Shares of Shawcor rose as much as six per cent in early trading in Toronto after the company announced it will begin a strategic review of its pipeline and oil field units, including a potential sale.
The oil field services company, which also has a wastewater unit, said that a potential sale of one or all of the three of its Pipeline Performance Group, Shaw Pipeline Services, and Oilfield Asset Management units could unlock value for the company.
“The steps announced here are important elements in our ongoing strategy to unlock long-term profitable growth and demonstrate our commitment to continuing the transformation of our Company; by simplifying our portfolio, lowering volatility and elevating full-cycle margins and free cash flow,” Mike Reeves, president and CEO of Shawcor, said in a release.
The company said there’s no assurance any sales will take place, and did not specify a timeline for any transaction.
The company also announced plans to rebrand itself as Mattr. The name change is expected to take place in the first half of 2023, subject to regulatory and shareholder approvals.
The company has hired Goldman Sachs as its advisor in the strategic review of its Pipeline Performance Group unit.