North American Construction Group Ltd. Announces Additional 5-Year Term Contract in the Oil Sands
April 01 2019 - 4:05PM
North American Construction Group Ltd. (“NACG” or “the Company”)
(TSX:NOA.TO/NYSE:NOA) today announced a 5-year Multiple Use
Contract and an associated term contract with a major oil sands
customer. The agreement runs through December 2023 and the
backlog value is expected to be approximately $400 million.
The agreement was executed within a newly formed
joint venture, the Mikisew North American Limited
Partnership. Our joint venture partner, the Mikisew Group of
Companies, is directly owned by the Mikisew Cree First
Nation.
Joe Lambert, President & Chief Operating
Officer, stated: “This contract award is the third time in the last
year that a significant customer has demonstrated long-term faith
in NACG and further enforces our future growth projections.
This agreement not only strengthens our backlog and five-year
outlook but also represents the first agreement with our new
partner, the Mikisew Cree First Nation. We are excited to
work with the Mikisew Group and believe this is the beginning of a
long-term relationship in providing opportunity and benefits to
their community while also providing safe, quality construction and
mining services to our oil sands customers.”
Mr. Lambert added: “Our core backlog now stands
at over $1.6 billion, compared with less than $100 million at this
time last year. This distinct shift from a largely spot market to
one underpinned by long term work commitments is directly linked to
robust and consistent production outputs from several oil sands
mines.”
Edward Courtoreille, Chief Executive Officer,
Mikisew Group of Companies, stated: “We are proud to partner with
the marketplace leader of heavy construction and mining services
and elated of our subsequent 5-year agreement. Our new partnership
allows our Group of Companies to provide long-term fiscal and
employment benefits to members of the First Nation. This
partnership not only provides opportunity for operating contracts
throughout the full, multi-decade lifecycle of an oil sands mine
but also allows us to pursue opportunities complimentary to our
other businesses and further benefit our communities and the
Mikisew Cree First Nation.”
About the Mikisew Group of
Companies
Mikisew Group of Companies is owned directly by
the Mikisew Cree First Nation. The Mikisew Group of Companies is
comprised of two main operating entities (wholly owned) and 11
limited partnerships and joint ventures (majority owned) servicing
the Alberta oil sands in various industries including site
services, fleet maintenance, transportation services, emergency
medical response and fire response, camp and catering services,
construction services, structural steel, electrical and
instrumentation services, aerodrome handling and facilities
maintenance. For more information, visit www.mikisewgroup.com.
About the Company
North American Construction Group Ltd.
(www.nacg.ca) is one of Canada’s largest providers of heavy
construction and mining services. For more than 60 years, NACG has
provided services to large oil, natural gas and resource
companies.
For further information, please
contact:
David Brunetta, CPA, CMA Director, Investor RelationsNorth
American Construction Group Ltd. Phone: (780) 969-5574 Email:
dbrunetta@nacg.ca
This release refers to the non-GAAP financial
measure “backlog”. A non-GAAP financial measure is generally
defined by the Canadian regulatory authorities as one that purports
to measure historical or future financial performance, financial
position or cash flows, but excludes or includes amounts that would
not be adjusted in the most comparable GAAP measures. See the
Company’s Management’s Discussion and Analysis (“MD&A”) for the
quarter and year ended December 31, 2018 for a detailed definition
and explanation of backlog.
The information provided in this release
contains forward-looking statements. Forward-looking statements
include statements preceded by, followed by or that include the
words “expected”, “believe” or similar expressions.
The material factors or assumptions used to
develop the above forward-looking statements include, and the risks
and uncertainties to which such forward-looking statements are
subject, are highlighted in the Company’s MD&A for the quarter
and year ended December 31, 2018. Actual results could differ
materially from those contemplated by such forward-looking
statements because of any number of factors and uncertainties, many
of which are beyond NACG’s control. Undue reliance should not
be placed upon forward-looking statements and NACG undertakes no
obligation, other than those required by applicable law, to update
or revise those statements. For more complete information about
NACG, you should read the Company’s disclosure documents 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.
PDF
available: http://ml.globenewswire.com/Resource/Download/6bc7e8f3-b0a2-4943-b5cc-f7249fa526fe
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