Quanta Services reports 2Q18 results
Published by Lydia Woellwarth,
Quanta Services, Inc. has announced results for the three and six months ended 30 June 2018. Revenues in 2Q18 were US$2.66 billion, compared to revenues of US$2.20 billion in 2Q17, and net income attributable to common stock was US$74.4 million, or US$0.48 per diluted share in 2Q18, compared to net income attributable to common stock of US$63.8 million, or US$0.41 per diluted share, in 2Q17. Adjusted diluted earnings per share attributable to common stock (a non-GAAP measure) was US$0.59 for 2Q18 compared to US$0.50 for 2Q17.
"We are off to a solid first half start and remain on track to achieve our full-year earnings per share expectations. Importantly, the second half of this year is strengthening as our base business activity seasonally increases and our larger pipeline projects are ramping in construction activity," said Duke Austin, President and Chief Executive Officer of Quanta Services. "Demand for craft skilled labour is high, and our investments in safety and training have made Quanta a preferred employer in our industry. We ended the second quarter with more than 37 000 employees and are on pace to generate record man-hours this year. Quanta's competitive position in the marketplace and our ability to serve the expanding needs of our customers has never been better. Our end markets are strong, we see opportunity to achieve record backlog again this year and we believe we are well positioned for growth over the next several years."
Certain items impacted 2Q18 and were reflected as adjustments in Quanta's adjusted diluted earnings per share attributable to common stock calculation. Favourably impacting 2Q18 results was a change in fair value of contingent consideration liabilities of US$6.3 million (US$6.6 million net of tax), or US$0.04 per diluted share, partially offset by certain charges of US$6.7 million (US$5.2 million net of tax), or US$0.03 per diluted share. Such charges included acquisition and integration costs, severance and restructuring costs and an asset impairment charge.
- Secured three mainline spreads of Line 3 replacement project – In June 2018, Quanta was selected by Enbridge Pipelines Inc. for three spreads of phase two of the Canadian section of the Line 3 replacement programme. Quanta's scope of work includes the construction and installation of approximately 236 miles (380 km) of new 36 in. diameter crude oil mainline pipe, which will begin in White City, Saskatchewan and continue to Brandon, Manitoba. Quanta's construction on the project is expected to begin in August 2018 and is anticipated to achieve substantial completion in the first half of 2019. This project is included in remaining performance obligations and backlog at 30 June 2018.
- Selected for Site C Transmission Line – In June 2018, Quanta was selected by BC Hydro for the Site C Transmission Line project in northeast British Columbia. Quanta's scope of work on the project includes the construction and installation of two new 500 kV transmission lines along 75 km of existing right-of-way between the Site C hydroelectric dam project and the Peace Canyon generating station. Pre-construction activities have commenced and the project is expected to reach substantial completion in the second quarter of 2022. This project is included in remaining performance obligations and backlog at 30 June 2018.
- Repurchased stock – During June and July of 2018, Quanta repurchased US$30.0 million of its outstanding common stock through open market purchases, acquiring 0.9 million shares. With these repurchases, Quanta has acquired 5.9 million shares of its common stock for US$203.9 million in 2018. In the aggregate, Quanta has acquired 7.2 million shares of its common stock for US$253.9 million under its current US$300 million stock repurchase programme. Quanta has approximately US$46.1 million remaining of its repurchase authorisation.
Read the article online at: https://www.worldpipelines.com/business-news/03082018/quanta-services-reports-2q18-results/
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