SNC-Lavalin Takes $2 Billion Charge Amidst Reorganization
CBJ — Embattled engineering firm SNC-Lavalin Group says its 2019 results could be significantly lower than anticipated, due to cost overruns at some construction projects and says it will undergo a reorganization to exit or section off its poorer performing segments.
The Montreal-based company is withdrawing all previous financial guidance for 2019, due largely to project cost adjustments in its resources and infrastructure segments.
It will also book an additional $1.9 billion in impairment charges related to its oil and gas division.
SNC-Lavalin added that the reorganization will allow it to focus on its high-performing and growth areas of the business, which will be reported under SNCL Engineering Services.
SNC-Lavalin also faces a trial over accusations of fraud and corruption in relation to its business dealings in Libya. It was that turmoil that led to a tremendous upheaval within the federal government and former Attorney General Jody Wilson-Raybould resigning from her post amidst her allegations of being pressured by the PMO not to have criminal charges brought against the company. The PMO’s office has consistently denied any wrongdoing.