SNC-Lavalin posts Q2 loss, records provisions on projects in Algeria, Libya

MONTREAL – SNC-Lavalin Group Inc. (TSX:SNC) reports it had a $37.3-million loss attributable to shareholders in the second quarter and the loss would have been even higher without the benefit of its investment income.

Without $67 million of income from its Infrastructure Concession Investments, which more than doubled from $30.5 million a year earlier, the Montreal-based engineering company would have had a $104.7-million net loss.

The ICI income includes dividends that SNC receives from its part ownership in the 407 toll highway near Toronto, the AltaLink electricity distribution system in Alberta and a thermal power plant in Algeria.

The quarter included recognition of a potential $70.1-million loss related to litigation over a project in Algeria and a $47-million risk provision related to a project in Libya, which SNC attributed to the uneasy political situation there.

As a results, even with the benefit from SNC’s investments, its loss attributable to shareholders amounted to 25 cents per share in the second quarter.

That’s a big turnaround from the year earlier profit of 21 cents per share or $31.7 million net income attributable to SNC’s shareholders.