Riyadh — Mubasher: Canada's SNC-Lavalin Group on Thursday denied media reports that it will exit from Saudi Arabia, confirming its commitment to long-term operations in the oil-rich kingdom.
The Canadian construction and engineering firm said the reports were “inaccurate”, adding that the GCC nation remained an “integral part” of its future, according to an official statement.
“Some media reports have made inaccurate statements about SNC-Lavalin withdrawing from Saudi Arabia. For over 40 years, SNC-Lavalin has been an integral part of supporting the continuous growth of many companies and industries in the kingdom,” the statement added.
The reports ascribed SNC-Lavalin’s exit move to the diplomatic spat between Canada and Saudi Arabia.
In August 2018, Saudi Arabia, the world’s top oil exporter and the biggest Middle Eastern economy, froze diplomatic relations and new business deals with Canada after the North American country’s foreign minister Chrystia Freeland called for releasing Saudi human rights activists from prison.
“We are continuing to support all our clients’ ongoing projects. They have come to count on us for our expertise, in-country experience and dedication, and we look forward to continuing our long term relationship for many years to come,” the Canadian builder noted.
Saudi Arabia makes up more than 15% of SNC-Lavalin’s global workforce, along with being a key source of the firm’s revenue growth in recent years.
SNC-Lavalin Group warned this week it would miss its full-year profit target due to a “serious problem” with a mining contract.
It said worse than forecast trading challenges in oil and gas in the Middle East - and Saudi Arabia in particular - also dented its fourth-quarter results.
