CALGARY, March 21, 2012 /CNW/ - Trimac Transportation Ltd. ("Trimac") (TSX: TMA) today announced that it has entered into a new contract to haul a significant new volume of NGL's (Natural Gas Liquids) on behalf of Provident Energy Ltd. in northeastern British Columbia.
This contract builds on Trimac's existing relationship with Provident that dates back to August 2003. The hauling will be operated out of Trimac's Dawson Creek, British Columbia facility and is expected to commence in the second quarter of 2012 and run through to March 2014.
Ed Malysa, Trimac's President and COO, said "the addition of the new hauling for Provident further solidifies Trimac's presence in British Columbia. I am pleased to announce this new opportunity with a company that is as well-established and respected as Provident. This opportunity will strengthen our capabilities to service our oil and gas customers in northeastern British Columbia."
The contract is expected to generate $16 million in revenue over the term of the contract.
Provident Energy Ltd. is a Calgary-based corporation that owns and operates high quality midstream assets that include NGL extraction, fractionation, storage, transportation, and marketing, with access to markets across North America.
About Trimac: Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast. In addition, through its National Tank Services division, Trimac performs repairs, maintenance and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics.
This press release contains information and statements of a forward-looking nature concerning the value of the Provident contract to Trimac. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. In making such statements, Trimac has assumed that the Canadian economy would continue to strengthen and that the volume of products hauled and miles driven by Trimac for Provident would be consistent with estimates provided by Provident and its customer. Certain factors may cause actual results to differ from such statements including, without limitation, general market trends and conditions, increased competition and pricing pressures in the oil and gas industry and the trucking industry, an increase or decrease in NGL production volumes and an increase or decrease in the product volumes hauled or miles driven by Trimac for Provident. As a result, readers are advised that actual results may differ from expected results.
Edward V. Malysa
President and Chief Operating Officer
Trimac Transportation Ltd.
Scott D. Calver
Vice President and Chief Financial Officer
Trimac Transportation Ltd.