Primoris Services Corporation Announces Industrial Awards Valued Over $62 million

Rhea-AI Summary

Primoris Services Corporation (NASDAQ: PRIM) announced two significant industrial awards totaling over $62 million. The first contract involves the construction of the OSBL portion of a renewable diesel expansion project in Louisiana, set to start in Q2 2020 and finish by Q3 2021. The second contract is for the civil work of an air separation unit expansion in Texas, aiming to reduce NOx and CO₂ emissions, with completion expected by Q3 2020.

Positive

• Secured two industrial awards totaling over $62 million.
• First award supports renewable diesel expansion, enhancing green energy project portfolio.
• Second award focused on reducing emissions, aligning with environmental regulations.

Negative

• None.

DALLAS, May 20, 2020 (GLOBE NEWSWIRE) -- Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced two new industrial awards with a combined value over $62 million. The contracts were secured by Primoris Industrial Constructors, part of the Power, Industrial, and Engineering segment. 

• The first award is for the construction of the outside the battery limits (“OSBL”) portion of a renewable diesel expansion project in Louisiana. The scope includes civil, mechanical, structural, and electrical work. The project was designed by Primoris Design & Construction under a separate contract, and Primoris Industrial Constructors will coordinate with Primoris Design & Construction to ensure an efficient engineering and construction interface. Work is scheduled to commence in the second quarter of 2020, and completion is expected in the third quarter of 2021.

• The second award is for the civil portion of an air separation unit and partial oxidation plant expansion project in Texas. The plant expansion will help lower the existing plant’s NOx and CO₂ emissions. The scope includes foundations, underground piping, and a grounding grid. Work is scheduled to commence in the second quarter of 2020, and completion is expected in the third quarter of 2020.

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 are the details of the new industrial awards announced by Primoris (PRIM)?

Primoris announced two awards worth over $62 million. One for a renewable diesel expansion in Louisiana and another for an air separation unit expansion in Texas.

When will the projects from the Primoris awards begin and end?

Both projects are scheduled to commence in Q2 2020, with the Louisiana project expected to complete by Q3 2021, and the Texas project by Q3 2020.

How do the new contracts impact Primoris (PRIM) business strategy?

The contracts enhance Primoris's portfolio in renewable energy and emissions reduction, aligning with growing environmental regulations.