North American Construction Group pulls guidance for 2020 in wake of COVID-19
North American Construction Group Ltd. has joined the long list of companies that have withdrawn their 2020 financial guidance as the COVID-19 pandemic blurs Canada’s economic prospects.
“Clearly, our clients are currently dealing with the extremely negative and wide-ranging impacts of the COVID-19 pandemic,” Martin Ferron, the company’s chairman and CEO, said in a release. “Therefore, discussions are in full swing about how we can best continue to support them in these toughest of times.”
The Acheson, Alta.-based heavy construction firm works mainly on oilsands and mining projects in Western Canada — areas hit hard by the recent rout in crude oil prices. The going per barrel rate has slid by more than 50 per cent since late February due to a rift between major producers Russia and Saudi Arabia. Weakening demand as the global economy works through the coronavirus crisis has exacerbated the issue.
NACG said it is “too early” to predict how the evolving situation will affect its outlook for the year.
“We hope to have a clearer view by the time we report first quarter earnings in a few weeks,” the company said. “Our performance in that quarter was robust and we expect to at least meet consensus estimates.”
The company also said it is continuing its effort to diversify into new natural resource sectors and regions.