SECOND QUARTER 2017 HO

Transcription

1 SECOND QUARTER 2017 HO

2 This presentation contains forward-looking statements concerning the expected financial performance of Fluor Corporation and its subsidiaries ( we, our or the Company ) and the Company s strategic and operation plans, including statements about our projected earnings level, expenses, market outlook, new awards, backlog levels, and client capital investments. Words such as believes, expects, anticipates, assumes, may, positions, looking ahead, think, target, trend, can,, appears, estimates, should, outlook, guidance or other similar expressions often identify forward-looking statements. Such statements are based on current management expectations as to what may occur in the future. Risks and uncertainties may cause actual results to differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Investors are cautioned not to place undue reliance on the forward-looking statements included in this presentation, which speak only as of the date hereof. The company disclaims any intent or obligation, other than as required by law, to update this information in light of new information or future events. Additional information about potential risk factors that could affect the Company s business and financial results is included in our Form 10-K filed on February 17, 2017, and Form 10-Q filed on August 3, During this presentation, we may discuss certain non-gaap financial measures. Reconciliations of these amounts, with the comparable GAAP measures, are reflected in our earnings release and are posted in the investor relations section of our website at investor.fluor.com FLUOR CORPORATION. ALL RIGHTS RESERVED. 2

3 A leading Engineering, Procurement, Fabrication and Construction (EPFC) company Integrated Solutions delivery model Long term global presence and mega-project experience Diversified across energy, industrial, infrastructure and government markets Strong Front-End Engineering and Design (FEED) capability $2.1 billion in cash and marketable securities at quarter-end Quarterly dividend $0.21 per share New awards of $3.2 billion in 2Q; backlog of $37.6 billion 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 3

4 REVENUE 22% 16% 2Q 2017 $4.7 Billion 49% 13% Energy, Chemicals & Mining Upstream, Downstream, Refining, Chemical, Petrochemical, Offshore, LNG, Pipeline, Mining Industrial, Infrastructure & Power Infrastructure, Power EPC, NuScale, Life Sciences & Advanced Manufacturing Government U.S. and International Government Agencies BACKLOG 30% 30 June 2017 $37.6 Billion 11% Diversified Services AMECO, TRS, Stork, Power Services 51% 8% 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 4

5 New Awards Backlog $44.7 $46.0 $47.3 $44.3 $45.0 $5.3 $7.8 $4.7 $6.4 $7.0 $41.7 $41.6 $37.6 $2.8 $2.3 $3.2 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q FLUOR CORPORATION. ALL RIGHTS RESERVED. 5

6 GEOGRAPHY CONTRACT TYPE 8% The Americas 40% Europe, Africa & Middle East 48% 4% Asia Pacific United States 68% 32% Reimbursable Fixed Price 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 6

7 Quarter Ended ($ in millions, except EPS) 06/30/ /30/2016 Revenue $ 4,716 $ 4,856 Segment Profit Net Earnings (1) (24) 102 EPS (diluted) (1) (0.17) 0.72 New Awards 3,195 6,432 Backlog 37,570 47,322 *(1) Net Net earnings and and EPS EPS attributable to to Fluor from continuing operations 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 7

8 Quarter Ended ($ in millions, except EPS) 06/30/ /30/2016 Cash and Marketable Securities $ 2,145 $ 1,916 Quarterly Dividend per Share $ 0.21 $ 0.21 Return on Average Shareholders Equity 4% 16% 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 8

9 $4.06 $4.48 $3.89 $2.00 $1.40 $ * (est)** * Excludes pension settlement costs ** Guidance as of 8/3/2017 earnings call 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 9

10 Segment Updates 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. HO

11 2Q new awards of $860 million Sizeable new awards expected over the next two quarters Oil & Gas customers are moving forward with capex spending, focusing on advantaged projects Increase in mining EPC and FEED projects over last 12 months Backlog ($ in Billions) $30.5 $29.4 $21.8 $ Q FLUOR CORPORATION. ALL RIGHTS RESERVED. 11

12 2Q new awards of $672 million Southern Gateway highway project in Texas Domestic and international infrastructure opportunities improving Currently reassessing the gas-fired power market New management team in place Backlog ($ in Billions) $5.0 $9.7 $15.1 $ Q FLUOR CORPORATION. ALL RIGHTS RESERVED. 12

13 Serving Departments of Energy, Defense and Homeland Security 2Q new awards of $1.1 billion Task orders for LOGCAP IV in Afghanistan Additional funding for Strategic Petroleum Reserve Idaho Cleanup Project Core Contract Long-term contracts at DOE s Savannah River, Portsmouth, Paducah and the Strategic Petroleum Reserve Backlog ($ in Billions) $4.7 $3.6 $5.2 $ Q FLUOR CORPORATION. ALL RIGHTS RESERVED. 13

14 Segment includes: Stork (incl. Fluor legacy O&M) AMECO TRS Power Services 2Q new awards of $554 million Backlog ($ in Billions) $2.3 $2.1 $2.9 $ Q FLUOR CORPORATION. ALL RIGHTS RESERVED. 14

15 Backlog $37.6 billion $2.1 billion in Cash & Marketable Securities 2017 guidance of $ $1.70 per diluted share Oil & Gas, Mining and Infrastructure prospect pipeline improving Disciplined capital deployment strategy and robust cash flow generation Continue to manage internal costs 2017 FLUOR CORPORATION. ALL RIGHTS RESERVED. 15

16 Questions & Answers