Earnings rose at AktinsRéalis Group Montreal, Canada in the second quarter, which the engineering company attributed to strong demand for nuclear services and an after-tax gain from the sale of its minority interest in an Ontario highway.
Net earnings for the second quarter ended June 30 were (CAN) $2.3 billion (US $1.67 billion) or (CAN) $13.32 a share, up from (CAN) $82 million (US $59.6 million) or (CAN) $0.47 a share, in the year-ago quarter. Quarterly revenue was $2.7 billion (US $1.96 billion), up year-over-year from $2.3 billion (US $1.67 billion).
Of the $2.3 billion net income AtkinsRéalis received during the second quarter, $2.2 billion (US $1.59 billion) of it was contributed from after-tax gain from the completed sale of its 6.76% interest in Highway 407 ETR in Ontario which occurred June 6.
Quarterly segment operating income for AtkinsRéalis’s nuclear sector was $567 million (US $412 million), up from $358 million (US $260 million) a year ago.
AtkinsRéalis was awarded a $450 million (US $327 million) contract by Ontario Power Generation for its first small modular reactor, BWRX-300, as a part of its Darlington New Nuclear Project in Ontario, Canada.
The company was also a member of a BWX Technologies-led team selected as the preferred bidder for a six-year, $1.2 per year billion (US $872 million) contract to oversee Canadian National Laboratories.
“Our strong second quarter results highlight the ongoing demand for our unique end-to-end engineering services and nuclear expertise,” AtkinsRéalis CEO Ian Edwards said in the company’s Thursday earnings report. “We took important steps this quarter to both deliver on our strategic priorities and further solidify our capital structure. We successfully completed the sale of our remaining interest in Highway 407 ETR, significantly reduced our debt, continued to repurchase shares, and closed our acquisition of David Evans, demonstrating the company’s commitment to our capital allocation priorities.
