Fluor has announced financial results for its fiscal year ended December 31 2014. Net earnings attributable to Fluor from continuing operations for 2014 were US$715 million, or US$4.48 per diluted share, up from US$668 million or US$4.06 per share in 2013. Consolidated segment profit for the year was US$1.3 billion, compared with US$1.2 billion a year ago. Segment profit for 2014 reflected an improvement in oil and gas, offset by declines in the industrial and infrastructure, government and global services segment. Revenue of US$21.5 billion in 2014 was down from US$27.4 billion in the prior year, mainly due to reductions from the industrial and infrastructure segment’s mining and metals business line.
Full year new awards were a record US$28.8 billion, comprised of US$19.7 billion in oil and gas, USR4.7 billion in government, US$3.3 billion in industrial and infrastructure and US$1.1 billion in power. This compares to US£25.1 billion in new awards in 2013. Consolidated backlog at year end was US$42.5 billion, which compares with US$34.9 billion a year ago, reflecting growth in both the oil and gas and government segments.
Although Fluor continue to closely monitor the capital spending plans of its major oil and gas clients, at this point in time the company believes effects from slower spending by customers on earnings per share guidance will be significantly offset by the positive effects of the announced share repurchase program. However, the company believes the upper half of the range, while still achievable, has become more challenging. As a result, the company is expanding its 2015 guidance range to US$4.40 – 5 per diluted share, which compares to the previous range of US$4.50 – 5 per diluted share. This guidance excludes the effects of the previously announced termination and settlement of Fluor’s US defined benefit pension plan later in 2015.
Oil and gas
Fluor’s oil and gas business segment reported profit of US$673 million in 2014, an increase from US$441 million in 2013. Revenue for 2014 was US$11.4 billion, compared with US$11.5 billion in the previous year. The segment’s strong operating results reflect increased contributions from upstream and petrochemical projects. Full year new awards in 2014 totalled US$19.7 billion, compared to US$12.9 billion in 2013. In the fourth quarter, the segment booked new awards of US$4.9 billion, including a petrochemical facility for Sasol in the US and a delayed coker unit for Pemex in Mexico. Ending backlog for the oil and gas segment rose 42% from a year ago to end 2014 at a record US28.4 billion.
David Seaton, Chairman and CEO said, “our performance in 2014 was strong, with record new awards and an ending backlog of over US$42 billion going into 2015. Although we continue to track a robust prospect list across a number of end markets and geographies, the short term impact of oil prices and the timing of major capital investment decisions by our customers create uncertainty.”
Edited from press release by Claira Lloyd