US engineering major Fluor Corporation has booked a net loss of US$107 million on $3.8 billion of March quarter revenue, with $80 million of charges on legacy projects and a $60m loss on the sale of AMECO South America to blame.
Q1 revenue was up 20% on the same period last year.
Fluor said its Q1 new contract awards were consistent with company expectations at $3.2 billion, compared with $1.9b a year ago. Backlog of $25.6b at the end of March compared with $19.3b a year ago.
“The underlying performance of our healthy backlog continues to be impacted by a few remaining legacy projects,” said CEO David Constable.
“We believe that the recent deployment of additional, experienced resources to these projects and our associated claim positions will put us on the straightest path to completion and accelerate our efforts to deliver consistent and repeatable operational results.”
Fluor is guiding for 2023 EBITDA of $450m to $600m.
“Guidance for 2023 anticipates a book-to-burn of approximately 1.0 with substantial new awards from all segments,” the company said.
Fluor’s Energy Solutions business generating revenue of $1.6b in Q1 2023 compared with $1.2b a year ago “due to the ramp up of execution activities on certain LNG, chemical and refinery projects”.
Urban Solutions, including mining and metals, contributed $1.2b of revenue versus $1.1b in 2022.
Mission Solutions revenue increased to $649m from $593m a year ago.