ORGANIZATIONAL REALIGNMENT AT

APRIL 2015
Pictured here: Paul Stanley and Geoff Wells,
Pennecon Energy’s newly appointed Vice Presidents
ORGANIZATIONAL REALIGNMENT
AT PENNECON ENERGY POSITIONS
COMPANY FOR CONTINUED SUCCESS
read more on page 3
Everybody knows what “risk” is.
RISK
MANAGEMENT
WHAT DOES
IT REALLY MEAN?
A Message from the CEO
Every day, in every decision we make, we manage our own
personal risk register. Can I press snooze one more time? Should
I finance or lease my new vehicle? Will I start composting this
year? Should I get the flu shot? Do I want to supersize my
fries?!
In business, we do the same thing. But the challenge lies in
ensuring risk management is a formalized and strategic process.
Traditionally, risk management referred to forecasting,
evaluating and mitigating financial risk. But risk management
has since evolved into much more. Beyond financial risk we also
consider risk in the areas of operations, safety, environment,
human resources, reputation, legal, and more. These risks
include everything from labour strikes and claim adjustments,
to changing economic conditions and the potential for injury
on the job, to media attention and access to capital. Risk
management is all about proactively identifying these risks and
taking measures to prevent accidental loss.
At Pennecon, we take the business of risk management
very seriously. Last year, we appointed a risk management
committee, which regularly evaluates our risk program and
develops solutions to ensure we manage risk effectively.
So far, the committee has formalized our tender review and
joint venture processes, and developed an emergency response
protocol, a business continuity plan and a media
relations policy.
But risk management can’t just sit with a committee.
It is everyone’s responsibility.
At Pennecon, we’re endeavouring to build a culture where all
of our employees instinctively look for risks and consider their
impacts when making decisions. In order to build that culture,
we need to talk openly, honestly and frequently about risk,
we need to engage employees in the risk management process,
and we need to be open to constructively challenging
the status quo.
I challenge all of our employees to think about risk.
What risks did you evaluate in your personal life today?
What risks do you evaluate regularly on the job?
And how can you further contribute to “risk
management” at Pennecon?
Sincerely,
2
David Mitchell, P.Eng
CEO, Pennecon Limited
David Mitchell, P.Eng, CEO, Pennecon Limited
CONTINUED FROM COVER
ORGANIZATIONAL REALIGNMENT AT PENNECON ENERGY
CONSTRUCTION/
FABRICATION
At Pennecon Energy, there are two streams of business:
construction/fabrication and services. We are delighted to
unveil a new organizational structure that clearly
identifies these two service offerings.
By Sarah Constantine
SERVICES
Under the leadership of Geoff Wells, the Construction/
Fabrication Division will include Pennecon Energy M&M
Engineering, Pennecon Energy M&M Offshore, and Pennecon
Energy Industrial Services.
Under the leadership of Paul Stanley, the Services Division
will include Pennecon Energy Technical Services, Pennecon
Energy Hydraulic Systems, Pennecon Energy Marine Base,
Pennecon Energy Grand Banks Warehousing, and
Pennecon Energy Maintenance Services.
These two complementary streams of business balance the
ebb and flow of project work in our Construction/Fabrication
Division with the stability of the long term contracts in our
Services Division. This change will position us to grow and
develop in response to our clients’ changing demands
and the evolution of the industries in which we operate.
Geoff Wells, Vice President
Construction/Fabrication,
Pennecon Energy
Although we’ve branched into two divisions, it’s business as
usual for our employees and customers. We will continue
to provide the same quality of services to our clients and a
strong company culture for our employees. Stay tuned for
more details about the realignment as they unfold.
Paul Stanley, Vice President
Services, Pennecon Energy
HAPPY RETIREMENT, DON NOSEWORTHY
The reorganization of Pennecon Energy comes at the heels of Don Noseworthy’s decision to
retire as the Senior Vice President of Pennecon Energy, effective May 1, 2015.
“Over the years, Don has been very instrumental to Pennecon’s growth and success, a leader
in our company and the industries in which we operate, and a strong advocate for our brand.
On behalf of Pennecon’s Board of Directors, management team, and all of our employees,
I wish to thank him for his dedicated years of service.”
- David Mitchell, CEO
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PROJECT SUCCESS
IN BULL ARM
By Brad Cole
Employee
Profile
In March of 2014, Pennecon Heavy Civil Ltd. began working on the Pier
and Quay Remediation Project for the Hebron Topsides Project in Bull
Arm. Since then, it has become a study in project execution, customer
service, health and safety practice, and overall project success.
EMPLOYE
E
RO B
The Hebron Project is a significant one for Newfoundland and
Labrador, contributing royalty and tax revenues to our economy,
injecting employment opportunities in engineering, fabrication and
construction, supporting a diverse workforce, and creating research
and development opportunities. Winning a major scope of work related
to this significant project was a proud moment for Pennecon in and of
itself. But watching our team undertake the project so successfully–
that’s an even prouder accomplishment.
Our HSEQ performance on this job has been second to none.
ExxonMobil presented eight of our employees with prestigious “Silver
Coin” awards in recognition of their dedication to safety on the job.
In addition to that, we also received two awards from the Heavy Civil
Association of Newfoundland and Labrador at their 2015 awards gala:
the Award of Excellence for Environmental Leadership & Innovation
and the Award of Excellence for Safety.
In January, 2015, Worley Parsons and Exxon Mobil presented our team
with a letter and a plaque (which now hangs proudly in our corporate
head office) in recognition of our safe and successful completion of the
project. Here are a few excerpts from that letter:
“The subcontract scope your company executed has set the standard
for current and future subcontractors to follow, and impacted the
Hebron Project in a very positive way.”
“Having established a first class team in St. John’s and in Bull Arm,
PHCL exceeded all the expectations in completing the scope on time,
within budget, with no significant environmental incidents and, most
importantly, without significant hurt or a Loss Time Incident.”
“Core values of respect and integrity were evident throughout [the
project] and your site leadership team is a credit to your organization.”
Those are the kind of accolades that will serve to help us continue to
win major contracts and grow our business. I’d like to personally thank
each and every employee who has worked on or supported the Pier
and Quay Remediation Project, from the bid stage right through to
execution.
Hewitt, P.E
ng
Project Man
ager,
Pennecon
Heavy Civil
Ltd.
How long have you worked with Pennecon
and what positions have you held?
I started working with Pennecon Heavy Civil a little over one year
ago. I joined the company as a Project Engineer and currently hold
the position of Project Manager.
What’s your technical background?
I graduated from Memorial University with a degree in civil
engineering. At that time there were few employment
opportunities in Newfoundland, so I spent five years commuting
to western and northern Canada working on the construction of
diamond mines, gold mines and oil sand developments. Since
coming home, I have worked on the Hebron Project, the Muskrat
Falls Development and IOC’s iron ore mine.
What do you like most about Pennecon?
I really enjoy the challenging work and opportunities Pennecon
provides its employees. Each project we’re involved with is unique,
which keeps work interesting while offering me the chance to
further develop my skills and meet lots of new people.
What do you think is the most important value
of any organization?
I think it’s important for organizations to provide a workplace
where employees have an opportunity to contribute to the success
of the company.
What inspires you?
I believe with hard work I can continue to advance my career with
Pennecon which will allow me to provide a good lifestyle to my
two daughters.
Do you have any hobbies?
Spending time with my family, hockey, hunting and snowmobiling.
If you won the lottery today, what would you
do tomorrow?
Start building a log cabin from Timber Kings.
4
THE HEBRON GBS
DECK FABRICATION PROJECT
Pennecon Energy is fabricating the five decks that will comprise the
Hebron Gravity Base Structure (GBS) at our facility in Stephenville for
our client, Kiewit-Kvaerner Contractors. The work started in April of
2014, and is expected to be complete by October of 2015.
Structural Weld Completed
Linear Pipe Welding Completed (16” & 20”)
Welding Completed
Piping Installed (16”, 20”, 32”)
6.7km
+
500m
+
7km
415m
Project
Approximately
%
52
Complete
167,000+ hours to date
0 Lost Time Injuries
700+ Performance Observation
Safety Tracking (POST) Cards
0 Dropped Objects
0 Property Damage Incidents
0 Environmental Recordables
Note: The above statistics are accurate to mid-March, 2015
Below: Weighing 240.4 metric tons, the first of five decks we fabricated in
Stephenville was recently delivered to Bull Arm and installed in the Hebron GBS.
5
6
Pennecon Heavy Civil received awards from the Heavy Civil
Association of Newfoundland and Labrador (HCANL) at the annual
general meeting and awards gala. Brad Cole and Deidre Puddister
accepted the Award of Excellence for Environmental Leadership &
Innovation from HCANL’s President Leon Howse.
Pennecon Heavy Civil received awards from the Heavy Civil
Association of Newfoundland and Labrador (HCANL) at the annual
general meeting and awards gala. Michael O’Reilly and Brad Cole
accepted the Award of Excellence for Safety from HCANL’s
President Leon Howse.
Pennecon Energy was recognized by the Newfoundland and Labrador
Oil Industry Association (NOIA) at their annual Industry Achievement
Awards for reaching a significant milestone - 30 years of membership.
Don Noseworthy accepted Pennecon’s membership recognition
award from NOIA’s president Bob Cadigan.
Pennecon Energy was recognized by the Newfoundland and Labrador
Oil Industry Association (NOIA) at their annual Industry Achievement
Awards for reaching a significant milestone - 30 years of membership.
Paul Stanley, Don Noseworthy and David Mitchell attended NOIA’s
Industry Achievement Awards.
Toni Drover, a 4th year apprentice with Local 579, recently attended
two Building Trades conferences – one in Ottawa and one in
Las Vegas – focused on increasing women’s participation in the trades.
“I think it’s an amazing opportunity for women to join the trades –
great salaries, benefits and pensions,” said Toni.
Christian Somerton, Assistant Manager with Pennecon Energy Marine
Base, and his team won the provincial championship in the NLBA
Division I Men’s Clarence Sutton Memorial. Pennecon is proud to
support this team as part of our commitment to sports and recreation
in Newfoundland and Labrador. Congratulations on the big win!
TRAINING AND DEVELOPMENT
AT PENNECON
By Sarah Constantine
Have you heard the one about the CFO who asks the CEO,
“What happens if we invest in developing our people and then
they leave us?” And the CEO responds, “What happens if we don’t,
and they stay?”
At Pennecon, we view training and development of our people as
an investment in not only their future, but the company’s. Continual
development of our people and processes helps to improve our
business, our performance, and our competitive advantage.
We administer both in-house as well as outsourced training (such as
seminars, courses and even graduate degree programs) that bolster our
employees’ personal resumes, as well as Pennecon’s bench strength.
It’s a win-win.
What do you like most about
the program?
“The program is very interactive in online discussions and has an array
of people with different types of backgrounds involved. That’s the
best part for me – hearing about experiences and points of view from
various industries and fields of expertise, and then being able to relate
it back to my own experiences at Pennecon.”
Would you recommend this
program to your colleagues?
“The program is not only a great fit for
my current career and future aspirations,
but it also fits my schedule. The online
option has made it possible for me
to work in the field and complete the
required work load with no issues.
I would recommend this program
to anyone looking to gain further
competency in Project Management.”
Renee Saunders,
Take for example Renee Saunders, a Turnover Coordinator on the
Port to Plant Pipeline Project with Pennecon Energy M&M Engineering.
She’s currently completing a Project Management Program through
the University of British Columbia (UBC) – an online program that she
believes will enhance her understanding of project environments and
her effectiveness in everything from cost planning, to initiating and
executing project teams, to developing client relationships. Here’s
what Renee had to say about the program:
Turnover Coordinator
Renee holds a Mechanical Engineering
Technology certificate from the College of
the North Atlantic. She completed two work terms with PEMME, and
has held previous Project Planning and Mechanical Field Engineer roles
within our company. When she completes her Project Management
Program from UBC, she intends to write the Project Management
Professional (PMP) exam in pursuit of a PMP designation.
What got you interested in Project
Management training?
Pennecon is pleased to be able to support Renee in her continuing
education, and we applaud her for her pursuits.
“I was first hired on with M&M Offshore in 2010 as Project Manager
for piping fabrication in the shop. I loved running a project from start
to finish, from bidding the work to final sign off with the client. It was
a great starting point for me in my career.“
THE WHAT, WHERE, WHY AND HOW OF PENNECON’S
TRAINING AND DEVELOPMENT PROGRAMS
By Brenda Gaulton
Pennecon’s Educational Assistance Policy supports employees
who wish to pursue educational opportunities that will enhance
their job performance and potential for advancement. This support
comes in various forms: financial, work schedule adjustments and,
in some cases, education leave.
effective communications as an area for improvement for all
of our employees, we partnered with Dale Carnegie to provide
communication and leadership training. So far, we have had four
graduating classes and the feedback has been phenomenal.
The policy is designed to build on the education our employees
already have and to fill current or future business needs. For
example, if there was a demonstrated business case, we might
support an employee in our accounting department who already
holds a Business Degree in her pursuit of a Chartered Professional
Accountant certification.
Another example is our online training platform from an external
provider, HR Downloads, which provides us with access to a large
database of online training courses developed by HR professionals
and designed to assist companies in enhancing employee skills in
the areas of Human Resources, Health and Safety, and Leadership.
Because they’re online and can be completed in short blocks of
time, this platform is current, relevant and accessible.
We don’t just offer training and development on an individual
basis, though. We also have company-wide platforms to help
improve skillsets identified through our performance review
and exit interview processes. For example, when we identified
Any employees at Pennecon who wish to learn more about our
training and development policy and opportunities available to
them are encouraged to speak with their direct supervisor and/or
our Human Resources Department.
7
WHAT MAKES US A “BEST MANAGED” COMPANY?
By Sarah Constantine
On March 31, Pennecon Limited beat out hundreds of applicants from
across the company in a rigorous evaluation of our management skills
and practices. Being appointed to the ‘Gold Level Standard’ means
we’re in the elite ranks of companies who have maintained their status
as a Best Managed Company for four consecutive years.
4.
5.
“This award belongs to everyone at Pennecon,” said David Mitchell,
CEO. “It’s our 1,100 skilled and dedicated employees who give our
business a sense of purpose, who have shaped our culture, and who
have groomed us be the industry leader we are today.” But, what
exactly does it mean to be one of Canada’s Best Managed companies?
Canada’s Best Managed Companies is an award program spearheaded
by CIBC and Deliotte. Here’s what representatives from both
companies had to say about Pennecon’s award:
For each company, it’s a little different. For Pennecon, we’ve
consistently demonstrated that we excel in five key areas:
1.
2.
3.
We’re continuously developing and improving our competitive
advantage – especially in Health, Safety, Environment and Quality,
our commitment to service excellence, and our positive
corporate reputation.
We’re making significant investments in innovative technology
solutions. Systems like Intelex and Maesto keep us operating
efficiently and help us evolve alongside our clients’ needs.
We’re committed to maintaining an engaging corporate culture.
It not only helps keep our employees motivated, but ensures they
stay committed to Pennecon for the long haul.
We’re building the next group of leaders. Through our succession
planning and our training and development programs, we’ve
developed a leadership pipeline that secures our future success.
We continue to demonstrate a remarkable effort in terms of
strategic business planning and prudent financial management.
“Congratulations to the entire Pennecon team on reaching Gold
status within Canada’s Best Managed Companies Program, not an
easy accomplishment. This is a testament to the culture you have
built within the company and the hard work and dedication of every
employee. This award is one more indication that you are leaders in
every field you play in. Your success is inspiring!” -Paul Janes, Partner,
Deloitte Canada
“I have been following the Pennecon story for several years and
have no hesitation in saying that Pennecon is well deserving of this
‘Gold Level Standard’ recognition. At the heart of the Canada’s Best
Managed Companies Program is the right people doing the right
things with the right clients. That is exactly how I see Pennecon.
Congratulations one and all!”-Rick Graham, Director and Team Lead,
CIBC Commercial Banking
David Mitchell, Larry Puddister, Janis Byrne and Sarah Constantine accepted
Pennecon’s Best Managed Companies award at the annual gala in March
OUR NEWEST CANADIAN CITIZENS
Senior Project Engineer Dhiraj KC and his wife, Nagina, officially became Canadian citizens
in March, 2015. “KC”, as we colloquially know him, has been working with Pennecon Energy
Marine Base for 4.5 years as a Senior Project Engineer. He has a Bachelors Degree in Civil
Engineering, a Masters Degree in Water Resources Engineering, a Project Management
Professional designation, and is a registered member of the Professional Engineers &
Geoscientists-NL (PEG-NL) and the Project Management Institute (PMI). We’re sending big
congrats to KC and Nagina on their Canadian citizenship!
Please forward your suggestions, comments and questions to
Sarah Constantine-Layman via email to Sarah.Constantine@pennecon.com