DRUMMONDVILLE, QUEBEC--(Marketwired - Aug. 4, 2016) - NAPEC Inc. ("NAPEC" or "the Corporation") (TSX:NPC) today announced that its subsidiaries have recently been awarded several contracts worth a total value of approximately $67.1 million. Execution of the work begins in the third quarter of 2016.
First, the U.S.-based subsidiary Riggs Distler & Company, Inc. ("RDC") was awarded contracts with an aggregate value of approximately US $43.5 million, equivalent to about Cdn $57.0 million based on the current exchange rate. These agreements include:
- An important contract to install the new piping associated with a new processing terminal being built on the site of a major refinery in Pennsylvania. Work is expected to be completed in January 2017.
- An important contract to install the electrical equipment at a new processing unit being built on the site of a major refinery in Pennsylvania. Work is expected to be completed in August 2017.
- A one year contract extension to provide overhead distribution construction and maintenance service to a major electric Utility in Connecticut. The extension period began in July 2016.
- Two contracts for the turn-key construction of two "greenfield" electrical substations for large industrial facilities located in New Jersey and Pennsylvania. These contracts will be completed in the fourth quarter of 2016.
- A contract for the pre-turnaround instrumentation and electrical work at a major refinery in New Jersey. This contract is will be completed in October 2016.
Second, the Canadian subsidiary Thirau Inc. ("Thirau") was awarded several contracts with a total value of approximately $10.1 million. These agreements include:
- Two contracts by Hydro-Québec for work carried out at the Jacques Cartier electrical substation, in the Greater Quebec City region. One contract calls for the refurbishment of the substation, while the other mandate is for the replacement of isolators on an electricity transmission line connected to the substation. Work on the refurbishment mandate should spread out to October 2017, while the second contract should be completed in the fourth quarter of 2016.
- A long-term contract awarded by a federal agency for maintenance services on the overhead electricity distribution network of the Port of Montreal. The contract period extends through May 2020.
- A contract by an important utility service provider in Ontario for the refurbishment of the Woodroffe substation in Ottawa. Work should begin shortly and will be carried out through September 2017.
"These contracts show the wide extent of NAPEC's service offering and geographical coverage. The scope of the U.S. contracts confirms RDC's leading position with respect to refinery-related work and we are also pleased with the customer diversity of the new business awarded to Thirau. These contracts will contribute to results in the second half of the current fiscal year and beyond, as per the terms of each agreement", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.
This document contains forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
OVERVIEW OF THE CORPORATION
NAPEC is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets, mainly in Quebec, Ontario, and the eastern United States. NAPEC and its subsidiaries build and maintain electrical transmission and distribution systems and natural gas networks. The Corporation also installs gas-powered and electric-powered heavy equipment for utilities, gas-fired industrial power plants and petrochemical facilities in North America. The Corporation also offers environmental construction and road matting services.
Further information regarding NAPEC is available in the SEDAR database (www.sedar.com) and on the Corporation's website at www.napec.ca.