Profit at Primoris rises 9% in fiscal Q3 despite revenue dip

ConDig (04-Nov-19).  Profit at Dallas, Texas-based construction and infrastructure company Primoris Services Corp rose 9% in its fiscal third quarter compared with the same period a year-ago despite a drop in revenue. 

For the quarter ended September 30, the company booked net income of $35.6 million compared with $32.7 million in the same period last year, driven largely by a rise in profit at the group’s civil and utilities division. 

The rise in profit comes despite revenue falling 4.8% in the third quarter to $865.1 million from $908.9 million a year prior. The drop was primarily driven by lower revenue in the group’s pipeline division, partially offset by growth in its power and utilities division.  

Primoris reported that a lack of major storm repair work and project delays created a slight headwind compared to last year, but that was more than offset by benefits from partial resolution of outstanding claims.

Total project backlog was $3.2 billion for the quarter, a 16.3% increase over December 31, 2018.

For the year-to-date, net income was $55.3 million compared with $45 million for the same period last year, while revenue was higher at $2.3 billion compared with $2 billion. 

“Primoris’ diverse end markets remain strong. The forces driving demand for our utility work are creating long-term opportunities to improve our country’s electric and natural gas infrastructure,” said David King, executive chairman and chief executive officer of Primoris.

“The bidding activity in our renewables, petrochemical, and LNG end markets indicate strength in those markets as we head into 2020, and the pipeline market continues to provide multiple avenues for growth, notwithstanding individual project delays. We expect our momentum to continue in the fourth quarter and well into 2020, delivering positive results for our customers and shareholders.”

Primoris reaffirmed its estimate that for the fiscal year ending December 31, 2019, net income attributable to Primoris was expected to be between $1.60 and $1.80 per fully diluted share.

In September, Primoris said it had secured three contracts worth a total of $43 million for pipeline work in Northern Alberta, Canada. It also secured a $140 million deal for electric utility work in Northern California.tric utility work in Northern California.

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