IRVING, TEXAS--(BUSINESS WIRE)--
Global Power Equipment Group Inc. (OTC: GLPW) (“Global Power” or the “Company”) today announced new contract awards from the Tennessee Valley Authority (“TVA”) and the Jacksonville Electric Authority (“JEA”), a community-owned utility that serves 455,000 electric and 337,000 water customers.
The TVA Board of Directors authorized TVA to enter into a $950 million, 5-year contract with G•UB•MK Constructors (“GUBMK”) for non-nuclear modifications and supplemental maintenance. Based upon performance, there is an opportunity for an additional 5-year extension. GUBMK is an unincorporated joint venture between WorleyParsons Group Inc., Williams Plant Services, LLC, and AECOM. Williams Plant Services, LLC is a wholly-owned subsidiary of Global Power’s Williams Industrial Services Group, LLC (”WISG”), the Company’s Services segment.
Global Power receives 33% of the net profits generated by the joint venture. In addition, Global Power provides supervision and other services to GUBMK. This contract supersedes the contract extension that was previously announced on August 25, 2015. GUBMK was formed over 25 years ago and has been providing maintenance and modification services to TVA since 1991.
WISG, through its wholly-owned subsidiary Williams Industrial Services, LLC, also was awarded a contract by JEA for general construction services for fossil-fuel power generating plants. In addition, JEA communicated its intent to award a water and waste water general construction services contract to WISG’s subsidiary. Each contract is for a 5-year term and valued at approximately $8 million to $10 million. WISG has been providing service to JEA since 1989.
Loren Monty, President of Global Power’s Services segment, commented, “We value our long-standing relationships with these customers and are committed to provide them safe, reliable and timely service consistently, as we have over many years. Importantly, these awards also demonstrate the diversity of our service offerings.”
About Global Power
Global Power is a design, engineering and manufacturing firm providing a broad array of equipment and services to the global energy and industrial markets. The Company reports in three operating segments. The Mechanical Solutions segment designs, engineers and manufactures a comprehensive portfolio of equipment for utility-scale natural gas turbines. The Electrical Solutions segment provides custom-configured electrical houses and generator enclosures for a variety of industries. The Services segment provides lifecycle maintenance, repair, on-site specialty support, outage management, construction and fabrication services for the power generation, industrial, chemical/petrochemical processing and oil and gas industries.
The Company provides information at its website: www.globalpower.com.
Forward-looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of the term set forth in the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements or expectations regarding the Company’s ability to effectively execute the contract awards, be granted the 5-year TVA contract extension, consistently provide quality service and related matters. These statements reflect our current views of future events and financial performance and are subject to a number of risks and uncertainties, including our ability to comply with the terms of our credit facility. Our actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. Additional risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, decreased demand for new gas turbine power plants, reduced demand for, or increased regulation of, nuclear power, loss of any of our major customers, whether pursuant to the loss of pending or future bids for either new business or an extension of existing business, termination of customer or vendor relationships, cost increases and project cost overruns, unforeseen schedule delays, poor performance by our subcontractors, cancellation of projects, competition for the sale of our products and services, including competitors being awarded business by our customers that had previously been provided by Global Power, shortages in, or increases in prices for, energy and materials such as steel that we use to manufacture our products, damage to our reputation, warranty or product liability claims, increased exposure to environmental or other liabilities, failure to comply with various laws and regulations, failure to attract and retain highly-qualified personnel, loss of customer relationships with critical personnel, effective integration of acquisitions, volatility of our stock price, deterioration or uncertainty of credit markets, changes in the economic, social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates and the banking environment or monetary policy.
Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in our filings with the SEC, including the section of the Company’s 2016 Annual Report on Form 10-K titled “Risk Factors.” Any forward-looking statement speaks only as of the date of this press release. Except as may be required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and we caution you not to rely upon them unduly.
Copyright Business Wire 2017