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While the company has not yet experienced any impacts as a result of the diplomatic rift between Canada and Saudi Arabia last year, Bruce expressed concern about the company’s ability to continue operating in the Middle Eastern country in future.

“We’ve seen just in the last six weeks, a further cooling of the relationship between Saudi Arabia and Canada,” said Bruce during the call. “We have had feedback from our clients there, that yes, they want us to carry on … but our ability to secure significant future work is very much under review.”

Bruce made the comments after the company announced its oil and gas business would post lower cash flows as a result of higher costs than anticipated, and unexpected trading challenges.

The company also took a $1.24 billion non-cash after-tax goodwill impairment charge, about $7.04 per share, on the carrying value of its oil and gas business. The stock closed off 27.81 per cent to $35.01.

SNC-Lavalin has about 9,000 employees in Saudi Arabia, or 15 per cent of its workforce, according to the company. In the past, it has downplayed the diplomatic feud that started after Foreign Minister Chrystia Freeland tweeted about the imprisonment of human rights activists in Saudi Arabia.

More recently, in January, Canada provided asylum to an 18-year-old Saudi woman who renounced Islam.

“The world’s a pretty unpredictable place at the moment. I’m not sure that anyone would bet on intergovernmental relations. CEO Neil Bruce

Bruce said during the call the company has not lost any work, or made any layoffs, as a result of the diplomatic tensions.