Canadian engineering firm SNC-Lavalin has written down $910 million in oil and gas assets amid continuing uncertainty over trade relations with Saudi Arabia, said a report.

The Canadian engineering giant had picked up a string of major contracts in the kingdom before a diplomatic dispute between the two countries last summer clouded the outlook for future orders, reported Arab News.

The firm said that near-term prospects for the business were worsening in the face of rising trade challenges in the kingdom.

The writedown contributed to a C$1.6 billion ($1.2 billion) fourth-quarter loss at the contractor. The engineering company also faces headwinds in Latin America, where it reported a C$346 million loss related to what analysts understand to be Chilean state-run miner Codelco’s Chuquicamata copper mine.

It is also expecting lower annual revenue from its metals and mining business, said the report.

"We disclosed back in August the potential effects of the Canadian-Saudi issue, and I think that in itself doesn’t affect the work we do today and the backlog we have," said SNC-Lavalin CEO Neil Bruce in a video presentation accompanying the company’s full-year results.

“But it does put a lot of uncertainty into the future prospects because Saudi have been pretty clear that they are looking wherever they choose to maybe omit us from bidding things that traditionally we would have bid,” he added.