On the day of their annual meeting, shareholders of engineering firm SNC-Lavalin saw the value of their investment jump 16% on the stock market, to just over $ 32 per share, after the announcement of a return to profitability in the first quarter of 2021.
In results released Friday for the quarter ended March 31, SNC-Lavalin posted net income of $ 73 million, compared to a net loss of $ 66.9 million in the same quarter last year.
Its quarterly revenues totaled 1.82 billion, down 2.6% from the comparable quarter last year, mainly due to the latent effects of the pandemic and the abandonment of certain activities to complete its restructuring plan.
SNC-Lavalin specifies in this regard that its net income from “continuing operations” rose considerably to 67.7 million during the first quarter of 2021, compared to the very meager profit of $ 950,000 generated at the same date a year earlier. .
As for its order book, which gives an overview of the level of activity over the coming quarters, it was quoted at 13.2 billion as of March 31. This amount is down slightly by 5% compared to its value a year ago, mainly due to SNC-Lavalin‘s withdrawal from the market for turnkey projects at fixed prices (CMPF) in which the company had suffered heavy deficits in recent years.
According to SNC-Lavalin President and CEO Ian L. Edwards, the company had “a very good start to the year with a first quarter in line [with] expectations, [the] Engineering Services, which include ICGP, Nuclear Power and Infrastructure Services, which again posted strong quarterly performance ”.
Going forward, he said, the company sees “many business opportunities in all [its] major regions, as governments continue to invest in new projects.”