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SNC-Lavalin confident of oil and gas outlook after strong first quarter

MONTREAL—SNC-Lavalin is bullish on oil and gas, saying that business will be one of its two main profit generators this year.

The company says it got $ 3.4 billion in new contract awards during the first quarter, including $ 1.8 billion from SNC’s oil and gas sector.

The comments were included with the Montreal-based company’s first-quarter financial report, issued ahead of SNC’s annual shareholders meeting.

SNC’s overall net income was $ 122.1 million or 81 cents per share for the three months ended March 31. That included a net gain of $ 51.1 million or 34 cents per share from asset disposals, primarily the sale of SNC’s share of the Malta International Airport business. Overall net income in the 2015 first quarter was $ 104.4 million.

Adjusted net income was $ 97.04 million, up from $ 94.2 million a year earlier.

Net income for SNC’s main engineering and construction business was $ 31.2 million, down from $ 67.02 million in the first quarter of 2015. Adjusted net income from engineering and construction was $ 57.2 million, up from $ 56.8 million.

Revenue was $ 1.9 billion, down from $ 2.2 billion in the first quarter of 2015.

But SNC chief executive Neil Bruce said there have been sustained earnings improvements across the company and it’s slightly ahead of where it expected to be at this point of the year.

Despite the turbulent markets and persisting softer economic environment, we successfully increased our backlog to a new record and maintained a strong balance sheet,” Bruce said Thursday in a statement.