transportation, and two multi-purpose service vessels for Hornbeck Offshore Services that are subject to dispute.
Gulf Island Fabrication anticipates recording a pre-tax loss of US$26M to US$28M in connection with the transaction.
Meanwhile, the transaction grows Bollinger Shipyards’ already strong presence in the US Gulf, underpinning its commercial and government vessel-related new construction and repair business.
“The addition of the new Houma shipyard further strengthens our position within the US defence industrial base as a leading shipbuilder and vessel repair company,” said Bollinger Shipyards president and chief executive Ben Bordelon. Bollinger Houma is Bollinger’s 11th shipyard in Louisiana.
Located just 48 km from the US Gulf of Mexico, the Bollinger Houma facility encompasses 177 hectares on the west bank of the Houma Navigation Canal, of which 115 hectares is unimproved land that is available for expansion. The facility includes 1,672 m2 of administrative and operations facilities, 14,864 m2 of covered fabrication facilities and 1,858 m2 of warehouse facilities. It also has 2,057 m of water frontage, including 716 m of steel bulkheads.
In December last year, Congress appropriated funds for Bollinger to build four additional Sentinel-class fast response cutters for the US Coast Guard. Bollinger is constructing an ocean transport barge and floating drydock for General Dynamics Electric Boat Division.
Furthermore, Bollinger is participating in industry studies of five US government programmes: covering the USCG’s offshore patrol cutter and US Navy’s common hull auxiliary multi-mission platform, auxiliary general ocean surveillance, large unmanned surface vehicle and light amphibious warship.
Riviera Maritime Media will provide free technical and operational webinars in 2021. Sign up to attend on our events page