Black Diamond Reports Third Quarter 2020 Results - Seite 3

The Company continues to execute on its diversification strategy, a result of which is the setting of a third, consecutive, quarterly rental revenue record within the MSS segment.  Management expects ongoing rental revenue growth within this segment to be driven by fleet growth across the Company's North American footprint. Utilization within the MSS business has remained steady, despite broader macro-economic headwinds caused by COVID-19.   The current expectation is for utilization levels to remain relatively consistent, notwithstanding a slight seasonal slow-down through the holiday period at the end of the Q4 2020.   Management anticipates that Sales revenue for customer major projects within MSS will continue to be lower than normal given project delays and uncertainty caused by the COVID-19 pandemic.   

The WFS Segment performance has on balance been flat, with continued strength in Australia and modest improvement in camps rental utilization offset by weakness in the lodging and energy services business lines as drilling and completion activity remain at multi-year lows.  The Company continues to execute on diversifying its existing WFS business and expects approximately 1,000 beds to be on rent in Eastern Canada by year-end on several mining projects. The Company expects slightly lower Q4 2020 performance from the lodging business as seasonal holidays impact occupancy.  Camp rental revenue should improve modestly into 2021 on the back of newly awarded contracts, while Australia remains robust with a constructive outlook.  

On October 1, 2020, the Company announced that, in partnership with the Nova Scotia Mi’kmaq Communities, it had received a conditional Letter of Award from the proponents of the Goldboro LNG Facility for approximately $720 million to provide a workforce lodge in support of the Goldboro LNG Project.   Currently, the contract is expected to begin on or before June 30, 2021, which is the anticipated date for a final investment decision by the project proponent.   Black Diamond expects a significant increase to existing camp rental utilization levels over the term of the contract, which is currently anticipated to be in the range of four years.