Fluor Corporation has announced financial results for its first quarter. Net earnings were US$144 million. Consolidated segment profit for the quarter was US$ 276 million. Segment profit results reflect continued improvement in oil and gas as well as government, partly offset by declines in the industrial and infrastructure sector’s mining and metals business line. Revenue for the first quarter was US$4.5 billion, down from US$5.4 billion last year, primarily due to continued reductions in the mining and metals business line.
David Seaton, Chairman and CEO said, “our ability to provide clients with capital efficient project execution through our integrated solutions model continues to gain traction, as evidenced this quarter by strong oil and gas performance. While bookings may be slower over the near term, we continue to see a number of high quality world scale opportunities.”
Oil and gas
Fluor’s oil and gas business reported segment profit of US$183 million, an increase from US$139 million in the first quarter of last year. Revenue of US$2.5 billion decline from US$2.8 billion a year ago primarily due to certain large projects progression towards completion. Strong segment profit performance reflects increased contributions from refining projects awarded in 2014. New awards for the segment totalled US$2.9 billion, including a pipeline project in the US. Ending backlog for oil and gas segment rose 8%, from US$25.8 billion a year ago. To end the quarter at US$27.8 billion.
Overall, the first quarter was consistent with the company’s prior guidance for a low start this year. As a result, the company is maintaining its 2015 guidance range of US$4.40 – 5 per diluted share. This guidance excludes the effects of the previously announced termination and settlement of Fluor’s US defined benefit pension plan which is expected in the latter part of this year.
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/01052015/fluor-q1-2014/