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Released June 07, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking 278 active projects that involve engineering, procurement and construction (EPC) leader Fluor Corporation (NYSE:FLR) (Irving, Texas) in some capacity, which have a total investment value (TIV) of $227.04 billion. The 10 highest-valued alone represent a diverse set of industries--Oil & Gas; Power; Chemical Processing; Metals & Minerals; and Industrial Manufacturing--and account for nearly half of the TIV.
Those industries account for most of Fluor's project backlog, which stood at $46 billion at the end of the previous quarter, a 12% increase from the same period in 2015. About $1.5 billion came from the company's acquisition late last year of Stork Holding B.V., a maintenance services provider. The project backlog also is geographically diverse, with 43% located in the U.S.; 30% in Europe, Africa and the Middle East; 21% in the Americas outside the U.S.; and 6% in the Asia-Pacific region.
Fluor's British subsidiary is handling the highest-valued project involving the EPC giant: Chevron Corporation's (NYSE:CVX) (San Ramon, California) $23 billion Tengiz Crude Oil & Natural Gas Processing Plant 3, which is in its engineering phase. The plant, which is part of the broader, $40 billion future growth project at the Tengiz Oil Field, involves constructing a facility that will process 260,000 barrels per day (BBL/d) crude oil and 960 million standard cubic feet per day of natural gas. For more information, see Industrial Info's project report.
According to Hellenic Shipping News Worldwide, Kazakhstan expects to join the top 10 oil-exporting countries by 2020, when it expects to produce 130 million tons of oil per year. The country currently enjoys about 30 billion barrels of proved crude oil reserves. Kazakhstan exported 60.9 million tons of oil in 2015 and plans to produce 77 million tons of oil in 2016, according to officials quoted by Hellenic.
Late last month, Chevron and its partners agreed to invest up to another $37 billion to increase output at the field, starting in 2017, according to The Wall Street Journal. Field operator Chevron already has invested about $37 billion in the field, along with its partners in the venture: state-owned KazMunaiGas, Exxon Mobil Corporation (NYSE:XMO) (Irving, Texas) and Russia's state-owned Lukoil.
As with many other EPC companies, such as Jacobs Engineering Group Incorporated (NYSE:JEC) (Pasadena, California) and Bechtel Corporation (San Francisco, California), Fluor's highest-valued projects in the Power Industry are for nuclear energy. In particular, three projects are among the most closely watched power project in the U.S.: Southern Company's (NYSE:SO) (Atlanta, Georgia) $16.2 billion in unit additions at Alvin W. Vogtle Nuclear Power Station in Waynesboro, Georgia; SCANA Corporation's (NYSE:SCG) (Cayce, South Carolina) $15 billion in unit additions at Virgil C. Summer Nuclear Power Station in Jenkinsville, South Carolina; and Dominion Generation's (NYSE:D) (Richmond, Virginia) $11 billion Unit 3 addition at North Anna Nuclear Power Station near Mineral, Virginia.
Last week, Southern Company subsidiary Georgia Power announced it had placed the last of the "Big 6" modules in the nuclear island for Unit 3 and had finished vertical construction of the Unit 4 cooling tower. A Fluor subsidiary is performing construction management services at the construction project, which is the largest in Georgia. The Vogtle project involves installing two Westinghouse-Toshiba AP1000 two-loop pressurized water reactors to drive two 1,100-megawatt (MW) General Electric (NYSE:GE) steam turbine generators. For more information, see Industrial Info's project reports on the Vogtle and Summer nuclear power projects.
Biggest Projects are Taking their Time
Despite boasting a growth in backlog, Fluor officials mixed caution with optimism in their most recent quarterly earnings call, noting that many final investment decision had been delayed in the energy, chemical and mining related businesses. Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa) recent decision to extend project construction at its $7 billion gas-to-liquids petrochemical facility in Westlake, Louisiana, is one example. For more information, see Industrial Info's project report.
"There have been no significant cancellations, and we didn't anticipate any," said Biggs Porter, the chief financial officer of Fluor, in a conference call following the announcement of last quarter's results. "The burn of backlog is low, as we've all observed. Some of this is due to clients like Sasol, where projects are well under way but have been stretched out... Much of it is due to the fact that many of the awards in backlog are very large, and actually burn more slowly, such as the Westinghouse nuclear projects and long-term O&M contracts on recent infrastructure awards, and the multi-year government projects. Backlog burn is also naturally slower when backlog has grown, as opposed to when it contracts."
The five other highest-value projects involving Fluor are:
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Those industries account for most of Fluor's project backlog, which stood at $46 billion at the end of the previous quarter, a 12% increase from the same period in 2015. About $1.5 billion came from the company's acquisition late last year of Stork Holding B.V., a maintenance services provider. The project backlog also is geographically diverse, with 43% located in the U.S.; 30% in Europe, Africa and the Middle East; 21% in the Americas outside the U.S.; and 6% in the Asia-Pacific region.
Fluor's British subsidiary is handling the highest-valued project involving the EPC giant: Chevron Corporation's (NYSE:CVX) (San Ramon, California) $23 billion Tengiz Crude Oil & Natural Gas Processing Plant 3, which is in its engineering phase. The plant, which is part of the broader, $40 billion future growth project at the Tengiz Oil Field, involves constructing a facility that will process 260,000 barrels per day (BBL/d) crude oil and 960 million standard cubic feet per day of natural gas. For more information, see Industrial Info's project report.
According to Hellenic Shipping News Worldwide, Kazakhstan expects to join the top 10 oil-exporting countries by 2020, when it expects to produce 130 million tons of oil per year. The country currently enjoys about 30 billion barrels of proved crude oil reserves. Kazakhstan exported 60.9 million tons of oil in 2015 and plans to produce 77 million tons of oil in 2016, according to officials quoted by Hellenic.
Late last month, Chevron and its partners agreed to invest up to another $37 billion to increase output at the field, starting in 2017, according to The Wall Street Journal. Field operator Chevron already has invested about $37 billion in the field, along with its partners in the venture: state-owned KazMunaiGas, Exxon Mobil Corporation (NYSE:XMO) (Irving, Texas) and Russia's state-owned Lukoil.
As with many other EPC companies, such as Jacobs Engineering Group Incorporated (NYSE:JEC) (Pasadena, California) and Bechtel Corporation (San Francisco, California), Fluor's highest-valued projects in the Power Industry are for nuclear energy. In particular, three projects are among the most closely watched power project in the U.S.: Southern Company's (NYSE:SO) (Atlanta, Georgia) $16.2 billion in unit additions at Alvin W. Vogtle Nuclear Power Station in Waynesboro, Georgia; SCANA Corporation's (NYSE:SCG) (Cayce, South Carolina) $15 billion in unit additions at Virgil C. Summer Nuclear Power Station in Jenkinsville, South Carolina; and Dominion Generation's (NYSE:D) (Richmond, Virginia) $11 billion Unit 3 addition at North Anna Nuclear Power Station near Mineral, Virginia.
Last week, Southern Company subsidiary Georgia Power announced it had placed the last of the "Big 6" modules in the nuclear island for Unit 3 and had finished vertical construction of the Unit 4 cooling tower. A Fluor subsidiary is performing construction management services at the construction project, which is the largest in Georgia. The Vogtle project involves installing two Westinghouse-Toshiba AP1000 two-loop pressurized water reactors to drive two 1,100-megawatt (MW) General Electric (NYSE:GE) steam turbine generators. For more information, see Industrial Info's project reports on the Vogtle and Summer nuclear power projects.
Biggest Projects are Taking their Time
Despite boasting a growth in backlog, Fluor officials mixed caution with optimism in their most recent quarterly earnings call, noting that many final investment decision had been delayed in the energy, chemical and mining related businesses. Sasol Limited's (NYSE:SSL) (Johannesburg, South Africa) recent decision to extend project construction at its $7 billion gas-to-liquids petrochemical facility in Westlake, Louisiana, is one example. For more information, see Industrial Info's project report.
"There have been no significant cancellations, and we didn't anticipate any," said Biggs Porter, the chief financial officer of Fluor, in a conference call following the announcement of last quarter's results. "The burn of backlog is low, as we've all observed. Some of this is due to clients like Sasol, where projects are well under way but have been stretched out... Much of it is due to the fact that many of the awards in backlog are very large, and actually burn more slowly, such as the Westinghouse nuclear projects and long-term O&M contracts on recent infrastructure awards, and the multi-year government projects. Backlog burn is also naturally slower when backlog has grown, as opposed to when it contracts."
The five other highest-value projects involving Fluor are:
- $7 billion: Anadarko Petroleum Corporation's Afungi LNG Liquefaction Plant in Palma, Mozambique
For more information, see Industrial Info's project report. - $7 billion: Sasol Limited's ECHO 2 gas-to-liquids unit addition in Westlake, Louisiana
For more information, see Industrial Info's project report. - $5.7 billion: PTT Public Company Limited's ethylene plant in Shadyside, Ohio
For more information, see Industrial Info's project report. - $5.63 billion: Baikal Mining Company LLC's Udokan Copper Mine and Processing Plant in Zabaykalsk, Russia
For more information, see Industrial Info's project report. - $5.6 billion: Maryland Department of Transportation's $5.6 billion expansion of the Purple Line light rail system near Baltimore
For more information, see Industrial Info's project report and June 3, 2016, article - Jacobs Engineering's 10 Top-Valued Projects Span Five Continents, Multiple Industries.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
