SNC-Lavalin’s net income rises 50% to $382m
Canadian contracting giant SNC-Lavalin Group’s net income increased by 50% to $382m last year
Canadian contracting giant SNC-Lavalin Group’s 2017 net income has increased by 50% to $382m, according to the company’s full-year financial results.
The Montreal-based infrastructure business posted a big increase in net income attributable to shareholders for 2017.
Neil Bruce, president and CEO of SNC-Lavalin Group, said the company was “very pleased” with the financial performance, which also saw the company close its $2.6bn acquisition of UK-based engineering consultancy Atkins.
“Through the acquisition of Atkins, the largest and most transformative in our history, we continued to deliver on our strategic growth objectives while positioning the company for future opportunities,” he said in a press statement.
SNC-Lavalin’s takeover of Atkins gave the firm a stronger presence in the Middle East, as Atkins’ regional portfolio included the Riyadh Metro, Dubai Metro, Burj Al Arab, and Doha Metro Red Line South.
The folding of Atkins into SNC-Lavalin has progressed in line with company expectations and is slated for completion this year. While not complete, the acquisition has already boosted SNC-Lavalin’s financial results, delivering around $40m in cost synergies. And the company said it was on track to deliver around $120m of cost synergies by the end of the 2018.
Reporting both its full-year and Q4 results, SNC-Lavalin reported cash flow of $376.2m for Q4 2017.
The company's Q4 revenue increased to $2.9bn, rising from $2.1bn a year before.
Its revenue backlog was $10.4bn at the end of the year. Backlog bookings for SNC-Lavalin’s infrastructure division in 2017 was $2bn – higher than the firm’s equivalent bookings for other divisions, such as oil and gas ($1.7bn), mining ($800m), and power ($500m).
Looking toward 2018, the company said it had targeted “a significant increase” in financial results, despite myriad market challenges.