Global Industries' CEO Discusses Q1 2011 Results - Earnings Call Transcript
Now I’ll turn it over to our Chief Executive Officer, Mr. John Reed. John.
Good morning and welcome to our call. Before I turn it back over to Andy for financial results and AJ to go through operating results, I want to update you on our progress against one of our key initiatives.
One of our core efforts has been to strengthen our project management and engineering. We’ve increased our engineering personnel by approximately 20% over the last year, giving us more depth to prepare tenders for submission and projects for execution. We will diligently continue to build on our technical strength and competence as this capability is key to our future success on larger and more complex projects.Turning to the market, we have opened an office in Perth, Australia to pursue projects there primarily for the G1200, or 1201 as the requirements are generally well suited for their capabilities. We expect that the market in Australia will remain very active for the foreseeable future and establishing a presence there is mandatory to increase our participation. We are actively pursuing prospects for the G1200 and G1201 with a total value of approximately $1 billion. However, the bulk of this value is for work beginning in 2012 and beyond. Looking at the other market areas, we see the Gulf of Mexico slowly increasing as we stated before. However, the pace will mirror the permitting speed. We were awarded two significant projects in the quarter; namely, a platform removal contract from McMoRan in the subsea pipeline and a flow line installation project for LLOG at 3,000 foot water depth. However, both are experiencing permitting delays. In the Asia Pacific region, we have begun our second work season for Petrobras under our three year term agreement and continue to actively bid in the region. In Latin America, we see a large volume of work with PIMEX on the horizon, albeit again, mainly for 2012.
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