- Infrastructure company, Aecon Group Inc (TSX:ARE) has bumped revenue in 2020’s first quarter, but is still running at a loss
- Revenue in the three months leading up to March 31 was C$748 million, which is 15 per cent higher than the same quarter in 2019
- This resulted in an operating loss of $9.7 million, a minor improvement on a loss of $10.8 million in the previous corresponding period
- The company chose not to provide guidance for future quarters, citing the unpredictable impact of COVID-19 on its planned 2020 operations
- Aecon Group Inc (ARE) is up 1.1 per cent, with shares trading for $13.72 and a market cap of $827.7 million
Infrastructure company, Aecon Group Inc (TSX:ARE) has bumped its revenue in 2020’s first quarter, but is still running at a loss.
Revenue in the three months leading up to March 31 was C$748 million. This is 15 per cent higher than the same quarter in 2019 and has had a marginal effect on the company’s bottom line.
In 2019 the company reported an operating loss of $10.8 million. This year the company has slightly improved that loss to $9.7 million.
The company did not post any guidance for upcoming quarters, having previously revoked its full-year 2020 guidance earlier in the year.
Due to the ongoing COVID-19 pandemic, the company said it is unable to make accurate predictions regarding its current construction projects.
While the majority of the company’s construction efforts have managed to dodge widespread lockdowns, the company cannot be sure how delays or potential future suspensions will impact its 2020 performance.
However, Aecon maintains its liquidity position is strong, with $105 million in cash on hand and a $600 million credit facility. On top of this, the company’s position is further secured by a $700 million guarantee facility from Export Development Canada.
With this in mind, President and CEO of Aecon, Jean-Louis Servranckx remains positive about the company’s future.
“We are confident that our diversified portfolio, strong financial position, and ‘Safety First’ culture will be of great benefit as we navigate evolving market conditions and focus on the health and well- being of our employees while successfully serving our clients.
“We thank our employees, in particular our front-line workers, for their dedication, commitment and professionalism during this challenging time,” he said.
Aecon Group Inc (ARE) is up 1.1 per cent, with shares trading for $13.72 at 12:33am EST.
