Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced new contract work totaling over $370 million for the period from May 9, 2012 to July 15, 2012. The new contracts and work authorizations secured by Primoris subsidiaries include power, pipeline, gas utility, industrial, water/wastewater, and highway/infrastructure projects throughout the continental United States.
Of the total awards, contracts valued at approximately $144 million are cost reimbursable projects and are not includable in backlog. Approximately $113 million of the new projects were awarded in the second quarter 2012, and the remaining $113 million represents new contracts entered into in the third quarter 2012.
In the East Construction Services Segment:
- James Construction Group was awarded new contract work totaling approximately $118.7 million, of which approximately 65% should be completed by the end of 2012. The new contract work consists of the following:
- The James Heavy Civil group work includes over $5.6 million of bridge construction work in Louisiana, $42.3 million for major highway construction projects in Central Texas, and $27 million for various transportation infrastructure projects in the Houston, Texas region. The Houston region projects include new work for the Silva Division, a recent acquisition.
- The James Industrial group was awarded over $30 million for the construction of a new chemical facility and $2.7 million for other industrial projects in South Louisiana.
- The Cardinal Mechanical division was awarded a $2.3 million specialty mechanical project for Southern Methodist University in Dallas.
- The James Infrastructure and Maintenance group was awarded approximately $2.9 million for power plant related site work in Texas, $3.5 million for industrial site work in Louisiana, and $2.4 million for mining support work in Florida.
- Cardinal Contractors was successful in securing approximately $10.3 million of new work in Florida, consisting of various water/wastewater construction projects and GML rehabilitation/lining work. Approximately 50% of this work should be completed in 2012.
- Sprint Pipeline Services, a Primoris subsidiary acquired in March 2012 and headquartered in Houston, TX, secured $24.3 million in new work commitments. Their projects include a $14.3 million pipeline project in the Eagle Ford Shale region and $10 million from midstream oil & gas companies for various pipeline related projects. All of this work should be completed by the end of 2012.
In the West Construction Services Segment:
- The ARB Underground Group has recently acquired approximately $101.9 million in new contract work in California, all of which should be substantially complete by the end of 2012. This new work includes:
- $24.3 million for various natural gas pipeline construction projects;
- approximately $39.8 million for retrofit and pipeline integrity work from three major California utility companies;
- $9.0 million for underground gas and electric distribution projects;
- and $28.8 million for water resource related pipeline construction work.
- The ARB Industrial Group’s previously announced 50/50 joint venture was awarded an additional $38 million in contract value for work at the major solar power project in California. The majority of this work will be completed in 2013.
- Rockford Corporation was awarded contracts for new natural gas pipeline construction work totaling approximately $66.1 million. This new work is located predominately in the Marcellus Shale region of Pennsylvania. The majority of this work should be completed in 2012.
- Alaska Continental Pipeline secured approximately $11.5 million in pipeline replacement and upgrade work in the Pacific Northwest. All of this new work should be substantially complete by the end of 2012.
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