Great Lakes Dredge & Dock Co. Announces Significant Status Update on its Maritime Administration (“MARAD”) Title XI Financing Application

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Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) announces significant progress in offshore wind market with the completion of MARAD Title XI Financing application for its vessel, the Acadia, and securing multiple U.S. rock installation contracts.

Financial Analyst

The update on Great Lakes Dredge & Dock Corporation's MARAD Title XI Financing application for the Acadia vessel marks a significant progression in the company's capital financing strategy. The movement towards the final phase of the loan process is a critical step for Great Lakes, as it enables the company to secure the necessary funds for the construction of a specialized vessel in the offshore wind sector. This development is indicative of the company's commitment to expanding its operations within the renewable energy industry, a sector that is expected to see substantial growth in the coming years.

From a financial perspective, the successful completion of this financing could improve the company's liquidity position and enable it to capitalize on the growing demand for offshore wind installation services. Given the Biden Administration's renewable energy goals, Great Lakes' strategic positioning could result in an increased order book and potentially enhance revenue streams, which would be a favorable outcome for shareholders and investors. However, investors should be aware of the risks associated with the capital-intensive nature of the offshore wind market and the potential for regulatory changes that could impact the sector.

Industry Analyst

Great Lakes Dredge & Dock Corporation's entry into the offshore wind market through the construction of the Acadia vessel underscores the company's strategic pivot towards renewable energy infrastructure. The offshore wind market in the United States is in a nascent stage but is poised for rapid expansion due to federal support and increasing demand for clean energy solutions. The Acadia's unique capabilities position Great Lakes to capture a significant share of the market, both domestically and internationally.

Industry analysts would note that the Acadia being one of only four vessels with its capacity and capability globally highlights a competitive advantage. However, the industry is not without challenges, such as the recent turbulence mentioned by Great Lakes' Senior Vice President of Offshore Wind. It is crucial for stakeholders to monitor market dynamics and regulatory developments that could influence the pace and profitability of offshore wind projects. The long-term success of Great Lakes in this sector will depend on its ability to execute awarded projects efficiently and to navigate the complex regulatory environment.

Economist

The progression of Great Lakes Dredge & Dock Corporation in the offshore wind sector has broader economic implications. Investments in renewable energy infrastructure are vital for the transition towards a more sustainable energy mix and are in line with the Biden Administration's ambitious goals. The construction and operation of the Acadia vessel will likely contribute to job creation and economic development, particularly in regions where offshore wind projects are planned.

Moreover, the development of domestic offshore wind capabilities can reduce reliance on foreign energy sources and contribute to energy independence. Economists would also consider the multiplier effect of such infrastructure projects, as they often lead to ancillary development and stimulate local economies. However, the extent of these economic benefits will depend on the consistent implementation of renewable energy policies and the industry's ability to overcome technical and logistical challenges.

HOUSTON, Dec. 21, 2023 (GLOBE NEWSWIRE) -- Great Lakes Dredge & Dock Corporation ("Great Lakes" or the “Company”) (NASDAQ: GLDD), the largest provider of dredging services in the United States, announced that its MARAD Title XI Financing application for its offshore wind rock installation vessel, the Acadia, has been updated to the "Completed" category, indicating the loan process is moving towards the final phase.

Lasse Petterson, President and Chief Executive Officer commented, “We have fostered a strong relationship with MARAD and are pleased to have reached this significant milestone in the application process. We continue to make great strides in our strategy to be a leading contributor in the evolving U.S. offshore wind market and we look forward to further collaboration with MARAD to complete the Title XI process.”

Great Lakes solidified its entry into the U.S. offshore wind market by signing a contract with the Philly Shipyard, Inc. to build the first U.S.-flagged Jones Act compliant, inclined fallpipe vessel for subsea rock installation, named the Acadia.  In July 2023, President Biden, several congressional leaders, and other significant representatives in the domestic and international offshore wind industry participated in the Acadia’s steel-cutting ceremony at the Philly Shipyard, which marked another step forward with the start of construction.

Great Lakes’ Senior Vice President of Offshore Wind, Eleni Beyko commented, "The demand for installation vessels is strong both in the domestic and the international offshore wind markets. There has been significant progress in the construction of the Acadia and being one of only four vessels in the world with its capacity and capability, the Acadia can also participate in the robust global offshore wind market. Although the U.S. market has experienced some turbulence recently, Great Lakes has been successful in securing multiple U.S. rock installation contracts with major offshore wind developers and we continue to tender bids for rock placement on several other offshore wind developments. Great Lakes looks forward to executing on our awarded projects along the East Coast, which will assist our nation in meeting the Biden Administration’s ambitious renewable energy goals by 2030.”

The Company
Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 133-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission (the "SEC"), all as may be amended from time to time. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Great Lakes and its subsidiaries, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not historical fact are forward-looking statements. These cautionary statements are being made pursuant to the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws. Great Lakes cautions investors that any forward-looking statements made by Great Lakes are not guarantees or indicative of future events.

Although Great Lakes believes that its plans, intentions and expectations reflected in this press release are reasonable, actual events could differ materially. The forward-looking statements contained in this press release are made only as of the date hereof and Great Lakes does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

For further information contact:
Tina Baginskis
Director, Investor Relations
630-574-3024

What did Great Lakes Dredge & Dock Corporation announce regarding its offshore wind rock installation vessel, the Acadia?

Great Lakes Dredge & Dock Corporation announced that its MARAD Title XI Financing application for its offshore wind rock installation vessel, the Acadia, has been updated to the 'Completed' category, indicating the loan process is moving towards the final phase.

What is the significance of the completion of the MARAD Title XI Financing application for the Acadia?

The completion of the MARAD Title XI Financing application for the Acadia indicates significant progress in Great Lakes Dredge & Dock Corporation's strategy to be a leading contributor in the evolving U.S. offshore wind market.

What contract did Great Lakes Dredge & Dock Corporation sign to solidify its entry into the U.S. offshore wind market?

Great Lakes Dredge & Dock Corporation signed a contract with the Philly Shipyard, Inc. to build the first U.S.-flagged Jones Act compliant, inclined fallpipe vessel for subsea rock installation, named the Acadia.

What is the demand for installation vessels in the domestic and international offshore wind markets?

Great Lakes Dredge & Dock Corporation's Senior Vice President of Offshore Wind, Eleni Beyko, stated that the demand for installation vessels is strong both in the domestic and the international offshore wind markets.

What is Great Lakes Dredge & Dock Corporation's commitment to safety?

Great Lakes Dredge & Dock Corporation has a disciplined training program for engineers and an Incident-and Injury-Free® (IIF®) safety management program integrated into all aspects of the Company’s culture.

What is the history of Great Lakes Dredge & Dock Corporation?

Great Lakes Dredge & Dock Corporation has a long history of performing significant international projects and has never failed to complete a marine project in its over 133-year history.