Fluor 2005 Annual Report Download - page 9

FLUOR CORPORATION 2005 ANNUAL REPORT
NEW AWARDS
& BACKLOG
(dollars in billions)
■ new awards ■ backlog
6.0
4.8
3.6
2.4
1.2
0.0 2003 2004 2005
REVENUE BY SEGMENT
Oil & Gas
40%
(right) ICA Fluor in Mexico is
providing engineering, procurement
and construction services for this
LNG receiving, storage and regas-
ification terminal, including the
marine berth. This facility will
receive shipments of LNG and will
gasify the LNG and place it into
the natural gas pipelines, helping
to increase the amount of natural
gas available in Mexico.
(top left and far right) A Fluor
joint venture is performing this
world class project that has a total
installed cost of approximately
$4.9 billion. This sour-gas injection
project in Kazakhstan will increase
oil production at Tengizchevroil’s
project to 550,000 barrels of oil
per day beginning in 2007.
(bottom left) Fluor managed the
design, procurement and construc-
tion of this $2.6 billion integrated
petrochemicals site in Nanjing,
the People’s Republic of China,
for BASF-YPC Company Ltd. It
is among the largest Sino-foreign
petrochemical enterprises in
China and became fully functional
in 2005.
As an industry leader, Fluor has an extensive history of
providing a full range of EPC services on a worldwide basis
to the oil and gas production and hydrocarbon processing
industries. Fluor performs projects of all sizes, yet is one
of the few companies with the global scope, experience and
program management capabilities to handle the largest,
most complex projects anywhere in the world. Depletion
of oil and gas reserves, combined with limited capacity
additions and growing demand for hydrocarbon-based
products, is driving a major cycle of capital investment
in upstream, downstream and petrochemical projects.
Operating profit for the Oil & Gas segment was outstanding, growing 50 percent in 2005 to
$242 million. New awards in 2005 were $4.4 billion, up 10 percent from 2004, continuing the
strong booking rate which began in 2003. Backlog rose 13 percent to $6.0 billion, compared
with $5.4 billion at the end of 2004.
A significant portion of new capital investments are directed at large, elaborate and
geographically challenging projects that play to Fluor’s strengths and experience. After many
years of underinvestment, major programs are proceeding at a disciplined and deliberate pace,
and as a result, it is expected that this cycle will be characterized by a relatively high and
sustained level of spending. Recent budget announcements from major multi-national and
national oil and gas companies provide further evidence of a continued and accelerated ramp-up
in capital investment.
Fluor’s strong program management skills and global experience make the company
particularly well suited to perform the role of overall program manager. In addition, Fluor often
secures the full engineering, procurement and construction (EPC) responsibility for certain process
units and the infrastructure work, or offsites and utilities, that are critical to tying the entire
project together. The company is also leveraging its strengths in key technologies, including gas
processing and sulfur removal in the upstream market, and clean fuels and oil sands in the
downstream market.
7