TSE: ARE – Aecon, SNC-Lavalin win nuclear refurbishment projects worth $392m

Canadian construction firm Aecon Group Inc (TSE: ARE, Mkt cap 995.84M, P/E 19.28, Div/yield 0.12/2.67, EPS 0.89, Shares 57.32M) will participate in two projects at a nuclear power plant in Ontario as part of its jointly operated business with SNC-Lavalin Nuclear Inc., the company announced on Monday.

TSE: ARE Aecon Group Darlington nuclear power station

TSE: ARE Aecon, SNC-Lavalin win nuclear refurbishment projects worth $392m

Ontario Power Generation (OPG) has awarded two contracts to the joint venture between Aecon and SNC-Lavalin. The contracts are worth a total of $392m, with Aecon’s share valued at $223m.

The first contract is for turbine generator refurbishment at the Darlington Nuclear Generating Station. Aecon (60%) and SNC-Lavalin (40%) will carry out work on all four steam turbine generators at the Darlington power plant east of Toronto. The work will include a complete overhaul of the 935 megawatt steam turbines, generators, moisture separator reheaters, condenser repairs, and the implementation of new control systems. Work on this C$265m project is expected to be completed in 2025.

The same joint venture was awarded a C$127m engineering, procurement and construction contract for the Retube Waste Processing Building at the Darlington plant. Under this contract, work is split 50% to Aecon and 50% to SNC-Lavalin. The work is expected to be completed in 2017.

TSE: ARE – Aecon already part of $2.75B refurbishment program at Darlington

Earlier this year, Aecon was awarded a $1.375bn contract as part of the $2.75bn 50/50 joint venture between Aecon and SNC-Lavalin to carry out the execution phase of its Re-tube and Feeder Replacement project for OPG’s Darlington Nuclear Generating Station Refurbishment Program.

“Our continued partnership with OPG further solidifies Aecon’s reputation as a preferred contractor to Canada’s energy sector and underscores our strong backlog and diversification in the energy segment,” commented Teri McKibbon, president and CEO of Aecon.

“We are pleased to continue our work with OPG as part of the larger Darlington Nuclear Refurbishment Program while extending the life of the turbine generators for the next 30 years,” added Mark Scherer, executive vice president of Aecon Energy.

Aecon Group Inc. (TSE: ARE) is a Toronto based construction and infrastructure development company. The Company operates through four segments: Infrastructure, Energy, Mining and Concessions. The Infrastructure segment includes all aspects of the construction of both public and private infrastructure in Canada, and on a selected basis, internationally. The Energy segment encompasses a suite of service offerings to the energy sector, including industrial, construction and manufacturing activities, such as in-plant construction, site construction and module assembly. The Mining segment offers services consolidating its mining capabilities and services across Canada, including both mine site installations and contract mining. This segment focuses on delivering construction services. The Concessions segment includes development, financing, construction and operation of infrastructure projects by way of build-operate-transfer, build-own-operate-transfer and other public-private partnership contract structures. More from Reuters »

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