it is quitting the competitive field of fixed-price contracts, which leave companies vulnerable to cost overruns. It is also "exploring all options" for its resources segment -- including selling its flagging oil and gas business, which is taking on an additional $1.9 billion in impairment charges, SNC said in a release.
SNC-Lavalin's gloomier financial guidance for its second-quarter was "due in large part" to cost issues on so-called turnkey contracts, where one company assumes responsibility for an entire project -- from engineering through procurement and construction -- and eats any cost overruns, the company said.
Quebec's Caisse de depot, SNC's largest investor at nearly 20 per cent, took the rare step of publicly rebuking the firm, saying the situation "requires decisive and timely action" by the board. Neil Bruce, whose nearly four-year stint at the helm was marked by a 42 per cent plunge in share price and a political controversy tied to the ongoing corruption case, managed to bolster the company backlog by more than $15 billion.
Oil and gas as well as mining are "more cyclical businesses, a little harder to judge," he said. "And that's where they've made mistakes in the past." The company's directional shift puts it closer to Quebec-based rival WSP Global Inc., a pure-play engineering design firm where nearly 90 per cent of revenues come from countries in Europe and North America. SNC-Lavalin, by contrast, derived nearly one-quarter of its 2018 revenue from operations in the Middle East and Africa.
Source: News Formal (newsformal.com)
hastag trudeaumustgo is real,liar,liar.TRUMPTRAIN bye,bye.
How about it shifts away from trying to buy favour from the Lib gov't, takes out any Board member who donated to the LPC, and not bribing officials to win deals. Now that's a shift.
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