Tuesday 24 April 2018

Gulf Island Fabrication, Inc. announced that on April 20, 2018, the Company completed the sale of its South Yard in Ingleside, Texas, to a subsidiary of Buckeye Partners for $55 million. The Company continues to actively market its North Yard in Aransas Pass, Texas, which is also held for sale along with related cranes and other equipment.

The Company will retain net cash proceeds of $52.7 million from the sale after transaction costs. Although the Company will recognize a gain from the sale, it does not anticipate any material tax liability given recent net operating losses. The Company plans to utilize the proceeds to rebuild its liquidity to support pending projects, continue investing in its newly launched EPC Division, and for other general corporate purposes. Following the transaction, the Company expects to have total liquidity of $84 million including cash and amounts available on its revolving credit line.