Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) announced today that its subsidiary, CRTS, Inc., has been awarded a $48.4 million contract from Snamprogetti Saudi Arabia Ltd., a subsidiary of Eni S.p.A., to provide robotic coating of internal field joints for Saudi Aramco offshore pipelines that will transport natural gas from new offshore wells in the Hasbah and Arabiyah gas fields. In 2010, CRTS completed a similar, $12.0 million project three months ahead of schedule for Saudi Aramco’s subsea pipelines at the Karan gas field located off the coast of Saudi Arabia.
CRTS and its local partner, Diversified Lines for Petroleum Services, will provide robotic internal field joint coating for pipelines ranging in diameter from 10 inches to 36 inches. Mobilization and preparatory work for the project is expected to begin in July 2011. Preparations will include equipment construction, materials and weld quality control testing and shipment of materials to the job site. Internal field joint coating activities are expected to begin in the second quarter of 2012 and take approximately 12 months to complete.
The two offshore fields northeast of Dhahran will add a combined 2.5 billion cubic feet per day of natural gas to Saudi Aramco’s existing capacity. The gas recovered from Hasbah and Arabiyah will be sent to Saudi Aramco’s onshore Wasit gas plant to be processed. The $6 billion (USD) Saudi Aramco Wasit gas plant will be its largest gas plant in the Kingdom of Saudi Arabia and is expected to be operational in 2013.
James A. Huggins, President of CRTS, stated, “CRTS is pleased to partner with Snamprogetti Saudi Arabia on this Saudi Aramco project. We are confident that we will again exceed Saudi Aramco’s expectations. Our work on this project will be a top priority for our technical staff on location in Saudi Arabia as well as the support staff located in the United States and will highlight the capabilities of our proprietary and patented robotic coating technologies.”
Dorwin Hawn, Insituform Senior Vice President, Energy and Mining, said, “The Saudi Aramco Wasit contract award further validates CRTS’s leading position as a developer and provider of offshore robotic field joint coating technologies and applications. We believe that CRTS’s technologies and capabilities combined with our other Energy and Mining companies’ broad service offering and their expanded geographic reach will result in significant growth opportunities for our Energy and Mining group going forward.”
Insituform acquired CRTS on June 30, 2011 to expand further its Energy and Mining group’s service offering and technologies and its presence in the Middle East. Insituform expects the CRTS acquisition, inclusive of the Saudi Aramco Wasit project, to be slightly accretive to earnings in 2011 (before acquisition transaction expenses). For 2012, Insituform expects that the CRTS acquisition will be significantly accretive to earnings, with revenues of more than $50 million.
About Insituform Technologies, Inc.
Insituform Technologies, Inc. is a global leader in pipeline protection. Insituform provides proprietary technologies and services for rehabilitating sewer, water, energy and mining piping systems and the corrosion protection of industrial pipelines. More information about the Company can be found on its internet site at www.insituform.com.
About CRTS, Inc.
CRTS, a subsidiary of Insituform Technologies based in Tulsa, Oklahoma, delivers proprietary internal and external field joint coating services and equipment for new pipeline construction projects from offices in North America, the Middle East and Brazil. More information about CRTS can be found on its internet site at www.coatingrobotics.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. The Company makes forward-looking statements in this news release that represent the Company’s beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the Securities and Exchange Commission on February 28, 2011 and in our subsequent quarterly reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, our actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, we do not assume any duty to update forward-looking statement, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the Company from time to time in its periodic filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward looking-statements made by the Company in this news release are qualified by these cautionary statements.
Insituform®, CRTS™ and the Insituform® logo are the registered and unregistered trademarks of Insituform Technologies, Inc. and its affiliates.
Contacts:
David F. Morris, 636-530-8000
Senior
Vice President and Chief Administrative Officer
