Stuart Olson revenue ticks up in first quarter, anticipates ‘gradual’ return to normal post-pandemic

Stuart Olson Inc. posted a small increase in revenue in the first quarter of 2020 as it began reacting to the COVID-19 crisis.

The Calgary-based contractor said its revenue amounted to $224.9 million for the first three months of the year, compared to $220.9 million in the same period a year ago. Despite the increase, the company’s loss widened to $5.4 million, or 19 cents per share for Q1, compared to $2.5 million, or nine cents per share last year.

In terms of upcoming work, Stuart Olson’s backlog rose to $1.648 billion by the end of March, up from $1.489 billion at the close of 2019. Year-over-year, the company’s backlog inched up slightly from $1.646 billion at the end of the first quarter 2019.

“Notwithstanding the combination of the unprecedented impacts of the pandemic and historic decline in oil prices, in the first quarter of 2020 we grew consolidated backlog to $1.6 billion by securing an early renewal of a significant contract for our Industrial Group’s MRO business, delivered rewarding revenue growth under challenging circumstances, and reduced administrative costs through the effective management of our business,” David LeMay, the company’s president and CEO, said in the earnings report.

“As we continue to navigate the challenges of operating under risks related to the COVID-19 pandemic, our safety-focused culture remains extremely committed to ensuring the health and welfare of people and the communities in which we operate,” LeMay said. “We are taking all necessary precautions to meet and exceed enhanced protection protocols to remain operational, but most importantly safe.”

Like other businesses working through the pandemic, Stuart Olson has implemented a number of new safety measures, such as social distancing. Though the steps have kept on-site staff safe, the company noted they have also slowed the pace of work on its slate of projects.

With COVID situation still very much in flux, the contractor is withholding any specific expectations, but noted as Canada’s economy slowly comes back online, it is “well-positioned” to take on possible new stimulus spending from all levels of government.