Fluor reports 4Q18 and 2018 results
Published by Will Owen,
Editor
LNG Industry,
Fluor Corporation has announced financial results for its fiscal year ended 31 December 2018.
Earnings attributable to Fluor were US$225 million, or USUS$1.59 per diluted share, compared to 2017 earnings of US$191 million, or US$1.36 per diluted share. Earnings attributable to Fluor in 2018 were negatively impacted by US$79 million, or US$0.56 per diluted share, for the establishment of a valuation allowance on deferred tax assets. Excluding this non-cash item, adjusted earnings attributable to Fluor for 2018 were US$304 million, or US$2.15 per diluted share. Consolidated segment profit for the year was US$602 million, up from US$545 million a year ago. Revenue of US$19.2 billion in 2018 compares to US$19.5 billion in the prior year. Full year new awards more than doubled to US$27.7 billion, consisting of US$10.6 billion in Energy & Chemicals, US$10.8 billion in Mining, Industrial, Infrastructure & Power, US$4.1 billion in Government and US$2.1 billion in Diversified Services. Consolidated backlog at year-end was US$40 billion.
“In 2018 Fluor continued to transform our approach to address the rapidly changing global markets and set the foundation for long-term sustainable growth,” said David Seaton, Fluor chairman and chief executive officer. “Despite the challenges we encountered last year, we enter 2019 with a sizeable backlog and a compelling integrated solution for the end markets we serve.”
Corporate G&A expense for 2018 was US$148 million, down from US$192 million a year ago. Expenses for the year decreased primarily due to favourable foreign exchange fluctuations. Fluor’s cash and marketable securities at the end of the year was US$2.0 billion. During 2018, the company paid out US$119 million in dividends and repurchased US$50 million of Fluor shares.
Earnings for 4Q18 were US$50 million, or US$0.36 per diluted share. Excluding US$58 million, or US$0.41 per diluted share in non-cash tax charges related to the valuation allowance previously mentioned, adjusted earnings attributable to Fluor for 4Q were US$108 million, or US$0.77 per diluted share. Results for 4Q18 include a pre-tax charge of US$72 million for a gas-fired power project and a downstream project, both now online, and an offshore project. Segment profit for 4Q18 was US$149 million, down from US$195 million a year ago. Corporate G&A expenses in 4Q18 declined to US$8 million, compared with US$54 million a year ago, due to favourable foreign exchange fluctuations and lower stock-based compensation expense. Revenue for the quarter was US$4.8 billion and new awards were US$10.1 billion.
For 2019, Fluor is establishing its initial EPS guidance at a range of US$2.50 to US$3.00 per diluted share, excluding any impact of foreign exchange fluctuations. Guidance for 2019 assumes increasing contributions and a balanced set of opportunities from the company’s Energy & Chemicals and Mining, Industrial, Infrastructure and Power segments.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22022019/fluor-reports-4q18-and-2018-results/
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