US company Gulf Island Fabrication said it aims to reduce its reliance on offshore oil and gas markets and is actively pursuing opportunities in LNG and renewable markets.

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In reporting its first-quarter results, the Houston-headquartered company said that, during 2020, its strategic priorities were to improve its financial strength and be positioned to pursue higher-margin growth opportunities.

It intends to reduce its reliance on the offshore oil and gas market.

"We are focused on becoming a more stable, higher growth business and are actively pursuing opportunities in LNG and renewable end markets," said chief executive Richard Heo. "We believe we are well positioned to take advantage of these opportunities given our skilled labor force and history of successfully delivering high quality solutions to our customers."

He pointed to large capital projects along the Gulf Coast associated with LNG facilities.

"There can potentially be multiple opportunities for new awards on each of these projects. Depending on the facility and project we’re often bidding on numerous scopes to different contractors for the entire complex."

Total revenue in the first quarter was US$59 million, 25% less than the same three months in 2020.

Net loss was $18.6 million, including impairments and transaction costs of $23.4 million

The company sold in April 2021 its shipyard division assets and long-term construction contracts that represented 90% of its backlog but were "higher-risk" contracts.

"The shipyard transaction is transformational for Gulf Island, positioning us to better optimize our asset base as we build a pipeline of higher-value opportunities,” said Westley Stockton, the company's chief financial officer.