Q: Long long term holder of WSP, trimmed multiple times. I have their non-Canadian allocation at 82%. What is their exposure to the middle east? Any significant risk? Thanks...Steve
5i Research Answer:
WSP only breaks down exposure to its EMEIA division, which also includes Europe, India and Africa as well as the Middle East. This division is about 30% of revenue (before the recent acquisition). WSP does have a good presence in Qatar and UAE. We might estimate full exposure to the region at 4% to 7% of revenue. A risk, but not likely material due to the nature of long term contracts which can take years to turn into revenue.