UPDATE 2-Mexico's ICA reports much deeper first-quarter loss

Wed Apr 29, 2015 6:48pm EDT
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(Updates with details about Shell Canada Energy contract termination)

MEXICO CITY, April 29 (Reuters) - Mexican construction company ICA reported a much deeper first-quarter loss on Wednesday, as a slump in the peso hit the company with higher financial costs, despite revenue growth.

The company, whose full name is Empresas ICA, said it lost 846 million pesos ($55.4 million) during the quarter, much wider than the loss of 23.8 million pesos during the same period last year.

The company's exchange rate loss in the quarter totaled about 1 billion pesos, pushing net financial costs for the quarter to 2.49 billion pesos, compared to net financial costs of 865.7 million pesos during the year-earlier period.

Revenue rose 10.56 percent to 8.8 billion pesos, boosted by ICA's construction and airport operations.

The company also said its ICA Fluor joint venture and Shell Canada Energy agreed to terminate a contract on April 24 for Shell's Carmon Creek project in Alberta, Canada.

ICA Fluor is a joint venture between ICA and U.S.-based construction firm Fluor.

The unexecuted balance of the contract, to make well pads for heavy oil platforms, was 4 billion pesos, ICA said, without giving additional details.

Slumping oil prices have caused many companies to cancel or scale back oilfield service contracts.   Continued...