Tuesday , November 24 2020

SNC-Lavalin writes down $ 910m in oil assets due to Saudi trade suspicions

LONDON: The Canadian engineering company, SNC-Lavalin, has written $ 910 million in oil and gas assets during ongoing uncertainties over trade relations with Saudi Arabia.
The giant engineering of Canada had raised a number of major contracts in the UK before a diplomatic dispute between the two countries last summer enclosed future prospects.
The company said on Friday that the long-term prospects for the business worsened in the face of the challenges of increasing trade in the Kingdom.
"We revealed back in August the potential effects of the Canadian-Saudi issue, and I think that that does not affect our work today and the backlog we have," said Neil Bruce , SNC-Lavalin Chief Executive in a video presentation with the company's full year results. "But it's giving a lot of uncertainties into the forecasts in the future because Saudi has been quite clear that they are looking wherever they choose, we may be excluded from offering things which we would have offered, "he said.

The writing contributed to a four-quarter C $ 1.6 billion ($ 1.2 billion) loss in the contractor. The engineering company also faces the top in Latin America, where he reported a
C $ 346 million was associated with what analysts understand to be mining the copper of the Chuquicamata Minel State Mining copper.
As a result, SNC-Lavalin expects lower annual revenues of metals and a mining business.
Closer to the home, the company is also in the midst of a political crisis that has highlighted Prime Minister of Canada, Justin Trudeau, leading to the recent resignation of one of the key assistants and minister, Reuters reported.
The crisis follows allegations that Trudeau officers emphasize a former minister to allow SNC to escape with a fine and avoid a trial over the costs of bribery Libyan officials.
Saudi Arabia has been a profitable market for the Canadian engineer.
Last April, the contractor was appointed by Saudi Aramco to install additional facilities for a major gas processing facility in the East Province of the Kingdom.
In the following month, he also hired a contract for a large class cooling machine in Makkah.

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