Primoris Services Corporation Announces New Solar Award

Rhea-AI Summary

Primoris Services Corporation (NASDAQ: PRIM) announced the award of a Limited Notice to Proceed (LNTP) for a solar project worth $19 million, with a final contract value anticipated to exceed $200 million. This contract, secured by the Company’s Energy Segment, focuses on initial engineering work for a utility-scale solar facility in the Southeast U.S. The project’s initial phase is expected to start in Q2 2021, with construction completion anticipated by the end of 2022.

Positive

• Awarded a $19 million LNTP for a new solar project with a potential total value over $200 million.
• Secured by Primoris' Energy Segment, indicating strong market demand.

Negative

• None.

DALLAS, Jan. 26, 2021 (GLOBE NEWSWIRE) -- Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced the award of a Limited Notice to Proceed (“LNTP”) for a new solar project with an initial value of $19 million and an anticipated final contract value over $200 million. The contract was secured by the Company’s Energy Segment.

• The LNTP is for the initial engineering work on a utility-scale solar facility in the Southeast region of the United States.
• The issuance of LNTPs which support the initial engineering, site investigation, long-lead procurement items and cost optimization activities for utility-scale projects are common for the Company’s customers. Historically, Primoris’ LNTP’s, for solar projects, have resulted in contracts for the entire project. Primoris will only include the $19 million for the LNTP in the Company’s backlog and will not include the entire contract value until the final contract is fully executed.
• The initial phase of work will commence in the second quarter of 2021, with construction on the project anticipated to be complete by the end 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 throughout the United States and Canada. Primoris provides a wide range of specialty construction services, fabrication, maintenance, and engineering services to a diversified base of customers. Additional information on Primoris is available at www.primoriscorp.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 U.S. 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.

For additional information, contact:

Brook Wootton
Vice President, Investor Relations
Primoris Services Corporation, 214-545-6773
bwootton@prim.com

FAQ

What is the value of the solar project awarded to Primoris Services Corporation?

The solar project awarded to Primoris Services Corporation has an initial value of $19 million and a potential final contract value exceeding $200 million.

When will the construction on the solar project by Primoris be completed?

Construction on the solar project is anticipated to be completed by the end of 2022.

Which segment of Primoris secured the solar project contract?

The solar project contract was secured by the Energy Segment of Primoris Services Corporation.

What is the purpose of the Limited Notice to Proceed (LNTP) issued to Primoris?

The LNTP issued to Primoris is for the initial engineering work on a utility-scale solar facility.

When will the initial phase of work for the Primoris solar project commence?

The initial phase of work for the Primoris solar project is expected to commence in the second quarter of 2021.