Horizon North Logistics Inc. Announces Recently Awarded Industrial Services Contracts
CALGARY, Nov. 22, 2018 /PRNewswire/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX: HNL.TO) announced today that its Industrial Services division has recently been awarded several camp service contracts for customers in Alberta and British Columbia.
New Contract in Fort McMurray Region
South of Fort McMurray, Alberta, Horizon North's Sekui Limited Partnership with the Chipewyan Prairie Dene First Nation has been awarded a contract for the provision of hospitality and janitorial services at an existing facility in the area. Revenue over the 36-month term of the contract is expected to be $26.2 million based on projected occupancy and utilization levels, with minimal capital requirements in order to execute the contract terms.
"This contract is a confirmation of the effectiveness of Horizon North's strategy for the oil sands and SAGD regions north and south of Fort McMurray, which focuses on a commitment to quality services delivered through an efficient platform," says Rod Graham, President and Chief Executive Officer of Horizon North. "It is also a notable achievement for our Sekui Limited Partnership and continues to confirm the belief of Horizon North and our customers that strong relationships with the Aboriginal communities who call our operating regions home are vital."
"This contract award is another step forward for our Sekui Limited Partnership and demonstrates the significant benefits it can bring to our community," says Chief Vern Janvier of the Chipewyan Prairie Dene First Nation. "Financial prosperity, job opportunities and growth for our membership continue to be made possible through projects like this."
New Contract in Prince Rupert Region
As previously released in the Corporation's 2018 third quarter results, Horizon North has been awarded a new contract for camp services on Watson Island near Prince Rupert, British Columbia to support development in the region. The contract terms provide for an anchor tenant for a 150-person open camp with executive-style rooms which will be supplied and installed by Horizon North. The Corporation will also provide ongoing catering and hospitality services at the facility.
Revenue over the contract's 24-month term is expected to be $9.8 million, based on committed occupancy and utilization levels. The camp units will be comprised entirely of existing fleet, with minimal capital required to mobilize and maintain the facility. The capital requirements are included in the Corporation's 2018 capital plan.
"We are pleased by the recent announcement from Horizon North," says Lee Brain, Mayor of Prince Rupert. "Through our discussions with their leadership and their work with us to date, we know Horizon North to be a strong supporter of each of the communities where they work. We look forward to their continued involvement in the City of Prince Rupert and our surrounding areas, and to exploring future development opportunities with their team."
Contract Extension in Grande Prairie Region
Horizon North has been awarded an extension of a contract for continued turn-key camp services in the Wapiti area near Grande Prairie, Alberta. The Corporation will provide rental, catering and hospitality services for the client for an additional 17-month term beginning in February 2019. Revenue over the term of the contract extension is expected to be $10.6 million based on projected occupancy and utilization levels. No additional capital requirements are expected to execute the terms of the contract extension.
"Horizon North's customers are among the most sophisticated in the industry and they appreciate our high-quality turn-key camp, catering, and hospitality offerings," says Mark Becker, President, Industrial Services of Horizon North. "An extension such as this is a testament to our flexible, customer-focused delivery providing what our customers need to be successful. The Montney/Duvernay remains a key strategic region for our Industrial Services portfolio."
"Our service, our commitment to relationships with the Aboriginal communities where we work, and our world-class safety record continue to be key reasons why our customers choose to do business with Horizon North," adds Rod Graham.
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Solutions division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
Corporate Information
Additional information related to Horizon North, including the Corporation's annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
Forward-looking Statements
This news release contains certain statements or disclosures relating to Horizon North that are based on the expectations of its management as well as assumptions made by and information currently available to Horizon North which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Horizon North anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the word "will", "expected", "continues", "future", "opportunity", "believe" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: camp services contracts, including the provision of services thereunder, expected revenue therefrom and the capital requirements thereof; the benefits to local communities of camp services contracts; customer demand for the Corporation's products and services and future development opportunities; and the Corporation's growth strategy.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Horizon North including, without limitation: that Horizon North will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund Horizon North's capital and operating requirements as needed; and certain cost assumptions.
Horizon North believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions; the camp services may not be provided in the timelines anticipated, in the manner anticipated or at all; the delivery of and demand for the Corporation's services and products may not have the results currently anticipated by Horizon North; reliance on industry partners; and certain other risks detailed from time to time in Horizon North's public disclosure documents including, without limitation, those risks identified in this news release, and in Horizon North's annual information form, copies of which are available on Horizon North's SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Horizon North Logistics Inc.
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