U.S. shipbuilder Conrad Shipyard reported a net income of US$119,000 during the first quarter, due to losses on the LNG barge.
The company’s profit dropped from the $2.6 million reported during the corresponding quarter in 2016, according to the quarterly report.
Speaking of the results, Johnny Conrad, president and CEO said the company’s results reflect a difficult operating environment which is expected to continue through 2017.
“In addition, our first quarter operating results were affected by losses on the LNG Barge,” he said, adding that despite these losses incurred on the construction of the LNG barge, the company is well positioned to benefit in the LNG marine-related construction in North America.
Conrad Industries’ construction segment was adversely affected by a soft market for energy transportation, increased pricing pressure, and customer delays on large project orders.
The company’s backlog was $183.0 million at March 31, 2017, compared to $216.5 million at December 31, 2016, and $189.9 million at March 31, 2016.