Contract spurs ATCO’s earnings

Article Excerpt

ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $45 and ACO.Y [class II voting] $45; Income Portfolio, Utilities sector; Shares o/s: 114.7 million; Market cap: $5.2 billion; Price-to sales ratio: 1.1; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.atco.com), through its Structures division, recently formed a joint venture with Bird Construction Inc. (Toronto symbol BDT). That partnership is now working on a new contract to house 4,500 workers involved in the construction of a new liquefied natural gas (LNG) facility in Kitimat, B.C. ATCO and Bird expect to complete the project in early 2021. The company has yet to reveal how much it will earn from the project. However, thanks to new deals like this, earnings at the Structures business tripled in the first quarter of 2019. ATCO class I stock is a buy. buy…

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