Fluor Corporation Global Market Trends & Their Impact in Project Development
AndrĂŠs Beran September 2011
Fluor Overview
One of the world’s leading publicly traded engineering, procurement, construction, maintenance, and project management companies Over 1,000 projects annually, serving more than 600 clients in 66 different countries Global workforce: 43,000+ Offices in more than 28 countries on 6 continents Nearly 100 years of experience Financial strength (2010): • Revenue: $20.8 billion Energy & • New awards: $27.4 billion Chemicals • Backlog: $34.9 billion and growing • Only “A-” rated engineering and construction
Fluor Corporate Headquarters Dallas, Texas
Power Global Services Government
company Industrial & Infrastructure
© 2011 Fluor.
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Global Execution Capabilities
Caracas
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Project Market Trends Energy & Chemicals
Industrial & Infrastructure
Power
Government
Global Services
Gas Processing
Mining & Metals
Renewables
ENN
Mining & Metals
Onshore Oil & Gas
Infrastructure
Gas Fuels
Services
General Manufacturing
Offshore Oil & Gas
Manufacturing
Power Services
CONOPS
Technology
Life Sciences
Nuclear *
Oil & Gas
Environmental Compliance
Chemicals
Oil Sands Refining Chemicals
Solid Fuels Petrochemical * Long term growth Polysilicon
Demand for Project Services Expected to Grow. Š 2011 Fluor.
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Project Market Growth & Size Forecast Per annum growth rates (%) All figures in billions of U.S. dollars per year
Europe North America
$500B 3.1%
Eastern Europe / Russia
$270B 0.9%
$100B 3.6%
Middle East/Africa
$200B 4.0% Central & South America
China $600B
7.1%
Asia Pacific
$120B 4.0%
$250B 3.0%
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© 2011 Fluor. All rights reserved.
Total
Petro.Dev.Oman
Sonangol
ConocoPhillips
Shell
Chevron
Petrobras
BP PLC
Pemex
ExxonMobil
Egyptian
OAO Lukoil
Petronas
PetroChina
OAO Rosneft
Gazprom
Sonatrach
National Oil
Nigerian National
Kuwait Petro.
Abu Dhabi
Iraq National Oil
Qatar General
National Iranian
Aramco
PdVSA
Billions
IOCs Versus NOCs – Barrels of Oil Equivalent
220
110
Source: Oil & Gas Journal, EIA * Source PDVSA HO20110472
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Raw Material Prices Have Soften By About 10% from Recent Peaks in Early 2011 U.S. Raw Material Price Escalation August 2008 - September 2011 450 400
Source: MetalPrices.com Steel Business Briefing
Price Index January 2004 = 100
350 300 250 200 150 100 50 0 Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug 2008 2008 2008 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 2011 2011 2011 2011
Beams
Rebar
CS Plate
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Shredded Scrap
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Copper
Nickel
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Equipment Shop Loads / Bulk Materials
Fabrication shops are currently under-utilized and loads remain low Engineered equipment delivery times are shorter Intense bidding activity but actual purchases are down Bulk materials pricing responding to higher raw material costs, i.e., steel, copper
© 2011 Fluor.
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Summary Continue to expect a multi-speed economic growth • Developed world slow to moderate • Emerging Countries moderate to high NOC´s to continue to dominate world oil reserves Raw material prices have softened but are expected to rebound in early 2011 Fabrication shops are currently under-utilized & shop loads remain soft Sustainability, Local Content and Human Resources is a growing aspect of project worldwide Impact of recent EU and USA economic issues may affect EPC services demand worldwide
© 2011 Fluor.
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Thank You!
Š 2011 Fluor.
All rights reserved.
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