CGI sees opportunity from woes in Canada’s oil patch
IT services firm says there's business to be had from energy companies looking to reduce costs.
Oil & Gas
Alberta oil sands
MONTREAL — CGI Group says the recent drop in energy prices presents an opportunity to win new business from customers in the oilpatch looking to reduce costs.
“There is a lot of interest in how costs can be managed or brought down rapidly against a dropping commodity price,” CGI chief executive Michael Roach said Wednesday during a conference call ahead of the company’s annual meeting.
It’s an approach that Montreal-based CGI used several years ago to attract business from US states that were undergoing fiscal challenges.
Meanwhile, Roach said the lower Canadian dollar, which has tumbled along with the price of oil, improves CGI’s competitive advantage in the global market for IT services.
Armed with lots of cash and access to credit, Roach said the company is on the hunt for acquisitions again. Areas of focus for acquisitions are the US and Britain.
CGI said earlier that cash generated from operating activities in the September-December quarter increased more than five-fold from a year earlier to $339.2 million. CGI also said its net debt at the end of December was $1.9 billion, down $965.9 million from a year earlier.
CGI’s revenue was down $100 million from a year ago to $2.54 billion. Revenues declined 12% in the United States and 9% in Canada.
© 2015 The Canadian Press