North American Energy Gets Two New Earthworks Contracts
Zacks Investment Research | Sep 25, 2017 09:30PM ET
Field service provider, North American Energy Partners Inc. (TO:NOA) recently announced that the partnership has received two important winter season earthworks deals in two distinct oil sand mines. The total value of the contracts is about $90 million.
The Canada-based company also obtained a three-year term contract of providing mine support services in Highland Valley Copper Mine located in British Columbia, Canada. This contract has provision for a two-year extension.
The deals secured by North American Energy shows that the demand for earthworks for the winter season is strong. The deals will diversify the company's revenue base. The company expects its revenues, which will not be considerable before winter, to increase once the contract period starts.
At the end of the second quarter of 2017, the company had a cash balance of $27.63 million with total debt of $103.23 million. The earthworks contracts are expected to improve the company's cash balance.
About the Company
North American Energy is one of the largest providers of heavy construction, mining, piling and pipeline services in Western Canada. For more than 50 years, the company has provided services to large oil, natural gas and resource companies, with a principal focus on the Canadian oil sands. The company maintains one of the largest independently owned equipment fleets in the region.
Price Performance
North American Energy has gained 11.7% of its value year to date against 26.2% fall of its Original post
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