Aegion Corporation Awarded Two Tite Liner® System Contracts in the Middle East Totaling Approximately $11 Million
ST. LOUIS, MO, September 11, 2019 - Aegion Corporation (NASDAQ:AEGN) today announced that United Special Technical Services, LLC ("USTS"), a joint venture between United Pipeline Systems, Inc., a subsidiary of Aegion ("United"), and Special Technical Services LLC ("STS") of Oman, was awarded two contracts with a combined value of approximately $11 million (USD) from local contractors working for a large oil and gas pipeline operator in Saudi Arabia. United owns a 51 percent interest in the joint venture.
More than 25 miles of 42-inch diameter seawater transport pipelines will be rehabilitated using United’s Tite Liner® system, a high-density polyethylene (HDPE) liner. Upon completion, this will mark the largest pipe diameter to be lined in the Middle East since the Tite Liner® system was introduced in the region. In addition, teams will provide rotolining for pipe fittings from a newly commissioned USTS rotolining plant in Al Khobar. Rotolining is a method to apply seamless, bonded internal linings to metal parts like manifolds and valves, regardless of shape. This is the first rotolining plant in Saudi Arabia and the largest of its kind in the Middle East.
Charles R. Gordon, Aegion’s President and Chief Executive Officer, said, “These awards signal the start of an exciting runway for growth for the USTS business in Saudi Arabia and are the result of strong collaboration over the last several years with local contractors and operators. We have been operating safely in the Middle East for more than a decade and continue to see a strong project funnel for both our industrial linings and coatings businesses that will enable us to capture significant opportunities and earnings growth over the next two years as the region expands its oil and gas production capabilities.”
Work on these contracts is expected to begin in the fourth quarter of 2019 and continue for the next two years. Approximately 50 new jobs, including technicians, machine operators and supervisors, will be created over the course of the projects.
About Aegion Corporation (NASDAQ: AEGN)
Aegion combines innovative technologies with market-leading expertise to maintain, rehabilitate and strengthen infrastructure around the world. Since 1971, the Company has played a pioneering role in finding transformational solutions to rehabilitate aging infrastructure, primarily pipelines in the wastewater, water, energy, mining and refining industries. Aegion also maintains the efficient operation of refineries and other industrial facilities. Aegion is committed to Stronger. Safer. Infrastructure.®
More information about Aegion can be found at https://www.aegion.com/.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Aegion’s forward-looking statements in this news release represent its beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to Aegion and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of Aegion’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission on March 1, 2019, and in subsequently filed documents. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, Aegion’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, Aegion does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by Aegion from time to time in Aegion’s filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward-looking statements made by Aegion in this news release are qualified by these cautionary statements.
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