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.

Just Posted

Convicted animal abuser to return to B.C. court May 21

Catherine Jessica Adams is facing a breach of probation charge

First Terrace Speedway race day of the year

The annual Mother’s Day Season Opening Races brought in crowds

Concerns over democracy as Senate committee votes to nix oil tanker ban

Critics of the Senate’s recommendation to kill Bill C-48 say it goes against popular will

Northwest Fire Centre open burn ban lifted

Recent rain, cooler temperatures have lowered the region’s fire risk

Telkwa pot plant application passes review

Cannabis company claims new Health Canada regulations are working in its favour

QUIZ: Test your knowledge of Victoria Day

How much do you know about the monarch whose day we celebrate each May?

Facebook takes down anti-vaxxer page that used image of late Canadian girl

Facebook said that the social media company has disabled the anti-vaccination page

Search crews rescue kids, 6 and 7, stranded overnight on Coquitlam mountain

The father and two youngesters fell down a steep and treachorous cliff while hiking on Burke Mountain

Raptors beat Bucks 118-112 in 2OT thriller

Leonard has 36 points as Toronto cuts Milwaukee’s series lead to 2-1

‘Teams that win are tight’: B.C. Lions search for chemistry at training camp

The Lions added more than 50 new faces over the off-season, from coaching staff to key players

Rescue crews suspend search for Okanagan kayaker missing for three days

71-year-old Zygmunt Janiewicz was reported missing Friday

B.C. VIEWS: Reality of our plastic recycling routine exposed

Turns out dear old China wasn’t doing such a great job

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

B.C. ferry stops to let black bear swim past near Nanaimo

Queen of Oak Bay brakes for wildlife in Nanaimo’s Departure Bay

Most Read