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 October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NAVCENT Commander Recognizes Journey of Hope Sailors

Commander, U.S. Naval Forces Central Command, U.S. 5th Fleet, Combined Maritime Forces, Vice Adm. John. W. Miller, recognized the accomplishments of three special-needs sailors from the Kuwaiti ship,

NYK Holds 8th Environmental Management Conference

NYK welcomed about 60 environmental supervisors from 47 NYK Group companies to the group’s annual Environmental Management Conference in Tokyo. NYK holds this

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

Contracts

Diana Extends Containership Time Charters

Diana Containerships Inc. announced direct continuation of time charter agreements for m/v Cap Domingo and m/v Cap Doukato   Diana Containerships Inc., a global

BMT Supports Samalaju Port Development

BMT subsidiaries in the Asia-Pacific region have been awarded a contract to provide design expertise for an advanced bulk-material handling system for the emerging port of Samalaju in East Malaysia.

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

Shipbuilding

World’s First LNG-Ready Ultra Large Container Ship Named

The race is on in global maritime circles to be the “world’s first” in every aspect of environmental friendliness, particularly in regards to the incorporation of LNG as fuel onboard commercial ships.

Wärtsilä Integrated Solutions for Maersk's AHTS Vessels

A new series of six Anchor Handling Tug Supply vessels to be built at the Kleven Verft AS in Norway for the Danish based Maersk Supply Service A/S - part of the A.

MacGregor Deck Equipment for Intership's Eco-bulkers

MacGregor, part of Cargotec, has secured a deck equipment contract from New Times Shipyard in China for Intership Navigation Co Ltd.'s three new 36,500 dwt laker-class bulk carriers.

Finance

New Company Takes Over OW Tanker

OW Tanker, a unit of bankrupt OW Bunker and owner of its marine fuel supply ships, has been taken over by a newly-created company, the fleet manager told Reuters on Wednesday.

WRRDA: Clearing the Channel for P3 Projects

A Creative Combination for Financing Inland Waterways Infrastructure Earlier this year, the U.S. maritime industry in general, and the inland waterways industry in particular,

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

Energy

MHI Completes Development of "Sayaringo STaGE"

Mitsubishi Heavy Industries, Ltd. (MHI) has completed development of the "Sayaringo STaGE," a next-generation LNG (liquefied natural gas) carrier. The Sayaringo

Drillsearch Discovers Gas at Varanus South-1

Drillsearch Energy Limited announced a new wet gas discovery on the Western Cooper Wet Gas Fairway of the Cooper Basin. The Varanus South-1 well in PEL 513 (Drillsearch

Gazprom to Partner Turkey to Supply Gas

Moscow hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Taner Yildiz, Minister of Energy and Natural Resources of the Republic of Turkey.

Offshore Energy

Wärtsilä Integrated Solutions for Maersk's AHTS Vessels

A new series of six Anchor Handling Tug Supply vessels to be built at the Kleven Verft AS in Norway for the Danish based Maersk Supply Service A/S - part of the A.

Drillsearch Discovers Gas at Varanus South-1

Drillsearch Energy Limited announced a new wet gas discovery on the Western Cooper Wet Gas Fairway of the Cooper Basin. The Varanus South-1 well in PEL 513 (Drillsearch

Fourth Rig Delivered to Perforadora Central

Keppel AmFELS LLC, a wholly owned US subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered the jackup rig, Coatzacoalcos, to Mexico’s Central Panuco S.

 
 
Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3253 sec (3 req/sec)