ClearStream Energy Up on $90 Million in New Contracts
Shares of ClearStream Energy Services (TSX:CSM) are having their best day of 2017 since January 2 on news that the Calgary-based maintainence services company has secured three new contracts, creating stability for 2018 and going forward.
ClearStream was brief in describing the contracts, only providing a quick overview of each. One was a three-year operational workforce management contract with a major oilsands producer. Work is expected to start on this contract by the end of 2017. Second, ClearStream will be completing a refinery turnaround in eastern Canada in the second half of 2018. This contract represents the first ever for Clearstream (through its subsidiary Clearwater Energy Services) in the eastern part of the country.
Lastly, the company was awarded a two-year pipeline logistics and inspection contract, which is expected to start early next year.
The three contracts are forecast to generate $90 million in new backlog overall and $40 million in revenue that will be realized in 2018.
Over one million shares of CSM have already been traded less than 90 minutes into Monday's session, already the best volume day since early June and looking like it could be the most active trading day for ClearStream stock since May 2016. After closing Friday at seven cents, shares have blasted ahead to 12.5 cents so far, for an early gain of 78.6% on the day.