DRUMMONDVILLE, QC, March 20, 2014 /CNW Telbec/ - CVTech Group Inc.
("CVTech" or "the Corporation") (TSX: CVT) today announced that its
subsidiaries have been awarded, since the publication of the last
financial results, new contracts with an aggregate value of
approximately $60.0 million.
First, the U.S. subsidiary Riggs Distler & Company, Inc. has obtained
several contracts totalling US$27.2 million (Cdn $28.9 million). This
amount includes an important three-year contract with a total value of
US$18.0 million for the installation of residential underground gas and
electric services for a major utility service provider in Pennsylvania
until the end of 2016.
Second, the U.S. subsidiary Thirau LLC was awarded several contracts
representing an aggregate value of US$13.5 million (Cdn $14.3 million).
Of this total, an important utility service provider in New England
awarded three contracts amounting to a total value of US$12.2 million
for construction and maintenance work on its overhead and underground
electricity distribution network, as well as the provision of rock
drilling services. Each of these contract is for a three-year term
expiring in December 2016.
Third, the subsidiary JJL Déboisement was awarded two contracts from
Hydro-Quebec for the control of vegetation on rights-of-way of
electricity distribution lines in the greater Montreal region. These
contracts consist of a two-year renewal option for 2014 and 2015 and
represent a total value in excess of $10.0 million over the duration of
the renewal period. A second two-year renewal option could also be
exercized thereafter at the customer's discretion.
Finally, the subsidiary Thirau ltée obtained a two-year contract from
Hydro-Québec with a total value of approximately $6.3 million for the
construction, maintenance and modification, on demand, of overhead
electricity distribution networks in Montreal. The contract covers the
years 2014 and 2015 and also includes a one-year renewal option for
2016 at the customer's discretion.
"These contract awards highlight the solid position of our subsidiaries
in their respective markets, as well as the strength of their
relationships with leading utility service providers," said André
Laramée, President and Chief Executive Officer of CVTech. "The renewal
of options and the signature of long-term contracts prove the solid
reputations our subsidiaries have established for the quality of their
work as well as their safety records."
OVERVIEW OF THE CORPORATION
CVTech 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. Through its subsidiaries, the Corporation
provides maintenance and construction services for electricity
transmission and distribution networks, substations and electrical
power houses, as well as the control of vegetation on rights-of-way for
This document may contain 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.
Further information regarding CVTech is available in the SEDAR database
(www.sedar.com) and on the Corporation's website at www.cvtech.ca.
SOURCE: CVTECH GROUP INC.
For further information:
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA