ShawCor Ltd. Provides Update on the South Stream Offshore Pipeline Project
19 December 2014 - 9:01AM
ShawCor Ltd. (TSX:SCL) has previously announced that its Bredero
Shaw pipe coating division has received contracts from Europipe
GmbH and Marubeni Sumitomo Consortium with a combined value of
approximately US$100 million for pipeline coating for Lines 1 and 2
of the South Stream Offshore Pipeline project; and that its
Canusa-CPS division has received a contract with a value of
approximately C$30 million from Saipem SpA to provide field joint
coating services for Line 1 of the South Stream project.
Work has commenced on each of these projects and approximately
20% of the expected revenue therefrom has been generated to
date.
ShawCor notes the recent statements regarding the South Stream
project made by the Russian authorities and Gazprom's Chairman as
reported in the media. Based on suspension notices or other
information recently received from its customers, the majority of
the work on the South Stream contracts with Europipe, Marubeni
Sumitomo and Saipem has been suspended until further notice. The
suspensions received are applicable for a limited period of time
and none of these contracts has been terminated to date. At this
time, there can be no assurance as to whether these projects will
be reactivated or subsequently terminated.
ShawCor Ltd. is a global energy services company specializing in
products and services for the pipeline and pipe services and the
petrochemical and industrial segments of the oil and gas industry.
The Company operates through nine divisions with over ninety
manufacturing and service facilities located around the world.
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.
CONTACT: ShawCor Ltd.
Gary Love
Vice President, Finance & CFO
Tel: 416-744-5818
Email: glove@shawcor.com
Website: www.shawcor.com
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