Morgan City-based shipbuilder Conrad Industries Inc. reported its fourth-quarter profit dipped to $5.2 million, or 88 cents per share, compared to $10.1 million, or $1.70 per share a year ago.
For the year, the company generated net income of $22.8 million, or $3.84 per share, compared to $28.6 million, or $4.80 per share, in 2013.
However, Conrad increased its backlog of work to $180.2 million at Dec. 31, compared to $152.9 million a year earlier.
Company President and Chief Executive Officer Johnny Conrad attributed the earnings drop to the repair and conversion segment, where gross profit fell by $11.8 million, or 65.6 percent, for the year.
“This decrease was primarily due to a significant loss on a large conversion job, and a decrease in demand and customer activity, which we believe is due to the decline in crude oil prices,” he said. “Additionally in the second half 2013, we had a large job which added significantly to repair and conversion gross profit.”
Conrad’s 2014 capital expenditure budget is $27.3 million, which includes $16.7 million for the continued development of the Conrad Deepwater South yard. The improvements will enhance Conrad’s ability to be build bigger vessels.
Conrad builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels. The company has five shipyards in Louisiana and Texas.