SNCAF - SNC-Lavalin posts Q4 loss sees lump-sum turnkey projects weighing on 2023

SNC-Lavalin ( OTCPK:SNCAF ) reported a wider Q4 loss Friday and said it expects net cash from operating activities to be negative in this year's H1 before turning positive in H2.

Q4 loss rose to C$54.4M (~US$40M), or C$0.31/share, from a year-ago loss of C$15.3M, or C$0.09/share, while total revenues inched lower to C$1.9B from C$1.94B a year earlier.

The company cited higher costs from restructuring and transformation related to downsizing its office real estate footprint as well as higher interest rates for the decline.

SNC-Lavalin ( OTCPK:SNCAF ) said its lump-sum turnkey projects segment, which the company is winding down, had an adjusted EBITDA loss of C$150.2M, and it expects the segment's outflows will offset the inflows from its SNCL Services and Capital segments.

The company sees organic revenues in SNCL Services rising 5%-7% in the year, and expects the ratio of adjusted EBITDA to revenue to come in at 8%-10%.

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