Black Diamond Group Limited Announces Awards of $63.5 Million in Large Camp Contracts
CALGARY, ALBERTA--(Marketwired - Oct. 30, 2013) - Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of remote workforce accommodations, modular space solutions and oilfield services products, is pleased to announce it has secured two large camp contracts worth $63.5 million in aggregate. The camp facilities will provide remote workforce accommodations to SAGD oilsands projects south of Fort McMurray, Alberta.
One contract is for the custom sale of camp equipment and associated field-level operations valued at $36.5 million. This project is expected to be completed and first revenue realized in early 2014. The second is a 32-month term extension of a contract for a Black Diamond fully-operated camp facility. The new term commences in Q4 2013 and is expected to generate revenue of $26.5 million.
"These contracts reinforce the continuing strength of and on-going demand for our remote accommodation business in northern Alberta and are indicative of our expectations for 2014 and 2015," said Trevor Haynes, President and Chief Executive Officer.
The aggregate bed count for these projects is approximately 650 and no new capital is being deployed to complete these contracts.
About Black Diamond
Founded in 2003, Black Diamond Group Limited is a provider of remote workforce accommodations, modular space solutions and oilfield products and services in Canada, the United States and Australia. With its corporate head office located in Calgary, Alberta, Black Diamond provides its products and services to a full spectrum of industries including oil, natural gas, mining, power, construction, engineering, military, government and education.
Through its direct and indirect wholly-owned subsidiaries and through its approximate 50% equity participation in certain aboriginal limited partnerships, Black Diamond operates four complementary business units comprised of Black Diamond Structures, Black Diamond Logistics, Black Diamond Energy Services and Black Diamond International.
Black Diamond Structures rents and sells remote workforce housing and modular workspace solutions and provides associated services; Black Diamond Logistics provides turnkey lodging services, remote facility management and supply chain solutions; Black Diamond Energy Services rents and sells a complement of oilfield equipment and services; and Black Diamond International rents and sells remote workforce housing and modular workspace solutions and provides associated services outside of North America.
Black Diamond operates its four complementary business units in 17 strategic locations across Canada, the United States and Australia.
Certain information in this news release contains forward-looking statements including management's assessment of the projected revenue to be generated from the contracts. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Future Oriented Financial Information
This news release, in particular, the projected revenue to be generated from the contracts, contains Future Oriented Financial Information ("FOFI") within the meaning of applicable securities laws. The FOFI has been prepared by management of the Company to provide an outlook of the Company's future activities and anticipated results and may not be appropriate for other purposes. The FOFI has been prepared based on a number of assumptions including assumptions with respect to the terms of the contracts. The actual results of the operations of the Company and the resulting financial results may vary from the projections set forth herein, and such variations may be material. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments.
President and Chief Executive Officer
(403) 264-9281 (FAX)
Black Diamond Group Limited
Interim Executive Vice President and Chief Financial Officer
(403) 264-9281 (FAX)