August 13, 2012
SNC-Lavalin to provide district cooling system in Mecca
SNC-Lavalin Inc. will provide a district cooling system in the Saudi city of Mecca, site of an annual Islamic pilgrimage that attracts Muslims from around the world, under a $92-million contract announced Tuesday.
The Montreal-based company, which provides engineering and project management services around the world, says construction is set to begin this quarter under a contract from a subsidiary of Saudi Tabreed District Cooling Co.
The first phase of the project, a chilled water production plant for the Jebel Omar Development, is planned for December 2013.
“We are delighted with receiving this contract, particularly because it is the third district cooling plant contract awarded to us in Saudi Arabia since May 2010,” said SNC executive vice-president Charles Chebl.
“This contract reflects our strategy of bringing the full spectrum of our global expertise to the region, and attests to SNC-Lavalin’s world-class leadership in the district cooling sector.”
Last week, SNC lowered its earnings forecast for 2012 due to higher forecast costs at two fixed-price projects, one in the company’s power segment and the other in its hydrocarbons and chemicals segment. Full-year net income is now expected to be in a range of $325 million to $340 million.
During the latest quarter, its net income fell to $32.7 million or 21 cents per share in the three months ended June 30. That’s down from $104.8 million or 67 cents per share a year earlier.
It has been a tough year for SNC-Lavalin, which is grappling with a financial scandal, a labour dispute at its Candu nuclear energy division and a worsening global economic outlook that has put pressure on capital spending plans.
It also faces a Canadian class-action attempt on behalf of shareholders. Two firms that began suits in May announced on Friday that they’ve received court permission to combine the claims on behalf of investors who bought SNC shares between Feb. 1, 2007 and Nov. 5, 2009.
The suit, which is seeking class-action status, demands compensation for a decline in SNC’s stock price.
News from © Canadian Press Enterprises Inc., 2012
|MOST POPULAR STORIES|
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 316 projects with a total value of $2,787,806,637 that Reed Construction Data Building Reports reported on Friday.
$1,000,000,000 Edmonton AB Prebid
$220,000,000 Medicine Hat AB Negotiated
$50,000,000 Calgary AB Prebid
- Construction Site Arson
- Journal of Commerce Update for the week of May 20th, 2013
- Industry reacts to surprise B.C. Liberal majority
- Historic church renovation reaches new heights
- Hiring of foreign workers for hospital project outrages union
- Festival of Architecture hits Halifax
- Winnipeg Southwest Transitway wins award
- Vendor performance is key measurement
- NDP leader spoke to police about corruption
- Big contract down under for ATCO Structures
- RFQ issued for Kamloops hospital project
- VIDEO: Economic Update May 21, 2013
- VIDEO: Competing in the trades
- New ETFO headquarters a benchmark design
- Viana steps up to rebuild burnt down playground
- Random drug testing about site safety, says expert
- Trying to define the “lowest price”
- High job vacancy rates for small business
- Minto to assist in zero energy housing project
|ALEX’S ECONOMICS BLOG|
Reed Construction Data Canada’s Chief Economist Alex Carrick discusses current developments in the North American economic environment with emphasis on the construction industry.
- An Overview of Prices and Sales in the Diverging U.S. and Canadian Housing Markets (April 25, 2013)
- Canada’s Precarious Dependence on the Commodity Price Super-Cycle (April 22, 2013)
- Twenty major upcoming residential and transportation terminal construction projects - April 2013 (April 15, 2013)