Conrad swings to loss amid slumping oil prices

A slumping energy market helped swing Morgan City-based shipbuilder Conrad Industries Inc. to a fourth-quarter loss of $836,000, or 15 cents per share, compared to a profit of $3.4 million, or 63 cents per share, a year earlier.
For the year, the company lost $1.7 million, or 33 cents per share, compared to net income of $10.6 million, or $1.86 per share, in 2015. However, the 2016 results included a $13.2 million loss related to the construction of a liquefied natural gas barge. The 2015 results included a $4 million loss for the same project. In addition, the 2015 fourth quarter and annual results included research and development tax credits of $3.4 million and $5.9 million respectively.
President and Chief Executive Officer Johnny Conrad said several issues affected the company’s 2016 performance. A soft market for energy transportation and increased pricing pressure and customer delays on large projects hurt the new construction segment. Low oil prices hampered the repair and conversion segment.
“These factors ... may continue to impact our operations during 2017,” Conrad said.
Still, Conrad remains optimistic about the long-term future of the business.
The LNG Barge was the first vessel of its kind built in North America, Conrad said. Despite the losses incurred, the company developed the resources to establish itself as a leader in LNG marine-related construction in North America.
Conrad had a backlog of $216.5 million at Dec. 31, compared to $211.8 million at the end of 2015.