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Primoris' Energy Unit Wins Power Contract Worth $60 Million

EME MTZ PRIM DY

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Primoris Services Corporation (PRIM - Free Report) announced that its Energy Services' power division, part of the Energy segment has won a new power plant contract worth over $60 million. Primoris’ shares gained 3.02% following the announcement.

The contract is for the Engineering, Procurement, and Construction ("EPC") of a 340-megawatt simple cycle gas turbine power plant located in the Mid-Atlantic region of the United States. The new plant will be an expansion of an existing facility and will provide additional on-demand peaking electricity generation.

Work is slated to begin in the fourth quarter of 2016 and expected to be completed in the first quarter of 2018.

PRIMORIS SERVCS Price

PRIMORIS SERVCS Price | PRIMORIS SERVCS Quote

Earlier this month, Primoris Energy Services’ industrial division, part of the Energy segment had secured an industrial award valued at approximately $15 million from a major industrial gases company. Further, Primoris Services’ unit Rockford Corporation, which was formed as part of a joint venture (JV), received a new contract from Atlantic Coast Pipeline, LLC ("ACP").

Notably, ACP has proposed a 600 mile natural gas transmission pipeline to bring the much-needed energy to Virginia and North Carolina. Additionally, ACP has signed a construction deal with Spring Ridge Constructors, LLC, a JV formed between Rockford Corporation and other leading natural gas pipeline construction companies.

Further in September, the company announced the extension of two Master Service Agreements with a major utility customer. Primoris also won a new heavy civil award valued at around $16 million from the Harris County Flood Control District in August.

Notably, Primoris is positive about bidding opportunities, which will continue to increase its backlog. Moreover, benefits from geography and market diversity as well as those from the expected boom in capital pipeline construction will boost revenues.

Over the next four quarters, Primoris is anticipated to realize revenues of around 64% from the East Construction Services segment backlog, about 68% from the West Construction Services segment backlog and 97% from the Energy 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.

The company belongs to the Building Heavy Construction Industries along with its peers, MasTec, Inc. (MTZ - Free Report) , Dycom Industries Inc. (DY - Free Report) and EMCOR Group Inc. (EME - Free Report) . Shares of MasTec have gained around 88% over the last one-year period. EMCOR and Dycom Industries’ shares have logged a respective gain of 34% and 16% over the same timeframe.

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