TORONTO – Pipeline services company ShawCor Ltd. (TSX:SCL.A) said Thursday it earned $80.3 million in the fourth quarter, up sharply from a year ago, helped by a more than 30 per cent jump in revenue.
The company said the profit amounted to $1.13 per diluted share for the quarter ended Dec. 31, up from $23.2 million or 32 cents per diluted share a year ago.
Revenue in the fourth quarter increased to $448.4 million, up from $341.8 million reported in the fourth quarter a year ago.
For the full year, the company said it earned $178.4 million or $2.50 per diluted share on $1.48 billion in revenue. That compared with a profit of $56.3 million or 78 cents per diluted share on $1.16 billion in revenue in 2011.
Last month, the company announced a plan to eliminate its dual share structure.
Under the proposal, which requires shareholder and court approval, all of the company’s class A and class B shares will be purchased by a newly formed Canadian company.
Class A shares are to be exchanged on a one-for-one basis with the new company. Class B shares are to be exchanged for a mix a mix of new common shares and cash — either $43.43 in cash or 1.1 new common shares such that 90 per cent of the total consideration will be paid in cash and 10 per cent in new common shares.
At closing, a special dividend of $1 per share is to be paid on all remaining shares, with the new corporation and ShawCor amalgamating under the name ShawCor Ltd.
A shareholder vote is scheduled for March 14.
If approved, the arrangement is expected to close late in the first quarter of 2013 or early in the second quarter.
ShawCor specializes in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry.