The headquarters of SNC Lavalin is seen Thursday, November 6, 2014 in Montreal. SNC-Lavalin Group Inc. reported a loss in its first quarter compared with a profit a year ago as its revenue edged lower.THE CANADIAN PRESS/Paul Chiasson

SNC-Lavalin to step back from 15 countries, swear off fixed-price bids in mining

The company is undergoing an organizational revamp

The head of SNC-Lavalin Group Inc. said it will scale down its operations in 15 countries and swear off bidding on fixed-price contracts in the mining industry as it reported a loss in its latest quarter.

“We remain confident that we can deliver our 2019 outlook, despite being disappointed with our first-quarter performance,” Neil Bruce said in a statement Thursday.

“We will be focusing on our core geographies and are removing unprofitable revenues across 15 countries where we have sub-scale operations.”

“We also stopped bidding on lump sum EPC (earnings, procurement and construction) projects, as going forward we will be undertaking lump sum EPC work in infrastructure and oil and gas only in our core regions where we have strong capabilities,” Bruce added.

SNC-Lavalin is firmly rooted in both construction and engineering, exposing it to potentially higher margins, but also the cost overruns and fixed-price contracts that can plague the world of builders.

Bruce noted the company is undergoing an organizational revamp, combining its oil and gas business with its mining unit as part of a cost-reduction program under chief operating officer Ian Edwards, who was appointed in late January.

The engineering and construction firm said it lost $17.3 million or 10 cents per share for the quarter ended March 31. That compares with a profit of $78.1 million or 44 cents per share in the first quarter of last year.

Revenue totalled $2.36 billion, down from $2.43 billion a year ago.

On an adjusted basis, SNC said it earned 21 cents per share for the quarter compared with an adjusted profit of 77 cents per share a year earlier.

The results included an adjusted loss of eight cents in its engineering and construction business, while its capital investments business earned 29 cents per share in its most recent quarter.

That compared with an adjusted profit of 51 cents from the engineering and construction side a year ago, while the capital investments business earned 36 cents per share.

READ MORE: SNC-Lavalin’s court loss shifts spotlight to Trudeau’s new attorney general

READ MORE: Five things in Wilson-Raybould’s written evidence on the SNC-Lavalin

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Alert Bay: COVID-19 cases go from 30 to zero thanks to health and emergency planning

Dr. Cutfeet says community leadership set Alert Bay up for success

Kwakiutl First Nation cautiously eases restrictions around COVID-19; Gwa’sala-‘Nakwaxda’xw to remain locked down for now

Both First Nations near Port Hardy have no COVID-19 cases, and are prioritizing community safety

Pacific Coastal Airlines will resume service next month

‘We are pleased to confirm that we will be resuming scheduled service on June 1, 2020’

MP Rachel Blaney feels low-income boost for seniors falls short, but is pleased with the support for commercial fishers

‘Seniors in our communities have been asking for help with additional costs due to COVID-19’

LIVE: Procession to honour Snowbirds Capt. Jennifer Casey comes to Halifax

Snowbirds service member died in a crash in Kamloops one week ago

RCMP facing ‘systemic sustainability challenges’ due to provincial policing role

Provinces, territories and municipalities pay anywhere from 70 to 90 per cent of the cost of the RCMP’s services

One man dead after standoff with Chilliwack RCMP

The Independent Investigations Office of B.C. is investigating the RCMP’s role in the death

B.C. employers worry about safety, cash flow, second wave in COVID-19 restart

A survey found 75 per cent of businesses worry about attracting customers

Ex-BC Greens leader Andrew Weaver says province came close to early election

Disagreement centred on the LNG Canada project in northern B.C.

Canada’s NHL teams offer options to season-ticket holders

Canadian teams are offering refunds, but also are pushing a number of incentives to let them keep the money

B.C. premier says lessons to learn from past racism during response to pandemic

B.C. formally apologized in the legislature chamber in 2008 for its role in the Komagata Maru tragedy

Snowbirds to remain at Kamloops Airport indefinitely after fatal crash

small contingent of the Snowbirds team is staying in Kamloops, acting as stewards of the jets

Oak Bay man stumbles upon eagle hunting seal, grabs camera just in time

The eagle did ‘a perfect butterfly stroke to shore’ with its prey, photographer says

Most Read