Released March 01, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) firm Fluor Corporation (NSYE:FLR) (Irving, Texas) saw COVID-19 take a bite out of its business in 2020, as clients delayed capital spending while waiting for uncertainty from the pandemic to subside. The company ended the year with a contract backlog of $25.6 billion, down $7.1 billion from 2019. New awards for 2020 amounted to $9 billion, down $3.6 billion.
Industrial Info is tracking projects valued at $181.5 billion involving Fluor.
Click on the image at right for a breakdown by world region of active projects involving Fluor.
"New awards clearly reflected the impact of the pandemic and its pressure on our clients," said Chief Executive Officer David Constable in an earnings-related conference call, who added, "They also reflect our stringent pursuit criteria and strategy to reduce risk."
On the plus side, Constable said he expects new awards to pick up momentum in the second half of 2021. "We continue to see good prospects across our portfolio and are completing front-end work scopes to populate our future backlog," he continued. "However, lower awards in 2020 will create a headwind for 2021 earnings."
Fluor's awards in 2020 included $2 billion in its Energy & Chemicals segment; $2.8 billion in Mining & Industrial; $764 million in Infrastructure & Power; $1.9 billion in Government; and $1.5 billion in the Diversified Services segment.
Energy & Chemicals
Constable said he did not expect Fluor's energy clients to resume capital spending at a "meaningful pace until later in 2021 and beyond." He added he expects to see more medium-sized projects this year. "These are multi-hundred-million-dollar projects, but not all in the multi-billion-dollar range."
Meanwhile, Fluor's chemical industry clients continue to see recovery in key sectors of the market, which are anticipated to translate into additional capital expenditures, Constable said.
Mining & Industrial
Fluor is seeing momentum in the mining sector, with high demand for metals such as copper and iron ore, Constable said.
Also, he said he was encouraged by opportunities in the advanced technologies and life sciences end markets. "Here, we are pursuing data centers and semiconductor opportunities in North America and major life sciences prospects in Europe."
Infrastructure & Power
Infrastructure opportunities could be enhanced with the introduction of a U.S. federal infrastructure spending bill, Constable said. At the same time, "Our goal is to deliver predictable earnings and not chase top line growth. This will be especially apparent in our infrastructure pursuits going forward."
Fluor reported a net loss from continuing operations of $294 million in 2020, compared with a net loss of $1.5 billion in 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.
Industrial Info is tracking projects valued at $181.5 billion involving Fluor.
"New awards clearly reflected the impact of the pandemic and its pressure on our clients," said Chief Executive Officer David Constable in an earnings-related conference call, who added, "They also reflect our stringent pursuit criteria and strategy to reduce risk."
On the plus side, Constable said he expects new awards to pick up momentum in the second half of 2021. "We continue to see good prospects across our portfolio and are completing front-end work scopes to populate our future backlog," he continued. "However, lower awards in 2020 will create a headwind for 2021 earnings."
Fluor's awards in 2020 included $2 billion in its Energy & Chemicals segment; $2.8 billion in Mining & Industrial; $764 million in Infrastructure & Power; $1.9 billion in Government; and $1.5 billion in the Diversified Services segment.
Energy & Chemicals
Constable said he did not expect Fluor's energy clients to resume capital spending at a "meaningful pace until later in 2021 and beyond." He added he expects to see more medium-sized projects this year. "These are multi-hundred-million-dollar projects, but not all in the multi-billion-dollar range."
Meanwhile, Fluor's chemical industry clients continue to see recovery in key sectors of the market, which are anticipated to translate into additional capital expenditures, Constable said.
Mining & Industrial
Fluor is seeing momentum in the mining sector, with high demand for metals such as copper and iron ore, Constable said.
Also, he said he was encouraged by opportunities in the advanced technologies and life sciences end markets. "Here, we are pursuing data centers and semiconductor opportunities in North America and major life sciences prospects in Europe."
Infrastructure & Power
Infrastructure opportunities could be enhanced with the introduction of a U.S. federal infrastructure spending bill, Constable said. At the same time, "Our goal is to deliver predictable earnings and not chase top line growth. This will be especially apparent in our infrastructure pursuits going forward."
Fluor reported a net loss from continuing operations of $294 million in 2020, compared with a net loss of $1.5 billion in 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.
