Tuesday, July 23, 2013

Canadian Modular Factory Wins $100 Million Workforce Contracts

Black Diamond Group Limited, headquartered in Calgary, Alberta, was awarded four large scale contracts to provide remote workforce accommodations in western Canada. The projects will house workers for customers serving a variety of industries including pipeline and infrastructure, mining and conventional oil and natural gas.

The terms of the contracts range from one to three years, provide for in excess of 1,600 beds and are projected to generate aggregate revenue of approximately $100 million. That’s a cost of $62,000 per bed! I’m guessing that its approximate 50% equity participation in certain aboriginal limited partnerships might have helped its chances of getting these contracts.

A Black Diamond Workforce Camp

New equipment to complete the projects will be acquired at a capital cost of approximately $20 million.

"These long-term accommodation projects compliment our already robust pipeline for the third and fourth quarters," said Trevor Haynes, President and CEO, "We are very pleased with the level of visibility we have going into the second half of 2013 and anticipate considerable growth on a year-over-year basis."

Only in business for 10 years, Black Diamond Group Limited has become a leading provider of remote workforce accommodations, modular space solutions and oilfield products and services in Canada, the United States and Australia. With its corporate head office located in Calgary, Alberta, Black Diamond provides its products and services to a full spectrum of industries including oil, natural gas, mining, power, construction, engineering, military, government and education.

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