The WorkBoat Composite Index ended the second quarter on an up note, posting its third straight monthly gain. WorkBoat stocks rose slightly in June, gaining about 10 points, or less than 1%. For the month, gainers topped losers by more than 2-1. In the second quarter, the WorkBoat Composite gained 221 points, or 14.5%.
Despite the strong quarter, the big “if” going forward is Covid-19. During his company’s earnings call with analysts in May, Gulf Island Fabrication President and CEO Richard Heo commented on the challenging environment his shipyard faces due to Covid-19 and the decline in oil prices earlier in the quarter. “While our utilization was impacted during the quarter by the mitigation efforts implemented to keep our employees safe and healthy, overall, our efforts in response to the impact of Covid-19 ... have been highly collaborative and well-coordinated.”
Heo highlighted the actions Gulf Island has taken. This includes monitoring employee temperatures prior to entering the company’s facilities, employee wellness questionnaires, workplace distancing of employees, including allowing employees to work from home where appropriate, installation of hand sanitizing stations and additional actions to sanitize facilities, and protocols for employees returning from absences. “These efforts are being complemented by more frequent leadership walk-throughs in the yards to ensure compliance and employee wellness.”