Rob Brown: Okay, thank you. I’ll turn it over.
David Watson: Thanks, Rob.
Operator: Thank you. [Operator Instructions] And the next question is coming from Chris Moore from CJS Securities. Chris, your line is live.
Chris Moore: Good afternoon, guys. Thanks for taking a few questions.
David Watson: Good afternoon, Chris.
Chris Moore: Good afternoon. So, Shannonbridge looks like it’s going to be a pretty quick turn. So will that start ramping this quarter or Q4?
David Watson: Yes, good question. We started earlier this year pursuant to the limited notices to proceed. And given that this is an emergency or rush job, activity on the job site pursuant to LNTP has been significant. I mean, the schedule is to finish by early next year, so there is a lot of work being performed in a short period of time. And it’s — yes it is already ramping — or ramped, Chris. I mean, I walked the job site about a month ago and activity was happening everywhere, so really impressive.
Chris Moore: Got it. I assume the margins associated with this project are little bit lower than the bigger U.S. natural gas projects?
David Watson: It all depends on the contractual terms and the risk — the commercial risks that we take on. And so it’s hard to be able to make that differentiation.
Chris Moore: So there is potential for excess margin at the end like a traditional U.S. natural gas contract?
David Watson: It is our goal to have a successful project for everyone that that we do and to account for it as best we can.
Chris Moore: Fair enough. How about — just in terms of Trumbull, kind of the timing of when you think it will be at kind of peak quarterly revenue and obviously to the timeframe on your sheet? I’m just trying to get a little better sense for the ramp?
David Watson: So we are right on schedule and very happy with the progress of the Trumbull job, another huge job for us in Ohio. I would expect given the cadence of — well, this schedule and the cadence of any gas-fired power plant job that the peak activity will be reached during the latter half of fiscal year ’25 and on into fiscal year ’26.
Chris Moore: Got it. Other income was meaningfully higher than I had modeled. That $4.1 million, is that — is that sustainable for the balance of fiscal ’24?
David Watson: It’s — we’re pleased to have the strong balance sheet that we have and we’ve been purposeful in putting that money to work, not only in short-term money market funds and CDs, but also in longer duration treasury bills and the yields that we’re seeing, like you’re seeing everywhere is north of on average only around 5% or so. So is the $4.1 million sustainable? There were a couple of other things that run through the other income line item, Chris, but the majority of it is the interest and dividend income from our investments. And so it’s something that’s meaningful.
Chris Moore: Got it. And maybe just my last. Want to follow-up on one to Rob’s on the pipeline. So it sounds like you’re looking for new projects hopefully later this fiscal year or early next. I guess, the question is are there — how many significant natural gas slide decks or potential projects in the U.S.? Are there — many of these days — I’m just trying to get a sense in terms of kind of what the overall backdrop looks like.
David Watson: Yes, so there’s a number of converging forces some, some that are positive, some that are challenging. Some of the positive data points Chris is the OEMs are getting really busy again. And their production lines are basically full speed ahead. So, if some wants to build a thermal or a gas-fired power plant, they need to get a turbine ordered early in the process. So that should be very telling as to where the interest in and is in gas-fired power plants, not just in the U.S., but internationally. That being said, as I mentioned earlier when I was responding to a question from Rob, there is — there’s the PJM, there is the delays in the capacity auctions. There is the interconnection process that’s getting in the middle of restructuring that’s been gummed up.
