Infrastructure projects recently funded by the Biden administration include offshore windmill power generation. A small U.S. dredging company could turbocharge massive amounts of revenue from these green energy projects. The growing push for sustainable energy has opened up unforeseen opportunities for companies like Great Lakes Dredge and Dock (NASDAQ:GLDD), which is not typically considered part of the renewable energy segment.
Fortunately for this old North American dredging company, it is uniquely positioned to win contracts that similar companies aren’t even permitted to bid on. The groundwork has been laid; GLDD is set to win, thanks to the importance of ancient legislation and the financially deep pockets of Great Lake’s customers. This could lead toward greater earnings and higher stock prices.
The Jones Act Anchors Success for GLDD
The Jones Act, enacted in 1920, requires that goods shipped between U.S. ports are transported on vessels built and primarily operated within the country. This law, also known as the Merchant Marine Act of 1920, aims to support the local maritime industry’s well-being.
The groundwork has been laid so that Great Lakes Dredge & Dock is on the firmest competitive footing with rock-solid advantages over all the companies that own equipment capable of assisting in offshore windmill construction.
First, GLDD is a U.S.-based firm, primarily operated by U.S.-based citizens. But what really sets GLDD apart from the competition is that they have just put into service a Jones Act-compliant ship. It may be the only U.S.-based dredging company with a ship permitted to handle maritime work for the U.S. amidst the explosive growth in the new U.S. offshore wind industry.
Moreover, the compliant vessel was recently christened with the name Acadia. Built in Pennsylvania, it is specifically designed for subsea rock installation, a necessary component of offshore wind farm anchoring. This combination of American-owned and American-made assets allows GLDD to secure the huge contracts that require U.S.-flagged vessels.
GLDD Riding High on the Wind
GLDD’s business is on the rise with the well-financed wave of wind farms planned, such as the Empire Wind I and II projects that are already under contract. These initiatives, along with other projects, have received significant funding from the Biden administration, which has prioritized offshore wind as a key component of its green infrastructure agenda.
With direct government support for the renewable energy sector, GLDD’s customers possess substantial financial resources to further develop offshore energy projects.
Additionally, the financial chart for GLDD appears highly positive. According to the TipRanks GLDD Stock Chart from the last 12 months, the company’s stock price has climbed from $5.35 per share to $8.62, marking a 61% gain. This growth reinforces the company’s strong backing from its current and potential major customers.
Key Takeaway: GLDD’s Promising Future
U.S. company Great Lakes Dredge & Dock is set to benefit from government-supported offshore windmill clean energy infrastructure expenses. With rock-solid expertise and a new Jones Act-compliant ship, Great Lakes Dredge & Dock is sailing smoothly toward greater earnings in what seems like a recession-proof business breezing through to a course toward a sustainable future.
