Aegion Corporation Awarded $5 Million Contract Extension to Install Tite Liner® System in the Middle East

Rhea-AI Summary

Aegion Corporation (NASDAQ: AEGN) announced a $5 million contract extension for United Special Technical Services, LLC, in the Middle East. This extension follows their 2018 contract for installing over 700 km of the Tite Liner® system to protect carbon steel pipelines from corrosion, now set to include an additional 400 km over the next 12-18 months. The expanded work is expected to start in Q4 2020 and conclude by 2022, highlighting Aegion's growth in the Middle East.

Positive

• Awarded $5 million contract extension for USTS in the Middle East.
• Expansion to include an additional 400 km of Tite Liner® installation.
• Strengthens presence in the Middle East and builds on previous success.

Negative

• None.

ST. LOUIS, Sept. 02, 2020 (GLOBE NEWSWIRE) -- Aegion Corporation (NASDAQ:AEGN) today announced that United Special Technical Services, LLC ("USTS"), a joint venture between United Pipeline Systems, Inc., a subsidiary of Aegion ("United"), and Special Technical Services LLC ("STS") of Oman, has been awarded a contract extension valued at $5 million for a customer in the Middle East.

USTS was awarded a contract in 2018 for the installation of more than 700 km of United’s Tite Liner^® system, a high-density polyethylene (HDPE) liner, to rehabilitate and protect carbon steel pipelines from internal corrosion. USTS was recently awarded an extension to install an additional 400 km of HDPE liner over the next 12 to 18 months. 

Charles R. Gordon, Aegion’s President and Chief Executive Officer, said, “We are pleased with this sizable contract extension and strong partnerships in the region. USTS continues to expand its presence in the Middle East market through the proven success of the Tite Liner^® system as a low cost, low maintenance and effective solution.”

The expanded work scope is expected to begin in the fourth quarter of 2020 and conclude in 2022.

About Aegion Corporation (NASDAQ: AEGN)
Aegion combines innovative technologies with market-leading expertise to maintain, rehabilitate and strengthen infrastructure around the world. Since 1971, the Company has played a pioneering role in finding transformational solutions to rehabilitate aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries. Aegion also maintains the efficient operation of refineries and other industrial facilities. Aegion is committed to Stronger. Safer. Infrastructure^®.

More information about Aegion can be found at www.aegion.com.

Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Aegion’s forward-looking statements in this news release represent its beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to Aegion and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of Aegion’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 2, 2020, and in subsequently filed documents, and, in particular, the impact of the current COVID-19 virus outbreak and the evolving response thereto. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, Aegion’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, Aegion does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by Aegion from time to time in Aegion’s filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward-looking statements made by Aegion in this news release are qualified by these cautionary statements.

Aegion^® and the Aegion^® logo are the registered trademarks of Aegion Corporation and its affiliates.

For more information, contact:
Katie Cason
Senior Vice President, Strategy and Communications
636-530-8000 | kcason@aegion.com

FAQ

What is the value of the recent contract awarded to Aegion Corporation?

Aegion Corporation was awarded a contract extension valued at $5 million.

How much additional work is involved in the contract extension for USTS?

The contract extension involves the installation of an additional 400 km of the Tite Liner® system.

When is the expanded work expected to start and conclude?

The expanded work is expected to begin in the fourth quarter of 2020 and conclude in 2022.

What is the purpose of the Tite Liner® system?

The Tite Liner® system is designed to rehabilitate and protect carbon steel pipelines from internal corrosion.

Who is involved in the joint venture for the contract?

The joint venture involves Aegion's subsidiary United Pipeline Systems and Special Technical Services LLC of Oman.