Fluor Corporation posts $24mn quarterly loss
Fluor's energy, chemicals and mining segment reported segment profit of US$127 million, compared to US$126 million in the second quarter of 2016.
Fluor Corporation announced financial results for its second quarter ended 30 June 2017.
The second quarter was a net loss attributable to Fluor of US$24 million, or US$0.17 per diluted share, compared to net earnings attributable to Fluor of US$102 million, or US$0.72 per diluted share a year ago.
Results for the quarter include an after-tax charge of US$124 million, or US$0.89 per diluted share, for estimated cost increases on three gas-fired power projects. Consolidated segment profit for the quarter was US$15 million, down from US$230 million a year ago. Second quarter revenue was US$4.7 billion compared to US$4.9 billion in the prior year.
New awards for the quarter were US$3.2 billion, including US$1.1 billion in government, US$860 million in energy, chemicals and mining, US$672 million in industrial, infrastructure and power, and US$554 million in diversified services. Consolidated ending backlog was US$37.6 billion.
“The challenges we have experienced over the last two years on gas-fired power projects are inconsistent with the results we have historically achieved,” said David Seaton, chairman and CEO, Fluor.
“With the recent leadership and organisational changes made in our power segment, a reassessment of the power market is underway to determine where the gas-fired power business offers adequate return opportunities consistent with our expectations and long-term experience,” added Seaton.
Corporate general and administrative expense for the second quarter of 2017 was US$47 million, compared to US$53 million a year ago. Fluor’s cash and marketable securities balance at the end of the second quarter was US$2.1 billion. During the quarter, the company generated US$158 million in cash from operating activities, and paid out US$29 million in dividends.
Fluor’s energy, chemicals and mining segment reported segment profit of US$127 million, compared to US$126 million in the second quarter of 2016. Second quarter revenue of US$2.3 billion declined from US$2.5 billion a year ago primarily due to reduced activity on Gulf Coast chemicals projects. New awards for the segment totalled US$860 million and ending backlog was US$19.2 billion compared to US$25 billion a year ago.