GTS Duratek Inc., the Columbia-based technology company involved in environmental cleanup, posted a 33 percent gain in net income for the second quarter from a 16.6 percent jump in revenues.
Robert F. Shawver, executive vice president, attributed the higher profits to an increase in the company's business of providing service technicians to electric utilities as they close their nuclear plants for servicing.
"It was a good quarter for our service business," Shawver said.
To ensure the safety of power plant workers, Duratek provides technicians to monitor radiation as the plants are serviced.
For the three months ended June 30, Duratek earned $516,000, or 1 cent per share, compared with $388,000 in the same period a year ago. Revenues were $11,645,000, compared with $9,986,000 last year.
During the first six months of the year, net income was up 49.6 percent to $1,017,000, or 2 cents per share, from $680,000. Revenues rose 12.6 percent to $21,981,000 from $19,521,000.
Duratek's stock has been trading at $13 to $19 a share in recent months after tripling in value earlier this year. It closed yesterday at $14.25, up 12.5 cents.
"The stock price relates more to the potential of coming contracts rather than current earnings," said Luke Smith, an analyst with Chesapeake Research Inc., a Towson-based brokerage house that specializes in mid-Atlantic companies.
Smith said Duratek, which is best known for its development of DuraMelters, machines used to convert low-level nuclear waste into glass for safe storage, is in line for some major contracts.
In October, the company is expected to begin processing nuclear waste at a U.S. Department of Energy nuclear complex in Hanford, Wash.
At about the same time, the company is scheduled to start processing nuclear waste at the federal government's Savannah River nuclear complex in South Carolina.
"Once they show they can do a major project, they will get more," Smith said.
"These contracts could be just the start of the big business" for the company.
Pub Date: 8/07/96