SNC-Lavalin swings to $29.1 million profit in Q2 on eight per cent revenue increase

MONTREAL – SNC-Lavalin Group Inc. swung to a profit in its latest quarter on an eight per cent increase in revenues.

The Montreal-based engineering firm says its net income attributable to shareholders from continuing operations was $29.2 million or 17 cents per diluted share.

That’s up from a loss of $25.3 million or 14 cents per share a year earlier.

Adjusted profit from professional services and project management was $53.8 million or 31 cents per share, up from $21.7 million or 12 cents per share in the second quarter of 2020.

Revenues for the three months ended June 30 were nearly $1.8 billion, compared with $1.66 billion in the prior year quarter.

SNC-Lavalin was expected to earn 37 cents per share in adjusted profits and 15 cents per share in net profits on $1.78 billion of revenues, according to financial data firm Refinitiv.

“SNCL engineering services delivered robust second quarter performance led by strong profitability within our three segments,” CEO Ian Edwards said, adding that its backlog of troubled legacy lump-sum turnkey contracts continues to decrease.

“We are also pleased to have recently closed the sale of a substantial portion of our resources oil and gas business, which represents an important strategic milestone for the company.”

This report by The Canadian Press was first published July 30, 2021.

Companies in this story: (TSX:SNC)