Stuart Olson nets $250m in new contract awards

Stuart Olson Inc (TSE:SOX, Mkt cap 146.74M, P/E 21.44, Div/yield 0.12/8.56, EPS 0.26, Shares 26.36M) has secured $250 million in contracts for its industrial group and buildings group segments.

The Winnipeg firm, which provides building construction, commercial and industrial electrical contracting, and industrial insulation services to clients in the public, private and industrial sector, said the new contract awards are “substantial wins” for both its Industrial Group and Buildings Group.

Stuart Olson’s Industrial Group has put pen to paper on the renewal of a three-year master services agreement (MSA) to provide maintenance and operations repair work (MRO) to a loyal oil sands customer.

Valued at $90 million over the three-year period, the MSA covers the provision of established as well as new services.

Meanwhile, Stuart Olson’s Buildings Group in Southern Ontario has agreed a $90 million project with the largest post-secondary institution in the province.

To top off a successful month, the Buildings Group in Alberta has been handed two contracts with a total value of $70 million: the first of which is a $40 million construction management contract for a 180-unit seniors’ care centre; the second a $30 million design-build project to construct a research and collections resource facility for a large post-secondary institution.

David LeMay, Stuart Olson’s president and CEO, said the MSA illustrates how the company, which operates office locations throughout British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, is proactive in renewing existing MRO contracts.

“The post-secondary project awarded to our Buildings Group in Southern Ontario is a significant win for this emerging branch,” he added.

“Our ongoing strategy of growth within this large market focuses on pursuing properly sized projects through our collaborative methods of project delivery and this award demonstrates the success of our approach. The awards to our Buildings Group in Alberta reflects our strong relationships with both private and public repeat clients.”

Stuart Olson Inc is an Alberta based business engaged in building construction, commercial electrical contracting, industrial insulation contracting, industrial electrical and instrumentation contracting, civil construction and related services within Canada. It was previously known as The Churchill Corporation. The Company’s solution segment is further divided into three segments, private sector, public sector and industrial sector. The private sector consists of Offices, retail, hospitality, residential, light industry and food industry. The public sector consists of health care, education, sports and recreation, art and culture, civic and transport. The industrial sector consists of the oil and gas sector, mining sector, power and utilities, mid-streaming/gas processing, pulp and paper sector.

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