fluor corporation

Fluor CorporationGlobal Market Trends & Their Impact in Project Development

Andrés BeranSeptember 2011

© 2011 Fluor. All rights reserved.

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• New awards: $27.4 billion• Backlog: $34.9 billion and growing• Only “A-” rated engineering and construction

company

Fluor Corporate HeadquartersDallas, Texas

PowerGlobal

Services

Government

Industrial & Infrastructure

Energy & Chemicals

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Global Execution Capabilities

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Caracas


Project Market Trends

Energy &Chemicals

Gas Processing

Onshore Oil & Gas

Offshore Oil & Gas

Oil Sands

Refining

Chemicals

Petrochemical

Polysilicon

Industrial & Infrastructure

Mining& Metals

Infrastructure

Manufacturing

Life Sciences

Government

ENN

Services

CONOPS

Global Services

Mining& Metals

GeneralManufacturing

Technology

Oil & Gas

Chemicals

Power

Renewables

Gas Fuels

Power Services

Nuclear *

EnvironmentalCompliance

Solid Fuels

* Long term growth

Demand for Project Services Expected to Grow.

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Project Market Growth & Size Forecast

Per annum growth rates (%)

North America$500B3.1%

Central & South America$120B4.0%

Europe$270B0.9%

Middle East/Africa$200B4.0%

Eastern Europe / Russia$100B3.6%

Asia Pacific$250B3.0%

China$600B7.1%

All figures in billions of U.S. dollars per year

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IOCs Versus NOCs – Barrels of Oil Equivalent

Source: Oil & Gas Journal, EIA

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Raw Material Prices Have Soften By About 10% from Recent Peaks in Early 2011

0

50

100

150

200

250

300

350

400

450

Aug2008

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug2009

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug2010

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug2011

Price Inde

xJanu

ary 20

04 = 100

U.S. Raw Material Price EscalationAugust 2008 - September 2011

Beams Rebar CS Plate Shredded Scrap Copper Nickel

Source: MetalPrices.comSteel Business Briefing

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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

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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

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Thank You!

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