SPRUCE GROVE, ALBERTA -- (Marketwire) -- 01/16/13 -- ENTREC Corporation (TSX VENTURE: ENT) ("ENTREC" or the "Company"), a leading provider of cranes and heavy haul transportation services, today approved a $50 million capital expenditure program for 2013. The program consists of growth capital expenditures of $41 million and $9 million in maintenance capital expenditures.
"Moving into 2013, demand for our services remains very strong across the resource and industrial sectors we serve," said John M. Stevens, ENTREC's President and COO. "Our 2013 capital expenditure program will enable us to meet customer demand and continue to enhance our position as one of Western Canada's largest providers of both crane and heavy haul transportation services."
ENTREC believes oil sands infrastructure investment will continue to be a key driver of demand for its services throughout 2013 and 2014. In addition, ENTREC's recent acquisitions of Rain Coast Cranes & Equipment Inc. ("Rain Coast") and Tiggo Transport Ltd. ("Tiggo") position the Company to benefit from the burgeoning industrial development occurring in Northern BC and Northwest Alberta. This includes the development of LNG facilities planned for the Northwest, BC region, as well as ongoing mining, hydro-electric, pipelines, and oil and gas projects throughout these areas.
2013 Capital Expenditure Program
ENTREC's 2013 capital expenditure program will include:
Cranes (all-terrain, rough terrain, crawlers, truck cranes) $ 20 millionPicker trucks $ 4 millionHeavy haul transportation equipment $ 15 millionFort McMurray land purchase $ 5 millionOther $ 6 million----------------------------------------------------------------------------Total $ 50 million
A large portion of the 2013 capital expenditure program will focus on the continued building of ENTREC's capability and market share in crane services. The Company anticipates that it may obtain additional crane units through rent-to-purchase options to further support expected demand.
Crane services are highly complementary to heavy haul transportation as they allow customers to obtain both their heavy haul and lifting needs from one vendor. Crane services also increase access to recurring onsite maintenance, repair and operation ("MRO") support work in the Alberta oil sands region, as well as to the significant industrial construction work occurring in both the oil sands and in Northwest BC. ENTREC has been building a strong presence in the crane market with its June 2012 acquisition of the Mains Group of Companies and October 2012 acquisition of Rain Coast. On December 31, 2012, ENTREC further expanded its crane capabilities with the acquisition of Taylor Crane Service, Inc. ("Taylor Crane"), which services customers in the Bakken oil formation region.
ENTREC's 2013 capital program includes $5 million in growth capital earmarked to complete the purchase of a new 10-acre property located in Fort McMurray, Alberta. The Company intends to build a shop and office on the property to support ENTREC's growth in the region.