Canada's SNC-Lavalin records net loss of $1.6bn in Q2 2019

The Montreal-based contractor's $1.7bn revenues in Q2 2019 included income from engineering, projects businesses

The contractor appointed Ian L. Edwards as interim CEO in June.  [representational image]
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The contractor appointed Ian L. Edwards as interim CEO in June. [representational image]

Toronto Stock Exchange-listed (TSX) engineering, procurement and construction (EPC) contracting firm, SNC-Lavalin Group, has posted net loss of $1.6bn in the second quarter of 2019, as compared to net profit of $62.7m in the same period last year.

In a statement on its website, the company said the Q2 2019 net loss included a non-cash, goodwill impairment charge and an impairment of intangible assets relating to the company’s resources segment totalling $1.4bn after taxes.

Revenues at the Montreal-based contractor stood at $1.7bn in the second quarter of 2019 and included revenues from the group’s engineering services and projects businesses.

For the first half of 2019, the company posted a net loss of $1.5bn compared to net profit of $121.8m in the same period in 2018. Revenues in H1 2019 stood at $3.5bn against a corresponding figure of $3.8bn in 2018.

Speaking about the company’s quarterly and half-yearly performance, interim president and chief executive officer of SNC-Lavalin Group, Ian L. Edwards, said: “As part of our strategy, we will maintain a focus on effectively executing on the remaining backlog of lump-sum turnkey projects, and to this end are implementing several measures, including a new project oversight function that reports directly to me."

“While we implement these measures, I have recommended we take all prudent actions to strengthen our cash position and balance sheet; this includes reducing the dividend,” Edwards added.

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