Fluor Corporation has announced financial results for its fiscal year ended 31 December 2015. Excluding pre-tax non-operating pension settlement expenses of US$240 million, or US$1.04 per diluted share after tax, the company reported a net profit from continuing operations of US$571 million, or US$3.89 per diluted share, compared to US$715 million or US$4.48 per diluted share in 2014. Including pension settlement expenses, the company reported net earnings of US$418 million, or US$2.85 per diluted share. Consolidated segment profit for the year was US$1.0 billion, compared to US$1.3 billion a year ago. Revenue of US$18.1 billion in 2015 compares to US$21.5 billion in the prior year.
Full year new awards were US$21.8 billion, comprised of US$11.3 billion in oil and gas, US$6.0 billion in power, US$3.2 billion in industrial and infrastructure and US$1.4 billion in government. This compares to US$28.8 billion in new awards in 2014. Consolidated backlog at year end was a record US$44.7 billion, compared with US$42.5 billion a year ago, reflecting growth in the power segment from the award of two nuclear contracts from Westinghouse.
Corporate G&A expense for 2015 was US$168 million, compared with US$183 million a year ago. Fluor’s cash and marketable securities balance remains strong at US$2.4 billion. During 2015, the company generated US$849 million in cash flow from operating activities, repurchased US$510 million worth of Fluor shares, and paid out US$125 million in dividends.
Excluding pre-tax non-operating pension settlement expenses of US$231 million, or US$1.04 per diluted share after tax, the company reported a net profit from continuing operations for 4Q15 of US$96 million, or US$0.68 per diluted share. Including pension settlement expenses, the company reported a loss of US$51 million, or US$0.36 per diluted share. Current quarter segment profit was US$234 million and includes a US$31 million charge related to a gas fired power facility in Brunswick County, Virginia. Corporate G&A expenses in 4Q15 were US$54 million, compared with US$53 million a year ago. The effective tax rate in 4Q15 was higher than expected due to losses in two foreign subsidiaries. Revenue for the quarter was US$4.4 billion and new awards were US$7.8 billion. The combined effect of the charge on the gas fired power project and the higher than expected tax rate was approximately US$0.21 per diluted share.
"Although we are disappointed with the results in power, our oil and gas business performed well and maintained backlog levels despite the continued volatility of oil prices," said Fluor Chairman and Chief Executive Officer David Seaton. "Our nuclear contracts with Westinghouse, along with recently announced new awards in infrastructure and our announcement to acquire Stork Holdings B.V., add diversification to our already strong backlog and build upon our strategy to expand our construction and maintenance offerings."
Adapted from press release by Francesca Brindle
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