By Adriano Marchese
Project management company AtkinsRealis, formerly known as SNC-Lavalin Group, announced a significant rise in profit for the third quarter. The company attributed this increase to a disposal and better-than-expected revenue.
In comparison to the same quarter last year, AtkinsRealis reported a doubling of net income, reaching 105 million Canadian dollars ($76 million), or C$0.60 per share. This is a considerable jump from C$44.7 million, or C$0.25 per share, in the previous year.
The company’s positive financial performance was boosted by a net gain of C$46.2 million from the sale of its Scandinavian engineering services business.
Adjusted earnings for the quarter stood at C$0.38 per share, meeting analyst expectations, according to FactSet.
Furthermore, revenues surged to C$2.2 billion from C$1.89 billion, exceeding analyst predictions of only reaching C$2 billion.
AtkinsRealis CEO Ian Edwards noted that the company’s engineering services and nuclear businesses—its largest segments—performed exceptionally well across its core geographies. Notably, these sectors experienced revenue growth of 29% and 23.4%, respectively.
Meanwhile, revenue generated from AtkinsRealis’ lump-sum turnkey projects amounted to C$127.6 million, compared to C$216.9 million recorded last year. The company had decided to exit the contracting sector in 2019 due to the fixed-price LSTK model, which requires companies to cover any cost overruns.
Looking ahead, Edwards expressed optimism about the near-term outlook, which provides confidence in achieving their updated 2023 goals.