{"id":13397,"date":"2023-02-22T00:10:25","date_gmt":"2023-02-22T08:10:25","guid":{"rendered":"https:\/\/essential.construction\/news\/fluor-posts-profit-off-better-oil-mining-outlooks\/"},"modified":"2023-02-22T00:10:25","modified_gmt":"2023-02-22T08:10:25","slug":"fluor-posts-profit-off-better-oil-mining-outlooks","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/fluor-posts-profit-off-better-oil-mining-outlooks\/","title":{"rendered":"Fluor posts profit off better oil, mining outlooks"},"content":{"rendered":"<p> <a href=\"https:\/\/essential.construction\/files\/membership-default-internal\/\" class=\"memberhide\"><img decoding=\"async\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/01\/20220718_175041000_iOS.jpg\" alt=\"-\"><\/a><br\/><br \/>\n<\/p>\n<div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>Fluor announced Tuesday it earned $9 million in the fourth quarter of 2022, up from a net loss of $278 million in the fourth quarter of 2021, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/investor.fluor.com\/news\/news-details\/2023\/Fluor-Reports-Fourth-Quarter-and-Full-Year-2022-Results\/default.aspx\" target=\"_blank\"><span><span><span><span><span><span><span>according to the company\u2019s annual report<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Revenue for the fourth quarter hit $3.7 billion compared to $3.6 billion a year ago, about a 2.8% increase, according to the report. Ending backlog for 2022 totaled $26 billion, a 25% jump from $20.8 billion in the prior year.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The Irving, Texas-based company reported new awards for the quarter reached $4.6 billion, a fourfold increase from $989 million in 2021. \u201cWe have outperformed relative to our timeline and our shareholder expectations on reinforcing our capital structure,\u201d said Fluor CFO Joe Brennan. \u201cWe are now in position to create a stronger balance sheet which would generate significant shareholder value in any economic environment.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>New awards in the fourth quarter of 2022 increased threefold largely due to a third New Fortress Energy fast LNG project, a chemicals project in China and a methane storage terminal project in Mexico, said David Constable, CEO of Fluor, during the earnings call.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Infrastructure charges on a number of legacy projects have <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/fluor-earnings-beats-revenue-estimates-misses-eps-third-quarter\/635846\/\" target=\"_blank\"><span><span><span><span><span><span><span>negatively affected Flour\u2019s results<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> the past few years. The COVID-19 pandemic and oil price declines later amplified those problems. Over the past five years, Fluor\u2019s stock has tumbled close to 40%. The company cast its latest report as a turning point from that recent history.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIn 2022, we demonstrated our resilience, continued to grow and remained steadfast in taking actions to achieve positive results,\u201d said Constable. \u201cWith a renewed sense of confidence, I am excited about the opportunities in front of us and encouraged by our ability to deliver significant shareholder value now and in the years ahead.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The company established its 2023 adjusted EPS guidance at $1.50 to $1.90 per share, versus analysts\u2019 $1.66 consensus.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That\u2019s due to the volume of new awards received across all three segments over the past year, the reimbursable nature of the existing backlog versus previous fixed-price contracts and the expected performance of the company\u2019s remaining legacy projects, said Constable during the call.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\">Takeaways from earnings<\/h3>\n<p><span><span><span><span><span><span>Fluor\u2019s awards momentum stood out during the quarter, said Andrew Wittmann, senior research analyst at Milwaukee-based financial services company Baird, in a research note.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cA first look at results suggests better-than-expected awards, 2023 EBITDA guidance midpoint ahead of consensus, and, importantly, no material charges through the income statement all suggesting more consistent execution,\u201d Wittmann wrote. \u201cThe underlying performance today appears to be solidifying \u2014 that\u2019s the key.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>New awards to the backlog also continue to be increasingly lower risk, added Wittmann.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>About 63% of the backlog is reimbursable, according to Fluor, up from 41% a year ago. That\u2019s seen as a positive \u2014\u00a0and less risky \u2014\u00a0business proposition by observers.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cInvestors have been wary of Fluor going over budget on its construction projects given deep issues under prior management,\u201d said Wittmann. \u201cIf future work is not fixed price but rather reimbursable then the odds of going over budget are significantly reduced.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Constable added that those reimbursable contracts should increase to about 75% by 2024.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c2022 [and beyond] is seeing inflecting growth driven by earnings which bottomed during 2021\u2019s transition,\u201d said Wittmann. \u201c[That] eventually will be bolstered by elevated commodity prices, which should ultimately drive investment in oil, gas and mining.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5143531171910809\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- News - Bottom -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-5143531171910809\"\r\n     data-ad-slot=\"8320848692\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/fluor-posts-profit-off-better-oil-mining-outlooks\/643210\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dive Brief: Fluor announced Tuesday it earned $9 million in the fourth quarter of 2022, up from a net loss &#8230; <a title=\"Fluor posts profit off better oil, mining outlooks\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/fluor-posts-profit-off-better-oil-mining-outlooks\/\" aria-label=\"Read more about Fluor posts profit off better oil, mining outlooks\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-13397","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/13397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=13397"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/13397\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=13397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=13397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=13397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}