Shawcor Receives Commitments for Five Pipe Coating Projects, Collectively Valued Over $200M, and Completes Sale of Argentine Subsidiary
TORONTO, Dec. 20, 2022 (GLOBE NEWSWIRE) -- Shawcor Ltd. (TSX: SCL) announced today that its pipe coating division, Pipeline Performance Group (“PPG”), has received several project commitments which, in aggregate, are valued over $200 million. These commitments include:
- A Letter of Intent (“LOI”) from Saipem for a deep-water development project in South America. The Company anticipates that it will receive a formal contract in the first half of 2023, subject to project sanction and the necessary government authorizations. Shawcor will provide thermal insulation and anticorrosion coating services from a Western Hemisphere facility. Project initiation is expected to begin in the fourth quarter of 2023.
- Two binding letters of intent (“LOI’s”) and two purchase orders (“PO’s”) for the provision of insulation coating services on four Brazilian offshore projects. One of the projects will utilize Shawcor’s proprietary ULTRA™ technology, representing the second deployment of ULTRA on offshore Brazilian pipelines. Coating activity will begin in the first half of 2023 and is expected to be completed by the end of 2024. All four projects have already been sanctioned, however, Shawcor’s official purchase orders and notices to proceed for the two projects under LOI are expected to be received during the first half of 2023. All work will be executed from Shawcor’s Serra, Brazil facility.
“Shawcor has worked hard to earn a strong reputation in South America for providing high-value, technically differentiated and high-quality pipe coating services,” said Fernando Ulecia, PPG’s Vice President & General Manager - Western Hemisphere South. “The performance of our coating solutions on multiple critical projects in the region demonstrated that Shawcor’s products and execution capabilities are ideal for these challenging environments.”
Kevin Reizer, Group President of PPG added “These commitments are a further indication of accelerating offshore activity, especially in deep-water, which our global network of coating and insulation facilities is well positioned to support. With these project awards, PPG now has visibility of elevated activity levels well into 2024.”
At the beginning of the month, Shawcor also completed the sale of its Socotherm Americas (“Socotherm”) subsidiary in Argentina to Patagonia Shale Services (“PSS”). Since 1989 Socotherm Americas has delivered external and internal anti-corrosion coating and thermal insulation coating to the Argentine and regional pipeline and oilfield tubular markets from its base in Escobar, just outside Buenos Aires. Established in 2014, PSS is a privately owned Argentine company providing a variety of onshore pipeline services including thermal coatings and liners of pipes from facilities located in the provinces of San Luis and Neuquén in Argentina. The combination of Socotherm’s capabilities and reputation with the dynamism of PSS will create an organization well positioned to serve this unique market.
About Shawcor
Shawcor Ltd. is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. Its three business segments, Composite Systems, Automotive & Industrial and Pipeline & Pipe Services enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
For further information, please contact
Meghan MacEachern
External Communications & ESG, Director
Telephone: 437.341.1848
Email:
shawcor.com
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
Source: Shawcor Ltd.
