Orion (ORN) Wins $100M Contract From GBSL, Aids Marine Unit
Orion Group Holdings, Inc. ORN received a more than $100 million contract from Grand Bahama Shipyard Limited (GBSL) for the turnkey design-build of the Grand Bahama Shipyard Dry Dock Replacement Project.
ORN’s Marine and Engineering business will support GBSL in marine works and infrastructure construction, dredging, creating new mooring facilities and enhancing shore stability. It will also modify and extend service piers to install two cutting-edge floating dry docks, among the largest in the western hemisphere.
The contract will begin immediately and be completed in late 2025.
Post-completion, the Grand Bahama Shipyard will have the first floating dry docks in the Atlantic region, capable of lifting the largest cruise ships in the world. Installing two advanced floating dry docks, namely XL and Mega XL, promises substantial efficiency and cost savings for GBSL’s customers.
The company recently won new contracts worth $121 million in its Concrete and Marine segments. This comprises a contract worth $50.8 million in the Concrete segment and $68.5 million in the Marine segment.
Orion derives revenues from marine construction, dredging, turnkey concrete services and other specialty services contracts. These projects are typically of short duration and usually span less than a year.
The company’s focus on de-risking the business to clear the path for long-term growth and profitability is commendable. The company remains optimistic about continued improvement in the future. The Concrete segment, more driven by the private sector and the Marine unit, backed by the public sector, can balance each other during challenging times and different business cycles.
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Shares of this Zacks Rank #3 (Hold) company have surged 5.94% on Oct 13 and 93.6% in the past three months versus the Building Products - Heavy Construction industry’s 15.4% decline.
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