Primoris Services Corporation Announces Pipeline Awards Estimated at $39 Million

Rhea-AI Summary

Primoris Services Corporation (NASDAQ: PRIM) announced two significant contract awards totaling approximately $39 million in its Pipeline & Underground segment. The first project involves microtunneling for a new sewer main in North Tampa Bay, spanning 3,200 linear feet, with work set to begin in Q2 2021 and complete by Q3 2022. The second contract is for installing seven microtunnels for the Silicon Valley Clean Water agency, covering 4,324 linear feet, also expected to commence in Q2 2021 and end by Q3 2022.

Positive

• Secured two significant contracts valued at $39 million, enhancing revenue potential.
• Projects scheduled for execution in 2021, indicating immediate business activity and cash flow.

Negative

• None.

DALLAS, Dec. 21, 2020 (GLOBE NEWSWIRE) -- Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced two awards with a combined value of approximately $39 million. The contracts were secured by the Pipeline & Underground segment.

Primoris was awarded a microtunneling project to install a new sewer main in North Tampa Bay. The project involves the design, procurement and installation of approximately 3,200 linear feet, using 78-inch pipe, in a single reach tunnel. The project also includes designing and building two 70-foot deep Secant Pile shafts. The work is scheduled to begin in the second quarter of 2021 and to be completed in the third quarter of 2022.

The second design-build award is for furnishing and installing seven microtunnels reaching approximately 4,324 linear feet using 36-inch pipe. The shafts used will be between 17-29 feet deep, consisting of watertight, sheet pile construction. The work will be performed for the Silicon Valley Clean Water agency and is scheduled to begin in the second quarter of 2021 and completion is expected 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 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.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.

For additional information, contact:

Brook Wootton

Vice President, Investor Relations

Primoris Services Corporation, 214-545-6773

bwootton@prim.com

FAQ

What contracts did Primoris Services Corporation recently secure?

Primoris secured two contracts worth approximately $39 million for microtunneling projects.

What is the value of the new contracts announced by Primoris?

The total value of the new contracts is approximately $39 million.

When are the projects scheduled to start for Primoris?

The projects are scheduled to begin in the second quarter of 2021.

What is the completion date for the Primoris projects?

The projects are expected to be completed by the third quarter of 2022.

Who is the client for the second project Primoris announced?

The second project is for the Silicon Valley Clean Water agency.