FLR - Earnings call transcript Q3 2020

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Operator

Good morning and welcome to the Fluor Corporation’s 3Q 2020 Earnings Conference Call. Today’s call 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 at approximately 10:30 am Eastern Time today, accessible on Fluor’s website at investor.fluor.com. be XX will replay web available days. for The be seven accessible days telephone Fluor’s replay a for also will also A through available registration at investor.fluor.com. website on link, for Landkamer, Director Investor to time, At would of remarks, over Jason call Relations. like this to turn opening the I Please go ahead, Mr. Landkamer.

Jason Landkamer

We conference Officer; Chief Fluor’s operator. remarks. Carlos Executive website, And XXXX Hernandez, Fluor’s our while and reference today Fluor’s us released Fluor’s third to you, making With earlier we Officer. which a are and Executive Joe statement Chairman; Financial Brennan, are Thank we prepared will quarter our slide Chief this welcome call. earnings Alan Boeckmann, on presentation morning, streaming

forward-looking like slide refer our started, statements you I’d is getting Before summarized X. to on note to to which regarding safe harbor

will During There and trends making results and differ today’s of which experience risk actual forward-looking information. analysis current reflect that we could be presentation, our existing is inherent an statements, materially.

discussion factors, Form of today. XX-Q You Company’s can our filed the potentially find which contribute such in risk a earlier differences to could

section posted financial the to we are the Carlos in non-GAAP the Executive Carlos? and discuss Chief earnings certain Officer. comparable of over our of reflected investor.fluor.com. Reconciliations at I’ll this call, now release amounts During GAAP these Relations may measures Investor website call measures. our to in turn Hernandez, Fluor’s

Carlos Hernandez

everyone. XX-Q I its good great be all filing, to morning, with now and It’s to with is current pleased financials. am And Thanks, report this you Fluor Jason, again. talking with that of morning’s

patience with on going we regular the XXXX. to get work. as And speaking diligence consistent this your has worked confront grateful thank and we tirelessly we hard Our the a to cadence, more you the we with for team of several community for forward and challenges point. over world to around look forward. months their last us And And are and investment proud the

update greater recover discuss I’d have we operations, to on and of providing X, on last as we’ll pandemic we we to have the effects since cases. start well like the the an our in regulatory, on our detail, by back line lockdown initial -- of come seen and rounds from projects continue as to and Moving been COVID spoke, slide -- discuss

spread are our flex are limited the impacts we’ll reduced and remaining with We to various you as monitoring capacity. at the in with local states level offices can projects our at XX% with we countries Over open restrictions cases restrictions at that operating intermediate normal, might business any and Only on operating rest a our rising personnel level of X% and see. virus offices major still our closed. changes. closed, of offices and updated of are We keep about community of operations of or the

continue to majeure under to and training have with and and our have clients safely procedures, our provided back work health how force notices help people provisions. communities and the to committed And where finish work. engage launched packages and rights strong. successfully communications of on safely our the we employees we of new We law year to our and safety transition remain change to asserting We your proceed and

in schedule. And we charges field. projects see progress significant successfully in Despite There cost to projects quarter. as incurred have A and developments Company. the positive COVID, people they holding our resilient been projects are no their have business the we remain last and our identified to of We problem of revised have a our and keep the proactively third ensuring of and impact number mental continued physical forward. support year, need the the majority moving to safely the were forecasts across

for project Joe in financial some to high specific the to a various and going level our what’s I’d handing on segments you call like commentary. outlook business update, over a of provide Before

a X, executing slide environment. in in on to constrained to Chemicals. Energy Turning pandemic & make The segment backlog its continues progress

a have to oil a commodity of can years. that clients from returns We and we high-value spending environment. that However, our will our few they over week capital clients expect reduced number believe on price next that gas focus continue projects hear generate the plans advantaged, in to

revised projects, and do TCO, remobilization on Western we consistent focus will the the situation we of in only pipeline has improved. as a our Tengiz Kazakhstan ones that continues delivering we profitability. see pursue criteria On While fit as COVID

have population to project XX,XXX end and plan of to increased to We over the XX,XXX by the the QX in successfully project remobilize XXXX.

setting started to be complete, construction stations the we in As project list. of include the of on XX% The modules -- of project October, the refining delivery Tengiz the and construction refinery This the engineering over Kuwait, complete. of completed pumping represents for pandemic tremendous ahead at accomplishment completion control largest has over high-profile today, activities metering module eliminates sealift Crude are Al-Zour this JV on during In with project a and oil one completion continued XX,XXX. XX% world’s In is a current Major will scopes. complete facilities. the and plan. and power is final foundations, When commissioning. of Fluor-led

to being restrictions XXXX. complete project in actions still are work taken. planning we and are impacts but mitigation COVID China the progress, Finally, in the our Ongoing hampering pre-commissioning and fabrication work offshore are continues, and travel

government-imposed to presented Now, be the progress pandemic. restrictions moving by despite Up -- project, COVID-XX four. LNGC on Kitimat, in made ongoing LNG Canada the to continues slide due the to the challenges

X. is ISBL X train well are and OSBL and and progressing being pace yards the activities for our and The global complete, will advance the of required to train The operating be keep in and The we site. And the people. with COVID-XX well-being to for safety haul receiving fabrication module X site of underway. offloading while the and site module recommended continue first various required piling the to ready site and concrete schedules to foundations Though X. the slide work capping, COVID-XX-impacted our paving has road XXXX. on Pile priority all work is site, train centers bridges for facility, in modules continues in measures be produced scope mitigations. construction and now started maintaining to preparation deliverables engineering placement for to are Our and transfer

on Moving segment. Mining & to our Industrial

commodity large be price XXXX we pandemic projects and the seen Given a of XXXX to the lot fluctuations, awarded ongoing and delayed. were mining we expecting get the have in

as were these pandemic. mining are these a clients that projects business, activities Novo remobilize and follow We as in pleased our see are and Carolina we see negatively proceed. deferred to to they started large on the execution due have technologies we North were suit I expect am and get to fully win completed impacted ready third over the back life when month, projects advanced Revenue few revenues our well-positioned projects to say segment to profit Nordisk In to the sciences on past in line. project COVID-XX quarter.

New awards influenza cell-based for Australia. the quarter in include facility vaccine a manufacturing

few reflect Now in turning execution Infrastructure our zero on projects margin slide to backlog. a X. margins

margins -- and continuing XXXX. as are year XXXX to some in start up in this these projects wrap and see moving we into should However, our forward and relief later these projects

focus Texas project in This with Austin market Highway the is places of value quarter, Infrastructure of booked that and This our example the segment Oak Transportation. testament Texas a another services. our on is our the Hill project to infrastructure Department Texas the Parkway on

for backlog. of to contract from As the Transportation the all the agreement terminated our previously Maryland outstanding we the reached Purple has in $XXX project November, removed consortium This of settle In in our consortium’s discussed, we Maryland Department with now have claims. Transportation the the a Department quarter, of Line project. with third million principal been

subject and avoiding it Although result is to by this the of project Maryland partners Public agreement its Board costs. Fluor joint will in additional approval Works, venture

third Portsmouth X. impact quarter. Savannah with reflects management slide in the pandemic, In a of to in the Government Services, was the return continue despite by third the increases driven second Petroleum results as near-normal business Turning River. Diversified reduced Reserve, to result and quarter. COVID-XX to the largest global group to achieved results, volumes solid compared active the across and quarter Strategic the Government, levels work This performance of In

moving increasing all third and impacts is from to and risk time from approval, design overcoming solutions. market teams modular quarter, site the progress the were potential previously client, The past have remain an work. progress move to Radford to site order successfully and interest has support professional of we solution, subsystems Water negotiated Radford fall structural been creating and our to in flexible, the Warren of small power the months, the development lifted, making In technology weather reactor partners segment COVID early started in modest, made Since opportunities now to The list in Fluor’s over project complete through window, future. also unique, Government trials carbon-free certification damages. in schedule This of equipment expected with Fluor Warren mitigated. And our an has early well effective project EQIN, preeminent two restrictions summer received systems we efforts. substantial turnover The turning looking year. segment forward by the forward lockdown and the relatively segment, with had part punch of increase and discussing Europe. our NuScale’s safe Full To early August, rapidly NRC. extension initiative. seen campaign next as and near customers, the especially the to nearly have and as respond we continue for project NuScale fixed construction that capital forecast America. chain This volumes as energy a effective divested the we after scheduled that demobilization NuScale see final slide Over we and the in working to to Radford and Latin margin for Europe business have mitigating pleased our the X. successful, date, in substantial relatively complications allows customers Warren to rental in manufacturers and an efforts carbon-free In the investors, is supply client. price items. been includes have is Fluor NuScale that flat. off projects look design Other establishes and effectively on projects in been announced have impacts leader approval with

update. Now, I’ll provide Joe over Joe? to turn financial to call a the

Joe Brennan

from Thanks, $X.XX or I’ll per we revenue Carlos, morning, $XX.X a $XX foreign third expenses, share. from million NuScale down $XX investigation investors, slide recorded have X. the start with expenses. previously investment required operations while QX, million and $XX attributable include and stated to earnings of million good to Fluor pandemic of by we provide and on third due funded million the quarter the of update be quarter. million to Results slightly quarter, everyone. continuing In currency of billion, expenses of $X.X Fluor financial $XX to transaction decision NuScale, losses, the XXXX in delays funding the of In would regards internal fully for

segment in the strong business. We for is over the of profit work project not quarter material three business and quarter done overall the our months any of the quarters execution X.X% last saw have taken the charges evidence across margin stabilize Our we performance XX lines of first this have the XXXX. to

in & the margins for important not do to note that quarter. our higher-than-normal Specifically, performance represent operating Chemicals, properly QX in it’s our Energy

million in in also the the G&A is picture resulting foreign were Most looking G&A execution project business against project, in benefited also Although delayed foreign better quarter, line in driving million. effects and that reflects loss on adjustments currency G&A up segment. COVID in the our increased million, for perspective of year-to-date were dollar investigation corporate the of we of reflected currencies reporting $XX provides segment because did project our at this favorable Results of year. expenses. from our $XX expense. the QX quarter see Corporate activity of $XX normal the Thus, strengthened the expenses LNG previously a from which mentioned performance the FX. schedule a U.S.

XX. slide to Moving

cash billion, of XX% with of Our end balance was the the third that at domestically quarter available $X.X use. for

quarter the free with flow of flow was million. million operating Our cash $XX $XX for cash

Moving capital and structure to liquidity.

to current demands have believe continue and ample prospects. projects We the that liquidity meet we future of to

a of have community. comments filing, we banking Furthermore, with financial with quarter with current continue and And filings giving As general fourth to debt and business. today’s mentioned, sale ongoing provide all before our rental are the communications on about requirements. I Carlos to and quick update the now AMECO XXXX, you we extensive wanted some our equipment

first anticipate sale this this transacted. XXXX. has loss of quarter, business million Jamaica our substantially now business still a of progress we that all the will While pandemic getting $XX of third working on for in We recognized is AMECO the of this our of progressing, we the sold capital divest slowed half net million. In and $X assets

this see in from quarter’s operations. reflected can You results discontinued this

Turning XX. to slide

provide year-end call point would few we we are earnings to to in guidance quarter While as move like not until planning out quarter and fourth into February, the I items out close our XXXX a one.

of of stand expect our this the year. to the $X at today, we level we north billion, maintain As and balance end cash is through cash

the projects end XXXX. equivalent balance Thus, at cash been we while of maintaining Our through liquidity. strong stood loss we to is roughly the have able to our year fund where

expense filing the compensation XX-K quarter. increase G&A expense and in quarter will the the fourth the will of reflect delayed for non-cash our Our

For fourth then fund marginal year. beyond have approximately $XXX impact to in and left this quarter we projects, million our loss a the

because As evident written projects on basis. reminder, zero particularly look a is the they you margin, since are when a reduce at these our margins costs infrastructure continue segment. dollar-for-dollar overall have and recognized down revenue to to This been

wrap see expect healthier We up projects to as through margins backlog. working we are and increase these a

Several can to slowing continue meet our ensure of obligation. COVID on business. flow year-end they see cash larger are we clients Finally, their work impact a our to

our the staff Additionally, impede to continues to projects. pandemic ability

starting existing XXXX, of several with have as and this in towards lower reinvesting other larger we much apparent from year. feel This awards As we backlog backlog capital. we lower our we until a think oil our down them be worked especially is see clients replacing and about will comfortable gas, a business shift units will

our Boeckmann, provide questions, like Chief Alan transition. the to Executive Before some to upcoming Executive Chairman, to line call on Alan? I’d the we open over turn for Officer Fluor’s remarks

Alan Boeckmann

we to privilege to work get in months. back place culture filtered he last to changes Thank and has transparency to and His since criteria and that by you, over about the Carlos I’ll has to but pursuit be revised Joe. Company positioning in absolute saying now Company Carlos It successful. slide And have and like the for projects been he always XX, quickly reduced forward. to to across quickly Company. profitable promoting took has and words over a few ask to has accountability. a morning work significantly stabilizing team growth risk move the focus going hallmark the this I’d alongside enacted Hernandez. on backlog and you into Carlos Company The Carlos be our my where XX more of our the this put allowed our the specifically, XXXX, in sales came can high-quality business start

not note Fluor even any this has the I last it’s taken that nine Additionally, project think, to important again significant charges in call months. in

completed have very liquidity maintained detailed strong also and have a We investigation.

testament changes Carlos’ contribution this succession. next made assessment, were The in necessary us we focus on is his like are we for All up thankful the a And to for in about transparency the wish bit retirement. and well of risk accountability. chapter. a set to much-deserved I’d speak CEO and now this Company him truly his to

confident He our David been the for has to that January has Board was Chief Constable for since CEO is on management. Fluor a and and leadership of understanding this David and of he particular Therefore, strategy the XXXX, community are you a with looking of and return was say our position risk fully As of know deep a our the I remember put at positions to reconnecting us he the opportunities own the of stable operating Xst, Board to Company. focus a investment the XXXX that behalf when when with a Officer. succession CEO Board time Fluor will speak lead rest our the held as the for frame. appointment last the XXXX. David he it recognized the has member also forward operations move on we next us right And allow the forward to with on forward and to on soon. effective from various some Company. I Carlos platform, we support time has to Executive that will person is

mentioned, the in operator, Company from At open questions. we a previously their chance move And David team that game we actions As for line time, and this that the planning now, priorities strategy are get hear XXXX. will a XXXX you with will about and in management all and early to will beyond. the that

Operator

go from We’ll first Andy Instructions] Kaplowitz question ahead and take [Operator Citi. our with

Andy Kaplowitz

all back dates to guys. And on customers the noise give majeure little we in help, into you some have your more customers morning, projects? more of general especially might good to with and/or projects timing COVID-related you how problem COVID you pushed or COVID-related color have as new thanks Carlos, generally fades? Good and to completion agreed to your a Can around about, working your delays agreed us your you. complete for Basically, your projects? force adjusting delays, see until are talked

Carlos Hernandez

now most And to the will beyond clients to discussions And is there is in for obviously, we collaborative the resolve point part. impact don’t is road to some think compensation clients both point further we’re But, Thanks past COVID additional down to be this the There right impacts The COVID impacting schedule projects. the very as of that and on Actually, we what are the question resolving pandemic. to that reserve time. we’re that, of cost. understand to the our clients as control. the them the with be going know I for no discussions in for generally to contractor is COVID question, And right the that our to until Andy. we in the that with and then engaged of the process final some are those get problem speaking, negotiate impact, this obviously, effects negotiating impacts.

Andy Kaplowitz

they’re All spigot then, any spending willingness relatively that. of Thanks obviously, commodities your open recently Have in been know did past. the little for mean, more projects you over talked to from you out. again outside think, have I mining, the right. mining sort spend in E&C? start last sensed you’ve here. I month. bit these of And and rising about But, I the a pushed clients increased mention

any probability, especially more commodity So, in continue of these XXXX is there these prices current higher non-energy EPC if to trend, projects, and beyond? their see

Carlos Hernandez

as Yes. that’s have number project about very viewed process we how the a project, mining in a to proposal. a Actually, to on we we then to and a as submit prospects whether bid bid what decide of not or area disciplined

going We the seeing mining are processes -- in through of number and we’re on last have months. projects a several those for been

will So, to as a for activity actually us. major resurface yes, mining optimistic begin I’m area that

becomes I world in premier necessary, copper expect seeing position be those the that execute copper projects more will we And becomes more up. coming and projects. are the As electrified gold we to and

Andy Kaplowitz

your for Joe. before it. you it, to more know one X% margin. quickie E&C, can don’t guidance maybe then, pull But, was And if had I for you initial to X% margin answer

that be year-to-date, like range. margin about in it’d seems more which like talked being You

to about forward? So, is that generally think margin E&C way the going

Joe Brennan

Yes.

take you forward. kind out Andy. would it E&C how be to I process we better And run a a around didn’t look view the think nine-month that moving could at of thought call that rate,

Operator

our with Jamie Credit We’ll Cook Suisse. question take next from

Jamie Cook

margin. because question think And margins, I reflective year-to-date, it think I in if what know follow-up charges probably just first had more don’t I like Joe, necessarily because I to the I wanted you Andy’s mean, you some the you that’s know X% if E&C a on the implied take on quarter.

as adjusted took of So, least to implies just up know like, the what for than that particular, XXXX? pick face for that why implications third or high you to activity like X% wouldn’t I your margins XXXX, number. If X% mean, and be a we at power meaningful in higher it in $X.XX starts end, earnings quarter for the G&A, has at because tax value the and at

is, not. just understanding just too probably implications COVID guess, for it my high, just waiting question how Now, And customers being to but strategic has bookings much has by which you meaningful I that’s outlook, with will the I’m on come sort to trying second then, your implications. bookings are XXXX. But, update of businesses or a be down weighed out understand and for focus

Joe Brennan

the I’ll one. take first

X right, they’re issues. view are that If some to run you nominally closer that those and in probably rate X%. you’re really And that range you of X.X% issues, -- you’re X%, if of to go dragging think, you into back to the number non-recurring I the down the E&C, upper the X% impacts eliminate non-recurring Jamie,

Carlos Hernandez

talking to -- really Jamie, question with all customers along to respect second question, we your other been pandemic. this have during

strategy we’re don’t so, from. waiting to to our our close them. go They they’re I announced very we’re know projects And that. for on -- coming be And expect forward for strategy where to not that

I especially and oil a us gas to large the are expressed think, very much available very-comfortable, are they execute project. us very capital -- can and as be to for their contractor to them desire customers much our

Jamie Cook

backlog? you one problem on and us problem the understand, haven’t what’s just follow-up. schedule, the material help And Can -- dollar had now just projects you are amount said you that’s the projects charges. Okay. in with But, on are the projects associated

Carlos Hernandez

we’re terms earnings, in of Well, plan. on

of as terms we’re well. In on plan cash,

In terms answer. we’re spend. going Go to -- of cost ahead and

Joe Brennan

were going can avoidance. on that projects those improvement number occurred based and be beyond. I problem had of that had time, would in in have XXXX projects. signaled some relates $XXX I side $XXX to to We’ve It’s in as a ‘XX speak the that on things cash the that cost in Jamie, million at execution residual We we there to in back We’ve point it a September, think nominally million problem we had spend about of $XXX No, that it. million. Yes. had and

million this that million $XX nominally $XX is at to so, somewhere million And point. between $XXX

a relative to So, projects in beyond we been and entail. some have we outlay seeing as significant problem what to saw and ‘XX able what improve cash that in will improvement

Carlos Hernandez

Yes...

Jamie Cook

Sorry Carlos. go ahead,

Carlos Hernandez

very what over of given We’re all of ‘XX. execution in we pleased the projects, of May with took our

then, So, it we back execution, dividends. focusing said paid have and been on as we

Jamie Cook

your Carlos, as thanks this throughout for And well. help Okay.

So, a with it was pleasure working Thanks. you.

Carlos Hernandez

you. Thank Likewise.

Operator

We’ll next Fisher take our question with from UBS. Steven

Steven Fisher

echo Good morning. I’ll Thanks. sentiment. And to a Carlos, best you. Thanks lot, wishes the and

So, Jamie’s and about just on to follow the project deferrals question activities. up

where is COVID? could uncertainty? customers not you a So, necessarily How that. could How much you what How bottom is economic is is it like sounds talk And like a of price? are the it waiting when? really project for or any and just more and strategy, much stabilize of much bit actually thinking about driver do commodity deferrals? but have sense it Things little backlog

Carlos Hernandez

Yes.

I think, oil respect varies and business there. it factor oil With to a by big segment. prices gas, obviously, are

mining impacted prices In maybe more the has COVID but of some than other also mining, somewhat, commodity terms business of businesses.

well, going going is other very well; business science The life -- very well. ATLS Government,

So, growth next we ATLS see to Government, and mining we as in into year. proceed even expect

the -- terms now XX -- to we’re [multiple are going In Joe? today, backlog, we speakers]. It’s XX of where

not of it. We’re backlog. but Obviously, entire replacing some the backlog, that we’re we’re replacing replacing

XXXX. taking point. an that discipline the the Backlog we’re and taking very, this we’re backlog We’re on -- really is important on based very in much -- that is we’ve established in early in

bad in projects. taking not we’re So,

will And decline good will somewhat, it but backlog. so, backlog be

Steven Fisher

legacy us can a sense in give ones the the project mix, that a I XX%? of and to trend that a think big the the contributor if know course XX% the you Okay. going newer we will it I this mix versus the could Infrastructure well? newer profit wonder become you like projects segment, just with But, to year? sounds off And piece. smaller of legacy how do be do project will ‘XX, say as the of start by split over becomes as of business you’re end year, How then, see

Carlos Hernandez

Joe…? percentages. have the don’t I

Joe Brennan

we’ll and we’re then right execute out balance nominally we that sense, years the three from into we’re flow just move I going -- can But as that million that we’ve kind give the to some now, that to to from of $XXX ‘XX. you projects Hill into, like work billion about And of previous XXXX be at of we’re a new $X.X now, will we’re right Oak backlog that start about continuing booked previous pulling into beyond. looking two, forward.

Steven Fisher

That’s Yes. just… Thanks. And Okay. then helpful.

Carlos Hernandez

point that, exit that the any has for us to a costs we’ll project very that’s project. be able favorable on that’s and development project, more the legacy risks One Obviously, of Steven. the termination large been a Line And Purple because avoid future project and there.

Steven Fisher

force you Canada certainly particular, potential could expect say, or resolve XXXX extend That’s Did or were project know that on majeure in that? important. on COVID clarification, say And LNG beyond just you in one I can the a delays. last Yes. decision talking about to you do you a resolution

Carlos Hernandez

that for question. Thanks Yes.

on, result play that. Like impacts, probably to before, negotiate partial when to in I date. think, said a And position it way probably LNGC the it’s assess have the a impacts resolution we’ll we with point of out a of will respect to because later we’ll additional in of something is, lengthy. I it’s negotiate we’re clarification, then, situation a law a effects lockdown. the the can not of once And are of because It’s are force just not call pretty impacts something government-directed change majeure we just many plain.

So, basis resolution. provisions us it’s give both the for those that of

Operator

Revich with Sachs. from We’ll Jerry question take our Goldman next

Jerry Revich

the congratulations the stabilizing everyone. on an And and Carlos, Good was business certainly morning, Hi. really financials. not easy That Yes. task here.

Carlos Hernandez

Thank you, Jerry.

Jerry Revich

projects. LNG Can to we’re up to and the balance here? sheet what conceptually be of the about need wrapping going deploying see turnaround continuing I’m outflows the are forward, talk a on step deploying look we for about the Canada? you you with we’re completion as do you again, just we should about and might once just talk the Board wondering take signposts thinking sheet balance a now capital before you going when are cash see cash folks What forward? if Alan, back could the that problem

Alan Boeckmann

talk position -- in Yes. Carlos Jerry, Clearly, to putting us about I’d glad that. mentioned the be reach a stability. I to

point his a engaging facilities, at We’re our next with this early right mentioned has on in Joe credit year. banks now, our remarks, also in where we’re and become will current here which

an forward both able getting we growth. ratings also, a eventuality. to the past. And balance our that Carlos improve that’s growth our starting same strategy. invest balance business strength important sheet looking step. have another funds part be of We very any strong industries that to sheet that now, a and debt that’s to liquidity want pay group is where the not improve that again, sheet I where said, business, now Also great then, But, to see the to have important right the important think, strategy. be the in necessarily and the prospects we as mark And some was to the to able is be And is in us. to sheet make going it’s our those the -- down with industries forward focus. think starting face so, important it it’s credit be be the part of balance We to in for potential our future. the we can to of going of is to solidifying to going manage balance to And to -- against And able done strong got able believe we’ve

don’t be are through much want say So, the to our want those main but going I more, -- to goals to strategy session. really think, I don’t able

the I We past. the necessarily your And forward that the that hope question. have opportunities, focus lot coming Company. of in have the hadn’t strength where we in think, them address we put are have I on that and a strength answers market to some

Jerry Revich

the terms you That’s pick super alluded helpful. just to And areas copper, spilling the energy driving the out P&L strength today the Company alternative capabilities then, the in along up growth, in strength if to. some be going maybe on hydrogen areas flesh those of what on the there are NuScale, Can of currently Company’s is the of what obviously, not beans obviously perceived that where infrastructure, you do of interesting we could day? see are strategy are technologies forward? without Company’s Outside the but

Alan Boeckmann

to have to so, I’m very be here. to -- David Constable want don’t But I general. scoop going

handle we use both execute difficult locales, do to significant the able drive be management some to to strengths also be able overall to think, property intellectual a successful work be but to permitting, I to in skills, in able locations project to in ability project. have in our

So, push to we’re focus actual tend think, markets on. to the of and really I unveiling hard going the

that of start Carlos us gotten but first, to now up going But, XXXX. in think for unveil the our I team forward process have we’re going momentum be opportunities front his I David coming is So, I’m save I think a that position and together. early at it in slowly we to in Day to the us. in to Investor very to gain strong has think And do in it’s staged allow will us strategy to for that exciting, and -- a

Jerry Revich

from new size environment and something thinking should something prior we’ve the the we in their Is infrastructure this and it, be from what organizations of considering terms the And energy call rightsize is will build-out opportunity that companies over that their some pockets essentially space that the about…? of what next we companies seen office it be rightsizing heavy XX years the of an investment, reducing and XX. of to the cost different is in we’ve rightsize big How seen footprint? structure companies

Alan Boeckmann

Yes.

that. focus be a you will I think can there that assume on

Operator

next We from Markets. question our will take KeyBanc Capital Eastman with Sean

Sean Eastman

just my in very guys how to much and is a be is the margin the tailwind I Thanks gentlemen. quarter, just backlog becomes rolls into to the wanted taking XXXX? of Hi, going zero-margin much think, work you remaining into of a to work $XXX segment for as I questions. million I expected confirm left how number much infrastructure mentioned third understand and that your specifically. how off much XXXX? of margin But, wanted sort for

Joe Brennan

the projects, you will, we’re loss about talking if that And ‘XX? pulling Sean, you’re into

Sean Eastman

Exactly.

Joe Brennan

Yes.

lion’s excuse Line highlight the to of XX% biggest complete, Bergstrom two and that numbers being that -- backlog the of share into the is two ‘XX So, biggest that -- XX% Line projects the or backlog, me, complete if represent Purple out I are pulled And and Bergstrom. rolling And two Green and the biggest is they complete. are balance. -- is Green Line contributing XX% Bergstrom

think seeing So, two this of And the my projects. that’s start it’s benefit we’ll those recommendation tied some is in booked that work I into up new then, the quarter. that of coming we in

Sean Eastman

in running loss to Would year-to-date be able project? how tell helpful. ex the XXXX, you margins us infrastructure are That’s

Joe Brennan

do business backlog. weighted of because the kind point what previous putting to at the at zero-margin running the work for really, we quarter. infra has difficult the going just it’s projects. at point this that’s relative would into Yes. No, new they’re to been booked of all the have some into any of side in new we’re then, But loss But this

more the it. be to we have So, it timeframe better in discussion I little color February a think, would that around when bit have

Sean Eastman

available Okay. $X sort that of had guys getting today That’s domestic balance talked you that level. is then, where cash of readily curious to kind and XXXX? I’m fair. And previously the billion exiting number about up

Joe Brennan

for Currently, of readily available -- cash. about that we’ll exit XX% billion, $X.X is the domestic

But, have So, strategy we’re the don’t to of I organization front again, Constable’s be new But of the needs will what things as way. fallout we’ll review what Mr. support of to want strategy, Alan’s through comment, cash balance and the strategy other of footprint and moving some in that get be on the the forward. brick-and-mortar is we that out a to probably our meetings. go to

So, that or Investor number get at discussions may change Day. we look into as

Steven Fisher

it. appreciate I Thanks. Okay.

Carlos Hernandez

question? we the Operator, next can take

Steven Fisher

I keep me? still guys going? you Could hear just Should

Carlos Hernandez

Yes. can. We

Sean Eastman

That’s good. All right.

Okay.

look underlying you year-to-date. the low corporate expenses, is So, if running the number G&A at quite

dynamic, little a of that talk coming the where guys bit sustainable, are where you there, next maybe could into about year? and run savings what’s So, that goes in sort corporate rate G&A

Joe Brennan

Yes.

you’re think, down may by $XX at that you say what FX giving costs investigative million about my rate at it, you a somewhere $XX Sean, in look million forward, of number. think, But, out comments, the out to I million run like you I this we point. that I’d of million and would $XX between going around guidance opening $XX suggest -- take take take take the So, impact if and if the I that,

Operator

our Baird. from take Hauke Justin question with next W. We’ll Robert

Justin Hauke

here. got you. two Thank I’ve

But, First on you rescoping, Line, backlog? in. can one, I Purple maybe the quantify what something was, going the the maybe the guess, was Q, And shows a but through descoping that probably easy that reconciliation came just it kind the one. of back looks like there actually,

two can those items? just talk So, you about

Joe Brennan

of line did Is Line. was talk see follow-up and it Purple million. I on can question, sorry? Justin, top we can would we I out backlog we take your What maybe $XXX back on go suggest if Justin. second

Justin Hauke

Okay.

follow-up. can We fine. that’s So

Joe Brennan

Yes. $XXX came million Line. the number out that for Purple of backlog is

Justin Hauke

you. Thank Great.

Second half I I I guess just I have you pushed I And AMECO AMECO. back. ‘XX from of one like in sale. is how on million being something the But, that advanced guys think, mean, guess, expectation? the $XXX-plus proceeds past, understand is quantified first

as for might can Jamaica us You from got that? anything that you a the what an about that which But, reasonable be is still is piece. there cash $XX obviously million from proceeds give a or piece, the was small number, the expectations update

Joe Brennan

Yes.

discrete that North become curious being South into North regional holistically we’ve process or on -- transact likely business, And a started it’s be transaction. some being excuse to gotten and it so, more transaction trying as elements the America Africa will basis, fairly the here and America as this negotiations clear we had of than two me,

very transactional on a are discussions and to American in the continue well side. progressed South for strategy develop American North We the side

come wouldn’t expectation. million we $XXX We of believe off reasonable range. that that’s So, a

to we South but We are sale, America. significantly still for sale American of closer for North slated than first just the North are the American half ‘XX

Operator

Research. next our from We’ll question Vertical take Michael Dudas with

Michael Dudas

done, morning, Carlos. Well Good gentlemen.

Carlos Hernandez

you. Mike. morning, Thank Good

Michael Dudas

decline discipline impacted areas projects some maybe bidding the XXXX where seen those Recognizing in on observations certainly on new are can a into recompetes, a of by bit you maybe and and better in maybe Services, shoots, seeing the Diversified maybe and two overall market, markets. also bit in on and countercyclical pressured. that little in Services generate a end you’re the grow opportunities couple you’ve the projects side backlog to small-cap Certainly, focus how and months on Government’s the work green couple last being highlight heading your of on COVID Government Diversified energy of and some

‘XX those look So, up and maybe just of towards to as observations beyond? we things set some

Carlos Hernandez

we’ve a today, & chemicals are In we mention -- the business now. Energy for steady Well, talked I clients decline there. our demonstrate. in I just want very specifically us. the Energy Sure. going & to oil see discipline Chemicals, didn’t mention and this still we mean, is business, a The to the gas Chemicals to about expect don’t business business And that

challenging DOE to that So, we well are with to very for we a going expect be that’s area the little respect But, positioned a Government, space. while. in

also area feel good a For And And true but advanced being being for projects, as is on -- continued example, well. lots other we’ve position And number we we of we we’ve the got we That our -- we again, will are technologies opportunities us pharmaceutical-type space. see Government have facilities mining. about an where COVID-related well and that’s protested, those but life of in won pretty those. working some in of challenged, projects. as the some actually mentioned of that on sciences, opportunities we’re anticipate mentioned as

I But, the think, that fair a the states and a the up. Texas to been our general, mining bullish we’ve mentioned successfully those, and that mining Infrastructure, one projects -- we’ve able And been well. past to where coming in as for is certainly our to may going very in bit of several we’re we that’s successful. Transportation clients on way and us. and contractors there we’ve are or to of to complete us both, other be and Department projects advances we’re restrict little later executes where in projects coming defined jurisdictions bidding for

Michael Dudas

you on new more And ‘XX? big milestones, whether follow-up, do on pretty it’s how going into investment Is or about can anticipate some we a that side? project guys in feel front, Carlos, or support the development general NuScale

Carlos Hernandez

There’s one. lots going to I’m on going but there, Alan that let take

Alan Boeckmann

good question. Mike. Yes, very a It’s

of biggest for positive been the incredibly happened development. -- the business six Carlos clearly things the probably ones. projects I on the Finance here their internationally. Number attention That and lifting opportunities prohibition XXXX. over months has mentioned and one of nuclear NuScale into last good NRC in within think, But, has have a Corporation the two U.S. that’s for announced resulted one, approval, gotten that its of projects turn Direct the to lot several lending fairly have

for imminent that’s the thing with targeted forward. other a molecular use reactors. happened two But, within with is DOE award we And other least grant U.S. first award, The right are projects nuclear $X.X announced up clients coming potential now, for talking drive the project to XXXX. the to it that billion at project small

having is starting serious We with want the side very discussions but side into NuScale. we’re also to project good, come investors. look So, with the equity to

and of both So, a these The as looking issue lot right on as the board of is are taking well equation strong our board investors attention. getting timing the projects is sides now. on

Michael Dudas

this, decarbonization, I that think don’t incoming think, would know administration there? I given have the would towards Alan, And observations net any but I be you positive would if

Alan Boeckmann

under effort. the boost with for Moniz DOE. the of strong the Actually, a this that And NuScale started administration even Secretary its this the Head bicameral administration, really It’s over yes. Obama last and seen as got last is moving we’ve to during support -- answer interesting forward very that

don’t we will that at all. So, think change

for In anything, get us. it a if little extra bit may fact,

Operator

from now America. of Bank Michael our take We’ll Feniger final with question

Michael Feniger

cash provide some Hey, I year. got a backlog cash in. context your of has you you through the this is $XXX relatively this stable from be that you aware guys we level. cash the XX likely op of I XXXX? about losses question, the like comes side year The even anything for drawn that talked balance balance appreciate that squeezing benefited me with is of the might Any orders, year pressure down million it there up over yet down, that has the XXXX? should been fact on ago, new on even the really looks in from under And with ops, this gets guess, months, impressive it’s can it. billion Thanks it guys. the balance I is $X cash And that? last cash reverse guess, is the year-to-date, in that from that that

Joe Brennan

Yes. I’ll question. take the

balances of place, of think, cost bidding least beneficial. principles a number is and cash one. into optimization which are program and I the the generating, we’ve initiatives the put function backlog the is it’s Two, into cash the a very what of kind that of Our been that think, going I has very,

that what a In year. cash had for savings divulging real of $XXX million. is, terms set number of target And that fact, we we’ll the north number without be of in

more decisions I cash have actions is currently. is that of we the all generation taking the projects are organic provision anticipated loss our think executing back effectively to mentioned you’re had extent that efficiently in we I earlier, I the this, through most benefits. Company September and seeing Michael, call than and that been would But

Michael Feniger

E&C, we like if when about, And Jamie’s X.X% exclude higher year-to-date charges. margin Understood. we like it sounds it’s talked earlier, the some actually to question

on LNG Canada has you above X% much to Is that like actually what as being with to out contributed you that heading more to me build be into help number? Is recognized maybe understand early we’re should mentioned that just start XXXX thinking, So, how what you’re we that year-to-date, margin can X% range saying guys project? that number? the And you X%.

Joe Brennan

the LNGC probably of talk some the through when COVID we’ll months and in holistically, or disclosed bit are first the I’ll margins X.X% impacts maybe But, are the answer it. later call nine a the really it we maybe cumulative little that about impacts. -- question February get into driving

project on versus consider at be risk and have credit end Mexico, a we a would then, we have at here day. Fluor, loss of which the in events, We to non-recurring transaction the the a on

the to those normalize you if So, out, X% closer we’re range.

So, better to I number moving forward. would that’s probably a utilize suggest

Michael Feniger

it’s then, impressive, in product charges mentioned, on last you no yet. it. guys Got And execution the That’s quarters helpful. three as really

bit just kind execution. about charges many impact right is how guys to the Canada. in little when it are or on sounds that big trying now on COVID the there on up guess, there that are really impressive XXXX for visibility following a charges? question, I there the can think middle Steve’s like of us LNG last we staffing out and way more get up Just pandemic line? of course of the other quarters vaccine’s and to are the little a impacting the time course frame or normal I’m some don’t I for need understand I wake that’s no is and XXXX than I what there, this you more business. Any for speeding. the we two economy how of still based some of know Can guess, yet Because guys outlook out bit end reconcile if normal kind yet with coming, that resolution? projects litigation you of of

Carlos Hernandez

that I’ll one. take Yes.

I terms cost. the will any scheduling impacts price obviously, have with clients that of fixed we being are ones client projects client. In of negotiated amount COVID negotiate the are terms in us entitlements, don’t COVID, the to that think the but obviously with denying and is

in resolve already still we have number clients we’re favorable. a them in them and resolutions, of impacts reached which be resolved. with still But, the to cases it’s And because -- it’s working to have the -- on ongoing, hard are these So, are some projects many some still some cases. of preliminary

the schedule way. impact tell to it’s and we’re you magnitude, recognized cost can with clients that a address an the that but I you can’t I So, tell working obviously in equitable

Operator

this question-and-answer closing additional turn for back the time, I concludes will session. Mr. That today’s any remarks. at to or you conference Hernandez,

Carlos Hernandez

XXXX. to sticking believe the this resilient of XX,XXX with leaving all truly I in when through our more clients, participating shareholders, call Company operator, project speaking stakeholders, May was faced my our for over a want have employees to for months our the of and and global you XX process. of with as course, us our our on CEO the is last thanks internal all today. investigation challenges has I’m you, from partners, last been named and Fluor. time to The of Company you I thank pandemic Thank This extraordinary. and write-downs strongly CEO our of I stronger than

meantime, for years. seeing As In inside he closely many in our I you. and He forward truly Fluor’s an best with combination been of insight brings smooth Thank a an I’ve investor, future. support great his your into the David David to I We known ensure things Fluor. I’ve And working wish to in of unique deep the greatly look knows a role. perspective. and him Fluor out, outsider’s all and Company appreciate transition.

Operator

your call. today’s participation. you concludes This for Thank

You may now disconnect.

Fluor (FLR) 10 Dec 202020 Q3 Earnings call transcript