Fluor Corporation is a global engineering and construction firm with over 43,000 employees working on over 1,000 projects annually in 66 countries. The document discusses trends in Fluor's key markets of energy, chemicals, power, and infrastructure. It finds that demand for project services is expected to grow fastest in Asia, the Middle East, and Central and South America at rates of 3-7% annually. While raw material prices have softened in recent months, they are expected to rebound. Fabrication shops currently have spare capacity as project activity remains low.

1. Fluor Corporation
Global Market Trends & Their Impact in Project Development
Andrés Beran
September 2011

2. 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
Fluor Corporate Headquarters
continents Dallas, Texas
 Nearly 100 years of experience Power
 Financial strength (2010): Global
Services
• Revenue: $20.8 billion
• New awards: $27.4 billion Energy &
Chemicals Government
• Backlog: $34.9 billion and growing
• Only “A-” rated engineering and construction
company
Industrial &
Infrastructure
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3. Global Execution Capabilities
Caracas
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4. Project Market Trends
Energy & Industrial & Global
Chemicals Power Government
Infrastructure Services
Gas Mining Mining
Processing Renewables ENN
& Metals & Metals
Onshore Gas Fuels General
Oil & Gas Infrastructure Services
Manufacturing
Offshore Power
Oil & Gas Manufacturing CONOPS Technology
Services
Oil Sands Nuclear * Oil & Gas
Life Sciences
Refining
Environmental Chemicals
Compliance
Chemicals
Solid Fuels
Petrochemical
* Long term growth
Polysilicon
Demand for Project Services
Expected to Grow.
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5. Project Market Growth & Size Forecast
Per annum growth rates (%)
All figures in billions of U.S. dollars per year
Europe Eastern Europe / Russia
North America $270B $100B
$500B 0.9% 3.6%
3.1%
China
$600B
Middle East/Africa
$200B 7.1%
4.0%
Central & South America
Asia Pacific
$120B
4.0% $250B
3.0%
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6. Billions
0
110
220
PdVSA
Aramco
National Iranian
Qatar General
Iraq National Oil
Abu Dhabi
Kuwait Petro.
Nigerian National
National Oil
Sonatrach
Gazprom
© 2011 Fluor.
OAO Rosneft
PetroChina
Petronas
All rights reserved.
OAO Lukoil
Egyptian
ExxonMobil
Pemex
BP PLC
Petrobras
Chevron
IOCs Versus NOCs – Barrels of Oil Equivalent
Shell
ConocoPhillips
Sonangol
* Source PDVSA
Source: Oil & Gas Journal, EIA
Petro.Dev.Oman
Total
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7. 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 Source:
MetalPrices.com
Steel Business Briefing
400
350
300
January 2004 = 100
Price Index
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 Shredded Scrap Copper Nickel
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8. 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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9. 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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10. Thank You!
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