Sunday , August 14 2022

SNC reports a $ 1.6B loss as the Chief Executive says that employees have done nothing of their place.


MONTREAL – SNC-Lavalin Group Inc broke its dividend by 65 percent on Friday as it marks a quarter quarter loss of $ 1.6 billion.

The troubled horses and large builders said that he will now pay a quarterly dividend of 10 cents of the share compared to an earlier payment of 28.7 cents per share.

SNC-Lavalin has been at the heart of a political scandal in Ottawa rather than the company's desire to negotiate a prosecution agreement after delaying in connection with fraud and bribery payments related to business relations between them and the Moammar Gadhafi order Libya between 2001 and 2011.

In a YouTube video released by SNC on Friday, the president and CEO, Neil Bruce, said the company was trying to restore a contract to avoid a criminal trial, but it has not asked for it; The fraud and corruption are reduced.

"It's not easy for me, to the management team, or to all the appointed employees, who work hard to see the name SNC-Lavalin effectively in the repeated media as it has been over the last couple of weeks, "said Bruce in the interview with Daniela Pizzuto, Director of External Communications SNC.

"This is more political inquiry … I want to say categorically – we have not done anything from a place as a company. And no of all employees have done anything from & # 39 ; i like a company. "

The company also announced two sales warnings earlier this year dealing with problems in a mining project in Chile and an oil and gas business in Saudi Arabia.

"The year 2018 was a disappointing year, since our mining segments and metallurgy and gas and gas tanks have been underperformed," said Bruce in a Friday statement.

Constant diplomatic tensions between Canada and Saudi Arabia have compromised future contracts in the Middle East kingdom, Bruce said last month after announcing a $ 1.24 billion deficit associated with the SNC-Lavalin oil and gas business.

The January 28 announcement, together with news about delays in the Chile mining project and the loss of arbitration in Australia, sent 27 per cent plumbing shares to close at $ 35.01, their host since September 2012.

Analyst, Derek Spronck of RBC Dominion Securities, told investors to "keep silent and continue."

"There are still many challenges to SNC, but none of them would look so unpleasant and more than reflected in the current share price," he said in a research note on Friday.

Spronck was hoping to have a recovery agreement – which would allow SNC-Lavalin to avoid a criminal prosecution in return for fines and other penalties – despite the fire break in Ottawa after the Globe and Mail reported that the Office & The First Minister has emphasized the former jury of justice Jody Wilson-Raybould to inform prosecutors for discussions with the company.

A criminal case could result in a 10-year ban on offering federal contracts. The SNC-Lavalin's ability to make an application would not continue to be affected, at least directly, "during what could be a multi-year trial process," Spronck was noted.

Analysts also pointed to a potential sales of some 16.77 per cent interest in the ETD Ontario highway in 407 in 2019. The company has been insisting on a partial sale for at least six months, which would provide a splash of & # 39; the analysts of $ 2.2 billion to him. say value is worth

The company's loss for its fourth quarter amounted to $ 9.11 per weakened share. O compared to a profit of $ 52.4 million or 30 cents per diluted share in the fourth quarter of 2017.

Total Revenue of $ 2.56 billion, down from $ 2.92 billion.

On a customized basis, SNC reported a loss of $ 1.31 per weak share of compared to a profit to adjust from 98 cents per share that had been diluted a year ago.

Analysts on average had expected to lose $ 1.19 per weak share, according to Thomson Reuters Eikon.

SNC has rejected the BNN Bloomberg interview entries this week.

With files from BNN Bloomberg

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