Primoris Services Corporation Announces Solar Award

Rhea-AI Summary

Primoris Services Corporation (NASDAQ: PRIM) announced a Limited Notice to Proceed (LNTP) for a solar project valued at $10 million, with an expected final contract worth over $100 million. This contract, secured by Primoris Renewable Energy, involves initial engineering work on a utility-scale solar facility in the Southwest. The project’s construction is anticipated to complete by Q3 2021, marking a significant opportunity for Primoris in the renewable energy sector.

Positive

• Secured a solar project with an initial value of $10 million and potential contract value exceeding $100 million.
• The LNTP indicates strong client interest and possible future contracts based on historical success with similar agreements.
• Initial work on the project is set to begin in Q3 2020, signaling prompt execution.

Negative

• None.

DALLAS, June 01, 2020 (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 $10 million and an anticipated final contract value of over $100 million.  The contract was secured by Primoris Renewable Energy, part of the Power, Industrial, & Engineering segment. 

• The LNTP is for the initial engineering work on a utility-scale solar facility in the Southwest.
  
  
• It is very typical for our clients in the solar industry to issue LNTPs to support initial engineering, site investigation, long lead procurement items, and cost optimization activities at the beginning of utility-scale projects.  Historically, Primoris’ LNTPs for solar projects have resulted in contracts for the execution of the entire project.  We should note that Primoris has only taken the value of the LNTP into backlog and will not place the entire contract value into backlog until the final contract is fully executed.
  
  
• The initial phase of work will commence in the third quarter of 2020.  It is anticipated that construction on the entire project will be completed in the third quarter of 2021.

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 value of the solar project announced by Primoris?

The solar project has an initial value of $10 million and an anticipated final contract value of over $100 million.

When will construction on the solar project by Primoris begin?

Construction on the solar project is expected to commence in the third quarter of 2020.

What does the Limited Notice to Proceed (LNTP) include?

The LNTP includes initial engineering work and site investigation for a utility-scale solar facility.

What is Primoris Services Corporation's stock symbol?

Primoris Services Corporation's stock symbol is PRIM.

When is the expected completion date for the solar project?

The anticipated completion date for the solar project is in the third quarter of 2021.