SNC-Lavalin Group Inc. announced Monday that it was exiting lump-sum Turnkey contracting and will reorganize its resource and infrastructure construction segments into a separate business line following poor performance.
The company said it is was exploring all options for the resources segment, particularly its oil and gas business, including divestiture.
In a statement Monday, SNC-Lavalin said it was withdrawing all previously issued financial guidance for 2019, and now expects significantly lower results this year.
It will also be taking a goodwill impairment charge of approximately $1.9 billion. The non-cash charge is mostly due to the decision to stop bidding on lump-sum Turnkey projects and lower than expected performance by the resources segment in the first half of the year.
More to come …
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