MAY 2017

in this issue ... Pennecon says THE DIFFERENCE goodbye to Founder A PENNEY CAN MAKE and Co-Chairman, SPOTLIGHT ON: SUBSTATION Mr. Ches Penney AND TRANSFORMER WORK EMPLOYEES GET KUDOS FOR ENVIRONMENTAL ACTION CONTINUED FROM COVER WE WILL NEVER FORGET THE DIFFERENCE A PENNEY CAN MAKE

A Message from the Executive Chairman

On January 26th, 2017, we said goodbye to Pennecon’s Founder and Co-Chairman, Ches Penney, who passed away peacefully at the age of 84, surrounded by his loving family. He lived a long and full life, and we are thankful to have had the opportunity to work with him, learn from him, and laugh with him.

The Skipper, as many of us affectionately called him, was a visionary leader known for his transparency, his grit, his charity, and his humility. He has been recognized on a personal level for his business success and philanthropy. His commitment to the people and the province of and Labrador will be felt for generations.

Ches credited his success to his partners and employees. He often illustrated his wisdom on succession planning by saying, “I set up my businesses so that when I’m gone, it will make no difference.”

Of course, we all know it makes a great deal of difference. Indeed I, like so many of the people who worked with him, will deeply miss his passion, his antics and his presence. However, I can agree with confidence that Pennecon will continue to grow and thrive – and that is, in part, because of Ches’s knack for selecting capable, hardworking people and empowering them to succeed.

So here’s to Ches! A great businessman, partner, community builder, and friend. Let’s commit to honouring the Skipper’s legacy by continuing the work he was so passionate about, while staying true to the values he held dear: hard work, honesty and integrity.

Sincerely,

Larry Puddister, P.Eng Executive Chairman, Pennecon Limited

2 CHES PENNEY

Ches was born in 1932 Ches and his wife, Iris, lived in CBS, and enjoyed spending time yachting at 01 in , the eldest 03 their summer home in Brigus. He had 9 children, 1 stepchild, 17 grandchildren, of 12 children and 1 great grandchild.

2017 1932 Over the course of his career, his business portfolio has included He began work as a bank teller in Grand Falls, shares and investments in a wide array of ventures: Grocery and in 1955, became the Bank of Commerce 02 04 + Automobiles + Real Estate + Construction + Oil&Gas + Bowling (now CIBC)’s youngest bank manager + Fishing and Processing + Marine Transportation + Shipping

“As a Dad, he encouraged “They say the secret to “It would be hard to find someone “I think he’ll go down us to be strong, he was very success is finding a good in Newfoundland and Labrador who in history as one of the transparent, honest, he spoke mentor. We have been very hasn’t heard Ches Penney’s name, greatest contributors his mind, and he expected blessed to have had the but it would be impossible to find to the success of our us to do the same, to take opportunity to work with Ches. someone who hasn’t been impacted province that we’ve responsibility for our actions, He was always willing to share by his enormous contribution to ever seen.” to live honestly, and to his experiences in life to our province. The economic activity, – MARTIN SULLIVAN respect those who were less help guide us to be the very infrastructure, employment and FORMER BUSINESS PARTNER AND CEO OF OCEAN CHOICE INTERNATIONAL fortunate than us.” best that we could be.” wealth he has generated through bold – GAIL PENNEY – DAVID MITCHELL ambition and unflinching determination DAUGHTER AND PRESIDENT CHIEF EXECUTIVE OFFICER have benefited all of us.” OF PENNEY GROUP PENNECON LIMITED – PAUL DAVIS FRIEND AND FORMER PREMIER NEWFOUNDLAND AND LABRADOR

NOTABLE COMMUNITY AWARDS AND RECOGNITIONS SPONSORSHIPS • Order of • Order of Newfoundland and Labrador • Honourary doctorate from Memorial University of Newfoundland • Junior Achievement Newfoundland and Labrador Business Hall of Fame • EY Lifetime Achievement Award • Paul Harris fellow with Rotary International • Canadian Red Cross Humanitarian Award

You have to trust and empower the people you share your business life with. That means your partners, colleagues and employees. It all comes down to talent and trust. You need both. On top of that, you need drive and work ethic. Hard work is how we survive. Trust your gut. Gather the facts, but trust your instincts and act on them. Hire the right people and empower them. A good deal is a deal that works for both sides.

– CHES PENNEY

3 TECH TALK WHAT’S What is Spam? by Wayne Brushett, GOING ON AT Information Technology Manager PENNECON? Spam email is designed to deliver a virus or trojan, harvest address books and personal information, or hijack your computer. A sample of current projects from our group of companies • It is estimated that 55 billion spam emails are sent each day worldwide.

• Pennecon’s spam filters are blocking an average of32,000 HEAVY CIVIL spam messages per day.

• Construction of the north and south dams for Nalcor Even with advanced technology, the spam epidemic is costing Energy’s Muskrat Falls hydroelectric generating facility in organizations considerable time, money, and resources. The Churchill Falls, Labrador following tips and tricks will help protect Pennecon’s network. • Site works and wind farm construction for Algonquin Power’s

Wind Energy Project in Amherst Island, Be cautious when opening attachments and • Rehabilitation of Hydro’s Slave Falls Creek Spillway, downloading files. If you weren’t expecting an email with an located next to the Slave Falls Generating Station on the attachment or download link, proceed with caution. If you don’t Winnipeg River in Manitoba recognize the sender, it’s likely spam.

Beware of email spoofing. Email spoofing is the forgery of an email header so that the message appears to have originated SERVICES from someone you know. Email spoofing is a tactic used by spammers to get recipients to open or respond to a solicitation. • Ongoing maintenance services at Vale’s Nickel Processing One example involves spoofing emails from the CEO, CFO or Facility in Long Harbour, Newfoundland and Labrador manager of a company and requesting that wire transfers be • Ongoing hydraulic services for PSN Wood Group’s Hebron processed to a supplier or bank account. If you believe that a Project contract in Bull Arm, Newfoundland and Labrador wire transfer request is legitimate, verify the request by calling • Servicing, repair and storage of pole top transformers for the individual to confirm. ABB and Newfoundland Power in various municipalities across

Newfoundland and Labrador Watch out for phishing scams. Phishing scams use • Marine services, including offloading transformers, for Nalcor fraudulent emails and fake websites, masquerading as legitimate Energy’s Muskrat Falls Project businesses to lure users into revealing personal, credit card, username and password information. If you receive an email that includes a link to a website, make certain that the site is legitimate. Instead of clicking through to the website from within CONSTRUCTION AND FABRICATION the email, open a separate web browser and visit the business website directly to perform the necessary actions. You can also • Industrial services for GE Solutions’ Soldiers Pond contract verify the email by calling the business or agency. (converter station, switchyard and condenser facility) in

Newfoundland and Labrador Do not reply to spam email. If you don’t recognize the • Hook-up and spool support for Aker Solutions’ Hebron Project sender, don’t respond. Even replying to unsubscribe to spam mail contract in Bull Arm, Newfoundland and Labrador could set you up for more spam. • Labour support and equipment rental for Fagioli’s Hebron Project contract in Bull Arm, Newfoundland and Labrador

If you are unsure of the validity of an email or have questions, contact the Information Technology Department at 709-782-5730 or email [email protected]

4 Employee Profile

How long have you worked with Pennecon and what positions have you held? I have been the QHSES Advisor with Pennecon Energy Marine Base (PEMB) since July 2012, and in November 2014 took on the same role at Pennecon Energy Grand Banks Warehousing. EMPLOYEE What’s your fondest memory or most memorable moment with Pennecon? MEGAN Upshall In November 2012, I was asked to attend a risk assessment meeting in Breda, Netherlands for the Tideway Rock Placement Project. It’s been QHSES Advisor, Pennecon Energy Marine Base (PEMB) my only trip to Europe and I’m grateful to have had the opportunity to visit another country.

What do you like most about working at Pennecon? I like that hard work is recognized and appreciated. A ‘thank you’ or What inspires you? ‘good job’ goes along way, and you get that here. My 3-year-old son inspires me. He inspires me to live a healthy and outgoing life and to always better myself in my career. What do you think is the most important value of any organization? As a child, what did you want to be when you Respect. Treat people with courtesy and kindness. Encourage and listen grew up? to your coworkers and employees. A Police Officer.

CHANGES AT MARINE BASE AND GRAND BANKS WAREHOUSING by Paul Stanley, Vice President, Services

Please join us in extending best wishes to Dave Elliott, who is retiring from his role as General Manager of Pennecon Energy Marine Base (PEMB) & Grand Banks Warehousing (PEGBW). Over the past 30 years, Dave has been a prime contributor to Pennecon’s growth and success, with his strong entrepreneurial spirit and great passion for getting the job done. Although Dave is retiring from his role as General Manager, he will continue to maintain an office at PEMB and contribute to business development and coordination of special projects on a consultancy basis. On behalf of Pennecon’s Board of Directors, management team, and all of our employees, I thank Dave for his dedicated years of service, and wish him and his family the best of luck in his semi-retirement and new role as “Poppy”! LEFT: Dave Elliott, former General Manager of PEMB I am thrilled to announce that Christian Somerton has been appointed General and PEGBW will continue to contribute to business development and coordination of special projects on Manager of Pennecon Energy Marine Base & Grand Banks Warehousing. Christian’s a consultancy basis following his semi-retirement passion for hard work, along with his client and industry relationships and leadership skills, will be an asset to PEMB and PEGBW as we work to expand our clientele and RIGHT: Christian Somerton, former Assistant General Manager, has been appointed General Manager of continuously improve our operations and performance. I look forward to working with PEMB and PEGBW. Christian, Dave, and all the team members at PEMB and PEGBW, each of whom play an important role in delivering sound professional services to our valued clients. I thank you for your continued commitment to Pennecon, and your contribution to our growth and success in the onshore and offshore industry sectors. 5 Pennecon Limited recently donated $100,000 to the Janeway Children’s Hospital Foundation. Executive Chairman Larry Puddister and CEO David Mitchell are pictured here, celebrating the donation with Janeway patient Augustus Beck.

At Pennecon, we value community, excellence and innovation. What better way for Pennecon to celebrate and deliver on those values than partnering with the Janeway Children’s Hospital Foundation, an organization that is serving our community by investing in the healthcare of Newfoundland and Labrador’s children, striving for excellence through continuous improvement of its programs and education for its staff, and embracing innovation through research and the purchase of modernized medical equipment. Executive Director Lynn Sparkes said, “The Janeway Children’s Hospital Foundation thanks Pennecon for their leadership gift, which will help us deliver the best possible care to Newfoundland and Labrador’s most precious resource – our children.”

In February, the Newfoundland and Labrador Offshore Oil Industries Our HR Generalist Ellie Jackson had the pleasure of presenting three Association presented Pennecon’s Construction and Fabrication $2,000 scholarships to children of Pennecon employees in December. Division with an award for achieving 30 years of membership and Ellie is pictured here with scholarship recipients Lydia Smith, contribution to the local oil and gas industry. Pennecon Energy M&M Kayla Viguers, and Melanie LaPierre. Congrats! Engineering’s Craig Manning (Operations Manager - Fabrication Services) is pictured here (left) accepting the award from Pennecon’s scholarship program showcases our commitment to Noia Board Director Andrew Bell. excellence in education and supports our employees’ dependents in the pursuit of higher learning. We award three $2,000 scholarships each year to full-time, post-secondary students, who demonstrate financial need, good academic standing, volunteer experience and community involvement. 6 SPOTLIGHT ON Transformer Services

INNOVATIVE SOLUTIONS LEAD Since then, PETS has purchased a processor truck and custom-built two mobile dry air trailers with specialized tools – innovative solutions TO NEW LINES OF BUSINESS that will allow us to better serve our clients. With these new systems, By Sarah Constantine, PETS offers the full gamut of mobile transformer services. According to Corporate Communications Manager Jim, “Driven by the exceptional operational skills of our project leader, Robbie Hayward, and the entire PETS team, we are quickly becoming When it comes to servicing substations and transformers the leader within Atlantic Canada through our relationships with major throughout Atlantic Canada, Pennecon’s capabilities are second utilities and clients.” to none. Transformer services are quickly becoming an important line of business for Pennecon Energy Technical Services (PETS) in Like ABB, most companies who own transformers used to perform Newfoundland and Labrador, and there is still plenty of room to grow, their own maintenance, but more and more, they’re trending toward both within NL and across Atlantic Canada. contracting this service out. And Pennecon is aiming to position ourselves as the contractor of choice for this work. “What we offer is “Our first major transformer job was at Oxen Pond in 2014 for our a local presence, a very quick response, and work that is known for client ABB,” said Jim Beaton, General Manager of PETS. The scope being high quality.” of work included assembly and commissioning support for the replacement of two transformers, but ABB had their own processor, PETS’ main clients for transformer services are Newfoundland and and managed the processing scope of the job themselves. “While Labrador’s two utilities: Newfoundland Hydro and Newfoundland working on this job, we observed and learned from ABB, and we began Power. But we also service private customers who own and operate thinking, We can do this… all we need is a processor!” their own transformers, such as North Altantic Refinery, Vale, Corner Brook Pulp and Paper, ABB, GE, Hyundai, Algonquin Power and various So the PETS team rented a processor, and subsequently executed a few fish plants throughout the province. transformer jobs. But they quickly realized they had the expertise and know-how to operate their own processor. And, with our new field offices throughout Atlantic Canada, we are well poised to take on work for the utilities in and , too. We have already completed two transformer services jobs in Nova Scotia, and we recently submitted tenders for transformer jobs in , Ontario, Manitoba and New Brunswick. What is a transformer? In the most basic sense of the term, a transformer is an electrical device that takes electricity of one voltage and changes it into What are transformer services? another voltage. For example, electricity travels through power lines at a high voltage, but needs to be stepped down by a PETS offers a comprehensive suite of transformer services, including: transformer in order to be used in your home. Transformers vary in • Assembly and installation size and capacity – from the small transformers on the utility poles • Field repair and maintenance outside your house, to the much larger transformers at substations • Relocation or large project sites. You might have noticed or heard about the • Condition assessment very large transformers that required traffic to be rerouted over • Mobile oil processing and de-gasification a period of several weeks, as they were shipped from Pennecon • Mobile dry air services Energy Marine Base on route to Muskrat Falls. • Commissioning 7 EMPLOYEES GET KUDOS FOR Positive Feedback From Provincial and Environmental Action Federal Regulators By John Murphy, Project Manager, Engineering Timely and detailed notifications made to Pennecon employees working on the Irving Marine Terminal - MGO Dock Project appropriate regulatory authorities as per protocol received big kudos from our client and regulators after quickly identifying and mitigating the release of environmentally dangerous chemicals into the St. John’s Harbour. Pro-active and efficient response to the incident

Our project staff were installing an oil-water separator when they noticed a minor Site personnel deployed extensive mitigations to sheen on the water at the face of the steel sheet pile, where they had previously contain and clean up the hydrocarbon excavated impacted soil. All relevant documentation was received and Upon identifying the sheen, site personnel worked quickly to deploy three layers of approved in a timely manner oil absorbent boom inside and outside the steel sheet pile, in addition to containment measures outside the pier structure. They also removed the contaminated water using Follow-up call and email to NL Department of vac trucks, loaded all the potentially contaminated soil into dump trucks, and brought it Environment and Conservation to ensure alignment to an approved facility for disposal and treatment.

Our client, Irving, as well as provincial and federal regulators, commented on Pennecon’s quick and efficient work to mitigate the effects of releasing hydrocarbon into the Harbour. Way to go, team! Environmental performance is a fundamental part of building our business. We work to meet and exceed applicable laws, regulations, and other requirements. We are proud of our company-wide commitment to the environment and we applaud the efforts of site personnel at the Irving MGO Dock Project.

PENNECON REAL ESTATE WINS SAFETY AWARD

Pennecon’s Real Estate Division is the proud recipient of this year’s BERG Safety Award. The Building Excellence Residential Growth, or “BERG” Awards, is an annual event hosted by the Canadian Home Builders Association (NL Chapter) to honour homebuilders throughout Newfoundland and Labrador for performance in a variety of categories. The Safety Award is judged on three criteria: Health and Safety Activity, Worker and Supervisor Training, and Health and Safety Experience.

In particular, our team was recognized for the long list of safety initiatives offered to employees, including Safety Lunch and Learns, Tool Box Talks, our Safety Awards Initative (point system), Hazard Recognition Post Cards, and others.

Our team at Octagon Development Corporation won $1000 towards safety training along with this recognition.

Troy Loveless, Lead Carpenter with Octagon Development Corporation (the residential construction company under Pennecon’s Real Estate Division) is pictured here with the BERG Award. Congrats!

Please forward your suggestions, comments and questions to Sarah Constantine via email to [email protected]