Gulf Island Fabrication, Inc. (NASDAQ: GIFI) shares progressed Wednesday, as the Texas-based company, a leading steel fabricator and service provider to the industrial and energy sectors, today announced that it has been awarded multiple subsea fabrication projects from a leading integrated subsea engineering, procurement, construction and installation company.
The projects consist of procurement, fabrication, coating and testing of subsea structures for multiple developments located in the Gulf of Mexico. The fabricated components include PLETs (pipeline end terminations), jumper kits, jumpers and sleepers that will be fabricated at Gulf Island’s Houma fabrication facility. The aggregate contract value for the various awards is approximately $5 million and they will be included in the Company’s new awards and backlog in the fourth quarter 2023.
“Several years ago, we made a strategic decision to focus resources on the subsea fabrication market, so we are excited to see momentum building in this market, with these recent awards validating our strategy,” said CEO Richard Heo. “We expect subsea fabrication activity to remain strong well into 2024, associated with anticipated subsea developments across the Gulf of Mexico, Guyana and Brazil, and Gulf Island is well-positioned to take advantage of these trends. We are proud to have been chosen for these critical projects and look forward to expanding our relationship with this customer.”
GIFI shares took on five cents, or 1.2%, to $4.15.
