CALGARY, AB—(Marketwired – June 13, 2016) – Black Diamond Group Limited (“Black Diamond” or the Company”) (TSX: BDI), a leading provider of workforce accommodation and modular workspace solutions, is pleased to announce it has been awarded a workforce housing camp renewal in the Duvernay region of northwest Alberta. The renewal for 354 beds will generate rental revenue of $6.6 million over its three year term and will commence July 1, 2016.
“We believe this renewal is indicative of the oil and gas market stabilizing in Western Canada and the improving confidence of resource developers making longer term commitments. Furthermore, our business is beginning to strengthen with the commodity price recovery, along with increased infrastructure spend across North America,” said Trevor Haynes, Chairman and Chief Executive Officer.
In addition to the renewal, Black Diamond is providing the following update on its two main operating business units:
Black Diamond believes that the Camps & Lodging business unit is stabilizing and will continue to benefit from increased activity relating to a recovery in commodity prices. Given that we are in the early stages of a recovery, management has not changed its revenue and earnings expectations for 2016. The Fort McMurray fires have caused some disruption in May operations, which management expects will contribute to revenue and earnings being lower than anticipated in the Company's second quarter. Management anticipates that such weakness will be offset by the recovery and rebuild activity in the Fort McMurray area through the balance of the year.
Black Diamond believes its BOXX Modular business unit will continue to benefit from the increased infrastructure spend across Canada and the United States, and anticipates realizing growth through its recently opened Saskatoon and Vancouver branches. In addition to this organic growth, the Company's management is continuously evaluating opportunities to expand this business unit both in Canada and the United States.
Certain information in this news release contains forward–looking statements including management's assessment of Black Diamond's future operations, business prospects and opportunities and management's future expectations regarding the financial performance of the Company and its business units. With respect to the forward–looking statements contained in this news release, Black Diamond has made assumptions, regarding among other things: future commodity prices, that Black Diamond will continue to conduct its operations in a manner consistent with past operations, that counterparties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward–looking statements contained in this news release, and the assumptions on which such forward–looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward–looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward–looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Black Diamond's operations and financial results are included in Black Diamond's annual information form and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondgroup.com). Furthermore, the forward–looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward–looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
About Black Diamond Group
Black Diamond Group provides workforce accommodation, modular buildings, energy services, and full turnkey lodging and major project solutions including planning and management, logistics, and catering to customers in Canada, the United States and Australia. We serve diverse sectors including oil and gas, mining, power, construction, engineering, military, government, and education.
Black Diamond has four core business units: Black Diamond Camps & Lodging, BOXX Modular, Black Diamond Energy Services, and Black Diamond International. Learn more at: www.blackdiamondgroup.com