The oil industry’s woes continued to drag down earnings for Morgan City-based ship and barge builder Conrad Industries Inc.
Conrad’s second-quarter profit dropped to $1.2 million, or 21 cents per share, compared to $6.8 million, or $1.14 per share, a year ago.
Meanwhile, the company’s backlog of work slid to $131.7 million at June 30, compared to $173 million a year earlier.
President and Chief Executive Officer Johnny Conrad said while he remains optimistic about the business in the long term, near-term challenges lie ahead.
Demand has fallen for the inland tank barges primarily used to move petroleum products from shale plays. Customers have delayed placing orders for larger projects. Conrad has not signed the contracts anticipated, which is leading to gaps in production schedules.
In addition, the repair market has softened, which the company believes is mainly due to lower oil prices, Conrad said. All of these issues will affect the company’s 2015 results and may do so through the first half of 2016.
Conrad designs, builds and repairs tugboats, ferries, barges and offshore supply vessels at five shipyards in south Louisiana and Texas.