-More than doubles 2018 capital program to $28.5 million-
CALGARY, Alberta, Oct. 09, 2018 (GLOBE NEWSWIRE) - Strad Energy Services Ltd. (“Strad” or the “Company”) (TSX:SDY) today announced an additional $15.5 million of capital is being allocated to its Industrial Matting division to support its continued growth. Combined with previous allocations, this brings the total capital program for 2018 to $28.5 million. The additional $15.5 million will expand the Company’s matting fleet by approximately 22,000 mats and related equipment to meet current and pending projects.
“Last week’s announcements regarding multiple large-scale infrastructure projects, namely LNG Canada and the Coastal GasLink pipeline, reinforce and validate our decision to focus our growth agenda squarely upon our Industrial Matting business,” said Andy Pernal, President and Chief Executive Officer. “Today, our wood matting utilization rates across North America are at 70% and this growth capital will bolster our capacity to participate in the construction of these extensive Western Canadian projects.”
Currently, Strad’s matting business is working on two large pipeline projects in Western Canada, including the North Montney Mainline Project in the Peace River region with Macro Industries Inc. Along with serving the pipeline sector, Strad also operates in a broad range of industrial sectors across North America, including: power transmission, wind power, mining, construction as well as oil and gas. Strad will continue to evaluate capital opportunities through 2018 and will assess the size of its capital program from time to time based on industry conditions and customer demand.
Industrial matting supports two critical functions for construction-type projects in a cost effective and environmentally-friendly manner; first it provides temporary access to work areas, especially in remote and soft ground environments and secondly it provides durable platforms for staging or worksite areas. At the same time, matting has proven to be indispensable for ground protection, preventing soil contamination and spread of noxious weeds in agriculture settings, protecting Indigenous lands, and accommodating enhanced worker safety requirements.
Strad specializes in industrial matting and equipment rentals for projects of any size, from a network of branches across Canada and the United States. Strad aims to exceed customer expectations in many industrial sectors, including Oil & Gas, Pipeline, Power Transmission, and Mining.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol “SDY”.
Forward Looking Information, Statements and Advisories
The Company anticipates remaining disciplined with its budgeted 2018 capital program as it monitors business conditions throughout the balance of the fiscal year. Where deemed prudent, the Company may make adjustments to its 2018 capital program. Actual spending may vary due to a variety of factors including, without limitation, economic conditions, prevailing debt and/or equity markets, field activity and the impact of any future strategic transactions. The Company has flexibility to adjust the level of its capital investments as circumstances warrant.
This news release contains certain forward looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "estimate", "may", "will", "project", "should", "believe", "plan", "intends", "forecast" and similar expressions are intended to identify forward looking information or statements. In particular, but without limiting the foregoing, this news release contains forward looking information and statements pertaining to the following: Strad's 2018 capital program and the planned expansion of the Company's matting fleet; methods of funding and financial capacity required to carry out the Company's capital program; the forecasted growth in the Company's industrial matting division and the Company's ability to capitalize on opportunities within the current marketplace. Forward looking information or statements are based on a number of expectations or assumptions of Strad which have been used to develop such information or statements but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward looking information or statements are reasonable, undue reliance should not be placed on forward looking information or statements because the Company can give no assurance that such expectations or assumptions will prove to be correct. The forward looking information and statements contained in this news release speak only as of the date hereof and Strad does not assume any obligation to publicly update or revise any of the included forward looking information or statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.