Libya unrest hits SNC Lavalin results
By Helen Wright06 May 2011
Canadian contractor SNC Lavalin reported net operating income of CA$ 77 million (US$ 79.5 million), down from CA$ 87 million (US$ 89.9 million) during the first three months of 2010. The company said the upheaval in Libya, where it has major contracts, impacted results.
SNC Lavalin said operating income at its infrastructure & environment division fell by -86% year-on-year to CA$ 6.1 million (US$ 6.3 million) as a result of the unrest in the North African country.
Overall, net income for the first quarter was CA$ 73.9 million (US$ 76.4 million), compared to CA$ 84.1 million (US$ 86.9 million) for the same period in 2010. SNC Lavalin said lower contributions from its mining & metallurgy division had also weighed on the result.
Nevertheless, revenues for the first quarter of 2011 increased by +25.1% to CA$ 1.6 billion (US$ 1.7 billion) and the company’s backlog rose to CA$ 9.4 billion (US$ 9.7 billion) at the end of March, compared to CA$ 8.6 billion (US$ 8.9 billion) at the same point last year. SNC Lavalin said its current backlog does not include any Libyan projects.
“Until such time as the Libyan situation is clarified, the company is maintaining its decision to exclude all of its Libyan projects from its revenue backlog as a precautionary measure,” the company said.
But president and CEO Pierre Duhaime was confident of the company’s prospects in 2011. “We continue to expect our 2011 net income to remain in line with 2010,” he said.