The Financial Post reports in its Friday edition that SNC-Lavalin Group is reducing its risk in the Middle East and other regions as the engineering and construction firm faces headwinds such as the COVID-19 pandemic and fluctuating oil prices, chief executive officer Ian Edwards said on Thursday. A Reuters dispatch to the Post says that while the company is not exiting the Asia Pacific and Middle East markets, it has "been careful to de-risk" exposure to "fluctuating workloads," in those regions, Mr. Edwards told a virtual event organized by the Chamber of Commerce of Metropolitan Montreal.
"As COVID has hit the Middle East, and also you know, the fluctuation in oil prices, we've seen workloads kind of fluctuate there." Montreal-based SNC is instead focusing on its core geographies of Canada, the United States and the United Kingdom, he said.
According to its 2019 annual report, the company generated 18 per cent of its revenues from the Middle East, including Saudi Arabia, that year, down from 20 per cent a year earlier, on a decline in its resources business.
SNC is restructuring its resource business in a bid to make the unit profitable in 2021. The company is also exiting risky lump-sum, turnkey contracts.
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