James Industrial Contractors (JIC), a unit of Primoris Services Corporation (PRIM - Free Report) has secured three related industrial awards totaling in excess of $30 million. The deals cover civil and underground work.
Two of the contracts involve civil work and mechanical erection at a new Methanol Production Complex in Texas. The third contract requires civil work for a new Air Separation Unit (ASU) located next to the methanol complex. JIC will be responsible for all the civil and underground work at these sites.
The scope of work for the abovementioned projects includes over 14,000 cubic yards of concrete and 24,800 linear feet of underground high density polyethylene piping, as well as 75,000 linear feet of underground electrical copper pipeline.
Construction work on the projects is scheduled to start in the third quarter of 2015 and is expected to be completed by the third quarter of 2016. Primoris believes that completion of these projects will drive backlog growth.
Primoris Energy Services’ JIC is a part of the Energy segment. The segment’s revenues declined over 43% during the first half of 2015, impacted by decreased revenues in the industrial and pipeline end-markets.
Nevertheless, Primoris is optimistic about drivers for business which remains positive. Primoris is also positive about bidding opportunities for the rest of this year and next year. This will continue to increase backlog in the second half of the year, into 2016 and beyond. Large capital replacement programs and integrity plans will also aid growth in the utility market and in turn, boost revenues.
During the next four quarters, Primoris is expected to realize revenues of around 52% from the East Construction Services segment backlog, about 69% from the West Construction Services segment backlog and 96% from the Engineering segment.
Dallas, TX-based Primoris is a specialty contractor and infrastructure company that serves diverse-end markets. The company also provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater as well as engineering services to major public utilities, petrochemical companies, energy companies, municipalities and other customers.
Primoris currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the sector are China Railway Construction Corporation Limited , China Railway Group Limited and Dycom Industries Inc. (DY - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
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