The board of directors of CERF Inc. has approved an increase to CERF’s capital budget in 2014, with the company expecting to spend CDN $11.3 million (about U.S. $10.2 million) compared to $7.7 million in 2013. CERF is the parent company of Edmonton, Alberta, Canada-based 4-Way Equipment Rentals as well as MCL Waste Systems & Environmental.
The company plans to devote $4 million to maintenance capital, which it defines as the amount of capital expenditures required to keep its operating assets functioning at the same level of efficiency and to maintain the average age of the rental fleets at the same average age as it was at the end of the previous year. The balance of the $7.3 million will be used for growth within the various CERF businesses.
“Based on the strong demand for our construction and oilfield-related equipment, the board of directors believed that it was important to increase our 2014 capital budget to take advantage of this activity,” said CERF president Wayne Wadley. “Construction activity in the Edmonton and surrounding northern Alberta areas is forecasted to be robust for the next several years as both major and smaller projects are kicking off or are on the books for development. This activity also can translate into increased opportunities for the collection, transportation and placement of construction waste through the various operated MCL facilities in the region, garnering increasing profits for that company.
“We are also excited to have the MCL contracts extended,” added Wadley, referring to MCL Waste Systems being awarded operating contract extensions to its core business at three of its managed municipally owned facilities located in central and northern Alberta, an approximately $23 million contract for five years.
4-Way Equipment Rentals is No. 85 on the RER 100.