Engineering and construction company Fluor saw its shares plummet at the beginning of May after reporting a surprise first quarter net loss of $18m, compared with net earnings of $61m a year ago. The company also expects lowered profits for the year.
“Results for the quarter did not meet our expectations as a result of continues challenges on a gas-fired power project,” said David Seaton, Fluor Chairman and Chief Executive Officer.
Results for the quarter include an after-tax charge of approximately $96 million for forecast revisions on the gas-fired power project. Consolidated segment profit for the quarter was $52 million, compared to $133 million a year ago. First quarter revenue of $4.8 billion was flat compared to a year ago.
“Going forward, our primary focus will be on markets where we see opportunities to fully deploy our integrated solutions model to deliver the capital efficiency that our clients demand. This includes our recent announcement on the LNG Canada project, which is one of many opportunities we see in the second half of 2018,” said David.
Fluor’s Energy & Chemicals segment reported a profit of $106m, compared to $84m in the first quarter of 2017. Results for the quarter reflect an increase in project execution activities for a large upstream project. First quarter 2018 revenue was $1.9bn compared to $2.1bn a year ago. New awards for the segment totalled $721m, and ending backlog was $14.1bn compared to $19.1bn a year ago.
For more information, visit: www.fluor.com
10th May 2018