SNC-Lavalin “pleased” with results at end of December
SNC-Lavalin has reported its financial results for the last quarter of 2015 ending December 31, and for the entire year of 2015.
In a statement on March 3, Neil Bruce, president and chief executive officer of SNC-Lavalin Group, said: “We are pleased with our fourth quarter performance. We delivered on our commitments and met our 2015 guidance. Despite the turbulent markets and persisting softer economic environment, we are entering 2016 with a strong balance sheet, a stable and diversified backlog and a continued focus on improving performance that has yielded cost reductions from our “STEP Change” program.”
He continued, “I am particularly encouraged by the tremendous efforts from everyone at SNC-Lavalin to identify and implement initiatives, which should reduce expenses for 2016 by twice as much as the cost of restructuring.”
Over the 2015 year, revenues in the engineering and construction (“E&C”) sector of the company had increased by 28% to $9.4 billion. The company statement said these results were due to increases in the oil and gas segment with incremental revenue generated by Kentz, and in the power segment. The increases were partially offset by a decrease in infrastructure and construction, in operations and maintenance, and mining and metallurgy.
Adjusted net income from engineering and construction for the last quarter of 2015 increased to $66.1 million, or $0.44 per diluted share, compared with $22.7 million, or $0.15 per diluted share, for the corresponding period in 2014.
Other highlights reported were:
Bookings of $1.9 billion for the last quarter of 2015, and a “stable and increasingly diversified” revenue backlog of $12 billion at December 31, 2015.
A strong cash balance of $1.6 billion at December 31, 2015, which is a rise of 9% compared to September 30, 2015.
The quarterly dividend increased by 4% to $0.26 per share.
In its forecast, the company says: “We anticipate our performance in 2016 overall to benefit from our diversified E&C strategy, our cost reductions, driven by our 2015 restructuring and right-sizing initiatives, and our continued focus on improving project delivery performance. We expect that the oil and gas and power segments will be the main contributors to net income, while mining and metallurgy should be the smaller contributor to net income. We also expect that the infrastructure segment will return to profitability in 2016.”
To see the entire release, click here.