November 8, 2010 / 3:58 PM / in 8 years

Aecon wins construction contract on W. Canada dam

* Joint contract with construction unit of SNC-Lavalin

* Stock rises almost 2 pct

* Contract awarded by SNC-Lavalin

VANCOUVER, Nov 8 (Reuters) - Aecon Group Inc (ARE.TO) said on Monday it has won a contract — worth an estimated C$200 million ($200 million) according analysts — to work jointly on a major hydroelectric dam project in British Columbia.

A joint venture of Aecon, Canada’s biggest publicly listed construction company, and the construction unit of SNC-Lavalin Group Inc (SNC.TO) were awarded the civil works design and construction portion of the Waneta Expansion Project.

The news comes after a tough week for Aecon when weaker than expected results wiped 15 percent off the value of its stock. Its shares were up 17 Canadian cents, or 1.7 percent, at C$10.41 on Monday morning.

Aecon did not say how much the contract was worth but two analysts estimated it would generate revenues for the group of around C$200 million.

“This new contract supports our thesis that 2010 is likely the cyclical trough for Aecon, as there is increasing visibility for rising revenues and profitability in the coming years,” Macquarie analyst Avi Dalfen said.

Aecon was awarded the job by engineering group SNC-Lavalin, which announced late last month that it had signed a C$587 million contract to expand the hydroelectric power plant in southeastern BC.

$1=$1.00 Canadian Reporting by Nicole Mordant; editing by Rob Wilson

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