Fluor Corporation has announced that net earnings attributable to Fluor from continuing operations were US$ 163 million, compared with US$ 161 million a year ago. Consolidated segment profit for the quarter was US$ 313 million, up 9% from US$ 288 million in the second quarter of last year. Improved segment profit results were primarily driven by a 57% increase in oil and gas, which was partly offset by a decline in the industrial and infrastructure segment. Revenue for the second quarter was US$ 5.3 billion, down from US$ 7.2 billion a year ago, mainly due to reductions in the industrial and infrastructure segment’s mining and metals business line.
New awards for Q2 were US$ 5.9 billion, including US$ 3.1 billion in government, US$ 1.5 billion in oil and gas and US$ 1.2 billion in industrial and infrastructure. Consolidated backlog at the end of the quarter rose to US$ 40.3 billion, up modestly over Q1 and up 9% from a year ago.
Oil and gas
Fluor’s oil and gas business reported segment profit of US$ 167 million, rising 57% from the second quarter of 2013. Strong segment profit results reflect favourable project performance, growing contributions from upstream and petrochemical projects and an increase in higher margin engineering and design activities. Revenue of US$ 2.8 billion was level with the second quarter of last year, as contributions from new projects were largely offset by lower revenue on large projects that progressed toward completion. Second quarter new awards for the segment totalled US$ 1.5 billion, including a refinery project in Belgium. Ending backlog for the oil and gas segment was US$ 24.2 billion, up 29% from US$ 18.7 billion a year ago.
David Seaton, Fluor, chairman and CEO said, ‘our oil and gas group continues to generate substantial double digit profit growth. While we see continued weakness in many non-energy related markets, we are very encouraged by the robust slate of major oil, gas and petrochemical prospects globally.’
Results to date were consistent with the company’s expectation for lower overall revenue, offset by improved margins. Looking forward, the company expects that improved results in a number of businesses will complement continuing strength in oil and gas to drive stronger EPS in the second half of the year. The company is maintaining its full year 2014 EPS from continuing operations guidance of US$ 4.10 – 4.45 per diluted share.
Adapted by Claira Lloyd
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