​Horizon North contracted for 1,400 North Montney camp beds, LNG potential boosts stock

Horizon North Logistics says it has been awarded a conditional contract to construct and operate two new workforce lodges with close to 1,200 combined beds in the North Montney region.

The deal also includes use of one the company’s existing 240-bed open camps north of Fort St. John. It will be executed in partnership with the nearby Halfway River First Nation.

article continues below

The $63-million, 16-month contract is likely related to infrastructure development in the North Montney region, according to analysts with GMP FirstEnergy.

“The contract duration of 16 months is reflective of the type of projects available for bidding (e.g. infrastructure versus greenfield oilsands),” analyst Ian Gillies wrote in a research note on Tuesday.

Horizon North’s share price is up 49 percent year-to-date, while most oilfield service companies covered by GMP FirstEnergy are down in excess of 10 percent, Gillies noted.

This could be a result of cautious optimism that Shell and its partners may soon decide to proceed with the LNG Canada project.

“We believe that investors are beginning to take positions in the stock due to Horizon’s significant land ownership position in Kitimat, which provides the stock with some call option-like qualities in the event of a final investment decision for the LNG Canada project,” he wrote. 

© Copyright Alaska Highway News

Read more from the JWN Energy

Comments

NOTE: To post a comment you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Google+ You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Alaska Highway News welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

comments powered by Disqus
Alaska Highway People's Choice 2020

Popular News

Lowest Gas Prices in Chetwynd, Dawson Creek, Fort Nelson, Fort St John, Tumbler Ridge
British Columbia Gas Prices provided by GasBuddy.com

Community Event Calendar


Find out what's happening in your community and submit your own local events.