NAPEC Inc.
TSX : NPC

NAPEC Inc.

April 21, 2015 08:30 ET

NAPEC Inc. Announces Contracts With a Total Value of Close to $90.0 Million

DRUMMONDVILLE, QUEBEC--(Marketwired - April 21, 2015) - NAPEC Inc. ("NAPEC" or the "Corporation") (TSX:NPC) today announced that its subsidiaries have been awarded several contracts with a total value of almost $90.0 million.

First, U.S.-based subsidiary Riggs Distler & Company, Inc. ("RDC") has been awarded contracts worth an aggregate value of approximately US $67.0 million (Cdn $82.4 million). These agreements include:

  • A five-year contract extension worth a total value of US $25.0 million for the maintenance of the overhead distribution network of a major utility service provider in Virginia. The extension spans the period from the third quarter of 2015 through the third quarter of 2020.

  • A one-year contract extension valued at US $14.0 million for the maintenance of the overhead distribution network of a major utility service provider in Connecticut. The extension covers the period ranging from the third quarter of 2015 to the third quarter of 2016.

  • The provision of two ground-mounted solar panel projects in New Jersey representing an overall capacity of 6MW. The total value of the two projects is estimated at US $10.0 million and the work will take place in the second and third quarters of 2015.

  • A new contract valued at US $9.0 million to improve the reliability of the overhead distribution network of a major utility service provider in New England. Work is expected to begin during the second quarter of 2015 and will be spread out until the second quarter of 2016.

  • A US $9.0 million contract awarded by an electric utility company in New Jersey to rebuild a 115kV transmission line. The project will be carried out during the second and third quarters of 2015.

Second, Quebec-based subsidiary Thirau ltée ("Thirau") has been awarded a two-year contract by an important telecommunications company to install poles and anchors. The agreement represents a total value of $7.0 million over two years and also includes a one-year renewal option exercisable at the client's discretion. Work begins in April 2015.

"These contracts further attest to NAPEC's leading position and solid reputation in numerous areas of expertise. The diversity in the scope of the contracts awarded to RDC and their geographical reach illustrate its wide-ranging coverage in the eastern United States. Meanwhile, the contract with the telecommunications company validates Thirau's efforts to leverage its know-how by diversifying its customer base. These new contracts further increase the value of our backlog, which currently stands at its highest level in more than three years", said Pierre L. Gauthier, President and Chief Executive Officer of NAPEC.

FORWARD-LOOKING STATEMENTS

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 corporation operating in the energy sector. The Corporation is a leading service provider 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 grids, as well as networks for gas utilities. In addition, the Corporation installs gas-powered and electric-powered heavy equipment for utilities, industrial gas power plants, and petro-chemical facilities in North America.

Further information regarding NAPEC is available in the SEDAR database (www.sedar.com) and on the Corporation's website at www.napec.ca.

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