Stuart Olson industrial unit reels in $130M in oilsands MRO contracts
Company posts lower quarterly revenue, earnings as low crude prices, "slow rollout" of infrastructure projects weight on results
CALGARY—Western Canada construction company Stuart Olson Inc. has won a pair of maintenance, repair and operations contacts in Northern Alberta worth approximately $130 million.
Awarded to the Calgary-based company’s Industrial Group, the new contracts include a five-year $100 million deal with an oilsands customer for MRO services on a newly-built facility, as well as a $30 million electrical and instrumentation maintenance service deal for another Northern Alberta client.
“These contract wins centre on new facilities and are significant steps in expanding our already strong portfolio of long-term MRO contracts,” David LeMay, the company’s president and CEO, said.
Facing a tough oilsands climate as crude prices continue to struggle, the company announced the two new deals as it reported its third quarter results.
The infrastructure firm’s revenue dropped to $220.7 million from $281.7 million in the same quarter last year. Its net earnings, meanwhile, fell to $1.4 million compared to $6.4 million in 2015. The company cited “lower-for-longer” oil prices, and the “slow rollout” of infrastructure projects as the main cause of its weaker 2016 performance.