The segments of Primoris Services Corp. ( PRIM ) have secured new contracts worth $200.6 million. The deals cover construction work related to power, pipeline and gas utility. Industrial, highway infrastructure and water/wastewater are also part of the project.
ARB Industrial Group, a unit of Primoris in the West Construction Services Segment, has been awarded multiple industrial projects in California worth $55 million that are expected to be complete by the end of the third quarter of 2014.
The ARB Underground Group in the West Construction Services Segment also secured over $30 million in new contracts. The scope of the contract consists of authorizations for the hydrotesting and retrofitting of existing natural gas pipelines, gas and electric distribution work and repair of water pipelines. Work on this project will be completed by the end of the first half of 2014.
Another group, ARB Structures in the segment was awarded over $8 million for three poured-in-place parking structures. The completion dates for these projects extend through 2014.
James Construction Group, a unit of Primoris' East Construction Services Segment has secured new contracts of around $73 million for highway construction as well as civil and mechanical construction at industrial facilities in Texas and Louisiana. Among these, the extension of I-49 in South Louisiana is the largest project. The I-49 project should continue through the first half of 2017, while the rest of the work should be completed by the end of 2014.
Cardinal Contractors, another unit of Primoris' East Construction Services Segment, secured about $3 million of new water/wastewater work in Florida. This work should be complete by the end of the second quarter of 2014.
In addition, Sprint Pipeline Services secured new contracts of approximately $2 million from midstream oil and gas companies for various pipeline-related projects. Most of the work related to these deals will be accomplished by the end of the third quarter of 2014.
Primoris' subsidiary, Saxon Construction, has also received contracts of about $12 million related to industrial gas processing in Texas and Alabama. These projects should be complete by the end of 2014.
The Engineering segment won contracts valued over $19 million. These engineering design and procurement awards for process reformers will likely be complete by the end of 2014.
These new deals and work authorizations will add to contracts worth $192 million in the fourth quarter. Notably, Primoris' peers like Empresas ICA, S.A.B. de C.V. ( ICA ) and Granite Construction Inc. ( GVA ) have also won such major deals.
Each of Primoris' segments performed well in the third quarter 2013, excepting for East Construction Services which suffered a decline in sales in the JCG Heavy Civil division and Sprint Pipeline.
For full-year 2013, the company expects strong contribution from recent acquisitions as well as the legacy group. Water and wastewater markets have also recovered this year, which is likely to augment revenue growth.
Dallas, Texas-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 as well as engineering services to major public utilities, petrochemical companies, energy companies, municipalities and other customers.
Primoris currently has a Zacks Rank #3 (Hold). A better-ranked stock in the building and heavy construction industry is Chicago Bridge & Iron Company N.V. ( CBI ) with a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
