Perma-Pipe International Holdings announces contract awards in excess of $8 million

By: Perma-Pipe International Holdings, Inc. via Business Wire

April 17, 2023 at 16:40 PM EDT

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded two contracts with a combined value in excess of US$8 million.

The first is to provide insulated piping for a thermal distribution system on the campus of Fanshawe College in London, Ontario, Canada. The contract is to supply Perma-Pipe’s XTRU-THERM® thermally insulated piping system.

Grant Dewbre, COO and Senior Vice President for Perma-Pipe’s Americas region stated, “We are excited to be working for Fanshawe College and EllisDon and we thank them for placing their trust in us, and we expect to exceed their expectations.”

In addition, today Perma-Pipe International Holdings, Inc. announced its subsidiary, Perma-Pipe Middle East LLC, has been awarded contracts by China Petroleum & Chemical Corporation (Sinopec) for the provision of thermally insulated pipe and field joints for a project in Uganda.

This project will feed the East African Crude Oil Pipeline (EACOP) transporting oil to the coast in Tanzania. The project will utilize Perma-Pipe’s XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing. The projects will begin execution in Perma-Pipe’s new facility in Abu Dhabi, UAE in Q3 2023.

Saleh Sagr, Senior Vice President for Perma-Pipe’s MENA region commented, “I am glad to announce that this important project has been assigned to Perma-Pipe. We have recently announced the opening of the new plant in Abu Dhabi and obtaining this award is an excellent start. It demonstrates the need for a plant that is well positioned to serve export markets as well as oil and gas projects locally in the UAE and neighboring countries.”

David Mansfield, President and CEO commented, “We are pleased to be chosen by EllisDon and Fanshawe College to be a part of this infrastructure project and to provide our district cooling and heating piping system to the Canadian market.”

"We are also delighted with the Uganda project, and the opportunity to participate in this significant investment program. We are proud to be partnering with Sinopec so that we can demonstrate our expertise and our industry-leading products and services from our new, high-capacity state-of-the-art facility.”

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in pre-insulated piping and leak detection systems for oil and gas, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, Perma-Pipe has operations at fourteen locations in six countries.

Forward-Looking Statements

Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) decreases in government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company’s ability to attract and retain senior management and key personnel; (xviii) the Company’s ability to achieve the expected benefits of its growth initiatives; (xix) the Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company’s information technology systems. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at https://www.sec.gov and under the Investor Center section of our website (http://investors.permapipe.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20230417005785/en/

Contacts

Perma-Pipe International Holdings, Inc.

David Mansfield, President and CEO

Perma-Pipe Investor Relations

847.929.1200

investor@permapipe.com

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Perma-Pipe International Holdings announces contract awards in excess of $8 million

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