TORONTO, April 14, 2015 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that it has been awarded contracts by five key clients for work in Aecon's Energy segment in Ontario. The value of work is approximately $93 million in hard backlog and approximately $85 million in annual recurring revenue.
Under the first agreement, Enbridge Gas Distribution awarded Aecon a significant pipeline facilities project for work at 11 Enbridge sites, valued at approximately $40 million. Work has begun and is expected to be complete in the third quarter of 2015.
Under the terms of the second contract, valued at $53 million, Aecon's scope of work includes the construction of a new compressor station at Union Gas' Lobo Facility located northwest of London, Ontario. Work is expected to start in the second quarter of 2015 and is scheduled to be complete by the fourth quarter of 2016.
Additionally, Aecon has signed three Master Service Agreements (MSAs) with key clients in the power sector:
- A 13-year MSA valued at approximately $25 million annually for engineering, procurement and construction services;
- A four-year MSA valued at approximately $30 million annually for the design and construction of underground and overhead hydro installations and replacements; and
- A three-year MSA valued at approximately $30 million annually for construction outage services, plant modification and EPC capital projects.
"These contracts illustrate the strong pipeline of diverse work Aecon has through our core clients in the energy sector," says Teri McKibbon, President and CEO, Aecon Group Inc. "Supplier-of-choice arrangements and alliance agreements are a key part of Aecon's strategy and representative of the unique way we strategically partner with our clients."
Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.
The information in this press release includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Forward-looking statements may include, without limitation, statements regarding the operations, business, performance, prospects, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.
For further information: David Smales, EVP and Chief Financial Officer, Aecon Group Inc., 416-297-2619, email@example.com, www.aecon.com