CALGARY, Sept. 15, 2016 /CNW/ – Petrowest Corporation (“Petrowest” or the “Company”) (TSX:PRW) is pleased to announce that its lenders (under both the syndicated credit facility and the subordinated debt agreement) have extended the waiver period, which was previously announced on August 10, 2016, from September 15, 2016 to October 14, 2016.
Specifically, Petrowest has been working with the lenders, and other potential lenders, to finalize a long term debt solution.
Lloyd Wiggins, Petrowest's Chief Financial Officer, stated that “Petrowest is in a unique position following the award of its largest project since its inception, BC Hydro Site C Clean Energy Project. In addition, new federal and provincial government infrastructure budgets presents Petrowest with an anticipated growth trajectory which we believe will be complemented by our final, long term, debt solution”.
Additional information respecting Petrowest's credit facilities and the financial covenants in those credit facilities may be found in Petrowest's Management Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2016, available under Petrowest's profile on the SEDAR website at www.sedar.com.
The first half of 2016 had significant weather challenges in Western Canada, including early spring forest fires and heavy rains throughout the summer. As a result, Petrowest was delayed on some of its major projects, shifting revenues into the back half of 2016 and into 2017. Entering the third quarter, the Fort St. John area experienced its fourth wettest August on record. In addition, flooding in and around the Grande Prairie region, resulted in additional lost operating days, to date, in the third quarter. That being said, the ramp up of major projects, to date, in the third quarter of 2016 has positioned Petrowest for a strong back half of a year and continuing into 2017, including the $1.75 billion Main Civil Works Site C contract.
Peace River Hydro Partners
BC Hydro provides construction bulletin updates bi-weekly located on www.sitecproject.com. In addition, BC Hydro provides quarterly updates on the project. As of September 2, 2016, BC Hydro disclosed that the Main Civil Works contractors are well underway on both the north and south banks. Petrowest will be a key contributor to the Peace River Hydro Partners to catch up on any lost time in the first half of 2016.
In addition, Petrowest, alongside its partners Acciona and Samsung, have completed the necessary submissions to pre-qualify for the Power Generation Station at BC Hydro's Site C. BC Hydro expects to announce the short-listed parties in the summer of 2016.
SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES
Selected financial information is set out above and includes the following non-IFRS financial measures: Adjusted EBITDA. This information should be read in conjunction with the consolidated financial statements for the six months ended June 30, 2016 and the Company's Management, Discussion and Analysis (“MD&A”), available under the Company's profile on the SEDAR website at www.sedar.com. Further information respecting the non-IFRS financial measures is contained in the Company's MD&A.
FORWARD LOOKING INFORMATION
Certain information and statements contained in this news release constitute forward-looking information, including an anticipated growth trajectory for the Company, anticipated long term debt solution, anticipated strong performance of the Company in the remainder of 2016 and in 2017, the expected Adjusted EBITDA for 2016, the successful awarding to Petrowest of various projects and contracts that Petrowest has bid on and the value of such projects and contracts, the number and value of near-term infrastructure opportunities in the geographical areas in which Petrowest operates, the level and progress of work at the Site C project, and FIDs relating to proposed LNG facilities in British Columbia. Readers should review the cautionary statement respecting forward-looking information that appears below. Any forward-looking statements are made as of the date hereof and Petrowest does not undertake to publicly update and review such statements to reflect new events, subsequent events or otherwise, except to the extent events and circumstances have occurred that are reasonably likely to cause actual results to differ materially from material forward-looking information for a period that is not yet complete or as otherwise required by law.
The information and statements contained in this news release that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as “seek”, “plan”, “continue”, “estimate”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “expect”, “may”, “anticipate” or “will” and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as changes in industry conditions (including the levels of capital expenditures made by government agencies and companies undertaking infrastructure projects and oil and gas explorers and producers), the credit risk to which Petrowest is exposed in the conduct of its business, fluctuations in prevailing commodity prices or currency and interest rates, the competitive environment to which the various business divisions are, or may be, exposed in all aspects of their business, the ability of Petrowest's various business divisions to access equipment (including parts) and new technologies and to maintain relationships with key suppliers, the ability of Petrowest's various business divisions to attract and maintain key personnel and other qualified employees, various environmental risks to which Petrowest's business divisions are exposed in the conduct of their operations, inherent risks associated with the conduct of the businesses in which Petrowest's business divisions operate, timing and costs associated with the acquisition of capital equipment, the impact of weather and other seasonal factors that affect business operations, availability of financial resources or third-party financing and the impact of new laws or changes in administrative practices on the part of regulatory authorities. Forward-looking information respecting Adjusted EBITDA for 2016 and an anticipated growth trajectory for the Company, anticipated long term debt solution and anticipated strong performance of the Company in the remainder of 2016 and in 2017 is based on the current budget of Petrowest (which is subject to change), factors that affected the historical growth of Petrowest's business divisions, sources of historic growth opportunities and expectations relating to future economic and operating conditions including, without limitation, anticipated future growth opportunities. Forward-looking information concerning the value of various projects and contracts that Petrowest has bid on or been awarded or expects to commence in the future is based on current commitments of projects and expectations relating to future economic and operating conditions. Forward-looking information concerning the near-term infrastructure opportunities for Petrowest is based upon the current competitive environment in which Petrowest's business divisions operate, expectations relating to future economic and operating conditions and current and announced projects of provincial governments.
Although management of Petrowest believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information set out in this news release. All of the forward looking statements of Petrowest contained in this news release are expressly qualified, in their entirety, by this cautionary statement. The various risks to which Petrowest is exposed are described under “Risk Factors” in Petrowest's Annual Information Form, available under Petrowest's profile on the SEDAR website at www.sedar.com.
Petrowest is a diversified infrastructure company with primary operations based in northeastern British Columbia and Alberta. Petrowest's operations are focused on industrial and civil infrastructure projects, gravel crushing and hauling activities, as well as pre-drilling and post-completion energy services.
SOURCE Petrowest Corporation