Growth in four strategic sectors
For the first time in four years, our Infrastructure & Construction business generated a positive Segment EBIT1 margin. Among the accomplishments, we successfully delivered the Growing Up Healthy project at CHU Sainte-Justine, North America’s second largest pediatric centre. We were also shortlisted on several major projects, four of which have a combined potential value of over $10 billion.
Our Nuclear team performed well too. We started 2016 with a $2.75 billion joint-venture contract to execute the Darlington nuclear power station retube and feeder replacement project. We secured a multi-year contract for initial engineering and tooling to refurbish Bruce Power, the world’s largest operating nuclear facility and source of 30% of Ontario’s energy. And we won a pre-project contract from Nucleoeléctrica Argentina for a CANDU nuclear new-build project.
In addition, we signed an agreement in principle for a joint venture with China National Nuclear Corporation and Shanghai Electric. Together we’ll explore opportunities for our proprietary CANDU nuclear technology within China, the world’s largest nuclear market, as well as in other parts of the globe.
In Oil & Gas, we welcomed Martin Adler as the sector’s new president following Christian Brown’s appointment to the new position of corporate development officer. Among the several projects won were an $800-million contract in the Middle East and a 10-year service contract worth approximately US$100 million with Crestwood Equity Partners in the United States.
In Mining & Metallurgy, we were awarded a number of contracts with new clients and in new geographies. This includes the Norilsk Nickel project in Russia, one of world’s largest dioxide mitigation projects, and two engineering, procurement and construction projects in Chile.
Our priorities in 2017
In 2017, we’ll continue to build on our strong foundation and 2016 achievements, focusing on what we can control to meet client needs, improve our business and adapt to constantly evolving markets. We’ll also seek to more fully leverage our diversified business model, broad capabilities, end-to-end solutions and leadership positions in highly attractive sectors. These include infrastructure and P3s in Canada, rail and transit, nuclear energy and sustaining capital services across our four sectors.
Four strategic priorities or commitments will guide our efforts throughout 2017. We’ll continue our progress in Operational Excellence, driving improvements in every area. This year, several new initiatives should help us enhance our efficiency, delivery, competitiveness and, ultimately, shareholder returns.
Our growth depends on our clients and how well we service them. That’s why we’re determined to become a more client centric organization, our second priority in 2017. By consistently delivering excellent work, we’ll ensure our clients’ satisfaction and repeat business.
Thirdly, we’ll continue building a performance-driven culture that inspires people to go beyond contract expectations or business as usual and to improve every day. We’re currently soliciting our employees’ feedback on how to promote a culture that better fosters innovation, creativity and teamwork.
Finally, we’ll remain focused on growing our business organically and through acquisitions. Organic growth will be largely driven by our Infrastructure sector in Canada and our nuclear, renewable energy and sustaining capital services across all four sectors.
Making good on these commitments is essential to our success as a global Canadian E&C champion that generates a consistently strong financial, ethical and HSSE performance with world-class execution at top-tier margins. With our employees, clients, partners and shareholders’ valued support, we’ll continue striving to build what matters in an ever-changing world and to always deliver as promised.
President and Chief Executive Officer