ConDig (28-Feb-18).  Profit at construction and infrastructure company Primoris Services Corp surged 55% in the fourth quarter of last year as a $9.4 million tax benefit offset a dip in revenue.

The Dallas, Texas-based company posted net income of $22.5 million for the quarter ended December 31 compared with $14.5 million in the same in 2016.

As a result of a tax law change, Primoris remeasured its deferred tax assets and liabilities, which provided a one-time benefit of $9.4 million during the quarter.

This helped mitigate the impact of a dip in revenue to $579 million from $601.9 million in the year-ago period.

The drop in revenue was primarily due to a decrease in the group’s pipeline and underground division as it reached substantial completion on two Florida pipeline projects in the second quarter of last year.

For the year, net income was $72.4 million compared with $26.7 million in 2016, while revenue edged up to $2.4 billion from $2 billion in 2016. Total project backlog was $2.60 billion as of the end of the fourth quarter.

Primoris Services expects full-year earnings to be $1.50 to $1.70 per share.

“Primoris continued delivering solid results, reaching company record revenues and earnings for the year.  Strong execution on pipeline and petrochemical projects, aided by growing MSA revenue and new acquisitions, gave us financial improvements in all four of our operating segments. We are pleased to see our revenue break well past the $2 billion,” said David King, president and chief executive officer of Primoris.

“We continue to focus on our solid principals of safety, quality, superior execution, and dependable results.  We believe the strength of our backlog combined with considerable future project opportunities will drive continued growth.”

He added that the company expects growth opportunities in 2018 from renewable power, small diameter pipeline, industrial, and mid-scale engineering, procurement and construction projects.