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Bird Construction Awarded C$90 Million in New Contracts

The new contracts span across the upstream oil and gas and petrochemical sectors.

Video source: YouTube, Bird Construction

Bird Construction (BIRDF - $6.75 0.03 (0.446%)  Toronto: BDT) announced Tuesday that it has been awarded four new industrial contracts worth an estimated C$90 million (US$71.5 million).

The Mississauga, Ontario-based construction company was awarded two five-year master service agreement (MSA) contracts for industrial maintenance services and two industrial facilities turnaround contracts. 

The contracts are with existing clients and span across the upstream oil and gas and petrochemical sectors.

"I am very pleased that the value our team brings to the market continues to be recognized and rewarded," said Teri McKibbon, President and CEO of Bird.

"As a result of the distinctive benefits provided by our bundled service offering together with our strong consistent performance and geographic diversification, we remain well-positioned for the robust pipeline of opportunities in Western Canada, as well as the energy industry nationally."

Image source: Bird Construction

Investment thesis

Bird Construction has been in business for over 100 years and has been a public company for over 70 years.

Since closing on Nov. 8, 2021, at C$10.45 (ex dividends), Bird shares are down 14% despite reporting strong Q4 and full year numbers last month.

The current market cap of only C$482 million feels unjustly discounted for several reasons.

  • Record Q4 2021 revenues of C$598 million.
  • Annual revenue growth of 47.6%.
  • Diversified, growing recurring revenue streams
  • Record backlog at year-end 2021 of C$3 billion.
  • Cost savings and synergies realized from two most recent acquisitions.
  • Improving margins.

[Note: Article was edited on April 7, 2022 to add stock chart.]


Source: Equities News

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