Rock to Road

News
Aecon wins construction contract


November 9, 2010
By Reuters Canada

NEWS HIGHLIGHT

Aecon wins construction contract
Aecon Group Inc., recently said it has won a contract – worth an estimated $ 200 million, according to analysts – to work jointly on a major hydroelectric
dam project in British Columbia.

Nov. 9, 2010, Vancouver – Aecon Group Inc., said on Monday it has won a contract – worth an estimated C$200 million, according to analysts – to work jointly on a major hydroelectric dam project in British Columbia.

A joint venture of Aecon, Canada's biggest publicly listed construction company, and the construction unit of SNC-Lavalin Group Inc (SNC.TO: Quote) were awarded the civil works design and construction portion of the Waneta Expansion Project.

Advertisment

The news comes after a tough week for Aecon when weaker than expected results wiped 15 percent off the value of its stock. Its shares were up 17 Canadian cents, or 1.7 percent, at C$10.41 on Monday morning.

Aecon did not say how much the contract was worth but two analysts estimated it would generate revenues for the group of around C$200 million.

"This new contract supports our thesis that 2010 is likely the cyclical trough for Aecon, as there is increasing visibility for rising revenues and profitability in the coming years," Macquarie analyst Avi Dalfen said.

Aecon was awarded the job by engineering group SNC-Lavalin, which announced late last month that it had signed a C$587 million contract to expand the hydroelectric power plant in southeastern BC.


Print this page

Related



Leave a Reply

Your email address will not be published. Required fields are marked *

*