Dredging award for third marine berth at Sabine Pass LNG plant. A subcontract has been signed with Bechtel Oil, Gas and Chemicals, Inc., the EPC contractor for an expansion of the Sabine Pass LNG liquefaction plant. The proposed expansion includes the addition of a third marine berth and supporting facilities to handle LNG tankers with capacity in the 125k-180k cubic meter range. GLDD is expected to begin dredging work for the third marine berth in 3Q2020. Limited details available now but award is a positive signal.2Q2020 results out Tuesday, August 4th at 8:00 am EST with call at 10:00am EST. Call number is (877) 377-7553 and code is 1658815. The call should reinforce the virtual NDR meeting that we hosted in mid July with Lasse Petterson, President/CEO and Mark Marinko, CFO. The virtual NDR meeting showcased the favorable dredging market outlook and GLDD's strong market position. A link is available at www.channelchek.comNo change in favorable dredging market outlook even though competition has increased. Other work of ~$24 million was awarded in July. $15.2 million of work in Ponte Vedra, FL was awarded on July 8th and another $8.8 million of maintenance work on Delaware River Inland Waterway C&D was awarded on July 17th. Awards are on top of $51.1 million of awards announced in early July.Strong credit profile makes new build program manageable and debt refinancing likely. The decline in net debt into the sub-$120 million range in 1Q2020 strengthened the credit profile and should allow for financing the new build(s) and refinancing existing debt. The new build program appears very manageable. Capex on new build one estimated at $12 million in 2020, $35 million in 2021, $45 million in 2022, and $5 million in 2023. Full details on the new build(s) should be available once the 2Q2020 10-Q is filed next week.Maintain Outperform rating and price target of $13.80/share due to continued confidence in 2020 outlook. While GLDD has rebounded 25% from the March low, it is still down 25% this year. We believe that GLDD should rebound since concerns about project win rates and backlog direction should not linger after additional work is awarded. Several larger awards are possible over the next year, if not sooner, and FID on new build one is positive. Potential catalysts include infrastructure stimulus and debt refinancing.Read More >>