Quanta's 2Q 2020 Revenues Dip Year-over-Year to $2.51 Billion

  • Quanta Services

HOUSTON — Quanta Services’ second quarter 2020 revenues dipped year-over-year to $2.51 billion compared to revenues of $2.84 billion in the second quarter of 2019.

"Quanta produced a solid second quarter, which exceeded our expectations, despite the unprecedented health and economic conditions that are challenging us all. We believe our results and improved outlook for the year demonstrate the resiliency of our business, the strengths of our strategies and the operational excellence of our people," said Duke Austin, president and CEO of quanta services. "We ended the quarter with a strong balance sheet and liquidity position, and our competitive position in the marketplace and ability to serve the expanding needs of our customers have never been better. We believe Quanta has a bright future ahead for generating repeatable and sustainable earnings as we continue to execute on our strategic initiatives."

"During the second quarter we announced that LUMA Energy, a joint venture 50% owned by Quanta, was selected for a 15-year agreement to operate, modernize and maintain Puerto Rico's electric transmission and distribution system. We believe this opportunity is transformative for the company and supports our ongoing strategy of providing sophisticated and valuable solutions to the utility industry. We believe LUMA's selection also demonstrates Quanta's world-class capabilities and expertise in modernizing infrastructure and enabling technologies for the benefit of consumers that Quanta brings to the joint venture."

RECENT HIGHLIGHTS

  • LUMA Energy Selected for Operation & Maintenance of Puerto Rico's Electric Power Transmission & Distribution System - In June 2020, Quanta announced that LUMA Energy, a joint venture equally owned by Quanta and Canadian Utilities Limited, an ATCO Ltd. company (ATCO), in conjunction with Innovative Emergency Management, had been selected by the Puerto Rico Public-Private Partnership Authority for a 15-year operation and maintenance agreement (the O&M Agreement) with the Puerto Rico Electric Power Authority (PREPA). The Agreement engages LUMA to operate, maintain and modernize PREPA's more than 18,000-mile electric transmission and distribution (T&D) system in Puerto Rico following a transition period. Quanta believes that, in addition to delivering a more resilient power grid, LUMA's efforts can lead to the transformation of PREPA and deliver long-term social and economic benefits to the people of Puerto Rico. LUMA will not own the T&D assets nor own or operate the power generation assets.
  • Completed Strategic Acquisition - In July 2020, Quanta completed the strategic acquisition of a leading professional engineering firm based in Chicago, IL, that provides infrastructure engineering and design services to electric utilities, gas utilities and communications services companies, as well as permitting and utility locating services. This acquisition meaningfully enhances Quanta's turnkey engineering capabilities in its core utility markets and particularly strengthens its communications engineering capabilities.

Update to Quanta's Response to and the Effects of the COVID-19 Pandemic
Quanta continues to take proactive measures to protect the health and safety of its employees through the implementation of its pandemic plan and is operating based on the guidelines set forth by the Centers for Disease Control and Prevention and the Occupational Safety and Health Administration. Quanta also continues to implement initiatives such as specialized training, social distancing, additional protective equipment for its employees in the field, and additional sanitizing measures for offices, vehicles and equipment. Quanta continues to restrict non-essential business travel, apply work-from-home policies where appropriate and develop other human resource-related guidance to help employees stay safe and healthy. To date, Quanta has not experienced any meaningful impact on the availability of its workforce or key personnel as a result of the COVID-19 pandemic. Additionally, Quanta continues to implement its business continuity plan and collaborate with customers to minimize potential service disruptions and to proactively anticipate how COVID-19 may impact the company's operations.

As discussed on Quanta's first quarter 2020 earnings call and as expected, certain portions of Quanta's operations were materially impacted in the second quarter by the effects of the COVID-19 pandemic. The most meaningful impacts resulted from shelter-in-place restrictions in certain major metropolitan markets that were significantly impacted by the COVID-19 pandemic, which negatively impacted Quanta's gas utility infrastructure services, and from access restrictions at industrial and refining facilities and the rapid decline in global demand for refined products, which impacted demand for Quanta's industrial services at refineries. The COVID-19 pandemic has also had a significant impact on Quanta's LATAM operations, as described above, and compounded broader challenges in the energy market, which has affected demand for certain other services in Quanta's Pipeline and Industrial Infrastructure Services segment.

 

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