Nuclear energy | AtkinsRéalis records “record high” for contracts

(Montreal) Demand for the AtkinsRéalis Group’s know-how in nuclear energy continues to grow, while its order book has made a significant jump from one year to the next.

The Montreal engineering services company reported “a record high” of $3.2 billion in orders for its nuclear energy sector in the third quarter ended September 30.

This is an increase of 206% compared to the same period last year, mainly driven by CANDU reactor refurbishment contracts, according to the company. About two years earlier, the value of orders was 937 million.

“We are one of the few open companies with the expertise and capabilities to maintain the entire life cycle of a nuclear reactor, which allows us to build an order book that “will grow over time and generate revenue for decades to come,” AtkinsRéalis President and CEO Ian L. Edwards said on a call with analysts discussing quarterly results Thursday. .

Seeing “exceptional opportunities”, the company has in recent months doubled its revenue growth forecasts for nuclear energy in 2024. The company formerly known as SNC-Lavalin wants this sector to generate revenue annual revenues from 1.8 to 2 billion by 2027. By the end of 2023, this turnover amounted to just over a billion.

In addition to focusing on the refurbishment of current reactors, AtkinsRéalis has high hopes for the recent technological version of CANDU, MONARK.

“We are discussing with public entities the construction of new reactors to help achieve zero emissions targets. These potential contracts represent a significant opportunity for our business and could generate significant growth over the next ten years and beyond,” said Mr. Edwards.

Expansion in the United States

AtkinsRéalis announced on Wednesday the conclusion of a US$2.3 billion contract over 10 years to operate and maintain nuclear assets of the United States Department of Energy. The contract was won with its joint venture of Westinghouse Government Services and Jacobs Technology.

During the call Thursday, Mr. Edwards indicated that the Quebec company is sparing no effort to accelerate its establishment among our neighbors to the South with the aim of winning new contracts in different sectors.

AtkinsRéalis has a well-thought-out plan to become one of the ten largest players in its industry in the United States, he said. Management is also not closing the door to mergers or acquisitions of companies in the American market that could add value, in particular.

Mr. Edwards sees opportunities south of the border linked to the needs to modernize aging water or transport infrastructure.

For its entire third quarter, AtkinsRéalis achieved net income attributable to shareholders of 103.7 million, or 59 cents per share. This result represents a decrease from the profit of 105.0 million, or 60 cents per share, reported for the same period last year.

AtkinsRéalis, however, recalls that, during the third quarter of its 2023 financial year, it recorded a net gain with the sale of its Scandinavian engineering services to the Systra Group, a French engineering and consulting services company.

Its turnover totaled 2.45 billion in the third quarter, up from 2.20 billion in the same quarter last year.

Analysts had forecast diluted earnings per share of 62 cents and revenue totaling $2.38 billion, according to financial data firm Refinitiv.