Fluor Corporation has announced that net earnings attributable to the company from continuing operations rose to US$ 183 million for Q3 2014 from US$ 173 million for the same period last year. Consolidated segment profit for the quarter was US$ 335 million an increase of 8% on last year. Improved segment profit results were mainly driven by a 65% increase in Oil & Gas, which was partly offset by a decline in the Industrial & Infrastructure segment. Revenue for the third quarter was US$ 5.4 billion, down from Q3 2013 levels of US$ 6.7 billion, this was attributed to continued reductions in the Industrial & Infrastructure segment’s mining and metals business.
Oil and Gas
Fluor’s Oil & Gas business reported segment profit of US$ 179 million, an increase of 65% from the same time last year. Strong segment profit results reflect favourable project performance and increased contributions from upstream and petrochemical projects. Revenue for the quarter was US$ 3.2 billion, a 12% increase over the third quarter of 2013, reflecting rising contributions from major projects. Third quarter new awards for the segment totalled US$ 4.5 billion, including a refinery project in Malaysia and an oilsands project in Canada. Ending backlog for the Oil & Gas segment was a record US$ 26.5 billion, up 41% on a year ago.
The company is narrowing its 2014 guidance for EPS from continuing operations to a range of US$ 4.10 to US$ 4.30 per diluted share, from the previous range of US$ 4.10 to US$ 4.45 per diluted share. For 2015, the company is establishing its initial EPS guidance at a range of US$ 4.50 to US$ 5.00 per diluted share, excluding any pension settlement related charges which are not fully estimable at this time. EPS guidance for 2015 reflects a rising backlog and solid growth opportunities in Oil & Gas and stable to moderate improvement in the company’s other end markets.
David Seaton, Fluor Chairman and CEO said, ‘despite recent volatility in oil prices, our energy industry clients continue to invest in strategically important long term initiatives. As we look ahead to 2015, we continue to be encouraged by our growing Oil & Gas business, augmented by modest improvements in prospects in mining and metals, infrastructure, power and government.’
Edited from press release by Claira Lloyd
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