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SNC-Lavalin announces major shakeup, warns on profit and says all options open for resource business

 In this file photo taken on March 7, 2019 Canadian Prime Minister Justin Trudeau speaks to the media at the national press gallery in Ottawa, Ontario
In this file photo taken on March 7, 2019 Canadian Prime Minister Justin Trudeau speaks to the media at the national press gallery in Ottawa, Ontario

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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