Perma-Pipe International Holdings, Inc., announces $46 million in Contract Awards in the Middle East Region

Rhea-AI Summary

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) has secured two significant projects in the MENA region, totaling over $46 million. These projects, part of major developments in the area, will utilize Perma-Pipe's coating capabilities and XTRU-THERM® insulation system. The system features a spray-applied polyurethane foam jacketed with high-density polyethylene casing.

Saleh Sagr, Sr. Vice President for Perma-Pipe's MENA region, emphasized that these awards align with the company's strategy to serve rapidly growing markets in the region. David Mansfield, President and CEO, highlighted the strategic importance of these projects in strengthening Perma-Pipe's position in the Middle East.

Perma-Pipe International Holdings, Inc. is a global leader in pre-insulated piping and leak detection systems for various applications, including oil and gas and district heating and cooling. The company operates in fifteen locations across six countries.

Positive

• Secured two projects in the MENA region worth over $46 million
• Projects align with company's strategy to focus on rapidly growing markets
• Strengthens Perma-Pipe's position in the Middle East region
• Utilizes company's proprietary XTRU-THERM® insulation system

Negative

• None.

Financial Analyst

Perma-Pipe International Holdings' announcement of $46 million in contract awards is a significant positive for the company. These projects represent a substantial boost to the company's order book, potentially driving revenue growth in the coming quarters. The utilization of Perma-Pipe's proprietary XTRU-THERM® insulation system demonstrates the company's technological edge and ability to secure high-value contracts. Investors should note that this news could lead to improved financial performance and potentially higher stock valuations. However, it's important to monitor project execution and profit margins to fully assess the impact on the company's bottom line.

Market Research Analyst

The $46 million contract awards in the MENA region highlight Perma-Pipe's strong market position and growth strategy. The Middle East's rapidly expanding infrastructure and energy sectors present significant opportunities for specialized piping solutions. This news indicates Perma-Pipe's success in capitalizing on these market trends. For investors, this suggests potential for sustained growth and market share expansion in a key geographic area. However, it's important to consider geopolitical risks and economic fluctuations in the region that could impact project timelines or future contract opportunities.

Industrial Engineering Expert

The use of Perma-Pipe's XTRU-THERM® insulation system in these projects underscores the company's technical prowess. This spray-applied polyurethane foam with high-density polyethylene casing offers superior insulation properties, important for efficient liquid transportation in challenging environments. From an engineering perspective, this technology can provide significant cost savings and operational benefits to clients, potentially leading to repeat business and referrals. Investors should view this as a competitive advantage that could drive long-term growth. However, it's essential to keep an eye on emerging technologies in the field that could challenge Perma-Pipe's current offerings.

SPRING, Texas--(BUSINESS WIRE)-- Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded two projects in the MENA region. The overall amount of the two projects is more than 46 million USD.

The two awarded projects are part of major developments in the region. These projects will utilize Perma-Pipe’s coating capabilities, and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing.

Saleh Sagr, Sr. Vice President for Perma-Pipe’s MENA region commented, “These awards are consistent with our strategy to continue our focus on serving the rapidly growing markets in the region. We would like to thank our customers for placing their trust in us, and we will ensure that we deliver both projects on schedule with the highest standards of both quality and safety.”

David Mansfield, President and CEO commented, "We are excited about these significant awards which are an important part of our growth plans. They have strategic importance to Perma-Pipe and further strengthen our position in the Middle East region.”

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH, “Perma-Pipe”, or the “Company”) is a global leader in pre-insulated piping and leak detection systems for oil and gas, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, Perma-Pipe has operations at fifteen locations in six countries.

Forward-Looking Statements

Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) decreases in government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company’s ability to attract and retain senior management and key personnel; (xviii) the Company’s ability to achieve the expected benefits of its growth initiatives; (xix) the Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company’s information technology systems. Shareholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at https://www.sec.gov and under the Investor Center section of our website (http://investors.permapipe.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240823236080/en/

Perma-Pipe International Holdings, Inc.

David Mansfield, President and CEO

Perma-Pipe Investor Relations

847.929.1200

investor@permapipe.com

Source: Perma-Pipe International Holdings, Inc.

FAQ

What is the total value of the new contracts awarded to Perma-Pipe International Holdings (PPIH) in the Middle East?

Perma-Pipe International Holdings (PPIH) has been awarded two projects in the MENA region with a total value of over $46 million.

What technology will Perma-Pipe (PPIH) use in these Middle East projects?

Perma-Pipe (PPIH) will utilize its coating capabilities and XTRU-THERM® insulation system, which is a spray-applied polyurethane foam jacketed with a high-density polyethylene casing.

How do these new contracts align with Perma-Pipe's (PPIH) strategy?

These awards are consistent with Perma-Pipe's (PPIH) strategy to continue focusing on serving the rapidly growing markets in the MENA region.

What impact will these new contracts have on Perma-Pipe's (PPIH) position in the Middle East?

According to Perma-Pipe's CEO, these significant awards have strategic importance and will further strengthen the company's position in the Middle East region.