Fluor Corporation (NYSE:FLR) Q4 2018 Earnings Conference Call - Final Transcript

Feb 21, 2019 • 05:30 pm ET


Fluor Corporation (NYSE:FLR) Q4 2018 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the Fluor Corporation Fourth Quarter and Year End 2018 Earnings Conference. Today's conference is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's presentation. A replay of today's conference call will be available approximately 8:30 p.m. Eastern Time today, accessible on Fluor's website at investor.fluor.com. The web replay will be available for 30 days. Additionally, a telephone replay will also be available through 7:30 PM Eastern Time on February 28, 2019 at the following telephone number (888) 203-1112, using a pass code of 9818033.

And at this time for opening remarks, I would like to turn the conference over to Jason Landkamer. Landkamer, excuse me, Director of Investor Relations. Please go ahead.

Jason Landkamer

Thank you, and welcome to Fluor's Fourth Quarter 2018 Conference Call. With us today are David Seaton, Fluor's Chairman and Chief Executive Officer; and Bruce Stanski, Fluor's Chief Financial Officer. Our earnings announcement was released this afternoon after market close. We have posted a slide presentation on our website, which we will reference while making prepared remarks. Before getting started, I'd like to refer you to our Safe Harbor note regarding forward-looking statements, which is summarized on Slide 2.

During today's call and slide presentation, we will be making forward-looking statements, which reflect our current analysis of existing trends and information. There is an inherent risk that actual results and experience could differ materially. You can find a discussion of our risk factors, which could potentially contribute to such differences in the Company's Form 10-K filed earlier today.

During this call, we may discuss certain non-GAAP financial measures, reconciliations of these amounts to the comparable GAAP measures are reflected in our earnings release and posted in the Investor Relations section of our website at investor.fluor.com.

Now I'll turn the call over to David Seaton, Fluor's Chairman and CEO, David?

David T. Seaton

Thanks, Jason. Good afternoon, everyone and thank you for joining us today. I understand that most of you probably have a better view out your window than we have. So, I hope you're enjoying. So, Florida. I'd like to start by discussing what we're seeing in the markets that we serve and what we expect to deliver to shareholders in 2019.

If you turn to Slide 3, we can discuss a few milestones from 2018. We ended 2018 with a robust $40 billion backlog with new awards more than doubling to just under $28 billion. Fluor was able to capture the upturn in the commodities market with a number of significant mining in Energy and Chemical awards, including chemical and refining work in the United States, iron ore expansion in Australia, and copper projects in Latin America.

Our most significant award in 2018 were the largest in Fluor's history was $8.4 billion LNG Canada project we booked in the fourth quarter. This award represents our largest project to fully utilized, the investments in data analytics and our comprehensive integrated solutions model. We expect revenues contributions from