CALGARY, ALBERTA - Dec. 11, 2013 /CNW/ - Newalta Corporation (TSX:NAL) announced its capital plan for 2014 and organization updates.
Our 2013 capital expenditures will be approximately $175 million, with growth capital of $145 million. Our investments in New Markets and Oilfield were consistent with the capital budget. Industrial growth expenditures were down $15 million from the budget of $30 million.
Reflecting the ongoing strength of our pipeline of capital projects and organic growth opportunities, particularly in New Markets and Oilfield, our 2014 capital budget is $180 million, with growth capital and maintenance expenditures of $145 million and $35 million, respectively. We will continue to invest in New Markets and Oilfield to drive strong returns in our core growth areas.
Growth expenditures are budgeted at $70 million for New Markets, $40 million for Oilfield, $8 million for Industrial and $12 million for onsite equipment available to all divisions. The remaining $15 million in growth capital expenditures is for Technical Development and corporate investments.
The capital program will be funded predominantly by funds from operations.
Productivity Improvements and Cost Control
In addition to driving strong growth in 2014, we are focused on improving returns generated by our existing operations. A comprehensive review is being undertaken to improve productivity and profitability, particularly in the Industrial Division and in Selling, General and Administrative ("SG&A") expenses. Specific actions to streamline and realign resources, as well as rationalize business lines and facilities, are being developed for implementation in early 2014. We will provide an update on our progress with the release of our 2013 annual results.
"We are focused on improving the performance of our existing assets as we invest in low-risk, high-return opportunities to grow our business," said Al Cadotte, President and CEO. "We expect a strong contribution from both priorities in 2014."
Organization Updates
- Terry Donaleshen, Senior Vice President, Organization Development, is retiring as planned on December 31, 2013. Mr. Donaleshen has been with the company since 1997.
- Peter Dugandzic is appointed Executive Vice President, Corporate Services effective January 6, 2014 and will oversee Human Resources; Environment, Health and Safety; Sustainability; Engineering; and Capital Management. Mr. Dugandzic has been with Newalta since 1994 and, most recently, oversaw the Industrial Division.
- Todd Moser is joining Newalta as Senior Vice President, Industrial effective January 6, 2014. Mr. Moser has 25 years of experience in the recovery and recycling field and natural resources sectors.
- Mike Borys, Executive Vice President and Chief Financial Officer, is recovering from a planned surgery and will be away from the office until February 2014. Linda Dietsche, Vice President, Finance, has assumed Chief Financial Officer duties in his absence.
Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,000 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
This press release contains forward-looking information. More particularly, this press release contains forward-looking information concerning the amount of the capital budget for 2014, proposed capital expenditure allocations and funding, growth strategy and implementation, the results of such expenditures and strategy, including expected profitability. Although Newalta believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on it because Newalta can give no assurance that it will prove to be correct. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this press release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include: failure to realize growth anticipated by the proposed capital spending[due to a number of factors, including reduced demand for our services, a reduction in funds from operations, ability to transition short term projects to long term contracts, ability to commercialize new technologies, limitations on bank borrowing, fluctuations in commodity prices or drilling activity, currency value and interest rates, increased costs for equipment purchases and facility construction and delays in obtaining equipment, necessary regulatory approvals and in the construction of facilities. In addition, Newalta regularly assesses the allocation of capital expenditures and, as such, the aggregate dollar amount to be expended and the amounts allocated to each growth area and operating division may be reallocated between the divisions and specific projects. Readers should also be aware that the forward-looking information is also affected by the risk factors described in Newalta's other annual information form and those set forth from time to time in Newalta's continuous disclosure filings with Canadian securities regulatory authorities, which are available under Newalta's SEDAR profile at www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.