Perma-Pipe International Holdings announces acceptance into QatarEnergy’s Tawteen Program

Rhea-AI Summary

PERMA-PIPE International Holdings, Inc (Nasdaq: PPIH) has been accepted into QatarEnergy’s Tawteen program, aiming to provide pre-insulated piping systems, custom fabrication, and 3-layer polyethylene coatings for QatarEnergy projects. This partnership is crucial as QatarEnergy expands its LNG production capacity, and Perma-Pipe will play a significant role in supporting the realization of Qatar National Vision 2030 and the growth and diversification of Qatar’s economy.

Positive

• Acceptance into QatarEnergy’s Tawteen program opens new business opportunities for Perma-Pipe in the Qatari market.
• Expansion of LNG production capacity by QatarEnergy presents a significant growth potential for Perma-Pipe.
• Partnership with QatarEnergy aligns with Perma-Pipe’s expertise in providing piping solutions for oil and gas, district heating and cooling, and other applications.

Negative

• None.

Market Research Analyst

The inclusion of PERMA-PIPE International Holdings, Inc. into QatarEnergy's Tawteen program signifies a strategic expansion in the Middle East, particularly within the Qatari market. This move is indicative of PERMA-PIPE's commitment to align with Qatar's National Vision 2030 and contribute to the country's economic diversification. The collaboration could potentially increase PERMA-PIPE's market share in the region and bolster its position as a supplier of pre-insulated piping systems and related technologies.

With QatarEnergy's planned increase in LNG production capacity, there is an anticipated rise in demand for the construction of related infrastructure. PERMA-PIPE's expertise and established presence since 2006 position the company to capitalize on this growth. The local facility's involvement suggests a focus on enhancing operational efficiencies and reducing lead times, which could lead to improved margins and competitive advantages.

From a market perspective, PERMA-PIPE's participation in the Tawteen program could be seen as a proactive response to the evolving energy sector's needs in the region. It may also reflect the company's agility in leveraging local partnerships to drive business growth. Investors may view this development favorably, considering the potential for long-term revenue streams and the strengthening of PERMA-PIPE's regional footprint.

Financial Analyst

PERMA-PIPE's acceptance into the Tawteen program is likely to have a tangible impact on its financial performance. The expansion of LNG production capacity by QatarEnergy represents a substantial business opportunity and PERMA-PIPE's involvement is poised to contribute positively to its revenue growth. By establishing a more significant presence in the Qatari market, the company is likely to benefit from economies of scale and potentially improved profit margins.

Investors should monitor the company's future financial statements to assess the actual impact of this development on its bottom line. Key indicators would include revenue growth from the MENA region, changes in operational costs due to local production efficiencies and the contribution of new contracts to the company's backlog. The strategic nature of this partnership also suggests potential for multi-year engagements, which could provide a stable and predictable revenue stream.

It is important to note that while the news is positive, the actual financial benefits will depend on PERMA-PIPE's execution capabilities and the successful integration of its technologies with QatarEnergy's projects. Investors should also consider the geopolitical risks inherent in the region, which could affect the company's operations and financial outcomes.

Energy Sector Analyst

The energy sector is undergoing a significant transformation, with a focus on increasing efficiency and reducing environmental impact. QatarEnergy's initiative to expand LNG production aligns with the global trend of shifting towards cleaner energy sources. PERMA-PIPE's role in providing pre-insulated piping systems and other technologies is crucial for the development of the necessary infrastructure to support this expansion.

Pre-insulated piping systems are essential for maintaining the temperature and integrity of transported fluids, which is particularly important in LNG applications where temperature control is critical. The adoption of PERMA-PIPE's latest innovative technologies by QatarEnergy could set a precedent for other companies in the sector and highlight the importance of advanced infrastructure in the energy industry's growth.

As QatarEnergy aims to increase its LNG production capacity significantly by 2026, this could have a ripple effect on the global LNG market, influencing supply dynamics and potentially affecting LNG pricing. PERMA-PIPE's involvement in this expansion project could provide insights into emerging trends and technologies in the energy sector, which could be valuable for stakeholders and investors interested in the industry's future direction.

SPRING, Texas--(BUSINESS WIRE)-- PERMA-PIPE International Holdings, Inc (Nasdaq: PPIH) today announces its acceptance into QatarEnergy’s Tawteen program.

Tawteen is the Supply Chain Localization Program for the energy sector in Qatar led by QatarEnergy. PERMA-PIPE will aim to provide pre-insulated piping systems, custom fabrication and 3-layer polyethylene coatings for QatarEnergy projects.

Saleh Sagr, Senior Vice President for PERMA-PIPE’s MENA region commented, “We are pleased to announce and place great significance on our relationship with QatarEnergy and the Qatari market. QatarEnergy is in the process of expanding its LNG production capacity from 77 million mtpa to 126 million mtpa by 2026, and this will require the construction of compression facilities and pipelines. We have served this market since 2006 and now, through the Tawteen Program, our local facility will be able to work more closely with QatarEnergy providing our latest innovative technologies.”

David Mansfield, President and CEO of PERMA-PIPE International Holdings, Inc stated, “The Tawteen program has three primary objectives; to support the realization of Qatar National Vision 2030; to establish sustainable and competitive in-country suppliers that meet the requirements of Qatar’s Energy sector; and, to support the growth and diversification of Qatar’s economy. We are extremely proud to be able to deliver to all areas of this program.”

Perma-Pipe International Holdings, Inc.

Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in pre-insulated piping and leak detection systems for oil and gas, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, Perma-Pipe has operations at fourteen locations in six countries.

Forward-Looking Statements

Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) decreases in government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related to the Company's international business operations; (xvii) the Company’s ability to attract and retain senior management and key personnel; (xviii) the Company’s ability to achieve the expected benefits of its growth initiatives; (xix) the Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) the impact of cybersecurity threats on the Company’s information technology systems. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at https://www.sec.gov and under the Investor Center section of our website (http://investors.permapipe.com).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240103549822/en/

Perma-Pipe International Holdings, Inc.

David Mansfield, President, and CEO

Perma-Pipe Investor Relations

847.929.1200

investor@permapipe.com

Source: Perma-Pipe International Holdings, Inc.

FAQ

What is the significance of PERMA-PIPE International Holdings, Inc's acceptance into QatarEnergy’s Tawteen program?

PERMA-PIPE International Holdings, Inc's acceptance into QatarEnergy’s Tawteen program opens new business opportunities in the Qatari market, aligning with the company's expertise in providing piping solutions for oil and gas, district heating and cooling, and other applications.

What are the primary objectives of the Tawteen program?

The Tawteen program aims to support the realization of Qatar National Vision 2030, establish sustainable and competitive in-country suppliers for Qatar’s energy sector, and support the growth and diversification of Qatar’s economy.

How will Perma-Pipe contribute to QatarEnergy's expansion of LNG production capacity?

Perma-Pipe aims to provide pre-insulated piping systems, custom fabrication, and 3-layer polyethylene coatings for QatarEnergy projects, supporting the expansion of LNG production capacity from 77 million mtpa to 126 million mtpa by 2026.