“One of the issues the market is grappling with is the degree to which some of the idle assets that all camp providers own right now will be redeployed into the Fort McMurray area to house people for the rebuilding process,” said Bradford.
WesternOne Inc., a Vancouver-based company focused on acquiring and operating businesses in the construction and infrastructure industries, rallied as much as 41 percent.
The stock for Horizon North Logistics Inc., a Calgary-based support-services company, which markets both temporary, movable modular structures and permanent full-service guest lodges, was up 35 percent in trading. Horizon has two lodges 19 miles north of the fort. CEO Rod Graham said from the company headquarters in Calgary their first concern is the safety of residents in the area.
No deaths or injuries have been reported yet. The Alberta government evacuated two communities over 21 miles south of Fort McMurray. Bradford added, “So far none of these companies that are housing evacuees are invoicing anybody as far as I can tell. But I don’t think companies will do that forever, by any stretch of the imagination.”
Morgan Stanley estimates oil production has fallen by 400,000 barrels a day as producers have opened their modular workforce housing to refugees from the fierce blaze. ##
(Image credit: globalregina-workforce housing in Canada)
