North American Energy Partners Notified of Suspension of Work at Canadian Natural's Horizon Project
May 19 2011 - 3:52PM
Marketwired
Further to the announcement issued by North American Energy
Partners Inc. ("NAEP" or "the Company") (TSX: NOA) (NYSE: NOA) on
Wednesday May 18th, the Company has now been notified by its
customer, Canadian Natural Resources Limited ("Canadian Natural"),
to suspend overburden removal activities at the Horizon Oil Sands
project near Fort McMurray, Alberta. The suspension is being taken
while Canadian Natural undertakes repairs to its primary upgrading
facility, which was damaged in a fire in January 2011. The
suspension of work notice was issued on May 18, 2011 at 2 pm and is
effective until January 2, 2012.
"Although Canadian Natural is required to cover our fixed costs
on equipment related to the contract that is left idle by this
suspension of work, we will work closely with our customer to
determine if we can minimize their costs by redeploying our
resources to other projects in the region," said Rod Ruston,
President and CEO. "Fortunately the suspension comes at a time when
demand for equipment and services is growing strongly both from
other existing operations in the oil sands and from major new
projects starting construction in the region."
"Given our recently announced contract wins at Shell and
Syncrude and the anticipated signing of a new five-year contract
with Suncor for overburden, site reclamation and light civil
construction, the availability of this equipment in the short term
could provide a valuable and timely addition to our general
contract fleet," added Mr. Ruston.. "The work suspension at
Canadian Natural effectively removes the only low-margin recurring
services activity in our project mix for the next nine months.
Accordingly, our cash flow and margins are expected to improve if
we are able to increase service levels for other customers."
About the Company
North American Energy Partners Inc. (www.naepi.ca) is one of the
largest providers of heavy construction, mining, piling and
pipeline services in western Canada. For more than 50 years, NAEP
has provided services to large oil, natural gas and resource
companies, with a principal focus on the Canadian oil sands. The
Company maintains one of the largest independently owned equipment
fleets in the region.
Forward Looking Statements
The information provided in this release contains
forward-looking statements. Forward-looking statements include
statements preceded by, followed by or that include the words
"may", "could", "would", "should", "believe", "expect",
"anticipate", "plan", "estimate", "target", 'project", "intend",
"continue", "further" or similar expressions. Actual results could
differ materially from those contemplated by such forward-looking
statements as a result of any number of factors and uncertainties,
many of which are beyond our control.
Examples of forward looking information in this release include,
but are not limited to, the expectation that there will be
opportunities to move equipment from the Canadian Natural site to
other projects in the region; the expectation that NAEP will sign a
new five-year contract with Suncor covering overburden, site
reclamation and light civil construction; and the expectation that
cash flows and margins will improve if service levels to other
customers are increased. The material factors or assumptions used
to develop such forward-looking statements and the risks and
uncertainties that could cause a actual results to differ
materially from those contemplated by such forward-looking
statements include our ability to work with Canadian Natural on
redeploying resources; that work on other projects in the region
will require additional equipment, and that we will successfully
conclude negotiations with Suncor with respect to the new five-year
contract..:
These factors are not intended to represent a complete list of
the factors that could affect the Company. See the risk factors
highlighted in materials filed with the securities regulatory
authorities in the United States and Canada from time to time,
including but not limited to the most recent Management's
Discussion and Analysis filed respectively in the United States and
Canada. Undue reliance should not be placed upon forward-looking
statements and we undertake no obligation, other than those
required by applicable law, to update or revise those
statements.
For more complete information about us you should read our
disclosure documents that we have filed with the SEC and the CSA.
You may obtain these documents for free by visiting EDGAR on the
SEC website at www.sec.gov or on the CSA website at
www.sedar.com.
Contacts: North American Energy Partners Inc. Kevin Rowand
Director, Investor Relations & Strategic Planning (780)
960-4531 (780) 960-7103 (FAX) krowand@nacg.ca
North American Construct... (NYSE:NOA)
Historical Stock Chart
From Jun 2024 to Jul 2024
North American Construct... (NYSE:NOA)
Historical Stock Chart
From Jul 2023 to Jul 2024