Aecon records “solid” half-year results
By Joe Malone04 August 2016
Canadian construction company Aecon has recorded half-year revenues of CA$ 1.53 billion – a rise of 31% compared to the same period a year ago.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) was, however, down 7.6% on the same period in 2015 to CA$ 33.6 million.
The company noted its record backlog of CA$ 4.9 billion for the second quarter of 2016 as a highlight, which almost doubles that of a year ago, which stood at CA$ 2.6 billion.
“Aecon’s strong results for the second quarter of 2016, plus a new record backlog position of CA$ 4.9 billion, round out a solid first half of the year,” said Teri McKibbon, President and CEO of Aecon.
“While oil and commodity markets across Canada remain challenging in the current resource price environment, Aecon’s strong backlog position and diverse and flexible business model, combined with a strong commitment to increase infrastructure spending by all levels of government across Canada, bode well for Aecon’s ability to continue to make progress.”
The company’s infrastructure sector recorded revenues of CA$ 269 million, which is an increase of 20% year-on-year. The company said the largest increase occurred in heavy civil operations, due to continued ramp up on new projects in Ontario and Western Canada.
It said that revenue was also higher in transportation operations due to a higher volume of road building work in Ontario.
Aecon added that those increases were partially offset by lower revenue in water operations in Western Canada.