NOA - North American Construction Group Ltd. Announces Award of Regional Services Contract | Benzinga
ACHESON, Alberta, Jan. 31, 2024 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. ("NACG" or "the Company") (TSX:NOA, NYSE:NOA) today announced that Mikisew North American Limited Partnership ("MNALP") has been awarded a three-year regional services contract by a major producer in the Canadian oil sands region. The contract contemplates the provision of services across various mine sites operated by the producer.
The contract is effective immediately with an expiry date of January 30, 2027. Initial committed earthworks volumes in the first year of the agreement provide NACG with $225 million in contractual backlog. Management expects further commitments, also within the first year and in the range of $25 to $50 million, to be awarded prior to the end of February 2024. Including these expected awards, the Company's combined backlog which, on a proforma basis, was $2.8 billion as at September 30, 2023 is now projected to be over $3.0 billion.
"We are excited to report this award after a comprehensive process with both MNALP and our customer and we look forward to executing on our commitments. I am confident that the safe, low-cost and sustainable model we operate every day ...