DRUMMONDVILLE, QUEBEC--(Marketwired - Dec. 13, 2016) - NAPEC Inc. ("NAPEC" or the "Corporation") (TSX:NPC) today announced that its subsidiaries have recently been awarded new contracts representing an aggregate value estimated at more than $185.0 million.
First, the U.S. subsidiary Riggs Distler & Company, Inc. ("RDC") was awarded several contracts with a total value of approximately US $113.8 million, equivalent to about Cdn $150.0 million based on the current exchange rate. These agreements include :
- A five-year extension to an existing agreement to provide construction and maintenance services for the gas and electricity distribution networks of a major utility service provider in Pennsylvania. The extension period begins in January 2017 and ends in December 2021.
- A five-year extension to an existing agreement for construction, replacement and maintenance services on the gas distribution network of a large-scale utility service provider in Maryland. The renewal period extends from January 2017 through December 2021.
- A contract to rebuild a five-mile (eight kilometres) section of a 69 kV electricity transmission line for a municipal utility company in New Jersey. Work will be carried out through March 2017.
- A contract to provide road matting and environment control services related to an electricity transmission line project for a major utility service provider in New England. This contract is expected to be completed in September 2017.
Second, the Canadian subsidiary Thirau Inc. ("Thirau") obtained an important contract from Hydro-Québec related to the large-scale Chamouchouane-Bout-de-l'Ile project. The contract calls for the construction of a 77-kilometre section of a 735 kV electricity transmission line linking the Taureau reservoir to the municipality of Saint-Zénon, in the Lanaudière region. Work also includes the partial demolition and reconstruction of a section from another neighbouring transmission line. The total value of the contract amounts to nearly $35.5 million. Work is scheduled to begin in December 2016 and should spread out until October 2017.
"These contracts illustrate the wide reach of NAPEC's service offering for major utility companies in its main markets. We are continuing to grow our presence in the U.S. gas market and we believe it will further expand by deploying the expertise of PCT Contracting LLC, a company acquired in November 2016, across our network. In Canada, Thirau is looking forward to once again demonstrate its ability to execute large-scale, complex work for the construction of electricity transmission lines. These contracts will strongly contribute to our 2017 results 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 Québec, 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, petrochemical facilities, and solar panel farms 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.