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 electrical lines.
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.
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