Ameresco Provides Southern California Edison (SCE) Project Update
April 10 2022 - 2:45PM
Business Wire
Ameresco, Inc. (NYSE:AMRC), a leading cleantech integrator
specializing in energy efficiency and renewable energy, today
announced updates on recent communications with the battery
supplier for Ameresco’s battery energy storage systems (BESS)
projects with Southern California Edison Company (SCE). Due to the
COVID-19 lockdowns in several regions around China, the supplier
has indicated to Ameresco an adverse impact on the supplier’s
ability to deliver batteries on the agreed upon timeline. In
addition, newly implemented Chinese transportation safety policies
may cause delays in the shipment of a portion of the batteries.
Ameresco has been evaluating the circumstances described in the
supplier’s communications as well as the impact they may have on
the timeline for the BESS projects. Although these circumstances
may prevent Ameresco from fully completing all three BESS projects
by August 1, 2022, Ameresco believes that the events described in
the communications constitute force majeure events under Ameresco’s
Turnkey Engineering, Procurement, Construction and Maintenance
Agreement dated October 20, 2021 with SCE (the “EPCM Agreement”).
Ameresco has accordingly notified SCE and is in communications with
SCE and the supplier about the circumstances. Under the EPCM
Agreement, the guaranteed substantial completion date for the BESS
projects can be extended without the imposition of liquidated
damages in the event of a force majeure event.
Against market challenges, significant milestones have already
been achieved in the BESS projects, including securing high and
medium voltage transformers, auxiliary transformers, inverters, all
switchgear and ancillary equipment. Construction related activities
are proceeding at all project sites in preparation for battery
delivery. Ameresco is also actively working with its suppliers and
SCE to avoid or mitigate potential delays, including working with
the Port of Long Beach on expedited ship and container
handling.
Ameresco continues to monitor developments in China and their
potential effects on the BESS projects. Based on its current
visibility, Ameresco does not expect potential battery supply
delays to materially impact 2022 results and reaffirms the annual
earnings guidance announced on February 28, 2022.
Ameresco expects to provide further updates and outlook
regarding the BESS projects, when it announces financial results
for the quarter ended March 31, 2022 in early May.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading
cleantech integrator and renewable energy asset developer, owner
and operator. Our comprehensive portfolio includes energy
efficiency, infrastructure upgrades, asset sustainability and
renewable energy solutions delivered to clients throughout North
America and Europe. Ameresco’s sustainability services in support
of clients’ pursuit of Net-Zero include upgrades to a facility’s
energy infrastructure and the development, construction, and
operation of distributed energy resources. Ameresco has
successfully completed energy saving, environmentally responsible
projects with Federal, state and local governments, healthcare and
educational institutions, housing authorities, and commercial and
industrial customers. With its corporate headquarters in
Framingham, MA, Ameresco has more than 1,200 employees providing
local expertise in the United States, Canada, and Europe. For more
information, visit www.ameresco.com.
Forward Looking Statements
Any statements in this filing about future expectations, plans
and prospects for Ameresco, Inc., including statements about
expected future financial results, the expected timeline of SCE
Project and the nature and duration of the circumstances surround
the project, and other statements containing the words “projects,”
“believes,” “anticipates,” “plans,” “expects,” “will” and similar
expressions, constitute forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those indicated by such
forward looking statements as a result of various important
factors, including the timing of, and ability to, enter into
contracts for awarded projects on the terms proposed or at all; the
timing of work we do on projects where we recognize revenue on a
percentage of completion basis, including the ability to perform
under recently signed contracts without delay; demand for our
energy efficiency and renewable energy solutions; our ability to
arrange financing to fund our operations and projects and to comply
with covenants in our existing debt agreements; changes in federal,
state and local government policies and programs related to energy
efficiency and renewable energy and the fiscal health of the
government; the ability of customers to cancel or defer contracts
included in our backlog; the effects of our acquisitions and joint
ventures; seasonality in construction and in demand for our
products and services; a customer’s decision to delay our work on,
or other risks involved with, a particular project; availability
and costs of labor and equipment particularly given global supply
chain challenges; our reliance on third parties for our
construction and installation work; the addition of new customers
or the loss of existing customers including our reliance on the
agreement with SCE for a significant portion of our revenues in
2022; the impact from Covid-19 on our business and the SCE project;
market price of the Company's stock prevailing from time to time;
the nature of other investment opportunities presented to the
Company from time to time; the Company's cash flows from
operations; cybersecurity incidents and breaches; and other factors
discussed in our Annual Report on Form 10-K for the year ended
December 31, 2021, filed with the U.S. Securities and Exchange
Commission (SEC) on March 1, 2022. The forward-looking statements
included herein represent our views as of the date hereof. We
anticipate that subsequent events and developments will cause our
views to change. However, while we may elect to update these
forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date
hereof.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220410005046/en/
Media Relations Leila Dillon, 508.661.2264,
news@ameresco.com
Investor Relations Eric Prouty, AdvisIRy Partners, 212.750.5800,
eric.prouty@advisiry.com Lynn Morgen, AdvisIRy Partners,
212.750.5800, lynn.morgen@advisiry.com
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