Aegion Corporation (“Aegion” or the “Company”) (Nasdaq Global Select Market: AEGN) today announced that its subsidiary, Brinderson, L.P. (“Brinderson”), has received a long term contract extension for work at the Los Angeles refinery operated by Tesoro Refining & Marketing Company LLC (“Tesoro”). In addition, Tesoro renewed its contract with Brinderson for its Golden Eagle refinery in Martinez, California. The combined expected 2014 revenues, pending adherence to all performance and safety criteria per the contracts, are to be approximately $40 million, with $20 million of incremental revenue in 2014 to Brinderson.
Tesoro Corporation, a Fortune 100 company and the parent company of Tesoro Refining & Marketing Company LLC, is an independent refiner and marketer of petroleum products. Tesoro Corporation, through its subsidiaries, operates six refineries in the western United States with a combined capacity of 850,000 barrels per day.
Over the term of the contracts, Brinderson will provide routine maintenance and repair services as well as perform small capital construction projects at all three Tesoro refinery locations. Tesoro’s Los Angeles refining operation is the largest refinery on the West Coast and a major producer of clean fuels. When at full capacity, the refinery complex can process 363,000 barrels per day.
Russell Conda, Brinderson’s President, commented, “We are honored Tesoro has again shown their confidence in Brinderson’s ability to support the maintenance of their facilities. This is a significant award for us and demonstrates our capabilities to deliver an industry leading safety record and high quality onsite performance. We take great pride in our safety programs that have generated over one million hours without a recordable incident. Brinderson’s ability to add predictable value accretion to our client’s facilities helped us to secure this award. We look forward to our continued, and now expanded, relationship with Tesoro.”
Work being performed at Tesoro refineries has continued uninterrupted during the process of negotiating the contracts between Tesoro and Brinderson.