UPDATE: North American Energy Soars 21%, Hits Year High, as Asset Sale News Outweighs Earnings Miss

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Shares in North American Energy Partners ( NOA ) have spiked almost 21% and earlier hit a year high of $5.32 as news the company is selling its piling business for a net $210 million in cash outweighed a Q4 earnings miss.

The company reported a Q4 loss of CAD 0.26 or $0.25 per share, ex one-time items, versus the Capital IQ consensus of CAD 0.03 or $0.03 earnings per share. Revenues were CAD 130.3 million or $127.26 million, versus the analyst estimate of CAD 189.12 million or $184.71 million.

The company sold its piling-related assets to the U.K.'s Keller Group plc. The company will receive about $227.5 million in cash, less $5 million for capital lease and other adjustments upon closing. It may also receive a further $92.5 million over the following three years, contingent on the purchaser achieving prescribed profit targets.


Net proceeds at closing are expected to be about $210 million. The company will use some of the net proceeds to repay the outstanding balance of the Term A Facility which, at March 31, 2013, was $17.2 million.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: NOA

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