Earnings dropped at AtkinsRéalis Group Montreal, Canada in the third quarter, which the engineering company attributed to higher income tax expense and acquisition-related costs, according to the company’s Thursday earnings report.
For the net earnings, AtkinsRéalis reported (CAN) $133.3 million (US $95 million), or (CAN) $0.83 a share, for the third quarter that ended in Sept. 30. This was a decrease from the year-ago quarter when it had a net income of (CAN) $146.7 million (US $104.6 million), or (CAN) $0.88 a share.
While earnings dropped slightly, the company reported an increase in its quarterly revenue, at (CAN) $3.1 billion (US $2.21 billion), up from (CAN) $2.8 billion (US $1.99 billion) in last year’s quarter.
The nuclear segment was (CAN) $658 million (US $470.4 million), up from (CAN) $596 million (US $425.7 million) in the year-ago quarter.
AtkinsRéalis President and CEO Ian Edwards said during a Thursday earnings call the company is making large strides in its nuclear business, highlighting a (CAN) $1.7 billion (US $1.2 billion) three-year deal as a part of a joint venture to refurbish Ontario Power Generation’s Pickering plant’s Unit 5.
In the United States, the company signed deals with the First American Nuclear Company for its EAGL-1 small modular reactor projects. It is also continuing its work with the Department of Energy’s cleanup agency, the Office of Environmental Management, and medical isotope work with TerraPower in Pennsylvania.
Edwards told stakeholders the company is moving forward in its pre-engagement with the Nuclear Regulatory Commission regarding its CANDU reactor design. It filed a notice of intent with NRC in June to start the licensing process for the CANDU – known as Canada Deuterium Uranium – reactor.
NRC held a public meeting for the licensing program in August and submitted several topical reports, Edwards said.
The company CEO said these conversations are important as it entered into a memorandum of understanding in October with Hoosier Energy and the state of Indiana to deploy up to eight CANDU reactors there.
During the question-and-answer portion of the call, Edwards said the company sees great potential in the U.S. market, but also notes there are parts of the country’s market that are “struggling for funding or confidence in funding.” Edwards said he has been working with AtkinsRéalis USA subsidiary president and company to position itself to enter the strong markets.
The three focus areas to determine the strength market are states where there is funding and confidence funding will continue, to expand its exposure to the power and industrial area from utilities and the private sector and leveraging its transportation capabilities, Edwards told stakeholders.
Edwards said the reworking of its U.S. strategy will help the company back on track there. The company underwent a reorganization of its nuclear business in the United States in May.
According to the third quarter earnings presentation, AtkinsRéalis saw an increase in revenue and backlog for its U.S. operations. The company recently bought out the remaining equity of the David Evans company this week.
