WSP Provides Business Update in Light of COVID-19
April 15 2020 - 4:30PM
WSP Global Inc. (TSX: WSP) (“WSP” or the “Corporation”) today
provided an update on its activities and the measures it has taken
in light of the impacts of the novel coronavirus (“COVID-19”)
pandemic.
In response to the pandemic, the Corporation has
implemented business continuity plans to ensure the safety of its
people. The Corporation’s global work force operates in a number of
countries with most of its people having now transitioned remotely.
Leveraging its technology investments, its people are collaborating
to deliver projects and pursue new assignments. In most of WSP’s
major hubs, many of the services or projects are considered as
essential services and the Corporation has, to date, maintained
good productivity levels. Although it has observed the start of a
slowdown with some delayed projects, WSP’s clients have thus far
generally remained committed to their projects, particularly in the
public sector which accounted for 56% of 2019 net revenues and
where WSP has secured new assignments. In addition, the Corporation
has, since early March, seen an improvement in its operations in
Hong Kong and mainland China.
“As the situation continues to evolve, our first
objective has been to ensure the health of our employees and their
families, of our clients and of the communities in which we
operate. As of today, most of our people around the globe are
working remotely, allowing us to continue to support our clients
efficiently. In parallel, our leadership teams are fully engaged
and have implemented tailored regional business continuity plans
aimed at supporting our clients and business partners as they
navigate these unprecedented times. While the full impact and
duration of the COVID-19 outbreak is difficult to predict, we
believe that WSP’s diversified business model, from both a
geographic and sector standpoint, its strong public-sector practice
and its regionally-empowered leadership model should place the
Corporation in a solid position to face these challenges,” said
Alexandre L’Heureux, WSP’s President and Chief Executive Officer.
“We are also proud to see our experts contribute to the fight
against COVID-19. In Montreal, members of our team are working on a
project for an emergency isolation room expansion of the
Maisonneuve-Rosemont Hospital and in the United States, our team is
supporting the US Postal Service for the complete facility
sanitization of the Westchester New York Mail Processing and
Distribution Center. WSP was also retained in the UK, and in other
regions of the world, to support with design and advisory services
for a number of health care facilities,” he added.
In anticipation of the challenges ahead, the
Corporation has proactively implemented measures to adjust its cost
structures and has postponed all non-essential capital
expenditures. WSP is closely following developments in each of the
regions in which it operates and will consider additional
initiatives as the situation evolves. Although the Corporation’s
first quarter results are not expected to be materially affected by
the COVID-19 pandemic, WSP recognizes the unprecedented uncertainty
it is facing and believes it prudent to withdraw the 2020 financial
outlook provided on February 26, 2020.
On the balance sheet front, as of December 31,
2019, WSP had a low debt level, with its net debt to adjusted
EBITDA ratio at 1.1 times and $910.1 million of borrowings
available under its credit facility. In fiscal 2019, a significant
portion of WSP’s net revenues were derived from the public sector
(in particular within the transportation & infrastructure
sector), which should, together with its strong balance sheet, well
position the Corporation to benefit from future stimulus programs
expected to be deployed in OECD countries, where WSP generated
approximately 90% of its net revenues in 2019.
Mr. L’Heureux concluded by saying: “I would like
to thank our employees and clients for their continued support in
those unprecedented times. I am confident that our strong client
base, our empowered regional model and our proactive measures will
ensure that, together, we resiliently weather these challenging
times.”
ABOUT WSPAs one of the world’s
leading professional services firms, WSP provides engineering and
design services to clients in the Transportation &
Infrastructure, Property & Buildings, Environment, Power &
Energy, Resources and Industry sectors, as well as offering
strategic advisory services. WSP experts include engineers,
advisors, technicians, scientists, architects, planners,
environmental specialists and surveyors, in addition to other
design, program and construction management professionals. With
talented people around the globe, WSP is uniquely positioned to
deliver successful and sustainable projects, wherever clients need
us. wsp.com
FORWARD-LOOKING
STATEMENTSCertain information regarding WSP contained
herein may constitute forward-looking statements. Forward-looking
statements may include estimates, plans, expectations, opinions,
forecasts, projections, guidance or other statements that are not
statements of fact, including statements regarding the sufficiency
of WSP’s liquidity and working capital requirements for the
foreseeable future and WSP's expectation regarding timing of a
revised outlook. Although WSP believes that the expectations
reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been
correct. These statements are subject to certain risks and
uncertainties and may be based on assumptions that could cause
actual results to differ materially from those anticipated or
implied in the forward-looking statements, including risks relating
to the COVID-19 pandemic. WSP's forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
The complete version of the cautionary note regarding
forward-looking statements as well as a description of the relevant
assumptions and risk factors likely to affect WSP's actual or
projected results are included in the Management’s Discussion and
Analysis for the year ended December 31, 2019, which is available
on SEDAR at www.sedar.com. The forward-looking statements contained
in this press release are made as of the date hereof and WSP does
not assume any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise unless expressly required by applicable securities
laws.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Alain MichaudChief Financial OfficerTel: (438)
843-7317alain.michaud@wsp.com
WSP Global (TSX:WSP)
Historical Stock Chart
From Mar 2024 to Apr 2024
WSP Global (TSX:WSP)
Historical Stock Chart
From Apr 2023 to Apr 2024