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Stuart Olson Awarded Seven-Year MRO Contract for Bundled Industrial Services Valued at an Estimated $400 Million

January 30, 2020

CALGARY, Jan. 30, 2020 /CNW/ - Stuart Olson Inc. (TSX: SOX) ("Stuart Olson" or the "Company") today announced that its Industrial Group has been awarded a seven-year contract valued at an estimated $400 million to provide maintenance, repair and operations (MRO) services to an existing oil sands customer in Alberta. Under the terms of the agreement, Stuart Olson has increased the scope of services over those previously supplied to the customer. The estimated contract award amount will be added to first quarter 2020 backlog.    

"This contract award, including the significant term and expanded scope, demonstrates the strategic value of our 2018 acquisition of Tartan Canada Corporation," said David LeMay, Stuart Olson's President and Chief Executive Officer. "The integration of Tartan into Stuart Olson's MRO platform enables us to deliver meaningful value to customers by bundling services into a comprehensive and integrated product. Our ability to integrate multiple services into one contract, while delivering our best in class safety culture was a key factor in this significant award win."

ABOUT STUART OLSON INC.

Stuart Olson Inc. provides general contracting and electrical building systems contracting in the public and private construction markets as well as general contracting, electrical, mechanical and specialty trades, such as insulation, cladding and asbestos abatement, in the industrial construction and services market. The Company operates office locations and projects throughout Western Canada, Ontario and the territories. In 2019 Stuart Olson was recognized as one of Alberta's Top Employers for the third consecutive year. Stuart Olson's common shares are listed on the Toronto Stock Exchange under the symbol "SOX". www.stuartolson.com

FORWARD-LOOKING INFORMATION

This press release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This forward-looking information includes, without limitation, statements made relating to expectations regarding forecasts of:

(i)

Stuart Olson's backlog and the implication that such backlog will be converted into revenues;

(ii)

Stuart Olson's ability to execute and convert backlog into revenues and project margins; and

(iii)

economic conditions.

 

Often, but not always, forward-looking information can be identified by the use of such words as "may", "will", "expect", "believe", "plan", "intend", "estimate", "outlook", "forecast", "should", "anticipate", "seek", "continue", "see", "project", "predict", "propose", "targeting", "potential", "could", "might", "grow", "momentum" and other similar terminology, including statements concerning possible or assumed future results. Forward-looking information is based on management's reasonable assumptions, analysis and estimates in respect of its experience and perception of trends, current economic conditions, government policies and expected developments, as well as other material factors that it considers to be relevant at the time of making such statements.

The forward-looking information in this press release is included solely for the purpose of assisting investors in understanding the Company's financial position and the prospects of its operations as at the date hereof. By its nature, forward-looking information involves known and unknown risks and uncertainties, which give rise to the possibility that management's assumptions, analyses and estimates will be incorrect and that the Company's anticipated results will not be achieved. Although the Company believes that the statements with respect to forward-looking information are reasonable and current, such statements should not be interpreted as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Forward-looking information is necessarily subject to a number of factors that may cause actual results to differ materially from those results implied by the expectations suggested by such information. Those factors include, without limitation, the risks and uncertainties described in the Company's quarterly Management's Discussion and Analysis and Annual Information Form filed with the securities regulatory authorities in Canada under the Company's profile at www.sedar.com. Readers are encouraged to consider the foregoing risks and other factors carefully when evaluating the forward-looking information and are cautioned not to place undue reliance upon such information when making investment decisions.

The forward-looking information in this press release is current to the date hereof, and is subject to change following such date. While the Company may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time.

SOURCE Stuart Olson Inc.

David LeMay, President and Chief Executive Officer, Stuart Olson Inc., (403) 685-7777, Email: inquiries@stuartolson.com; Dean Beacon, Executive Vice President and Chief Financial Officer, Stuart Olson Inc., (403) 685-7777, Email: inquiries@stuartolson.com