CB&I has announced first quarter 2016 net income of US$107 million, or US$1.01 per diluted share, compared to US$132 million, or US$1.21 per diluted share in the first quarter of 2015. Diluted earnings per share increased 5% in the first quarter of 2016 as compared to pro forma results for the comparable quarter in 2015, which exclude net income from the former nuclear construction business of US$28 million, or US$0.25 per diluted share. First quarter 2016 revenue of $2.7 billion compares to US$3.1 billion in the first quarter of 2015, which included US$488 million in revenue from the former nuclear business. On a pro forma basis, revenue increased slightly compared to 2015 first quarter results. New awards for the first quarter were US$1.2 billion with a backlog of US$21.2 billion.
Net cash provided by operating activities during the first quarter was US$142 million, representing an increase of US$432 million compared to the first quarter in 2015. Net operating cash flows combined with advance payments associated with equity method joint ventures, which are reflected in cash flows from financing activities, totalled approximately US$257 million during the first quarter 2016. At quarter end, cash and cash equivalents were US$641 million, an increase of US$294 million from the quarter-end balance for the first quarter 2015 and over US$90 million from the year-end balance for 2015. In addition, during the quarter, total debt was reduced by US$120 million from the year-end balance for 2015.
"Our cash generation in the first quarter reflects our ability to deliver on our capital allocation priorities of reducing leverage, returning capital to shareholders and investing in our business. Despite market uncertainty slowing the pace of new awards in the quarter, we maintained a healthy backlog and solid margins," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Earnings lagged this quarter due to underperformance from our Fabrication Services group and a continuing softness in the technology licensing market worldwide. However, as previously communicated, we expect our new awards, revenue and earnings to progressively improve during the year, and we remain on track to perform within our guided ranges for 2016."
New awards for the first quarter include scope increases for an LNG mechanical erection and instrumentation project in Australia, refinery maintenance work in the United States and Canada, crude oil storage in the Middle East and Canada, petrochemical licensing in the Asia Pacific region, catalyst awards in the Middle East, environmental remediation work for the US Navy, and a variety of technology and fabrication awards globally.
Edited from various sources by Rosalie Starling
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