CALGARY, Dec. 6, 2018 /CNW/ - Strad Energy Services Ltd. ("Strad" or the "Company") (TSX:SDY) today announced an additional $18.5 million of capital is being allocated to its Industrial Matting division to support its continued growth. Strad expects to deploy $6.5 million of this new capital in 2018 and combined with previous allocations, this brings the Company's total 2018 capital program for the year to $35 million.
As well, Strad's board has approved an initial 2019 capital expenditure program of $12 million. The $12 million is part of a $30 million capital program the company expects to deploy in 2019 focused on Industrial Matting in Canada and the United States. The anticipated $30 million capital plan consists of $23 million for matting growth, $6 million for matting maintenance and $1 million for other maintenance capital.
"We continue to see strength in our Industrial Matting division and are deploying new capital to service current projects as well as planning for new demand in 2019 in Canada and the U.S.," said Andy Pernal, President and Chief Executive Officer. "Through 2019, Strad will continue to evaluate capital opportunities and assess the size of the capital program based on industry conditions and customer demand similar to the Company's approach in the last two years. Strad's current financial position and free cash flow generation provide significant flexibility to pursue additional opportunities that may arise during the year."
Industrial matting supports two critical functions for construction-type projects in a cost effective and environmentally-friendly manner; first it provides temporary access to work areas, especially in remote and soft ground environments and secondly it provides durable platforms for staging or worksite areas. At the same time, matting has proven to be indispensable for ground protection, preventing soil contamination and spread of noxious weeds in agriculture settings, protecting Indigenous lands, and accommodating enhanced worker safety requirements.
Strad specializes in industrial matting and equipment rentals for projects of any size, from a network of branches across Canada and the United States. Strad aims to exceed customer expectations in many industrial sectors, including Oil & Gas, Pipeline, Power Transmission, and Mining.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".
SOURCE Strad Energy Services Ltd.
For further information: Andy Pernal, President & Chief Executive Officer, (403) 775-9202, Email: [email protected]; Michael Donovan, Chief Financial Officer, (403) 775-9221, Email: [email protected], StradEnergy.com