Stuart Olson adds to backlog in first quarter, but sees revenue dip from a year ago

CALGARY—Stuart Olson Inc. booked about $300 million in new contracts over the first three months of 2019, but saw revenues slip from a year ago.

The contractor reported revenue of $220.9 million for the first quarter May 8, compared to $265.9 million in the same quarter of 2018. Stuart Olson pointed to the cold weather at the start of the year, as well as the completion of two major industrial projects last year for the decline.

It also logged a net loss of $2.5 million on the quarter, or nine cents per share, versus a gain of $1.6 million, or six cents per share in Q1 2018. It cited high costs related to restructuring, investing and other one-time activities for decreased earnings.

Despite the declines, the company added to its contract backlog over the course of the quarter. Its Building Group won $120 million in new work during the first three months of the year, while its industrial and commercial units booked $100 million and $80 million, respectively.

The company’s backlog rose to $1.6 billion by the end of the quarter, up from $1.56 billion at the end of the fourth quarter 2018.

Looking ahead, Stuart Olson said it anticipates “significantly higher” revenue for both its Industrial Group and its Buildings Group later in 2019.

“We anticipate that the near-term negative impacts of the mandatory Alberta oil production curtailment on capital spending by our integrated oil sands customers and the highly competitive market conditions will continue into the second quarter,” David LeMay, the company’s president and CEO, said in a statement. “For the second half of this year, we expect year-over-year increases in contract revenue and adjusted EBITDA as these headwinds start to subside, and our operating groups continue to actively bid on a significant pipeline of project opportunities.”