Founded in 1997 and headquartered in Houston, TX, Quanta Services (PWR), Inc. provides engineering, procurement, and construction (EPC) services to markets in the United States, Canada, and Australia. The company is the largest energy infrastructure specialty contractor in North America. PWR reports under two different operating segments, Electric Power Infrastructure Services and Oil & Gas Infrastructure Services. Quanta Services is an industry leader in electric power and oil & gas pipeline construction in North America. The FT 500 Company services more than 90% of Canadian utilities and more than 60% of all investor-owned utilities in the United States. In 2015, the company has strengthened its position with continued commitment to expansion …show more content…
In 2015, the company sold their third operating segment, fiber optic licensing, to Crown Castle, for a value of around $1 billion in cash. The company’s rationale behind the sale is that it 1) enables them to focus on energy infrastructure markets 2) unlocks the value of undervalued fiber optic licensing operations 3) would have required significant capital investments to continue operations in the rapidly changing environment of fiber optics. Quanta transitioned into the lit fiber market but the fiber optic industry was beginning to mature and margins were low so Quanta chose to abandon the business …show more content…
Services performed by the Electric Power Infrastructure Services segment generally include the design, installation, upgrade, repair and maintenance of electric power transmission and distribution infrastructure and substation facilities along with other engineering and technical services. Notable projects Quanta has worked on include in 2012 when they combined 325,000 solar modules over 750 in Central California. In addition, in 2013, the company was contracted in the Competitive Renewable Energy Zone, where they provided 2,300 workers to construct 1,800 miles of transmission lines. Additionally, in 2013, they partnered with American Electric Power to construct the longest transmission line in Texas. In 2014, Quanta was selected to install over 500 miles of transmission line through rugged Northeastern Canada. Also in 2014, First Energy chose Quanta to partner in a multiyear deal in improving transmission lines in the Northeastern United States. At 68%, the Electric Power Infrastructure segment produced a majority of the company’s revenue in 2014. Electric Power Infrastructure Segment Future Outlook Quanta is bullish on the future outlook for Electric Power Infrastructure. A driving force for profitability in the future is the need for the continued maintenance on current electric power products. Additionally, regulation is driving investments