SNC-Lavalin wins a contract in the Middle East

SNC-Lavalin secured an engineering, procurement and construction contract for an anhydrous ammonia plant in the city of Salalah, Oman, in the Middle East.

The value of the deal, announced on Monday, was not disclosed by the engineering firm and Salalah Methanol Company LLC (SMC).

However, analyst Benoit Poirier of Desjardins Capital Markets estimated in an e-mail note that the value of the project could reach $ 750 million.

The first work is expected to start this month.

The Montreal-based engineering firm said it will drive the project from its office in Abu Dhabi, the United Arab Emirates.

Mr. Poirier welcomed the news, noting that this contract would improve SNC-Lavalin’s mining and metallurgy backlog, which at the end of the fourth quarter was approximately $ 300 million.

Revealing its fourth quarter results last week, SNC-Lavalin reported net income of $ 1.6 million, or one cent per share, down from $ 49.2 million, or 33 cents a share, a year ago. Its revenues fell 17% to $ 2.21 billion.

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