Primoris (PRIM) wins heavy civil contracts and the Aids Renewables unit – December 8, 2021
Primoris service company‘s (PRIM – Free Report) The Energy / Renewable Energies unit won two large civilian contracts from the Texas Department of Transportation. The two contracts, on a combined basis, are worth $ 32 million.
The shares of this company of specialized entrepreneurs gained 1.87% during the trading session of December 7, 2021.
The first contract allows Primoris to build a section of the SL 121 freeway in Bell County, Texas. The project is expected to start in the first quarter of 2022 and is expected to end in the second quarter of 2024.
With the second contract, Primoris will replace a bridge in Harris County, Texas. The start of the works is scheduled for the first quarter of 2022 and their completion is scheduled for the second quarter of 2023.
Win a continuous contract for energy / renewable energies: a boon
Recently, Primoris was awarded two large civilian contracts from the Louisiana Department of Transportation and Development for a combined value of $ 520 million. These Gulf Coast projects will contribute to the backlog of the Energy / Renewables segment. Under the first contract, Primoris will build a section of highway on LA 3241 for more than $ 60 million. The second contract, valued at $ 460 million, is related to the construction of an elevated section of highway on LA 1. While work on LA 3241 is expected to begin in the fourth quarter of 2021 and end in the second quarter of 2023 , the same is true of LA 1, which is expected to start in Q1 2022 and end in Q4 2027.
In addition, he was awarded two solar contracts for the engineering, procurement and construction of a large-scale solar installation in the Southwest and Midwest for more than $ 120 million. Once again, PRIM was awarded a contract for the engineering, procurement and construction of a thermal power project valued at $ 100 million. The segment was awarded this contract to provide the aforementioned services to a 200 MW thermal power plant at two different locations in the South West.
Although shares of this company Zacks Rank # 5 (Strong Sell) have underperformed those of industry Zacks Building Products – Heavy Construction since the start of the year (YTD), the company has enjoyed a strong performance. in the two segments – Utility and Energy / Renewables.
The Biden administration’s renewable energy campaign is expected to spur the growth of companies like Primoris. It should be noted that solar projects continue to drive the Energies / Renewables segment. This segment’s revenues increased 11% and the gross margin increased 150 basis points year-over-year due to increased activity in the renewable energy field in the third quarter of 2021.
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