Rockford Corporation, a unit of the West Construction Services
Primoris Services Corporation
), has secured a construction work contract worth $91.9 million.
The deal covers five contracts for new pipeline construction in
Pennsylvania, West Virginia and Washington.
These contracts include the expansion of the ongoing Rockford
operations in both the Marcellus region of Pennsylvania and the
Pacific Northwest which are expected to be completed in 2013.
Of these projects, the construction of 50 miles of 12" steel
pipeline for the transportation of natural gas liquids (NGLs)
that runs from Washington, Pa., to near Moundsville, W. Va., has
the maximum volume of work involved. This work is slated to
commence in mid June.
The second project is located near Clarksburg, W. Va., which
includes 7.6 miles of 20" steel pipeline and 12.1 miles of 24"
HDPE pipeline for natural gas and water transportation. Work on
this project began in May.
The remaining three projects include two natural gas gathering
projects near Montrose, Pa., and one natural gas replacement
project near Pullman, Wash. These projects are also expected to
begin in mid June.
Primoris, which belongs to the building and heavy construction
industry along with
Orion Marine Group, Inc.
Chicago Bridge & Iron Company N.V.
Dycom Industries Inc.
), has recently secured a three-year contract from Xcel Energy.
The contract covers gas distribution work in the Denver area. It
will result in a net revenue increase of over $80 million over
the next three year period and includes an option for an
additional two years.
West Construction Services segment of Primoris recorded sales of
$207.7 million in first-quarter 2013, up 31% from the year-ago
quarter, led by increased revenues at Rockford, partly offset by
a revenue decline in the ARB Industrial division.
For full-year 2013, Primoris expects substantial contributions
from the recent acquisitions. The company remains optimistic
about its business lines for the near term as well as the long
Dallas, Tex.-based Primoris is a specialty contractor and
infrastructure company which serves diverse end markets. The
company also provides a wide range of construction, fabrication,
maintenance, replacement, water and wastewater, and engineering
services to major public utilities, petrochemical companies,
energy companies, municipalities and other customers.
Primoris currently retains a short-term Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
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