Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jim Rollyson - Raymond James.
Jim Rollyson - Raymond James
Nice pick up in backlog. Is that mostly representative of the Horizon assets?
Scott Naughton
No, that actually covers very nice range of our activity levels: diving, barge, pipelay, and derrick barge.
Jim Rollyson – Raymond James
Quinn, you mentioned seeing picking up activity or bidding levels. Is that in the Gulf or elsewhere? Can you give us a little bit more detail there?
Quinn Hébert
Sure. I think it’s worldwide. I think to give a little bit more color on that, we see a lot of tendering primarily Middle East, Southeast Asia, South America, Mexico, and then the US. I think if you look at our backlog, Scott and I was just quenching the numbers. About 70% of the backlog is actually new construction-type projects and the rest of the backlog shapes up between expected repair and maintenance and salvage work. So that to me is a good barometer that the backlog is actually installing new pipes for new prospects.
Jim Rollyson – Raymond James
With your balance sheet getting a bit better shape is your mission, Kregg. Do you see any opportunities out there for more consolidation internationally?
Kregg Lunsford
Yes, I think last year I think we said in one of the calls that patience was a virtue in the market and though we don’t get everything right, I think we got that one right. To the think we see in some of the less in telling off of pricing assumptions so we are a consolidator abide this market. So we’ll see where we end up on that.
Jim Rollyson – Raymond James
Any thoughts on maybe how, you reiterated guidance, but maybe how this might fit into the next three quarters because at least we obviously missed the magnitude of seasonality here in the first quarter? Just trying to presumably some of this trail’s off in the fourth quarter when you get back into the winter season but any loss of timing?
Kregg Lunsford
I think we said at year-end, we’re not trying to give the core of the guidance obviously, but we tried to set the stage for a typical ranges in a normal year and I think we said then that 65-75% of our earnings could be earned in the last half of the year. To give you some directional guidance, I think this year because of the exceptionally persevere weather in the first quarter this will be a little bit abnormal. We’re probably at the high end if not in excess of that in terms of the earnings contribution by quarter. So you could maybe see on top of that in the last half of the year.
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