TORONTO, Nov. 15, 2016 /CNW/ - Aecon Group Inc. (TSX:ARE) announced today that it has been awarded a Master Turnaround Agreement (MTA) by Spectra Energy and a Multiple Use Agreement (MUA) by a major oil producer in Alberta.
The scope of work for Aecon's Energy segment under the Spectra Energy MTA includes planning, construction equipment, labour, materials and supplies related to shutdown services on natural gas processing facilities in British Columbia. Work commenced in the fourth quarter of 2016 and is to be carried out over a five-year period.
The scope of work for Aecon's Mining segment under the MUA involves reclamation, overburden removal, mine support services and civil construction activities. The MUA runs from the fourth quarter of 2016 through to December 31, 2020 and covers services for all of the major oil producer's sites in the Alberta oil sands.
Aecon reported backlog as at September 30, 2016 of $4,551 million. Recurring revenue, including the MTA and MUA described here, is not included in backlog and is, therefore, revenue over and above work to be performed from contracts in backlog.
"These recurring revenue agreements provide a predictable revenue stream and added stability for both our Energy and Mining segments," said John M. Beck, President and Chief Executive Officer, Aecon Group Inc. "Our continued partnerships with our valued clients are a testament to our reputation as being a trusted, partner-of-choice in an increasingly competitive market in Western Canada," said Beck.
Aecon Group Inc. (TSX: ARE) is a Canadian leader and partner-of-choice in construction and infrastructure development. Aecon provides integrated turnkey services to private and public sector clients in the Infrastructure, Energy and Mining sectors and provides project management, financing and development services through its Concessions segment. Aecon is also pleased to be consistently recognized as one of the Best Employers in Canada. For more information, please visit www.aecon.com and follow us on Twitter at @AeconGroup.
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.