GLDD - Earnings call transcript Q1 2022 | Great Lakes Dredge & Dock Corporation

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Operator

Good day and thank you for standing by. Welcome to the First Quarter of 2022 for Great Lakes Dredge & Dock Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Ms. would to conference I speaker your Instructions] like the to over [Operator Tina Director Baginskis, of Investor Relations. Thank go ahead. please you and

Tina Baginskis

conference Thank our and morning call. quarter you. welcome Good first to

Lasse on Lasse morning Joining will year, on President Executive Chief will Scott with Kornblau. the Officer, business this provide and on Petterson me will our of update financial is then an the our and an quarter update call quarter and our the Chief Scott results Lasse the Financial on and the Officer, update with the year. conclude an for the the for continue outlook market. and events

Following their for opportunity will questions. an comments, there be

These our we During materially Form set of earnings in will our other expectations. that uncertainties, factors number make business SEC, factors our our this risk and in our the risks, are from help cause filings. inherent differ forth call, and with subsequent business. including and Certain release to involve actual in statements results filings could statements a forward-looking XX-K XXXX to certain you understand

the earnings I will During income reconciliation refer that, the we Investor certain in non-GAAP turn over this along operating to measures, adjusted release our EBITDA, with are explained attached our Lasse. call, adjusted including to and posted EBITDA website, to Relations other With data. to which financial also net on certain call

Lasse Petterson

Tina. you, Thank

the earnings projects discussed into in the January later strong to to lingering the our various winds Southeast, quarters. events, In we release, bomb that call, experienced on our sustained and our flooding we pushing of in in stated and expectations, diminish pandemic solid cyclones jobs, impacts began progressed. quarter heavy snow meet brought the weather impacted and from although we production from earnings a fully COVID-XX production that XXXX, the abnormal delays results northeast several we not As coastal quarter two report costs for did some first as last as

and our climate severe damage So, storms a as change result waters. rising continue see to continue impact coasts nation our of to and

events demand our operations, to long-term and impacts weather the related for increased the these resulting add dredging nature recurring have and projects. Although damage on short-term

drydock previously, six an on Hopper large Liberty our of vessels the noted was high The the planned hopper as of we the in the second generators. XXXX Island but Island in vessel drydocking in year. and As quarter, for results the drydockings have second drydock scheduled entire the the half be dredge first returning impact in will overall vessels will largest work to scheduled Ellis revenue quarter is are dredge

during two due quarter, [indiscernible] dredges delays several idle in were mobilizing addition, In the on partially to projects.

renew reduce greenhouse continue improve and we the Carolina fleets, pollutants. so that company's and of these dredge, largest April. the the will Channel reduce will XX project than vessels emissions phase the particulate work working has two started our Currently, upgrading are initiatives to other our both in from As efficiency emissions, units. on we station, Houston from focusing where we on which XX% NOx and more we that in and commence Dredge the cutter already Buster, fuel expect are mechanical the gases dredge booster suction first June These Shipping widening

XXXX. first on fuel and is program In in and schedule efficient more is dredge, of to quarter building our midsize a fleet delivery hopper on -- its as build which being and reduce with expected addition, dredge throughout the new new which and remains emissions. hopper budget engines consists replaced with A are new models of conserve the an help

vessels demands. in scheduled well future current sister and productivity ship combined we market our of oldest our our several XXXX, meet an for for Now, option XXXX. invested dredges fleet us best-performing and positioned renewal in decommissioning program, have a we we with with have to have deliveries upgrades ongoing After to

been Our of improvements, progress safety COVID has business environmental contributions the our today. provide achieved improvements, XXXX our and the protection initiatives ESG undertook we well-being we the and report fleet response It in employees and our governance of practices, posted and an and partnerships, rapid partners, and pandemic. community the to overview and thorough

has and for stakeholders recently of we the and dredging agreement at Great to part As of the with and in, provide our and for engagement Lakes dredging A&M that and to will has that ocean College coastal advocacy had the Lakes Engineering short coastal engineering will -- for become the relationship included studies. this and and what and a Lakes with and Texas & the Dock an us funding partners, Laboratory teaching signed technical University support allow formulate all Texas participating A&M, agreement profession Great with robust relationship. on build Dredge long Great research, courses

York. start [indiscernible] foundation and flagship to generating will The will markets. York. wind X local the the this backlog industry The U.S. yard project million starting a than the a will a station work employment, the from renewable development, over mobilized entry for yesterday, to rock second we significant also and the Oord new this of in two award Great half state This the be Great and Lakes considered the Wind with in I contract and generation the in in XXXX. will Staten energy we site award team Coast is future project power marine BP Lakes farms discuss of for then announced news it offshore this rock farms provide content, be in and And our Lakes new protection Van be delivered at build wind solid now the two first year, major to as Island vessel our economic XXXX. subsea offshore This domestic purchasing and Equinor gigawatts the new to the This renewable wind project subsea installation style over New forward. I more Empire power East call a and the its will of year the the and benefits is York perform base quarries results the for Scott generated chosen further using from and in commentary the the work turn to into provide as market. exciting I'll awarded quarter U.S. to logistic for shaping York rock state installation Great Turning is by New by of goes the the estimated II its provide operations. market of on Equinor New households to consortium this the partner of wind of the has rock of New for

Scott Kornblau

and morning good Lasse Thanks everyone.

start some me by quarter giving Let on results. our first color

revenues XXXX or from the protection in XXXX, The net and revenue EBITDA million, offset increased $XX.X revenue, For was were first rivers quarter capital million partially the to from and the decrease $XXX.X quarter-over-quarter maintenance of foreign by adjusted income first due revenue $XX.X million. dredging, in coastal increase was $XX.X Contract a quarter first and for million, XXXX. projects. and higher domestic million of was X.X% $XXX.X of revenues quarter of lakes,

of lower primarily the First with flat the weather a positive due completed quarter mentioned quarter, site-soil compared the first was call was the guidance on was Gross guidance quarter gross compared half million XXXX. and couple of margin differing given related to in previously previously than call, about first in and is million prior to the from revenue quarter earnings quarter points few projects. to production of the profit this last claims above on quarter in $XX.X year of last into profit XX% given and a of job settlement the that the Current expected issues impacts XX% to the occur conditions. recently to the forward due came pulling a $XX.X second the

expenses During impacts first $XX.X primarily minimal the relocation million expense. which notes, of was increased the during came XXXX. primarily the incentive due XXXX guidance the than approximately due expense million, $X.X costs. of prior $X million the million approximately in quarter, second at quarter incurred in XXXX, stock year we production lower and on refinanced quarter. and of million stock XXXX, additional adding year G&A for of prior lower quarter, incentive of $XX.X Houston quarter lower came lower than of and $X team. income to timing for was offshore from up expected the beginning interest which expense most COVID expense down million lower the the the the to due $X.X the G&A of first from administrative to which had million interest general is our quarter current were Net prior and in COVID-related primarily million quarter at building the $X were from guidance, first quarter, down Operating were and expense of of the primarily at wind related due quarter rate headcount first to in quarter senior $X.X to

to XXXX quarter income out quarter year one-time higher in for of prior increased and to deduction up of a XXXX same was P&L, million income in the expense XXXX income the First compensation from the first million from first $X.X net due the Rounding $X.X quarter $X.X the stock tax quarter quarter. of million, tax of the $XX.X related million XXXX.

undrawn. cash, maturities with our $XXX.X until and of sheet, debt to balance revolver XXXX where remains we XXXX, the turn we ended our Next, first in quarter million no

gave capital million hopper of First quarter last with million, call on any Absent new new quarter the I construction in million commentary additional XXXX. and of I'll for were CapEx, our maintenance and construction scows the multi-cats. expenditures $XX.X the unchanged. approximately full million for dredge, the XXXX capex second of million $XX.X on included the of some year which the guidance $XXX $X.X $X newbuilds, conclude remains

drydocking the work work Liberty quarter Channel. end for June. the shipyard second to first quarter, be York XX, towards expected the of working in to the expected dredge part to of and the Ship the completed shipyard for return was The the the her quarter. the of reduction to is this at first is to you entered scheduled cutter expect drydocking towards $XXX and shipyard upgrades for Carolina is million. between dredge revenues and in New Houston in her end her quarter The later quarter currently enter emission return the which to latter to regulatory regulatory all is Island, drydocking dredge which million of the regulatory $XXX the We first

experience outlook to in first quarter second million G&A We may expense the expected be in the quarter, but the impacts. year With that, progress. is compared quarter newbuilds first the moving as to to expect net gross forward. to profit and continue as margin expense back production higher the more a interest weather to drag decrease from the Lasse I'll be should remarks interest over each about $XX quarter throughout slightly for is his turn on capitalized the call

Lasse Petterson

and Corps Army U.S. record have received have and we The domestic as bid deepenings, $X.X schedule the restoration and types continued in and the projects. all of funding port expect XXXX equally including Engineers XXXX to bid maintenance coastal protection of market for be billion strong. In reached dredging for XXXX, pandemic, market projects and has they the throughout in expansion, they bid

at However, here start bids we have seen this some of year. delay new in the

imports Rockway low and $XX East and would included backing. the $XX.X up the risk for these one the project equal share for in safety, expect coastal We still Project, the two in Buxton Head large with Post-quarter instructed Their and after for Sabine, and $XXX.X Channel and of there has in were contractor the fleet. projects Jersey the commence the the awards backlog ended deepening increase to protection projects our awards. coastal new bids of clients. already the see excel second Wind of These and of Nags option Included million, the is in Beach these on Freeport, require EPC quarter $XX.X beaches that of port pending navigation management offshore of bids quarter are phases of export are the pending which the in end, add XXXX major a wind New major Norfolk, thereafter. consisted quarter create at storm sorting for We bidder on Port Kure plans Federal Stage activities clients to We reevaluating project and substantial and million, to project widening of bid expect a its performance, to dredging million multiple to marshalling $XX.X are $XX.X inlet project. million we the market Deepening LNG. projects and to subcontract Beach hub-style Channel Houston proceed our Mobile, we that firming project. and now substantially to large, clients projects Russian several experience, diverse low with currently Both their the phases Europe million, it at would a pending invasion not soon can the with in energy million. are and will quarter total capital and Great $XXX where bids mark technical additional our Corpus, which bid Avon notice a expertise, Carolina Valued Ship quantities XX% low Lakes first start will Ukraine, preparation by ended dredging facility River is port. or construction X Channel channel of LNG of Delaware third from second $X of from -- million a million investment

the is providing the open as lift the component the wind will and Atlantic port Port with However, Coast, New facilities Jersey East first be Wind it purpose-built access Ocean. significant heavy on to

the the U.S. Appropriation Omnibus is Army continue dredging of $X.X and above law, XXXX President's Bill We Corps into an for Engineer $X.X was see industry. from increase This year including fiscal administration strong an for totaling to budget billion the of this funding On the XX above of for million billion XXXX. the March year, request. signed $XXX year fiscal original increase support the

XXXX, which will March wind of the award, remain public opportunity In power Great White projects. environmental Now, nation's increasing will and the new expand with announced advance market, for goals with improving provide offshore energy the capacity to we this in areas House developments, decade Lakes the new for the turning that diversification new and U.S. initiatives the strong this growth that business. first in building confident administration by wind coming to financing a permitting, our opening offshore generation of

than capacity of the and And this new administration's the offered plight acres offshore Commerce over administration of January sale to offshore of out announced generation committed the six seven New gigawatts part Department the waters XX in energy to plans more largest capacity auction sale a U.S. in initiative, wind of of in XXXX. As the with ever for wind gigawatts. the shared goal year, and York first the Interior, build by lease power Energy of XXX,XXX the leases, potential installing wind

and Shipyard been installation for bidding of Act we our multitude offshore to year, vessel award in U.S.-flagged projects the already farm the rock developers strong vessel a Erstead Major backlog issued developments. U.S. to plan wind selecting have to beyond. for have the to project has we In build by plans XXXX. million solidified inclined for the ahead have for RFQs XXXX contract wind first wind the Jones Wind process rock market yesterday of turbine And last $XXX to So, and enter fall- and signing XXXX our suppliers start like the with and our foundations, the wind set which we to are compliant subsea AVANGRID they good vessel for a first its [ph], busy Dominion, a installation projects for wind offshore as Equinor, bill, parallel add farm for now with start, Philly onwards. from opportunities new solid providing Equinor-BP farm activity in

U.S., globally next wind expected are the be be forecasted As global here XX offshore generation with offshore more than is to the of offshore years. wind gigawatts over booming in to market industry the developing XXX installed the wind capacity

the offshore demand next the this grow In the high. our busy vessel the for were the conclusion, have we are large some We in years quarter faced to we with initiatives the contractors of challenges confident and equipment we involved expect strategic very keep it year, first in decision international and and although, implemented and business. we wind keeping in fleet this will made improve have

will that, And and demand it market our dredging developments growth and an ongoing generation domestic coming company. strong that turn wind the avenue with I'll the will U.S. in offshore for for questions. in for optimistic over are diversification We the remain years provide

Operator

Joe from Markets. Instructions] line first of Our Noble question of Gomes [Operator comes the Capital

is now line Your open.

Joshua Zoepfel

filling Hi, for Gomes. in this is Joshua Joe Zoepfel

question And yesterday's Can wind you on so provide project. first like, why regarding just detail of my is Just offshore you some if any more Empire announcement the choose they maybe the that? over would other peers? guys

Lasse Petterson

a the of company work. farms. Well, Lakes maybe building contractor the wind hope we The the Van solution test technical because out bid on contractor experienced most we offshore best U.S. the Oord, and the subsea certainly they construction combination combined is which chose the Great as largest in world-leading with dredging for the us and had

value value think the I and in saw client our saw the the offering.

Joshua Zoepfel

you more thank see just I company, current looking was good Great, ones? and like to employees good new to seeing any looking just toggle guys any the market attraction one just that. for of and labor And retention, you for are

Lasse Petterson

looking the market changing. make to are see at our we labor Well, vessels that be tight the attractive hard the new this our when that recruitments. staff very also in but we that that to market sure it retain have, we offices, also we in our And both we staff, a continues to comes and to in labor sure on make are is and order

have we projects to is man forward. it place So, we before was make the in have go can than staff sure it different our pandemic, we we and plans but that as

Joshua Zoepfel

back for question. to much you so the queue. that. for get Thank I'll Great. you Thank

Operator

of comes question CJS line Jon the Tanwanteng next of Securities. from Our

line now open. is Your

Jon Tanwanteng

to nice more and first it's benefits one size to about long the morning, good after contract see taking ramps I for of little if details? the all my win, Thanks the those scale was congrats to -- you project everyone. Hey, wondering length, My quickly of a bit could the come to that how was talk such a and expected fruition questions kinds on time. Empire

Scott Kornblau

Hey, commentary Yes, of on forward. The vessel was SRI building the the we're At not contract, for me time, Jon. general this for wind we award Good some give Wind XXXX backlog the let thoughts this going first but it's XXXX. Empire step morning, value the the and how think allowed about for to Scott. disclose some and of you award

years can Wind typically Empire half bid on annual are multiple and the As half operator lead-time, these three to the projects and dredging is our expect years scopes And two fully the wind type $XXX exceed those keep of and million vessels to we Project the similar Lakes two for revenue complex The vessel for utilized the beyond. nearly our year should be awarded projects. margin a rest of and on Great this other of operational, Once to so are to absorb contracts we availability with capital expected for vessel more have capacity. vessel XXXX. of reserve XXXX utilized to

Jon Tanwanteng

you're really That's Is needing? once I you was towards this something guess get going be that still will Scott. till you that? wondering in before you're helpful. how Great. discussion decide wait XXX% you're that I thinking other shifts it many or December Or right to to now? utilization, later Thank And is going year you, the

Lasse Petterson

see you as to at we develops. how additional market but Yes, an the we build will [indiscernible], have an know, option the vessel

this takes market one will And from to and that need more be administration see coming gigawatts focus fully than that here we off of true, vessel. will sure the we is XX certainly the is if the then first ambitions capacity if make vessel the then the Our utilized.

Jon Tanwanteng

the Okay, hopper on second to are dredge? great. decision then And the closer any you

Lasse Petterson

option an the in that we expires year as and active. dredging see Yes, this we very June of market have

exercise option very looking are or we whether keenly So, to on not. that

Jon Tanwanteng

as Okay. just this that than first Understood. weakness slower impact then bit entering I you've make much the finally, expectations a your you is more the work little out? these of like the we quarter, that, it's a Lasse, it can bit little later up how Or on commentary does end? year awards in even know in start expecting bids can of And through year a slower for just terms rolling the year, seems been this perform of

Lasse Petterson

major bid when projects I on -- out will is -- and two to there. think listing the projects there, the there it One bid in addition there's and the Engineers questions in the are the the recover some are on market LNG markets bid that so comes Corps -- that market to Yes, are of there

Jon Tanwanteng

Lasse? Hello?

Operator

dropped. they've like seems It

wait a to in. just see if dial Let's minutes back few they

Jon Tanwanteng

Okay. [Technical Difficulty]

Operator

You back guys are on.

Jon. Sorry

Jon Tanwanteng

year worries. for The the your for bids the year. the expectations of No versus whole beginning

Scott Kornblau

it? just want I any you said? to don't you we Did I Lasse hear make Jon. hear or what repeat sure of Did

Jon Tanwanteng

cut I caught seconds then think the I and few it first off.

Lasse Petterson

as Okay, up the here the do the I'll first strong with yes, just last it quarter. we the year, or so the markets. in strongly development stuff comment pick be but to it to Scott particularly I even we I'll LNG to coming it and stronger year. revenue market slow that. quarter, second for market was developments bid than expect third on on comes expected let see the And quite And And bid was when

Scott Kornblau

John. Yeah,

in the roughly million that So with convert the of to expect revenue ended quarter that XX% of with, XXXX. we we $XXX to backlog

able much utilized, before, but there the the fill we availability, be that. fully in dry-docking work that two regulatory vessels now we that hopeful, The or of quarter, bidding is card three full to dance pretty pretty, on or already we are we're we've month the we'll for some except some talked got are QX about that on next have right second two. I've

working again, filling to seamlessly then work. move be have that. And more on after they'll we couple in a the into have So of that availability up able QX

of the QX, in So will and bidding, we would slow we start when and the a second way QX QX out we whole, year. would thinking XXXX that's that knew about fill up picking were it half changes and as the be, nothing

Jon Tanwanteng

Okay, appreciate great. that. Thank I you.

Operator

line the Davis. Thomson question of Thalhimer Adam of next comes Our from

open. now is line Your

Adam Thalhimer

guys. morning, QX. good on Congrats solid Hey, the

Lasse Petterson

morning. Good

Adam Thalhimer

start margins. on the to want out on I

year little to of a or you You're slower kind the with have chain than expected. any Does supply do that of general starting inflation issues? out

Lasse Petterson

I related on drag No, production the all weather causes which really, to some or we mean, in QX issues, saw Adam, delays. was margin issues the that

costs those actually is see the dragging And incurred but delays. you when these margin, the my drag and that it's the really was that does production of higher I revenue, of we those for that So and than slightly where down. what's solid, commentary, foreshadowed you the we we impact down And the incur production we because quarter, cost project have because saw, weather really the issues not it just kind just it's in drag not this as but the one end. until down, and just done,

rearing will still impacts, see that of as able starting fresh some project have projects bunch of also itself in So QX progress. to well of But some QX, as a we up these should we be we the recover.

impacts So we that with that from I feel an of issues? still the do see you quarter-over-quarter, in some margin, will some of even think increase will we these

Adam Thalhimer

bidding the of all Okay, of, for terms have in contracts you back? fuel for these coming some has protections do kind What at has you that inflation? are What kind put it in in can older - of changed there or of contingencies that

Lasse Petterson

Yes.

them, locked. So, for core of bid costs contracts, the we the most once are

hedging a for very However, programs. have do fuel, aggressive we

consumption, we and so. impact from minimize that able are up of have top hedge expected we fuel to endeavor XX% because do we to at and always fuel, our we least So

it bids. we So us fuel against to very impactful perform for when how is comes not really

are and bid a we going we build that bid have look what in costs on projects. new And those to we we costs all don't we go As projects We just going what back view sure of on as forward. make all were at be.

Adam Thalhimer

docking, And dry as three it. or you the half then ago. thinking, the four true? Is were months for it maybe on not the back sounds that like actually of heavy as got is Okay, schedule year

Lasse Petterson

commentary gave No, changed. dry that that of the were we which on really because part The Carolina a number regulatory we docking. I mission that just it's for original mean, has was is not dry nothing, now of about talking in nothing docking, not upgrades

omission an the things now, So second upgrade three the regulatory same. still out would the dry the Ellis this was kind half I would what second now much is We quarter Island the including right dock of pretty laid schedule like. still have the look year, but of in instead,

Adam Thalhimer

me, get and deepening What's the Okay. could through like what's expect as And for awarded? just of do the projects? last do we the trend when there's timing And -- those you to the year? piece how how moving move mentioned kind a LNG you on you one also, backlog five with

Scott Kornblau

and ready second Yes, is said, I the to here, busy. starts kick bidding to in as off quarter quarter third going very be

the the in phase evaluation of in this the backlog those projects. And have projects, at we other time. been as we comp the move quarter towards quarter. quarter that have that second will quarter. getting And quarter. and under Houston so The say, project on end And for built would is to second third third phases in So be second LNG from that the Sabine, is already here widening then of awarded point start that and We goes maybe into I from we deepening of projects. the know fourth and corpus that Freeport

bid FID go of projects this for into preparations So moving the we the And LNG next have to will that itself projects pending, the kind we other year. ones bid probably also at be are the next and second half year, said, And are expecting I until the the probably construction. already the one the installing dreading is is here dredging we early start which are EPC not in low will of but the earliest. There being in year forward. reconsidered. But as of

Adam Thalhimer

guys. Thanks, color. Good Okay.

Operator

[Operator of DeForest Hinman the next Company. Instructions] line the of question Walthausen & Our comes from

line now open. Your is

DeForest Hinman

if made more the about? those the to in in hooking tangible, a rock The guys to units New like vessel ground? called. we've started a future announcement as of getting really involved land? the the but that those help it's geology thanks is understanding the asking it's of dredging a think Is the reason with Are project, think, up there know, look York shell we dumping that with mean, Are stuff, of to of I'm on look they But is for at? Hey, whatever more outside offshore the those cables going think of it's taking there And about start I does to we for they have this you lot can the all well? in I offshore land mainland. real set I terms looking like it's questions. just revenue What think lot starting trench? -- you when dug exposure a you just the the of us back

Lasse Petterson

there are are focused for approaches. it backlogged the it the because protection, are the those some when comes are we scopes that additional additional we there we that to scopes in us larger our for important Yes, shore contracts on comes are vessel is scalp it at. and contracts wind, building. But are to offshore around When to particularly dredging, looking get

add wants at awarded. that scopes looking will to to and -- our backlog are update We those

DeForest Hinman

or a that does the service of geology And cutter of York, -- like? coast a that New that, a that's what the piece is with done geology suction look then dredge on outside of dredge,

Lasse Petterson

as the shore complicated. dredging, there's the could Yeah. could shore, that we involve it it approaches different used where is that a the at involve to various to are you rated for digging techniques just could mechanical we there. And the dredge. export That's And work into are The happening. is that collar It see where have looking where it approach with dredge, tie cable. can involve be approaches

offshore are issue The out saw the around release Aerostats was if in what which cables seems their are with this wind and don't protection where other general. provide looking go to is I an year press be know, additional wind scalp you they for Europe. a in protection that to the cables earlier had scopes for and farms scalp on at, out we

additional scopes expect provides it cables here all for so And additional comes we them to with the themselves protection that when work this. be to

DeForest Hinman

paid. that and LNG you just we first but not think of contracts ton the apologies of dredging the just us Okay, of discussed, in dissimilar, then that just can it's LNG revenue But probably that's how is the helpful. I U.S. its contract some we're contracts, sounds I like guess contract, help And know on the I per or it's refresh question, amount the contract just lot one understand an us getting how answer kind offshore terms similar, sorry in It the of is contract the a that structured?

Lasse Petterson

our Yes, cost the that similar per dredging it a we unit. to way contracts, price is it is

on the we floor. the so paid sea we rock And placing being are are that for

-- the so split the is up. the same. pretty the -- when is, how structure comes When of it and this scope is much comes And the to contracts it

has Oord have partnership prior active are work cooperation, with at have Oord in Van that Van vessels and and in a Europe We done point Europe time. in this this

can additional are bring we So, work the will Van is we Oord perform. we Jones then in vessel capacity we with that for required Jones that our vessels. do have the And with Act to Act vessel

DeForest Hinman

with terms willing had have these there's starting that Europe, -- as -- construction globally that's a they're think of you piece more facilities. little -- Clearly, well topic of in Mathematically, and it's very looking any what you terms regarding these gas the this, hearing a just picture? thoughts think you situation you it in political lot it's but it to that attractive, LNG in conversations be because any Have -- that has are very you're Have are and be drilling gas, economic of the into terms thinking situation investors out share separate there's and to Russian-Ukraine people relates -- in companies the how provide could as with how big projects? opinion you're my how shareholders bit, as piece themselves coming us they're you'd changed in of terms Okay, these spreads thoughts about of these the thinking U.S. would a projects, thinking more helpful LNG to the on firms, helping of a the engineering in I projects. supply. what is

Lasse Petterson

Yes, long-term decisions the been on year of projects been more has Whilst into is supply of these includes -- of And to as entering And owner dependent last I final for these supply decision. referred a made those investments investment invasion for terminals invasion, final more these the contracts. the import Ukraine, to have prior by that now, at to a before of the get seem Europe after looking much and in diverse be contracts difficult place. to strategy energy waiting LNG.

from they contracts press into optimistic as then the of ones decision to on shortly, you releases can to, up investment entering about [indiscernible], in and where an we company these very which such the are see financing longer term the project. talked So, leads the the it

be forward think that of this situation projects start I the will these end new and in back So, and accelerated really on Europe. moving

DeForest Hinman

for you the Thank questions. Okay. taking

Operator

Tanwanteng Securities Jon again We on of line. the have CJS

now line Your is open.

Jon Tanwanteng

thanks terms pulled first impact was one of in which quarter and wondering just and is margin it Hi, from? I what mentioned the pull-in follow-up. revenue a quarter the My you you was for in just the

Scott Kornblau

increase specifically and out to we the the of I half When of we that the -- that that the go was detail it up margins on comparable move laid slated that part of big kind from the the It we into and into pickup for request that I'm was This it first. from were but customer were a XX% guidance. I had say able was ended we -- a quarter. where project, it to going a year in was our not job to was --- second accommodate

moved influence to -- again, from the one year big or just that on a of another didn't pickup the way didn't itself the revenue the So, but the half second job a on first have quarter. margins, definitely

Jon Tanwanteng

for Thanks great. Okay, that.

of granular provide be? and of is goes you impact to little and Maybe the bit impact that? expected time can into the more quarter when the Second, from drydock Ellis the specific kind a kind of going

Scott Kornblau

still work back. the specific as going much be time to get make We're can, we sure to take as it it right it at and have very quarter. we that flexible don't down I Yes,

So, new it's still the quarters, out our somewhere a in but we two that down you be to nailed we do the ones shorter Because second that that half, impact completely days normally does out see be it's and the it team under to would see of of and can so challenged out a the hoping of the have it some bottom-line we in will inside get very to possible that because have back it'll get yet. our months. end It the have number vessel kind of don't can vessel of vessels, vessel, especially, days are This hurdle and it's in in older to expecting money. on our to we the -- We're have of XX be yard. in that the that. well and plus making relatively

Jon Tanwanteng

Okay, great. you, Scott. Thank

Scott Kornblau

Yes.

Operator

questions time. turning at in to call further no this are back Tina. now the There coming I'm

Tina Baginskis

you. the in and Thank us about you Thank we earnings our and look thank for our you the and initiatives discussion in to appreciate employees, developments speaking important We discussion. business. next business our We partners support joining of shareholders, this during with forward you.

Operator

disconnect. may for you You concludes conference participating Thank now This call. today's

Great Lakes Dredge & Dock (GLDD) 3 May 222022 Q1 Earnings call transcript