Aecon Group Inc (TSE:ARE, Mkt cap 786.42M, P/E 25.79, Div/yield 0.10/2.88, EPS 0.54, Shares 56.54M) has announced that it has secured half of a C$2.75 billion (US$1.94 billion) contract to carry out the refurbishment of the Darlington nuclear power station in the Canadian province of Ontario.
The tools and methods the two firms will use to carry out the project will be gleaned during the definition phase, also undertaken by a 50-50 joint venture between SNC-Lavalin and Aecon.
In order to minimise disruption, each of the Darlington station’s four reactors will be taken out of service sequentially for about three years. This will allow the firms to work on replacing the fuel channels, feeder pipes, calandria tubes and end fittings.
The execution phase is targeted to commence in 2016 and will take approximately ten years, Aecon said. It also confirmed that Aecon’s $1.375 billion share of the contract will be added to its Energy segment backlog in the first quarter of 2016.
“The Darlington nuclear refurbishment project will contribute significantly to the economic vitality of Ontario while ensuring the supply of emissions-free and reliable baseload electricity,” said Teri McKibbon, president and CEO, Aecon Group Inc.
“This project illustrates Aecon’s industry-leading, highly skilled nuclear and fabrication expertise, which bodes well for Aecon’s ability to leverage our capabilities in the specialized global nuclear market.”
The project has been in the works for nearly four years, added Sandy Taylor, president, Power, SNC-Lavalin.
What is Successful Investing? Learn more here>>
Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>
The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.