Fluor Expected Backlog Stands at $32.7 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) firm Fluor Corporation (NSYE:FLR) (Irving, Texas) received several new awards in 2019 and expects to gain major contracts this year. The company won $12.6 billion in new awards in 2019, and its expected year-end backlog is $32.7 billion. Industrial Info is tracking projects valued at $187.5 billion involving Fluor.

Click on the image at right for a breakdown by world region of active projects involving Fluor.

Fluor's awards in 2019 included $3.7 billion in its Energy & Chemicals segment; $1.9 billion in Mining & Industrial; $2.6 billion in Infrastructure & Power; $2.2 billion in Government; and $2.2 billion in the Diversified Services segment. Fluor had previously announced the planned divestiture of its Government segment; however, on closer examination in the fourth quarter, Fluor executives decided the segment was worth retaining and are no longer planning its sale.

Energy & Chemicals
Among the highest-profile projects that Fluor kicked off in its Energy & Chemicals segment in the just-passed quarter was Royal Dutch Shell (NYSE:RDS.A) (The Hague, Netherlands)-led LNG Canada's grassroot liquefied natural gas (LNG) production plant in Kitimat, British Columbia. In the company's recent conference call with analysts, Fluor Chief Executive Officer Carlos Hernandez said the pilings had been started at the site, and the first steel had been cut for the outside battery limits (OSBL) and inside battery limits (ISBL) portions of the project. The project is expected to be completed in 2023. For more information, see Industrial Info's project report.

Other major projects in this segment on which Fluor progressed in the quarter included Inter Pipeline Limited's (Calgary, Alberta) grassroot propane dehydrogenation (PDH) plant in Fort Saskatchewan, Alberta. Fluor is providing engineering and procurement services on the plant, which will use 22,000 barrels per day (BBL/d) of propane to produce 1.1 billion pounds per year of propylene. Construction began in early 2018 and is expected to wrap up by the end of next year. For more information, see Industrial Info's project report.

Hernandez said that among the company's prospective awards in 2020 was Formosa Plastics Corporation USA's (Livingston, New Jersey's) $9.4 billion Sunshine Project in Saint James Parish, Louisiana, which would include an ethylene unit, PDH plant and other downstream units. For more information, see Industrial related projects reports and February 11, 2020, article - Formosa's $11 Billion in U.S.-Based Projects to Reach Milestones in 2020.

Mining & Industrial
Hernandez said Fluor's mining awards in 2019 had been light, but the company expected to see front-end engineering design contracts converted into EPC awards in the second half of 2020, with prospects led by copper, bauxite and lithium opportunities. Among the company's current projects in this segment is Freeport-McMoRan's (NYSE:FCX) (Phoenix, Arizona) Lone Star above-ground copper mine addition in Safford, Arizona. The project will help ensure the 200 million-pound--per-year mine's life for another 20 years. In a conference call last month, Freeport Chief Executive Officer Richard Adkerson said the project was about 75% complete and on track to begin production later this year. The project kicked off in early 2018, with Fluor providing EPC. For more information, see Industrial Info's project report.

Among Fluor's largest projects in the mining sector is BHP Limited's (NYSE:BHP) (Melbourne, Australia) grassroot iron ore and processing plant near Newman, Western Australia. The facility will include two primary crushing facilities and four secondary crushing facilities as well as a 23-kilomter overland conveyor system to transport to ore to an existing mining area for further processing. The project kicked off in mid-2018 and is expected to be completed early next year. For more information, see Industrial Info's project report.

Infrastructure & Power
While Fluor's expected backlog in the Infrastructure & Power segment is $6.9 billion, the company received only $67 million in awards in this segment in the fourth quarter. Most of Fluor's active power projects in the U.S. are for planned maintenance at power plants, including nuclear refueling outages. This year, Fluor will head up refueling outages for units 1 and 2 at Vistra Energy Corporation's (NYSE:VST) (Irving) Comanche Peak nuclear power station in Glen Rose, Texas. The Unit 2 outage is planned to kick off in April, followed by Unit 1 in October. For more information, see Industrial Info's project reports on the Unit 1 and Unit 2 refueling outages.

As Fluor is under a U.S. Securities and Exchange Commission investigation for its financial reporting it was unable to provide financial results for full-year and fourth-quarter 2019.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.