North American Energy Partners Inc. ("NAEP" or "the Company")
(TSX:NOA) (NYSE:NOA) today announced results for the three months
ended June 30, 2012, representing the first quarter of its 2013
fiscal year.
The Company has prepared its consolidated financial statements
in accordance with accounting principles generally accepted in the
United States (US GAAP). Except where otherwise specified, all
dollar amounts discussed are in Canadian dollars.
Highlights of the Three Months Ended June 30, 2012
-- Martin Ferron was appointed President and Chief Executive Officer of
NAEP on June 7, 2012.
-- Consolidated revenues increased 21.6% compared to the same period last
year.
-- Gross margin percentage improved to 7.7% from 3.4% last year.
-- Consolidated EBITDA increased to $10.6 million from $6.2 million last
year, despite a $2.5 million restructuring charge in the current period.
-- The Company implemented a business strategy to focus its operations on
two main business segments:
-- Heavy Construction and Mining, and
-- Commercial and Industrial Construction.
-- NAEP executed strategic asset sales in the amount of $22.2 million as
part of its fleet rightsizing initiative, resulting in net proceeds of
$8.7 million after the buyout of operating leases on some of the units.
Consolidated Financial Highlights
(dollars in thousands, Three Months Ended June 30,
except per share amounts) 2012 2011
----------------------------------------------------------------------------
Revenue $ 235,922 $ 194,023
Gross profit $ 18,188 $ 6,611
Gross profit margin 7.7% 3.4%
General and administrative expenses $ 17,718 $ 10,601
Operating income (loss) $ 225 $ (5,669)
Operating margin 0.1% -2.9%
Net loss $ (5,126) $ (9,014)
Per share information
Net loss - Basic $ (0.14) $ (0.25)
Net loss - Diluted $ (0.14) $ (0.25)
Consolidated EBITDA(1) $ 10,626 $ 6,176
Capital spending $ 14,956 $ 7,508
Cash and cash equivalents $ 91 $ 958
(1) For a definition of Consolidated EBITDA and reconciliation to net
income, see "Non-GAAP Financial Measures" and "Consolidated EBITDA"
below.
The Company reported improved financial results for the three
months ended June 30, 2012, with year-over-year gains in
consolidated revenues, gross profit and EBITDA. Consolidated gross
profit margins climbed to 7.7% from 3.4% during the same period
last year.
The improved results reflect stronger performance from the
Company's Commercial and Industrial Construction segment. Within
this segment, NAEP's piling operations had a particularly strong
quarter, while pipeline operations focused on executing higher-
margin, lower-risk maintenance work. The stronger segment results
also reflect a return to normal operating conditions in the current
period, compared to last year's adverse weather conditions. Current
year results from the Heavy Construction and Mining segment were
largely on par with last year's results including the return to
profitable activity on the Canadian Natural Resources Limited
(Canadian Natural) overburden removal and mining services contract
(the "Canadian Natural contract").
"Our near-term priorities are to: strengthen our balance sheet;
reduce our cost structure and business risk profile; regain
profitability and thereby restore shareholder confidence and
value." said Martin Ferron, NAEP's President and CEO. "To these
ends we have begun to implement a series of strategic initiatives,
including:
-- Simplifying the Company's organizational structure from three business
segments to two:
-- Heavy Construction and Mining: Mine support services and project
development for oil sands and other resource industry customers.
-- Commercial and Industrial Construction: Piling and pipeline
operations, structural steel construction, oil and gas tank
servicing, screwpile and pipeline anchor system manufacturing.
-- Restructuring the business, including:
-- Consolidating corporate head office functions and relocating senior
executives from Calgary to NAEP's offices in Acheson, Alberta;
-- Simplifying operational support infrastructure processes;
-- Eliminating 60 salaried positions and
-- Reducing fixed support costs related to equipment maintenance
activities.
-- Right-sizing the equipment fleet and reducing capital spend in line with
market demand.
-- Refocusing pipeline operations to reduce risk and achieve better
performance.
The business restructuring initiatives undertaken during the
three months ended June 30, 2012 resulted in a $2.5 million charge
to general and administrative (G&A) expenses and are expected
to generate ongoing annual G&A savings in excess of $12.0
million. The Company also completed $22.2 million of asset sales as
part of its fleet rightsizing, resulting in $8.7 million of net
proceeds after the buyout of operating leases on some of the
units.
"Upon joining NAEP in early June, I immediately set out the
business priorities explained above and I have been encouraged by
support in all parts of the organization" said Mr. Ferron. "We are
already seeing the benefit s from the newly implemented cost
reduction initiatives and these will help us weather the expected
weaker demand environment for mining support services, over the
coming quarters."
Segment Results
In an effort to optimize its cost structure and gain
efficiencies, the Company has consolidated the management and
support organization of its operations under two main business
segments:
-- Heavy Construction and Mining
-- Commercial and Industrial Construction
NAEP has aligned its organization and reporting under this new
structure and the chief operating decision makers will rely on the
information reported under this new structure to allocate resources
and assess the performance of these segments going forward. The
Company will begin reporting segmented results under these two
business segments effective for the three months ended June 30,
2012. All prior-year segment comparatives will also be reported
under this revised segmentation. For a more detailed discussion of
these new business segments and a recast of prior period segment
results under the new reporting structure see "Changes to the
Financial Reporting of Business Segments" below.
Heavy Construction and Mining
Three Months Ended June 30,
(dollars in thousands) 2012 2011
----------------------------------------------------------------------------
Segment revenue $ 165,450 $ 163,391
Segment profit 8,648 8,523
Segment margin 5.2% 5.2%
For the three months ended June 30, 2012, the Heavy Construction
and Mining segment achieved revenue of $165.5 million, similar to
the $163.4 million recorded during the same period last year.
Heavy civil construction activity was strong during the current
period, reflecting continued work on the shear key for Syncrude
Canada Limited's (Syncrude) Mildred Lake mine train relocation
project and increased activity at Suncor Energy Inc's (Suncor) Base
mine under the five-year master services agreement. Site
development activity also increased as NAEP continued to support
construction of Total's Joslyn mine and PetroChina's Dover SAGD
facility.
Partially offsetting these improvements was a significant
reduction in activity at Shell's mines, reflecting a slowing of
work on Shell's atmospheric fines drying (AFD) tailings project
until later in the year and reduced outsourcing by this
customer.
For the three months ended June 30, 2012, Heavy Construction and
Mining segment profit and margin were comparable to the same period
last year. The margin reflects a lower volume of high-margin, heavy
civil work at Shell's operations and additional materials costs on
Syncrude's shear key project. Helping to offset these impacts was
higher margins on work performed under the new terms of the
Canadian Natural overburden removal contract. By comparison,
revenue for this customer was realized at a zero margin during the
same period last year. Under recovered equipment costs to the
segment were comparable to the prior year, reflecting additional
equipment support costs and reduced mine services activity from the
Company's larger sized heavy construction fleet.
Commercial and Industrial Construction
Three Months Ended June 30,
(dollars in thousands) 2012 2011
----------------------------------------------------------------------------
Segment revenue $ 70,472 $ 30,632
Segment profit 10,476 192
Segment margin 14.9% 0.6%
For the three months ended June 30, 2012, revenue from the
Commercial and Industrial Construction segment increased 130.1%
compared to the three months ended June 30, 2011. Piling activity
was particularly strong during the current period, with robust
demand from oil sands customers and commercial markets and
favourable weather conditions supporting improved production
efficiencies. Gains were also achieved as the Company increased
structural steel construction activity at Thompson River's Mt.
Milligan Copper/Gold project in Northern British Columbia, achieved
significant international sales of manufactured screw piles, and
performed work under a multi-year pipeline integrity and
maintenance contract with a major Canadian pipeline operator.
Segment profit for the three months ended June 30, 2012
increased significantly to $10.5 million, from $0.2 million last
year, with segment margin climbing to 14.9% from 0.6%. The
bottom-line improvements reflect increased work volumes, with
higher margins on most of this activity. Piling margins achieved
the most significant gains, reflecting improved operating
conditions. Segment margins also benefited as the Company shifted
its focus to lower-risk, higher-margin pipeline maintenance and
integrity work.
Outlook
NAEP anticipates a continuation of strong activity in the
Commercial and Industrial Construction segment during the second
quarter to partially offset lower work volumes in the Heavy
Construction and Mining segment.
In the Heavy Construction and Mining segment, NAEP will continue
with the construction of the shear key foundation at Syncrude's
Mildred Lake mine relocation project through the remainder of the
fiscal year. The Company will also begin construction on the
recently awarded mechanically stabilized earth (MSE) wall at
Syncrude's mine relocation project in the second quarter. At
Suncor, tailings-related work, including MFT work, ditching and
limestone projects, is expected to provide steady volumes through
the summer, with reclamation projects providing added volumes
during the winter months. The Company does not expect to perform
any significant volumes of work at Shell once work on the AFD Phase
3 project comes to a close in the second quarter.
Near-term demand for mine support services is expected to be
weaker than normal due to project delays and deferrals and
insourcing by some customers. Additionally, civil construction
activity at PetroChina's Dover SAGD project and Total's Joslyn mine
is expected to ramp down in the second quarter as the Company's
work on these projects nears completion. Demand for reclamation and
tailings services, together with activity on mine expansion
projects and the continuation of overburden removal activity at
Canadian Natural, is expected to partially offset these
impacts.
In the Commercial and Industrial Construction segment, work at
the Mt. Milligan Copper/Gold Project in Northern British Columbia
is expected to remain steady through to the end of the calendar
year. Piling demand is also forecast to remain strong through
fiscal 2013, supported by sound industry fundamentals and a large
project backlog. The Company's pipeline operations will continue to
focus on executing the multi-year, cost- reimbursable pipeline
integrity contract with a major Canadian pipeline company. Tank
services activity is expected to strengthen through the summer
months, before entering the normal seasonal slowdown during the
winter months.
Overall, NAEP anticipates that the impact of lower activity
levels will be partially offset by the cost reductions realized
from new strategic initiatives and the increased focus on
performance, efficiency and risk management.
Conference Call and Webcast
Management will hold a conference call and webcast to discuss
its financial results for the three months ended June 30, 2012
tomorrow, Thursday, August 9, 2011 at 9:00 am Eastern time.
The call can be accessed by dialing:
Toll free: 1-877-407-8031 or International: 1-201-689-8031
A replay will be available through September 7, 2012 by
dialing:
Toll Free: 1-877-660-6853 or International: 1-201-612-7415
(Account: 286 Conference ID: 398523).
Changes to the Financial Reporting of Business Segments
As discussed above, the Company has implemented a strategy to
simplify its structure by aligning operations management and
support organizations under two main business segments:
-- Heavy Construction and Mining
-- Commercial and Industrial Construction
The operations activities that are managed and reported under
each segment are as follows:
Heavy Construction and Mining Segment
The Heavy Construction and Mining segment focuses primarily on
providing mining support, earthworks and below ground industrial
services for oil sands and other natural resource developers across
Canada. This includes activities such as:
-- Land clearing, stripping, muskeg removal and overburden removal to
expose the surface mining area;
-- Supply of labour and equipment to supplement customers' mining fleets
supporting surface mining activities;
-- General support mine services for surface and underground mine
operations and treatment plant operations, including road building and
maintenance, hauling of sand and gravel and relocation of treatment
plants;
-- Construction related to the expansion of existing projects, site
development and earthworks, underground utilities and infrastructure;
-- Construction and modification of tailing dams, dykes and ponds;
-- Reclamation of mined-out areas; and
-- Environmental and tailings management services to support oil sands
tailing pond reduction initiatives related to Alberta's Directive 074.
Commercial and Industrial Construction Segment
The Commercial and Industrial Construction segment focuses
primarily on providing below and above grade construction services
to commercial, industrial and public construction markets across
Canada. This includes activities such as:
-- Large and smaller-scale projects related to the installation of various
types of driven piles and drilled piles.
-- Design and installation of shoring / earth retention / stabilization
systems (secant pile, sheet pile, soldier pile and lagging walls) and
micro piles, with Canadian operations extending from British Columbia to
Ontario;
-- Design, fabrication and supply of helical (screw) piles and pipeline
anchor systems with sales in Canada, the US, Colombia, Malaysia,
Indonesia, Thailand, Russia and Australia;
-- Structural steel erection services;
-- Oil and gas storage tank construction, repair and maintenance services
across Canada;
-- Mainline pipe integrity testing, repair and maintenance services. This
will involve identifying weak portions of existing pipelines and
carrying out repairs to reduce the risk of future leaks or ruptures with
the capability to handle pipe diameters ranging from 2 to 60 inches in
remote geographical locations; and
-- Infrastructure development for oil and gas pipeline systems, including
gathering and processing, transmission, storage and distribution.
NAEP will begin reporting its segmented results under the Heavy
Construction and Mining and Commercial and Industrial Construction
segments effective for the three months ended June 30, 2012. All
prior-year segment comparatives will also be reported under the
revised business segments with the additional segmentation of
previously unallocated equipment costs, as described below.
Prior to this fiscal year, unallocated equipment costs were not
included in the segment financial results nor were they discussed
in segment analysis. The Company's methodology for allocating
equipment costs to projects is through the use of internal
equipment rates per operating hour of equipment utilized on a
project. The internal equipment rates are designed to cover all
variable equipment costs, including depreciation and repairs and
maintenance. In addition, the internal equipment rates per
operating hour have a component that covers fixed equipment costs,
including operating leases, fleet management costs, shop overheads
and capital costs. The fixed cost recovery component of the
internal equipment rates is developed based on planned equipment
operating hours for each category of equipment. Each equipment
category has a different fixed cost recovery component.
Unallocated equipment costs typically occur as a result of one
or more of the following events:
-- The reduced utilization of equipment results in lower operating hours,
reducing the recovery of fixed equipment costs;
-- A change in equipment mix on a project site results in a change in the
mix of equipment rates, reducing the recovery of fixed equipment costs;
and
-- Timing between periods for the recovery for variable repairs and
maintenance costs compared to when the actual repairs and maintenance
costs are incurred.
In an effort to improve reporting related to unallocated
equipment costs the Company has developed a process for segmenting
unallocated equipment costs which will allow NAEP to report such
costs within the revised segmented financial results for this and
future fiscal years.
Recast of Fiscal 2012 and Fiscal 2011 Segment Financial
Results
To allow for effective year-over-year comparisons of financial
results under the new business segmentation, the table below
recasts quarterly segmented financial summaries for the past two
years based on the new segmentation and the assignment of
unallocated equipment costs to each segment's financial
results.
New Business Segmentation Financial Summary
Fiscal 2012
% of % of
(dollars in
thousands) Q1 Revenue Q2 Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $ 163,391 100.0% $ 159,305 100.0%
Segment profit 8,523 5.2% 18,350 11.5%
Commercial and
Industrial
Construction
Revenue $ 30,632 100.0% $ 86,081 100.0%
Segment profit 192 0.6% 15,902 18.5%
New Business
Segmentation
Financial Summary
Fiscal 2012
% of % of % of
(dollars in
thousands) Q3 Revenue Q4 Revenue Total Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $ 159,915 100.0% $ 175,052 100.0% $ 657,663 100.0%
Segment profit 8,264 5.2% 410 0.2% 35,547 5.4%
Commercial and
Industrial
Construction
Revenue $ 124,715 100.0% $ 107,454 100.0% $ 348,882 100.0%
Segment profit 12,993 10.4% 1,389 1.3% 30,476 8.7%
Fiscal 2011
% of % of
(dollars in
thousands) Q1 Revenue Q2 Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $ 163,018 100.0% $ 171,668 100.0%
Segment profit
(loss) 16,254 10.0% 24,064 14.0%
Commercial and
Industrial
Construction
Revenue $ 20,576 100.0% $ 63,190 100.0%
Segment profit
(loss) 427 2.1% 5,813 9.2%
Fiscal 2011
% of % of % of
(dollars in
thousands) Q3 Revenue Q4 Revenue Total Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $ 185,325 100.0% $146,475 100.0% $ 666,486 100.0%
Segment profit
(loss) 22,985 12.4% (16,288) -11.1% 47,016 7.1%
Commercial and
Industrial
Construction
Revenue $ 79,761 100.0% $ 28,035 100.0% $ 191,562 100.0%
Segment profit
(loss) 8,988 11.3% (9) 0.0% 15,219 7.9%
Previous Business Segmentation Financial Summary
Fiscal 2012
% of % of
(dollars in
thousands) Q1 Revenue Q2 Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $ 163,391 100.0% $ 159,719 100.0%
Segment profit 21,781 13.3% 21,788 13.6%
Piling
Revenue $ 31,534 100.0% $ 49,176 100.0%
Segment profit 2,589 8.2% 13,503 27.5%
Pipeline
Revenue $ (902) 100.0% $ 36,491 100.0%
Segment (loss)
profit (1,948) 216.0% 2,927 8.0%
Previous Business
Segmentation Financial
Summary
Fiscal 2012
% of % of % of
(dollars in
thousands) Q3 Revenue Q4 Revenue Total Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $166,516 100.0% $181,094 100.0% $670,720 100.0%
Segment profit 19,580 11.8% 23,418 12.9% 86,567 12.9%
Piling
Revenue $ 51,697 100.0% $ 52,914 100.0% $185,321 100.0%
Segment profit 16,473 31.9% 13,447 25.4% 46,012 24.8%
Pipeline
Revenue $ 66,417 100.0% $ 48,498 100.0% $150,504 100.0%
Segment (loss)
profit (2,941) -4.4% (9,360) -19.3% (11,322) -7.5%
Fiscal 2011
% of % of
(dollars in
thousands) Q1 Revenue Q2 Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $ 163,609 100.0% $ 171,628 100.0%
Segment
profit
(loss) 22,247 13.6% 22,234 13.0%
Piling
Revenue $ 19,146 100.0% $ 26,563 100.0%
Segment
profit 1,394 7.3% 4,782 18.0%
Pipeline
Revenue $ 839 100.0% $ 36,667 100.0%
Segment
(loss)
profit (723) -86.2% 879 2.4%
Fiscal 2011
% of % of % of
(dollars in
thousands) Q3 Revenue Q4 Revenue Total Revenue
----------------------------------------------------------------------------
Heavy
Construction
and Mining
Revenue $185,325 100.0% $ 146,475 100.0% $ 667,037 100.0%
Segment
profit
(loss) 20,293 10.9% (14,071) -9.6% $ 50,703 7.6%
Piling
Revenue $ 37,594 100.0% $ 22,256 100.0% $ 105,559 100.0%
Segment
profit 10,324 27.5% 1,955 8.8% $ 18,455 17.5%
Pipeline
Revenue $ 42,167 100.0% $ 5,779 100.0% $ 85,452 100.0%
Segment
(loss)
profit (1,641) -3.9% (1,549) -26.8% $ (3,034) -3.6%
Non-GAAP Financial Measures
This release contains non-GAAP financial measures. These
measures do not have standardized meanings under US GAAP and are
therefore unlikely to be comparable to similar measures used by
other companies. The non-GAAP financial measure disclosed by the
Company in this release is Consolidated EBITDA (as defined within
the credit agreement). The Company provides a reconciliation of
Consolidated EBITDA to net income reported in accordance with US
GAAP below. Investors and readers are encouraged to review the
reconciliation of this non-GAAP financial measure to reported net
income.
Consolidated EBITDA
Consolidated EBITDA is a measure defined by the Company's Credit
Agreement. This measure is defined as EBITDA (which is calculated
as net income before interest, income taxes, depreciation and
amortization) excluding the effects of unrealized foreign exchange
gain or loss, realized and unrealized gain or loss on derivative
financial instruments, non-cash stock-based compensation expense,
gain or loss on disposal of property, plant and equipment the
impairment of goodwill, the amendment related to the Canadian
Natural overburden removal contract and certain other non-cash
items included in the calculation of net income. The Credit
Agreement requires the Company to maintain a minimum interest
coverage ratio and a maximum senior leverage ratio, which are
calculated using Consolidated EBITDA. Non-compliance with these
financial covenants could result in the Company being required to
immediately repay all amounts outstanding under its credit
facility. Consolidated EBITDA should not be considered as an
alternative to operating income or net income as a measure of
operating performance or cash flows as a measure of liquidity.
Consolidated EBITDA has important limitations as an analytical tool
and should not be considered in isolation or as a substitute for
analysis of the Company's results as reported under US GAAP. For
example, Consolidated EBITDA:
-- does not reflect cash expenditures or requirements for capital
expenditures or capital commitments;
-- does not reflect changes in cash requirements for working capital needs;
-- does not reflect the interest expense or the cash requirements necessary
to service interest or principal payments on debt;
-- excludes tax payments that represent a reduction in cash available to
the Company; and
-- does not reflect any cash requirements for assets being depreciated and
amortized that may have to be replaced in the future.
Consolidated EBITDA also excludes unrealized foreign exchange
gains and losses and realized and unrealized gains and losses on
derivative financial instruments, which, in the case of unrealized
losses, may ultimately result in a liability that will need to be
paid and in the case of realized losses, represents an actual use
of cash during the period.
A reconciliation of net income to Consolidated EBITDA is as
follows:
Three Months Ended
June 30,
(dollars in thousands) 2012 2011
----------------------------------------------------------------------------
Net loss $ (5,126) $ (9,014)
Adjustments:
Interest expense 7,746 7,377
Income tax benefit (2,481) (3,610)
Depreciation 9,966 9,596
Amortization of intangible assets 1,144 1,878
Unrealized gain on derivative financial instruments (22) (337)
(Gain) loss on disposal of property, plant and
equipment (225) 398
Gain on disposal of assets held for sale (78) -
Stock-based compensation reversal 298 485
Equity in earnings of consolidated joint venture (596) (597)
----------------------
Consolidated EBITDA $ 10,626 $ 6,176
----------------------
----------------------
Forward-Looking Information
This release contains forward-looking information that is based
on expectations and estimates as of the date of this release.
Forward-looking information is information that is subject to known
and unknown risks and other factors that may cause future actions,
conditions or events to differ materially from the anticipated
actions, conditions or events expressed or implied by such
forward-looking information. Forward-looking information is
information that does not relate strictly to historical or current
facts and can be identified by the use of the future tense or other
forward-looking words such as "believe", "expect", "anticipate",
"intend", "plan", "estimate", "should", "may", "could", "would",
"target", "objective", "projection", "forecast", "continue",
"strategy", "position" or the negative of those terms or other
variations of them or comparable terminology.
Examples of such forward-looking information in this release
include but are not limited to, the following: that our near term
priorities are to: strengthen our balance sheet; reduce our cost
structure and business risk profile; regain profitability and
thereby restore shareholder confidence and value; that business
structuring initiatives are expected to generate ongoing annual
G&A savings in excess of $12.0 million; that the newly
implemented cost reductions initiatives will help us weather the
expected weaker demand environment for mining support services over
the coming quarters; that NAEP anticipates a continuation of strong
activity in the Commercial and Industrial segment during the second
quarter to offset lower work volumes in Heavy Construction and
Mining; that NAEP will continue with the construction of the shear
key foundation at Syncrude's Mildred Lake mine relocation project
through the remainder of the fiscal year; that the Company will
begin construction on the mechanically stabilized earth (MSE) wall
at Syncrude's mine relocation project in the second quarter; that
at Suncor, tailings-related work, including MFT work, ditching and
limestone projects, is expected to provide steady volumes through
the summer, with reclamation projects providing added volumes
during winter months; that the Company does not expect to perform
any significant volumes of work at Shell once work on the AFD Phase
3 project comes to a close in the second quarter; that near-term
demand for mine support services is expected to be weaker than
normal due to project delays and deferrals and insourcing by some
customers; that civil construction activity at PetroChina's Dover
SAGD project and Total's Joslyn mine is expected to ramp down in
the second quarter; that demand for reclamation and tailings
services, together with activity on mine expansion projects and the
continuation of overburden removal activity at Canadian Natural, is
expected to partially offset impacts of ramped down civil
construction activity at PetroChina's Dover SAGD project and
Total's Joslyn mine; that work at the Mt. Milligan Copper/Gold
Project in Northern British Columbia is expected to remain steady
through to the end of the calendar year; that Piling demand is
forecast to remain strong through fiscal 2013, supported by sound
industry fundamentals and a large project backlog; that the
Company's pipeline operations will continue to focus on executing
the multi-year, cost- reimbursable pipeline integrity contract with
a major Canadian pipeline company; that tank services activity is
expected to strengthen through the summer months, before entering
the normal seasonal slowdown during the winter months; that NAEP
anticipates that the impact of lower activity levels will be
partially offset by the cost reductions realized from new strategic
initiatives and the increased focus on performance, efficiency and
risk management.
There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could
differ materially from those expected or estimated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. Each of the forward-looking statements
in this news release is subject to significant risks and
uncertainties and is based on a number of assumptions which may
prove to be incorrect. The material factors or assumptions used to
develop the above forward-looking statements and the risks and
uncertainties that could cause actual results to differ materially
from the information presented in the above are discussed in NAEP's
Management Discussion & Analysis for the three months ended
June 30, 2012. While management anticipates that subsequent events
and developments may cause its views to change, the Company does
not intend to update this forward-looking information, except as
required by applicable securities laws. This forward-looking
information represents management's views as of the date of this
document and such information should not be relied upon as
representing their views as of any date subsequent to the date of
this document.
For more complete information about NAEP, you should read the
disclosure documents filed with the SEC and the CSA. You may obtain
these documents for free by visiting the SEC website at www.sec.gov
or SEDAR on the CSA website at www.sedar.com.
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. NAEP
maintains one of the largest independently owned equipment fleets
in the region.
Contacts: North American Energy Partners Inc. Kevin Rowand
Investor Relations (780) 969-5528 (780) 969-5599
(FAX)krowand@nacg.ca www.naepi.ca
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