Global Power Equipment Group Provides Update on Services Segment
IRVING, Texas, Aug. 25, 2015 (GLOBE NEWSWIRE) -- Global Power Equipment Group Inc. (NYSE:GLPW) ("Global Power" or "Company") announced today new contracts with its current customers, the Tennessee Valley Authority and Energy Northwest, as well as changes in its relationship with Southern Company.
The Tennessee Valley Authority ("TVA") has awarded a contract extension valued at $565 million over an anticipated three-year term to GUBMK Constructors, a joint venture owned by Worley Parsons Group, AECOM and Global Power's wholly-owned subsidiary, Williams Industrial Services Group ("Williams"). Through Williams Industrial Services Group, Global Power owns one-third of GUBMK Constructors. GUBMK Constructors will continue to provide TVA with maintenance and modification services for TVA's fossil and hydro fleet that they have performed since the original contract was signed in November 1991.
Southern Company has previously informed the Company that it will not extend the term of an existing maintenance and modification contract with Williams. However, Global Power continues to provide project-based services to Southern Company. In addition, Global Power is actively pursuing a pipeline of new prospects to mitigate the impact for future years.
Terence Cryan, President and CEO of Global Power, commented, "While we are understandably disappointed with the loss of Southern Company's long-standing maintenance and modification service contract, we appreciate the continued work on capital projects our Nuclear Services group has been providing Southern. Our focus has been on diversifying our revenue sources and, in effect, this change brings serious clarity to that goal."
"We are very pleased to be a member of the GUBMK partnership that will continue to provide high-quality modification and other maintenance services to TVA. The contract extension reflects our ongoing commitment to support TVA with our broad portfolio of value-added service solutions."
The company is also pleased to announce that Energy Northwest, a long-standing customer of Global Power, will be extending its contract with the Company through June of 2018, to provide site support services for Energy Northwest's Columbia Generating Station. Services to be provided, including the potential options, are estimated to be worth up to $46 million. Under the contract, the Company will provide ongoing maintenance and modification services, as well as planning, management and execution of the plant's nuclear refueling outage scheduled for June 2017.
Mr. Cryan concluded, "We operate in a highly competitive environment for our power services. We believe our success in maintaining our leadership position is a direct reflection of our team and its effective execution. We appreciate the opportunity to serve operators of nuclear power facilities with the dedicated focus and responsiveness that our customers have come to expect from us."
About Global Power
Global Power Equipment Group Inc. is a design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. The Products segment includes two primary product categories: Auxiliary Products designs, engineers and manufactures a comprehensive portfolio of equipment for utility-scale natural gas turbines while Electrical Solutions provides custom-configured electrical houses and generator enclosures for the midstream oil & gas industry, the power generation market to include distributed and backup power, as well as other industrial and commercial operations. Services includes Energy Services, which provides lifecycle maintenance, repair, construction and fabrication services for the industrial, chemical/petrochemical process, oil and gas and power generation industries, and Nuclear Services, which provides on-site specialty support, outage management and maintenance services to domestic utilities' nuclear power facilities. The Company routinely 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. These statements reflect our current views of future events and financial performance and are subject to a number of risks and uncertainties. Our actual results, performance or achievements may differ materially from those expressed or implied in the forward-looking statements. 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, and 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, the banking environment or monetary policy.
In addition, more information may arise during the course of the Company's previously-announced ongoing accounting review of its previously issued financial statements that would require the Company to make additional adjustments or revisions or to restate further such financial statements. The time required to complete the financial statements and accounting review may cause our results to differ materially from those described in the forward-looking statements. 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 our Annual Report on Form 10-K filed with the SEC on March 9, 2015 titled "Risk Factors." 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.
CONTACT: Investor Relations Contact: Deborah K. Pawlowski Kei Advisors LLC (716) 843-3908 firstname.lastname@example.org
Released August 25, 2015