NAPEC Inc.
TSX : NPC

NAPEC Inc.

January 19, 2018 07:00 ET

NAPEC Inc. Announces Important Contract Renewals and Award of New Contracts

DRUMMONDVILLE, QUEBEC--(Marketwired - Jan. 19, 2018) - NAPEC Inc. ("NAPEC" or the "Corporation") (TSX:NPC) today announced that its U.S. subsidiary Riggs Distler & Company, Inc. ("RDC") was awarded contracts representing an aggregate potential value of US $174.8 million (Cdn $217.1 million based on the current exchange rate) of which US $168.0 million (Cdn $208.6 million) relate to renewals of existing contracts and US $6.8 million (Cdn $8.4 million) is related to potential work under new contracts, as described further below. The recent award of these contracts results from bids submitted by NAPEC in the second half of 2017 in response to requests for proposals from existing customers. These contracts apply to distribution underground and overhead projects in New Jersey, Maryland, Pennsylvania and Washington, DC. The estimated values of these contracts are based on work anticipated to be awarded under these contracts between 2018 and 2020.

RDC also signed a new contract with a potential value of US $31.5 million (Cdn $39.1 million) with a customer in gas distribution that will be performed in Southern New York. The work will include the upgrading, replacement, and/or repair of gas and electric underground facilities. Work awarded under this contract is expected to generate revenues during 2018 through 2021.

"We are pleased to announce the contract renewals and awards for electricity distribution and transmission and gas distribution services in the U.S. These contracts, which were anticipated at the time of our agreement with Oaktree and were an important driver of NAPEC's Board of Directors' valuation of the Corporation, provide good visibility for work volume and revenues in the current year and beyond," 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 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, solar panel farms 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.

Additional information on NAPEC can be found in the SEDAR database (www.sedar.com) and on the Corporation's website, at www.napec.ca.

Source: NAPEC Inc.

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