Gulf Island Recommences Operations Following Hurricane Ida
Gulf Island Fabrication (NASDAQ: GIFI) provided an operational update following Hurricane Ida, which caused significant damage to facilities in Houma, Louisiana. Recovery efforts have begun with power and water restored, enabling operations to resume. The company does not anticipate material impacts on project completion or liquidity. Ongoing assessments with insurance providers are underway, although the timing and amount of recovery remain uncertain. CEO Richard Heo expressed confidence in the company's strategic transformation amidst challenges.
- Operations at Houma facilities have resumed after the hurricane.
- No expected adverse impact on project completion or future opportunities.
- The company is assessing damage with insurance providers without anticipating liquidity issues.
- The full extent of damage and potential delays in insurance recovery are uncertain.
HOUSTON, Sept. 28, 2021 (GLOBE NEWSWIRE) -- Gulf Island Fabrication, Inc. (“Gulf Island” or the “Company”) (NASDAQ: GIFI) today provided an update on the status of operations at its Houma, Louisiana facilities.
On August 29, 2021, Hurricane Ida made landfall near Gulf Island’s Houma, Louisiana facilities as a powerful Category 4 hurricane, causing significant damage to the surrounding area and leaving nearly one million residents and thousands of businesses without power and water, including the Company’s Houma facilities.
In an effort to return the Company to normal operations as quickly and as safely as possible, cleanup and restoration efforts commenced immediately following the passage of the storm. Power and water to the Company’s facilities have been recently restored and the Company has recommenced operations. The Company does not expect the recent events to adversely impact its ability to complete projects in backlog or its ability to pursue future project opportunities. The Company is continuing to work with its insurance providers to assess the full extent of the damage to its buildings and equipment, and although the timing and amount of any insurance recovery is uncertain, the Company currently does not expect a material impact to its overall liquidity.
“Following a period of significant weather-related disruption, operations at our Houma facilities have resumed,” stated Richard Heo, Gulf Island’s President and Chief Executive Officer. “I continue to be impressed and thankful for the tremendous resilience and dedication that our employees have demonstrated throughout this ordeal, despite many of them having experienced significant damage to, or complete loss of, their homes,” continued Heo.
“In spite of these challenges, we remain on track to execute on our strategic transformation, and I am confident that we will emerge from these difficult times as a stronger Gulf Island,” concluded Heo.
To support employees during this period of disruption and loss, the Company is providing necessary essentials, serving onsite meals, and has established the Gulf Island Emergency Relief Fund to provide financial relief to those employees most impacted by the storm. For more information, please visit www.gulfisland.com.
ABOUT GULF ISLAND
Gulf Island is a leading fabricator of complex steel structures and modules and provider of project management, hookup, commissioning, repair, maintenance and civil construction services to the industrial and energy sectors. The Company’s customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. The Company is headquartered in Houston, Texas and its operating facilities are located in Houma, Louisiana.
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
This Release contains forward-looking statements in which the Company discusses its potential future performance. Forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, are all statements other than statements of historical facts, such as projections or expectations relating to diversification and entry into new end markets, improvement of risk profile, industry outlook, oil and gas prices, operating cash flows, capital expenditures, liquidity and tax rates. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements.
The Company cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause its actual results to differ materially from those anticipated in the forward-looking statements include: the final assessment of damage at its Houma facilities and duration of power outages and other infrastructure challenges in the Houma area following Hurricane Ida and the related recovery of any insurance proceeds; the duration and scope of, and uncertainties associated with, the ongoing global pandemic caused by COVID-19 (including new and emerging strains and variants), and the corresponding weakened demand for, and volatility of prices of, oil and the impact thereof on its business and the global economy; its ability to secure new project awards, including fabrication projects for refining, petrochemical, LNG, industrial and sustainable energy end markets; the Company’s ability to improve project execution; its inability to realize the expected financial benefits of the Shipyard Transaction; the cyclical nature of the oil and gas industry; competition; consolidation of its customers; timing and award of new contracts; reliance on significant customers; financial ability and credit worthiness of its customers; nature of its contract terms; competitive pricing and cost overruns on its projects; adjustments to previously reported profits or losses under the percentage-of-completion method; weather conditions; changes in contract estimates; suspension or termination of projects; its ability to raise additional capital; its ability to amend or obtain new debt financing or credit facilities on favorable terms; its ability to generate sufficient cash flow; its ability to sell certain assets; any future asset impairments; utilization of facilities or closure or consolidation of facilities; customer or subcontractor disputes; its ability to resolve the dispute with a customer relating to the purported terminations of contracts to build two MPSVs and the dispute with a customer related to contracts to build two seventy-vehicle ferries; operating dangers and limits on insurance coverage; barriers to entry into new lines of business; its ability to employ skilled workers; loss of key personnel; performance of subcontractors and dependence on suppliers; changes in trade policies of the U.S. and other countries; compliance with regulatory and environmental laws; lack of navigability of canals and rivers; systems and information technology interruption or failure and data security breaches; performance of partners in any future joint ventures and other strategic alliances; shareholder activism; focus on environmental, social and governance factors by institutional investors and regulators; and other factors described in Part I, Item 1A “Risk Factors” in the Company’s 2020 Annual Report as updated under “Risk Factors” in Part II, Item 1A in its quarterly report on Form 10-Q for the quarter ended March 31, 2021, and as may be further updated by subsequent filings with the SEC.
Additional factors or risks that the Company currently deems immaterial, that are not presently known to the Company or that arise in the future could also cause the Company’s actual results to differ materially from its expected results. Given these uncertainties, investors are cautioned that many of the assumptions upon which the Company’s forward-looking statements are based are likely to change after the date the forward-looking statements are made, which it cannot control. Further, the Company may make changes to its business plans that could affect its results. The Company cautions investors that it undertakes no obligation to publicly update or revise any forward-looking statements, which speak only as of the date made, for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise, and notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes.
COMPANY INFORMATION
| Richard W. Heo | Westley S. Stockton |
| Chief Executive Officer | Chief Financial Officer |
| 713.714.6100 | 713.714.6100 |
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