SNC-Lavalin reports deeper Q4 loss but expects some growth in 2021 | iNFOnews | Thompson-Okanagan's News Source

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SNC-Lavalin reports deeper Q4 loss but expects some growth in 2021

The SNC-Lavalin headquarters is seen in Montreal on February 12, 2019. THE CANADIAN PRESS/Paul Chiasson
March 09, 2021 - 8:09 AM

MONTREAL - SNC-Lavalin Group Inc. said Tuesday it expects to see some year-over-year revenue growth at its main business this year as it reported bigger losses for its final quarter of 2020.

Chief executive Ian Edwards told analysts in a conference call that 2020 had been transformative, including progress on a strategic divestment of resource businesses.

"Following 18 months of focus and hard work executing on our new strategic path, SNC-Lavalin is well positioned for the future with a focus on growth, around which the team is energized to deliver," Edwards said in a statement.

The Montreal-based engineering firm's net loss attributable to shareholders totalled $702.7 million for the quarter ended Dec. 31, compared with $292.9 million in the fourth quarter of 2019.

From continuing operations, SNC says its net loss attributable to shareholders amounted to $322.9 million or $1.84 per diluted share for its most recent quarter compared with a loss of $180.2 million or $1.03 per diluted share a year earlier.

Revenue totalled nearly $1.7 billion, down from $1.97 billion.

The company's engineering services segment accounted for $1.52 billion of its total fourth-quarter revenue, down 3.2 per cent from $1.57 billion in the corresponding period of 2019.

But Edwards told analysts that engineering services showed resilience through the COVID-19 pandemic.

In its outlook, SNC said it expects engineering services revenue for 2021 to increase by a low single-digit percentage, compared with 2020 when engineering services generated nearly $5.98 billion revenue.

SNC says its fourth-quarter adjusted loss from its professional services and project management operations amounted to $268.7 million or $1.53 per diluted share compared with an adjusted profit of $109.6 million or 62 cents per diluted share a year earlier.

Last month, SNC announced a deal to sell its resources oil and gas business to Kentech Corporate Holdings Ltd. as part of its shift to focus on its engineering services business.

This report by The Canadian Press was first published March 9, 2021.

Companies in this story: (TSX:SNC)

News from © The Canadian Press, 2021
The Canadian Press

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