May 9, 2023
SNC-Lavalin's services in high demand amid clean energy transition: CEO
, The Canadian Press
SNC-Lavalin CEO speaks on company's Q1 earnings
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SNC-Lavalin Group Inc. beat analyst expectations in its first-quarter results and the engineering giant’s CEO attributes the strength to its clean energy transition.
Speaking with BNN Bloomberg’s Amber Kanwar on Tuesday, Ian Edwards, president and chief executive officer of SNC-Lavalin, said the resurgence in nuclear power and need for clean energy infrastructure gas brought government contracts back to the company.
“Where we’ve positioned this company, in the U.S., the U.K. and Canada — these country’s are heavily investing in the renewal of aging infrastructure, investing into infrastructure that commits to a clean energy future and also a clean energy transformation,” he said.
He added that SNC-Lavalin has divested out of oil and gas, and has also put most of the lump sum construction it was used to servicing behind it — making room for its new business model to focus on projects that will aid the world in the production of clean energy.
As a result of the new strategy, the company posted $2.02 billion in revenue for the quarter, up from the $1.89 billion from the same time last year.
Edwards noted because it is government contracts fuelling SNC’s business, he remains optimistic about future growth despite an uncertain economic landscape.
“We are in nuclear, we are in the renewable space, we provide services to all of our customers and governments in all of those core geographies and we see very, very, strong demand for the services that we sell,” he added.
As the business expands, he anticipates it will generate free cash flow by next year, at which point conversations about mergers and acquisitions are likely to begin. This will result in the company generating both organic and inorganic growth, he added.
“We see a predictable future ahead from our engineering services business,” Edwards stated.
Speaking with BNN Bloomberg’s Amber Kanwar on Tuesday, Ian Edwards, president and chief executive officer of SNC-Lavalin, said the resurgence in nuclear power and need for clean energy infrastructure gas brought government contracts back to the company.
“Where we’ve positioned this company, in the U.S., the U.K. and Canada — these country’s are heavily investing in the renewal of aging infrastructure, investing into infrastructure that commits to a clean energy future and also a clean energy transformation,” he said.
He added that SNC-Lavalin has divested out of oil and gas, and has also put most of the lump sum construction it was used to servicing behind it — making room for its new business model to focus on projects that will aid the world in the production of clean energy.
As a result of the new strategy, the company posted $2.02 billion in revenue for the quarter, up from the $1.89 billion from the same time last year.
Edwards noted because it is government contracts fuelling SNC’s business, he remains optimistic about future growth despite an uncertain economic landscape.
“We are in nuclear, we are in the renewable space, we provide services to all of our customers and governments in all of those core geographies and we see very, very, strong demand for the services that we sell,” he added.
As the business expands, he anticipates it will generate free cash flow by next year, at which point conversations about mergers and acquisitions are likely to begin. This will result in the company generating both organic and inorganic growth, he added.
“We see a predictable future ahead from our engineering services business,” Edwards stated.
