Fluor upbeat about process market prospects
11 May 2010
Irving, Texas – Fluor Corp. see “substantial” prospects for new project awards across its diverse portfolio this year, but warns that the marketplace for engineering and construction services is becoming increasingly competitive.
“Prospects in [lower margin] mining continue to show particular strength, while operations and maintenance spending remains weak,” the group said. “Fluor’s oil and gas markets are still in transition, but there are indications that a limited number of key projects could be released this year.”
Fluor’s forecast came alongside first quarter results (to 31 March) showing net earnings of $137m, compared with $205m in Q1/09. Revenue at $4.9bn, was down from the $5.8bn achieved in the first quarter of last year.
The declines, said Fluor, reflected lower oil & gas revenue and profit, partly offset by growth in the power, government and industrial & infrastructure segments.
Fluor’s results for the quarter are consistent with our expectations for a delayed recovery as we go through 2010, according to chairman and CEO, Alan Boeckmann.
“Our end-market diversification has enabled us to deliver good profitability despite lower new award levels in recent quarters and the trailing impact of a significant reduction in spending by our oil and gas clients,” said Boeckmann. “We are encouraged by our significant prospect list that should allow the company to increase backlog in 2010.”
New project awards for Q1/10 were $3.4bn, compared with $5.5bn a year ago. Fluor’s first quarter awards included: $1.4bn in oil & gas projects, $1.0bn in Industrial & Infrastructure projects, and about $400m from each of the government and global services segments.
Consolidated backlog for the quarter was $25.7bn, compared sequentially with $26.8bn at 31 Dec 2009, added a Fluor financial statement.
