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Primoris Announces New Contract Work Valued at $217 M

Source: www.gulfoilandgas.com 10/16/2012, Location: North America

Primoris Services Corporation announced new contract work totaling approximately $217.5 million for the period between July 15, 2012 and October 1, 2012. The new contracts and work authorizations secured by Primoris subsidiaries include power, pipeline, gas utility, water/wastewater, highway infrastructure and parking infrastructure projects throughout the continental United States and both domestic and international engineering projects. Approximately 14% of the new work will be performed under reimbursable contracts and will not be included in backlog.

In the West Construction Services Segment:
· The ARB Underground Group has recently acquired approximately $85.3 million in new contract work in California, substantially all of which will be completed by the end of 2012. This new work includes:
o $33.3 million for various energy pipeline construction projects from both utility and non-utility customers;
o Approximately $16.6 million for retrofit and pipeline integrity work from three major California utility companies;
o And $35.4 million for underground gas and electric distribution projects
· The ARB Industrial Group acquired approximately $6.5 million in new industrial and power maintenance related projects in California. The majority of this work will be completed by the end of the first quarter of 2013.
· ARB Structures secured two new parking structure contracts totaling approximately $16 million. These projects will commence in the 4th quarter of 2012 and should be complete by the end of the second quarter of 2013.
· Rockford Corporation was awarded contracts for new natural gas gathering system pipeline construction work totaling approximately $28.8 million. The new contracts represent additional work in the Marcellus Shale region of Pennsylvania. The majority of this work should be completed in 2012.
· Alaska Continental Pipeline secured approximately $10.5 million for a new natural gas transmission pipeline in Northern California. The new work should be substantially complete by the end of 2012.

In the East Construction Services Segment:
· James Construction Group was awarded new contract work totaling approximately $34.2 million. The Heavy Civil new work will extend through 2014, while the Industrial and Infrastructure & Maintenance awards should be substantially complete by mid-2013.
o The James Heavy Civil group new work encompasses over $16.1 million of new highway and transportation infrastructure across central and southeast Texas.
o The James Industrial group was awarded over $5.7 million for construction related to chemical and industrial facilities primarily in south Louisiana.
o The James Infrastructure and Maintenance group was awarded approximately $12.4 million for power plant and industrial related site work in Arkansas, Louisiana, and Texas.

· Cardinal Contractors was successful in securing approximately $15.3 million of new work in Florida consisting of various water/wastewater construction projects and GML rehabilitation/lining work. Most of this work should be completed in 2013.
· Sprint Pipeline Services secured an additional $11.6 million of pipeline and gas processing work in south Texas.

This work supplements the previously announced $34.8 million of pipeline work acquired by Sprint.

In the Engineering Segment:
· On Quest, Inc., Primoris's petrochemical and gas process engineering subsidiary, was awarded contracts for seven new design and engineering projects totaling approximately $9.3 million. The new projects include two international projects for furnace design and supply secured by On Quest’s Calgary operation. Most of this work should be completed in 2013.

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