Aecon Report Strong Q2 2014 Energy Sector Results

By George Backwell
Monday, August 11, 2014
Aecon personnel at work: Photo courtesy of Aecon

Canada-based Aecon Group Inc. has reported its financial results for the second quarter of 2014, excerpted as follows:

Highlights

  • Revenue was $590 million for the second quarter of 2014 compared to $698 million for the same period of 2013, largely due to lower revenue in Mining (as a result of lower volume of site installation work following the substantial completion of a significant project in 2013, and lower demand for contract mining services largely driven by temporary client production shutdowns in the oil sands during the second quarter).
  • Adjusted EBITDA for the second quarter of 2014 was $13.8 million compared to $36.7 million for the second quarter of 2013 driven by the slower quarter in the Mining segment. For the first half of 2014, Adjusted EBITDA was $16.9 million compared to $25.4 million in the prior year.
  • Backlog increased to $2.690 billion at June 30, 2014 from $1.773 billion at the end of 2013. This level is just $87 million below Aecon's record high backlog.
  • New contract awards of $1.969 billion were booked in the first six months of 2014 compared to $1.052 billion in the same period of 2013. At the end of the second quarter of 2014 compared to the end of 2013, Infrastructure backlog increased to $1,486 million from $820 million, Energy backlog rose to $937 million as compared to $876 million, and Mining backlog grew to $267 million compared to $77 million.
  • Subsequent to quarter end, Aecon was awarded approximately $280 million for three large contracts - one award in each operating segment

Energy segment
The Energy segment encompasses a full suite of service offerings to the energy market including industrial construction and manufacturing activities such as in-plant construction, site construction and module assembly. The Energy segment focuses primarily on the following sectors: oil and gas, power generation, pipelines, utilities, and energy support services.

Revenue for the three months ended June 30, 2014 of $294 million in the Energy segment was $19 million, or 7%, higher than the same period of 2013. Revenue from utilities operations increased by $15 million, primarily from a higher volume of pipeline work in Western Canada and from local utility work in Ontario.

Revenue also increased in industrial operations by $4 million, primarily from fabrication projects in Atlantic Canada and increased heat recovery steam generator sales in IST, but partly offset by lower fabrication revenue in Western Canada following the completion of certain projects in the second half of 2013.

Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc., said: "With our backlog growing in Infrastructure and recovering in Mining, and our Energy segment consistently delivering strong results, we maintain a positive outlook and anticipate making progress during the second half of 2014 towards our Adjusted EBITDA margin target of 9 per cent in 2015."

Mr. McKibbon added: "As previously outlined, we anticipated results to be even stronger and more weighted to the second half of 2014 than is usually the case, and despite a softer second quarter in our Mining segment, our expectations for the second half remain positive. With the ramping up of substantial new projects - particularly in Infrastructure and Mining - the second half of 2014 has the potential to be the strongest half year that Aecon has ever achieved."



 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Apply Now for the MN 100

The August 2015 edition of Marine News, the leading voice in the North American workboat market, will feature 100 leaders and innovators, including workboat owners and operators,

Alfred Hartmann: New Captain on the Bridge at VDR

Shipping owner Alfred Hartmann is the new President of the Association of German Shipowners (VDR). For the first time a mid-size company owner is at the helm of the VDR,

VT Halter Powers Ahead

If you drive just south of I-10 in Pascagoula, Miss., within 10 minutes you find yourself on the doorstep of VT Halter Marine, arguably one of the more diverse and active shipyards in the U.

Contracts

Algoma Central Orders New Great Lakes Ships

Algoma Central Corporation announces $160 million investment in fleet expansion and fleet renewal   Algoma Central Corporation announced that it has acquired

Russia, France Close to Deal on Mistrals

Russia and France are close to reaching an agreement for Paris to cancel a frozen contract on the sale of Mistral helicopter carriers and reimburse Moscow, a Russian

Horizon's Hawaii Business Acquisition Cleared by DOJ

Horizon Lines, Inc. reported yesterday that, after a review by the Antitrust Division of the Department of Justice, Horizon's proposed sales transaction with The

Shipbuilding

Boatbuilding in China

While much of the focus on coverage of the Chinese shipbuilding industry is on big shipbuilding, Maritime Reporter switches gears this month to explore activities in select boatbuilding sectors.

HMS Prince of Wales Bridge Sets Sail

The bridge section of the second Queen Elizabeth Class aircraft carrier set sail today from Glasgow on its first sea voyage to Rosyth.   Upper Block 07 is where

The German Shipbuilding Rebound

German shipbuilding has made a significant turnaround. The country’s shipbuilding industry has seen increases in the number of employees, orders and deliveries compared to 2013,

Offshore

OSV Technology: Notable Designs & Deliveries

Though the market for Offshore Support Vessels (OSVs) is soft, advances in technology, fit and finish in  the sector is unrivaled in any other maritime niche over the past five years.

Four Petrobras Platforms Halt Output Due to Oil Leak

Four Petrobras oil platforms off the northeast coast of Brazil have halted production after a leak of about 7,000 liters of oil was detected coming from a pipeline linking them,

Gondan Lays Keef for IMR Oceanographic Vessel

Gondan Shipyard has celebrated at its facilities in Figueras the keel laying ceremony of the new Oceanographic Research Vessel for the Institute of Marine Research (IMR) of Bergen, Norway.

Finance

Oil Price Shock Soon to be Positive Overall for Canada

Canada's economy will start to show more positive effects from the drop in oil prices than negatives from the second quarter onwards, Bank of Canada Governor Stephen Poloz said on Friday.

Total Eyes Sale of its Fuel Retailing Business in Turkey

Total aims to exit its fuel distribution business in Turkey and has asked Societe Generale to lead the sale, sources said on Friday, as the French oil producer

MISC Says AET Tankers Unit Not for Sale

MISC Berhad issued a statement today addressing recent market speculation that the company is set to sell its wholly owned petroleum tanker subsidiary AET Tankers.

Energy

Four Petrobras Platforms Halt Output Due to Oil Leak

Four Petrobras oil platforms off the northeast coast of Brazil have halted production after a leak of about 7,000 liters of oil was detected coming from a pipeline linking them,

Oil Price Shock Soon to be Positive Overall for Canada

Canada's economy will start to show more positive effects from the drop in oil prices than negatives from the second quarter onwards, Bank of Canada Governor Stephen Poloz said on Friday.

Total Eyes Sale of its Fuel Retailing Business in Turkey

Total aims to exit its fuel distribution business in Turkey and has asked Societe Generale to lead the sale, sources said on Friday, as the French oil producer

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2826 sec (4 req/sec)