Processing Magazine

Fluor reports benefits of oil & gas, petrochemical industry expansion

May 7, 2013
Fluor headquarters
Fluor Corp. headquarters. Photo courtesy of Fluor Corp.

Fluor Corp. financial results for its first quarter ending March 31, 2013 were driven by growth in its oil & gas and industrial & infrastructure segment businesses, the company says.

Irving, Texas-based Fluor Corp. designs, builds and maintains complex capital projects. Its success mirrors the emergence in recent years of a segment of truly global engineering, procurement and construction (EPC) companies. Fluor ranks 124 on the FORTUNE 500 list and had revenue of $27.6 billion in 2012.

Results included net earnings of $166 million, or $1.02 per diluted share. Consolidated segment profit for the quarter was $294 million, and revenue was $7.2 billion, up 16 percent and 14 percent, respectively, from the first quarter of 2012. Current quarter results were driven by growth in the Oil & Gas and Industrial & Infrastructure segments.

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New awards for the first quarter were substantial at $6.5 billion, including $3.1 billion in oil & gas and $2.2 billion in industrial & infrastructure. Consolidated backlog at the end of the quarter was $37.5 billion, down 12% from a year ago mainly due to a downturn in the mining and metals market.

“We are pleased with our financial results for the quarter, including $6.5 billion of new awards,” said Chairman and CEO David Seaton. “We are particularly encouraged by the strength of our oil & gas business.”

The company is maintaining its EPS guidance for 2013 at the previously announced range of $3.85 to $4.35 per diluted share. This, says the company is based on its positive expectations for oil & gas and industrial & infrastructure overall, which have the potential to offset uncertainty and delays in mining and metals.

Fluor’s oil & gas business reported segment profit of $105 million, generating a 42% increase from the first quarter of 2012. Revenue grew 36% percent to $2.8 billion, compared with $2.0 billion last year. First quarter results reflect growing contributions from upstream and petrochemical projects, the company said. New awards for the segment totaled $3.1 billion in the quarter, including petrochemical projects in the United States and China. Backlog at the end of the first quarter rose to $18.6 billion, up 11% from $16.8 billion a year ago.