Primoris Services Corporation Announces New Contract WorkValued at $393 Million
DALLAS--(BUSINESS WIRE)-- Primoris Services Corporation (NASDAQ Global Select: PRIM) ("Primoris" or "Company") today announced two new major contract awards totaling over $393 million. The new contracts were secured by ARB and James Construction Group, two Primoris subsidiaries. The projects include a major utility alliance contract for pipeline integrity work in California and a large highway infrastructure project in Mississippi.
In the West Construction Services Segment:
The ARB Underground group has been selected by Pacific Gas and Electric, through an "alliance" process, to receive a three year contract, with two one-year options, as part of their PSEP (Pipeline Safety Enhancement Plan) program.
ARB was awarded the "Bay Area" of California, which includes the San Francisco, San Jose, and Oakland regions.
This alliance agreement replaces the delivery system PG&E has used for their integrity work in previous years. The contract work will encompass all forms of system integrity upgrades including hydrotesting, valve automation/replacement, and in-line inspection/replacement.
The work will begin immediately and is initially valued at roughly $100 million/year for a total of $300 million over the course of the three year contract.
In the East Construction Services Segment:
MDOT, the Mississippi Department of Transportation, recently awarded James Construction Group a new contract valued at approximately $93.5 million for rehabilitation and improvements to Interstate 55 south of Jackson, Mississippi. The project is slated to start in the second quarter of 2013 and should be complete in the first quarter of 2016. The work scope includes roughly:
850,000 cubic yards of excavation
350,000 tons of asphalt
95,000 linear feet of cast-in-place barrier rail
Founded in 1946, Primoris, through various subsidiaries, has grown to become one of the largest specialty contractors and infrastructure companies in the United States. Serving diverse end markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, and other customers. Since December 2009, Primoris has tripled its revenue and the Company's national footprint now extends from Florida, along the Gulf Coast, through California, into the Pacific Northwest and Canada. For additional information, please visit www.prim.com.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including with regard to the Company's future performance. Words such as "estimated," "believes," "expects," "projects," "may," and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks and uncertainties, including without limitation, those detailed in the "Risk Factors" section and other portions of our Annual Report on Form 10-K, our Form 10-Q, and other filings with the Securities and Exchange Commission. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Primoris Services Corporation
Kate Tholking, 214-740-5615
Director of Investor Relations
KEYWORDS: United States North America Texas
The article Primoris Services Corporation Announces New Contract Work Valued at $393 Million originally appeared on Fool.com.
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