Primoris Services Corporation Announces Industrial Award Valued Over $200 Million

Rhea-AI Summary

Primoris Services Corporation (NASDAQ: PRIM) has secured a significant contract valued at over $200 million for the engineering, procurement, and construction of a renewable fuels facility in Bakersfield, California. The facility will produce renewable diesel from organic feedstocks, contributing to lower greenhouse gas emissions. This project, awarded to ARB Industrial, involves extensive upgrades and is set for completion in the third quarter of 2022.

Positive

• Secured a contract worth over $200 million.
• Project focuses on renewable fuel production, aligning with environmental goals.
• Initial phase of work has commenced, indicating progress.

Negative

• Completion of the project is not expected until the third quarter of 2022, indicating a long timeline.
• Potential risks related to project duration, weather, and economic conditions may impact performance.

DALLAS, May 11, 2020 (GLOBE NEWSWIRE) -- Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced a new industrial award valued over $200 million.  The contract was secured by ARB Industrial, part of the Power, Industrial, and Engineering segment. 

• The award is for the engineering, procurement and construction of a renewable fuels facility in Bakersfield, California.  The retooled facility will produce renewable diesel from organic feedstocks such as vegetable oils.  Fuel produced at the facility will be available to be blended into transportation fuel, reducing overall greenhouse gas emissions.

• The scope includes upgrades to the existing facility as well as civil, mechanical, structural, and electrical work. Other activities include balance of plant engineering and some procurement.
  
  
• ARB Industrial is partnering with OnQuest and Primoris Design & Construction to perform certain engineering scope.
  
  
• The initial phase of work and mobilization has commenced and the entire project is anticipated to be completed in the third quarter of 2022.

ABOUT PRIMORIS
Founded in 1960, Primoris, through various subsidiaries, has grown to become one of the leading providers of specialty contracting services operating mainly in the United States and Canada. Primoris provides a wide range of specialty construction services, fabrication, maintenance, replacement, and engineering services to a diversified base of customers. The Company’s national footprint extends from Florida, along the Gulf Coast, through California, into the Pacific Northwest and into Canada. For additional information, please visit www.prim.com.

FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including with regard to the Company’s future performance.  Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “will”, “would” or similar expressions.  Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally.  Forward-looking statements inherently involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Actual results may differ materially as a result of a number of factors, including, among other things, customer timing, project duration, weather, and general economic conditions; changes in our mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for our services; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; increases in construction costs that we may be unable to pass through to our customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; costs we incur to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in our operations; the results of the review of prior period accounting on certain projects; developments in governmental investigations and/or inquiries; intense competition in the industries in which we operate; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of our partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; failure to maintain safe worksites; risks or uncertainties associated with events outside of our control, including severe weather conditions, public health crises and pandemics (such as COVID-19), political crises or other catastrophic events; client delays or defaults in making payments; the availability of credit and restrictions imposed by credit facilities; failure to implement strategic and operational initiatives; risks or uncertainties associated with acquisitions, dispositions and investments; possible information technology interruptions or inability to protect intellectual property; the Company’s failure, or the failure of our agents or partners, to comply with laws; the Company's ability to secure appropriate insurance; new or changing legal requirements, including those relating to environmental, health and safety matters; the loss of one or a few clients that account for a significant portion of the Company's revenues; asset impairments; and risks arising from the inability to successfully integrate acquired businesses. In addition to information included in this press release, additional information about these and other risks can be found in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2019, and our other filings with the Securities and Exchange Commission (“SEC”).  Such filings are available on the SEC’s website at www.sec.gov.  Given these risks and uncertainties, you should not place undue reliance on forward-looking statements.  Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Company Contact
Kate Tholking
Vice President, Investor Relations
ktholking@prim.com

FAQ

What is the new contract value announced by Primoris?

Primoris announced a new contract valued at over $200 million.

Where is the renewable fuels facility located?

The renewable fuels facility is located in Bakersfield, California.

When is the completion date for the Primoris project?

The project is anticipated to be completed in the third quarter of 2022.

What type of fuel will the new facility produce?

The facility will produce renewable diesel from organic feedstocks.

Which segment of Primoris secured the new contract?

The contract was secured by ARB Industrial, part of the Power, Industrial, and Engineering segment.