HOUSTON, Jan. 25, 2016 (GLOBE NEWSWIRE) -- Orion Marine Group, Inc. (NYSE:ORN) (the "Company") a leading construction company, today provided its investors with an update on the Company's outlook and end markets.
During the fourth quarter, the Company bid on approximately $560 million of opportunities and was successful on $118 million, representing a 21% win rate. Overall, the Company is pleased with its equipment utilization rates in the fourth quarter and believes full year results for 2015 will be in line with its previously stated guidance.
Heavy Civil Marine Construction Segment
Both equipment utilization and job performance were solid in the Company’s Heavy Civil Marine Construction segment during the fourth quarter. Additionally, during the fourth quarter, the Company completed two out of the five jobs managed by its Tampa office that had experienced issues during the third quarter. The remaining three jobs should be complete in early 2016.
The Heavy Civil Marine Construction segment continues to see solid demand for its services across its end markets and customers. The passage of the funding bill last month funding the federal government for the remainder of its fiscal year was an encouraging development. Also, under the recent two year budget deal, funding for the fiscal year beginning October 1, 2016 should occur under regular order allowing appropriation bills to be complete prior to the end of the current fiscal year, which the Company believes will allow the U. S. Army Corps of Engineers to let maintenance dredging projects at a more consistent and predictable pace. The Company was also pleased to see the passage of a 5 year, $305 billion Transportation Bill in December. Among other transportation items, this Bill will fund bridge construction projects through various state departments of transportation. The Company believes this long term bill will not only provide an increase in bid opportunities for bridge construction projects, but may also lead to improved bid pricing given the visibility provided to the market. Additionally, Congress lifted the 40 year-old ban on crude oil exports last month. The Company expects additional opportunities to design and build waterside facilities to support downstream infrastructure as a result. The Company will continue to monitor energy markets for impacts to its end markets during 2016.
Commercial Concrete Construction Segment
The Company’s Commercial Concrete Construction segment has also delivered solid execution and saw a strong bid market during the fourth quarter. Non-residential construction activity remains solid in the Houston and Dallas markets. The Dodge Momentum Index, a monthly leading indicator of national construction activity which measures the first report for nonresidential building projects in planning, ended the year up 2.4% from the end of last year, even after it posted an increase of 26.4% in 2014.
The Company’s Commercial Concrete Construction segment has continued to witness a growing and healthy bid market for its services. In 2015, the Commercial Concrete Construction segment bid on approximately $1.2 billion in work. This work is primarily related to the construction of distribution, medical, retail, office, and educational facilities to service the rapidly expanding populations of the markets it currently serves. The Company is pleased with the outlook in its markets for 2016 and beyond.
About Orion Marine Group
Orion Marine Group, Inc., a leading construction company, provides services both on and off the water in the continental United States, Alaska, Canada and the Caribbean Basin through its heavy civil marine construction segment and its commercial concrete segment. The Company’s heavy civil marine construction segment services includes marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its commercial concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with offices throughout its operating areas.
The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘seeks’, ‘approximately’, ‘intends’, ‘plans’, ‘estimates’, or ‘anticipates’, or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, profit, EBITDA, EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward looking statements also include estimated project start dates, expected project duration, estimated project completion dates, anticipated revenues, and contract options, which may or may not be awarded in the future, including the statements set forth above in this press release. Forward looking statements involve risks, including those associated with the Company’s fixed price contracts, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, and any potential contract options, which may or may not be awarded in the future, which awards are in the sole discretion of the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company’s plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise.
For a further discussion of these and other factors that could cause the Company’s actual results to differ materially from any forward-looking statements (including our current expectations, estimates or forecasts), please refer to the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission (SEC) on February 27, 2015, and other risk factors that may be described in documents subsequently filed with the SEC from time to time by the Company. All such documents are available on the Company’s website at www.orionmarinegroup.com or at the SEC’s website at www.sec.gov.
Orion Marine Group, Inc.
Drew Swerdlow, Investor Relations Manager, 713-852-6582
(January 25, 2016 - 5:00 AM EST)
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