Business

The Canadian Press - ONLINE EDITION

Pipeline services company ShawCor reports higher Q4 profit and revenue

By: The Canadian Press

Posted: 02/28/2013 4:30 PM | Comments: 0

TORONTO - Pipeline services company ShawCor Ltd. (TSX:SCL.A) said Thursday it earned $80.3 million in the fourth quarter, up sharply from a year ago, helped by a more than 30 per cent jump in revenue.

The company said the profit amounted to $1.13 per diluted share for the quarter ended Dec. 31, up from $23.2 million or 32 cents per diluted share a year ago.

Revenue in the fourth quarter increased to $448.4 million, up from $341.8 million reported in the fourth quarter a year ago.

For the full year, the company said it earned $178.4 million or $2.50 per diluted share on $1.48 billion in revenue. That compared with a profit of $56.3 million or 78 cents per diluted share on $1.16 billion in revenue in 2011.

Last month, the company announced a plan to eliminate its dual share structure.

Under the proposal, which requires shareholder and court approval, all of the company's class A and class B shares will be purchased by a newly formed Canadian company.

Class A shares are to be exchanged on a one-for-one basis with the new company. Class B shares are to be exchanged for a mix a mix of new common shares and cash — either $43.43 in cash or 1.1 new common shares such that 90 per cent of the total consideration will be paid in cash and 10 per cent in new common shares.

At closing, a special dividend of $1 per share is to be paid on all remaining shares, with the new corporation and ShawCor amalgamating under the name ShawCor Ltd.

A shareholder vote is scheduled for March 14.

If approved, the arrangement is expected to close late in the first quarter of 2013 or early in the second quarter.

ShawCor specializes in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry.

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Business

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.