Toronto, ON 鈥 April 14, 2015: Aecon Group Inc. (TSX: ARE) announced today that it has been awarded contracts by five key clients for work in Aecon鈥檚 Energy segment in Ontario. The value of work is approximately $93 million in hard backlog and approximately $85 million in annual recurring revenue.
Under the first agreement, Enbridge Gas Distribution awarded Aecon a significant pipeline facilities project for work at 11 Enbridge sites, valued at approximately $40 million. Work has begun and is expected to be complete in the third quarter of 2015.
Under the terms of the second contract, valued at $53 million, Aecon鈥檚 scope of work includes the construction of a new compressor station at Union Gas鈥 Lobo Facility located northwest of London, Ontario. Work is expected to start in the second quarter of 2015 and is scheduled to be complete by the fourth quarter of 2016.
Additionally, Aecon has signed three Master Service Agreements (MSAs) with key clients in the power sector:
---A 13-year MSA valued at approximately $25 million annually for engineering, procurement and construction services;
---A four-year MSA valued at approximately $30 million annually for the design and construction of underground and overhead hydro installations and replacements; and
---A three-year MSA valued at approximately $30 million annually for construction outage services, plant modification and EPC capital projects.
鈥淭hese contracts illustrate the strong pipeline of diverse work Aecon has through our core clients in the energy sector,鈥 says Teri McKibbon, President and CEO, Aecon Group Inc. 鈥淪upplier-of-choice arrangements and alliance agreements are a key part of Aecon鈥檚 strategy and representative of the unique way we strategically partner with our clients.鈥
Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.