Fluor 2Q17 Earnings Call Notes

David T. Seaton – Fluor Corp.

The current market environment is the worst I’ve seen in 30 years

“the current market environment is perhaps the worst I’ve seen in my 30-plus years. The market has contracted since 2014. The good news is that we’re starting to see prospects come back in some of our end markets including mining, which includes the Anglo American Quellaveco project in Peru and the Salares Norte project in Chile for Gold Fields, and our recent announcement of the BHP South Flank project. Having said that, creating and maintaining a diverse portfolio of work has been and continues to be a core strategy of Fluor.”

Some upstream projects that may get dusted off in 2018/2019

“I don’t see upstream spending a whole lot of money in the industry as we finish this year. But I do think there are some large upstream developments that are kind of being dusted off by our customers because they’re in a need of that capacity. So I think as we get into 2018, 2019, we’ll start to see upstream spend a little bit more than they’re spending now. And that comment, excludes LNG. I think there’s going to be a lot of study work on LNG, but I really don’t think there’s going to be a lot of projects go to the EPC phase this year or most of next year. So I think we’re just going to have to wait and see what happens. But I do see a pretty robust slate of opportunities in refining and petrochemicals.”

Feeling good about infrastructure group

“I feel pretty good about infrastructure and what’s going to happen. I would caution though, the rhetoric we all hear from the press and where it emanates from, whether it’s a federal government or state government. As you’ve heard me say, there is no such thing as a shovel-ready project. But what I’m very eager to see is that at least the dialogue is around identifying in the United States, identifying the priorities and those priorities around toll roads, bridges, ports, airports fit well into our portfolio. And I think those things are going to bode well for us. But I believe that our infrastructure group will continue to be a bright spot in our organization and continue to add to their backlog as we go through the next probably six quarters.”

A lot of these projects get held up because of regulatory

“I think the capital is there. I agree with you 100%. I think the problem is, you got to look at the Purple Line in Baltimore. Project passed all the hurdles environmentally, financially, everything else and then the regulatory environment slowed it down and actually stopped it for a while. So even though the capital is ready, some of the projects, I think, are at least to a point where you get to that next stage. I think the regulatory reform that the government is talking about has to come through before the timing of those things actually improve. And I’d put pipelines in that category.”

Cabinet is twiddling their thumbs because government hasn’t been able to give their team

“So one of the frustrations I see, and this is kind of a political commentary, there’s 2,200 – and you’ve read the same things I’ve read. There’s 2,200 Senate candidates that have to – candidates have to go through Senate approval. I think the last count was 55. And you’ve got people like Elaine Chao in transportation. You’ve got Rick Perry in energy, Rex in State. These people that we know and know well are sitting there twiddling their thumbs, so to speak, because we haven’t been able – the government hasn’t been able to give their team. So I think that is why you saw things screech to a halt. And I don’t see a whole lot of improvement until that phenomenon is behind us and the efforts that the administration are putting forth in terms of the regulatory reform actually see light of day. A lot of good intent, a lot of good thought and strategies to people that I’ve talked to, including the folks I just mentioned, but until we get those things ,done you’re not going to see these permits that are absolutely necessary to go forward actually awarded.”

Acquisitions in this market are difficult

“Acquisitions in this market are always difficult. You’re dealing with cultures. You’re dealing with people. And it’s not like a manufacturing facility or a manufacturing company where you can sell off one manufacturing facility that doesn’t fit the new strategy. These things deal with culture and individual capabilities of scale. So we’re going to continue to look at things that add to our offering. But I would say, we’ve already got the breadth to do just about any project that’s presented to us that again meets our expectations in terms of risk and profitability.”

Fluor 4Q16 Earnings Call Notes

David Thomas Seaton

Energy and chemicals pipeline probably coming off the bottom

“Looking back, 2015 and 2016 represent one of the most difficult times in our industry. In fact, Energy and Chemical awards during this two-year period were the lowest they’ve been since 2009-2010. Even with that headwind, we were able to grow our backlog and focus our resources on non-commodity markets and opportunities. So what does that mean for 2017? I think it means that our Energy and Chemicals pipeline of opportunities will be coming off the bottom of the cycle. Clients focused on higher return projects and capital efficiency match well with what our talents provide.”

We think we’re at the bottom of the cycle

“I think as my prepared remarks suggest, we think we’re at the absolute bottom of the cycle and what we see is an improving slate of things to chase. And we’re not changing our selectivity sieve at all from a quality of project perspective, but we’re seeing that what I predicted two years ago, and that is, there’ll be pent-up demand on things because customers have kind of delayed projects for their own financial reasons, but now reached to the point where they’ve got to spend again.”

A sustained positive capital cycle

” I think we’re kind of in the beginning stages of what I would argue would be a sustained positive capital cycle that we’ve seen in the past. And I believe we’re positioned as good as anybody to win better than our fair share of those projects.”

We’re seeing an increase in projects but maybe with a little more prudent gating

“In terms of going forward, I mean, as I said, just in E&C alone we see a 50% rise in what we’re looking at during 2017 over 2016. So those projects are moving forward, but as we’ve said in the past, they move forward at their own pace. And even though the customers are a little more eager to get some of these things done, they’re still going through what I would argue is a more detailed gating process than they’ve gone through maybe in that last boom. And I think prudently so, because I think there were some projects that our oil & gas friends would have probably avoided had they not believed that $100 oil was there forever. So I think it’s just a matter of good, prudent gating processes. But as I said, we’re seeing an increase in activity.”

Haven’t seen a dramatic shift in inflation

” I would have thought that some of the pressures would have already started to creep up in terms of cost of commodities, cost of engineered equipment items and the like. But we’re in a middle of a couple of significant mid-cycles and we haven’t seen any dramatic increase or expectation of increase in terms of the bid validity from some of these vendors. In lot of cases, when you start to see inflationary pressures, you’ll start to see the bid validity on some of these things shorten. And we have not seen that phenomenon yet in the marketplace.”

Business will do what business needs to do to perform

“I was on a panel back in October, it was before the election. And a question from the audience was, under which presidential candidate would business be more successful under. And my answer was simply it doesn’t matter. Business will do what business needs to do to perform given any of the regulatory issues, changes that are there. Border tax may have some impact on our customers, very little on us. We have the ability to fabricate in a lot of different places. With our work right now being 52%, I think it is, U.S. based business, it would have very little impact in terms of the short-term.”

Biggs Porter

Engineering is much higher margin rate than construction

“engineering is just a much higher margin rate than construction is as it goes through the books. So, what you’re looking at in 2017 is just the burn-off of the engineering on the projects that we got new awards in ECM over the last few years, and transitioning more fully to construction on those projects which should have had enough inflow of new engineering work to sustain the mix for now. ”

Jacobs Engineering 4Q16 Earnings Call Notes

Jacobs Engineering Group (JEC) Steve Demetriou on Q4 2016 Results

Expect challenging conditions to continue in FY 2017

“We expect challenging market conditions to continue into fiscal year 2017. Weak growth in developed markets, geopolitical issues and uncertain commodity prices will continue to impact some of our end-markets. Much like the beginning of last year, our oil and gas mining and certain industrial clients are continuing to avoid large capital expenditures to conserve cash. We do believe most of the declines in these end markets are now behind us, but it remains to be seen when industry growth will return in these sectors. More positively, we saw select growth opportunities in our buildings and infrastructure, aerospace and technology and life sciences markets in fiscal year 2016 and we expect further growth in these end markets in 2017. As we progressed through our fiscal year 2016, we saw a backlog stabilize and then increase by the fourth quarter. And we expect further increases to our backlog as we progress through fiscal year 2017.”

We were positive on transportation regardless of the election outcome, but pleased to see positive hype around Trump expectations

“So we were bullish on our capabilities to grow in transportation regardless of the election outcome. And so, we’re pleased to see a lot of positive hype around what’s going on with the Trump expectations, but we were positive moving forward in transportation.”

Of course we hope that all the stuff we read about happens

“As far as the post-election situation, again I feel like I’ve commented on that Jamie that with everything we were doing to position ourselves for growth, we attributed the momentum to that activity and less around the early stages of post-election. Are we optimistic? Yes. Do we hope all the stuff we read about happens? Of course. And we’ve seen what the Australian elections have done. And we hope that same thing happens in the U.S. And in fact Theresa May’s administration in the UK is reaffirming several of the important nuclear and other projects in that region that are important to us. And so we feel good about what’s going on globally around the political side of positioning our business.”

Fluor 2Q16 Earnings Call Notes

Fluor (FLR) David Thomas Seaton on Q2 2016 Results

Expect continued slow recovery but are seeing capital spending return

“Generally speaking, we expect continued slow recovery in the global economy and modest improvement in the EPs and EC&M markets specifically. However, with that negative note, we are seeing capital spending return. We expect customers to award projects at a moderate pace as evidenced by our award of a bauxite project in the second quarter in mining and the award of the recently-announced Tengiz project which we’ll book in the third quarter.”

None of our customers makes plans based on spot oil prices

“It’s a good question. I would say we look at the volatility the same way our customers do, that it’s never as bad as it seems. It is never as good as it seems and none of us use spot oil prices or spot commodity prices in our long term planning process. So as I said, I think we’ve got good visibility into what – obviously what’s in our backlog now and good visibility into the things that we think we’ll take into backlog for the remaining part of the year. So I would argue that the latest oil price drop, I mean it was back up again today. So it lost what it lost and it gains what it gains and we just keep moving on. I think that the point I’ll make is that our customers particularly oil and gas customers, they’re basically re-entrenched in terms of $40 oil and those priority projects are still moving forward evidenced by the decision on TCO.”

No spending pattern changes from Brexit, but the end of Brexit wont occur for another two years

Fluor 1Q16 Earnings Call Notes

Fluor (FLR) David Thomas Seaton on Q1 2016 Results

Employees killed in petrochemical plant explosion in Mexico

“I wanted to comment on the tragedy that occurred two weeks ago in Mexico. As you may have read, three ICA Fluor employees and 29 subcontractors were killed in an explosion at PMV petrochemical plant in the State of Veracruz, Mexico. ICA Fluor was performing a revamp project at the site when the explosion occurred. The client is currently conducting their investigation in conjunction with the authorities and engaging with third-party experts into the cause of the accident. At this stage, there is no indication that the event was related to our activities at the site. So if you think I’m a little somber today I’m. This is the worst accident in Fluor’s history. This tragic event serves as a reminder to us all that we must hold our core value of safety at the center of all we do. In this very difficult time our hearts are with the families and the friends of those killed in the tragic event.”

Global economic growth weak

“Global economic growth for the first quarter was weak, setting up another sub-par year. Many economists have lowered their growth expectations for 2016. Crude oil and metal prices remain relatively low, which continues to suppress the cash flows of some of our customers and is causing some of the projects to shift to the right.’

Seeing clients reevaluate projects

“For our commodity influenced businesses, we’re beginning to see clients reevaluate projects through studies and pre-feeds. Going forward, we do expect clients to continue to take a cautious, disciplined approach when they make their capital investment decisions.”

Delays today could mean a boom later

“Well, you know, all those things are in some form or fashion accurate. This isn’t our first rodeo, so to speak. And when industry takes a deep breath like the oil and gas industry has, and they push things to the right, one of the unintended consequences of that is what could end up being a boom as we get into the out years. Because they still got to these developments.”

I can remember oil going to $17 up from $11

“No, I don’t think so. And I’ve said this in previous discussions with some of you. I lived in Saudi Arabia in the 1990s and I remember 1997 oil was $17 a barrel, up from $11. And even though oil is in the places where it’s more difficult to get to than maybe then, they were still – Saudi Aramco was still spending $30 billion a year, right. So they are still going to spend at $40 and $50 and $60 and they don’t need to get back in most cases to the peak for them to be efficient and profitable.’

Biggs C. Porter – Executive Vice President, Chief Financial Officer

No significant cancellations and none expected

“To go ahead and answer a frequent question in advance, there have been no significant cancellations and we do not anticipate any. The burn of backlog is low, as we’ve all observed.”

Chicago Bridge & Iron (CBI) Q1 2016 Earnings Call

Chicago Bridge & Iron (CBI) CEO Philip Asherman said customers aren’t canceling already existing energy infrastructure projects but are delaying future commitments 

Now year-to-date, we’ve already seen improvement in new work bookings early in the second quarter, countering what is at a continuing delay and final capital decision most of our markets. We’re not seeing cancellations but the continuing weakness in commodity prices is delaying commitments.”
A minority of their construction projects product a majority of the company’s profits
I think, again, although we focus some on the fabrication jobs, in their entirety, they’re fairly – they’re much smaller in terms of how they move the needle, as you could imagine, but certainly important. So it’s always important to remember, as you so readily point out, that we’re kind of an 80/20 company where 20% of our backlog drives about 80% of our profitability. So obviously, how these jobs are performing, particularly Freeport and Cameron, are absolutely critical. They’re progressing well. We’re right on plan for the completion dates.”
You’ve got to be selective about the counter parties you’re working with
While there’s instability in the oil and gas prices, companies like ours are going to be have to be very careful and very selective in terms of where they are working and what kind of terms they are willing to accept.  And it’s not just a fixed price versus reimbursable because reimbursable is subject to margin compression and fixed price is a very competitive environment out there as well. So, I think all companies in our industry – as well as other suppliers, I mean it affects us just like it affects GE. So, all the suppliers are feeling this pressure and are being very careful I think in terms of what they commit to going forward.”
The percentage of coal fired power plants will continue to decrease 
As we all know, not long ago, coal was accounted for over 40% of our baseload capacity in the U.S.  Today, that number is probably closer to 30% and all projections have a going to 20% over the next five years. So that baseload has to get replaced with something and I think the common belief is majority of that replacement is going to come from natural gas with the balance coming from alternative sources.”

Flowserve 4Q15 Earnings Call Notes

Mark Blinn

The downturn was more severe and widespread than originally anticipated

“The downturn in our served markets during 2015 was more severe, widespread and persistent than we and the industry at larger originally anticipated a year ago. The sharp declined that began in upstream oil and gas spread across the industrial complex as year progressed. ”

End markets are sound though cyclically challenged

“As we look to the future, global macro fundamentals suggest that Flowserve’s end markets will continue their longer term secular growth patterns confirming we serve the right strategic industries. Population growth in an emerging middle class will drive energy demand. And aging infrastructure in energy, power, chemical and general industries will require refurbishment or replacement. Our end markets are inherently sound over the long run. Although, they are currently cyclically challenged.”

There is a building tailwind the longer maintenance is delayed

“And while we won’t predict the timing, we do realize there is a building aftermarket tailwind coming from last year’s deferred maintenance activities. As we’ve seen in the past, the longer facilities continuously run, the greater the workload is available to us when customers do catch up. ”

Near term market visibility will remain limited

“In closing, Flowserve expects near term market visibility to remain limited as customers calibrate around the persistent macro uncertainties. We expect this will result in continued delays in investment decision. However, as you have heard the near term market challenges provide us the opportunity to focus on cost take out, our operational performance and growth opportunities while remaining disciplined in our bidding. ”

Engineering projects do get pushed out

“our business primarily in EPD is what you call late cycle. And as we talked about before and you started to see this happen in the middle part of 2014, they start to curtail their CapEx expenditures, you’ve seen this with the multinationals trying to protect their dividend. And the fact is as those things can go off the drawing board, get pushed a little bit and they don’t come back real quick from — primarily from the multinationals so they don’t decide necessarily over night to bring it back online.”

CHina isn’t necessarily the only low cost manufacturing area since labor rates have gone up

“part of what we’ve been working on over the last couple of years through the LPO/SPO strategy is working with our customers to qualify some of the manufacturing in low cost parts of the world. And don’t just mention China because labor rates are gone up quite a bit there. We are talking about various parts of the world, India, Mexico. But the other thing to remember with our customers as well is often times they want to deal with the OECD facilities”

Karyn Ovelmen

Latin America is most challenged region

” Latin America, our most challenged region throughout 2015 remains extremely soft with delays occurring in nearly all projects with our important customers in Brazil, Venezuela and Argentina. Considering the quarterly volatility in our served end markets and region we experienced this year, our visibility heading into 2016 remains limited”

Fluor 4Q15 Earnings Call Notes

David Thomas Seaton – Chairman & Chief Executive Officer

Global economic growth is weak but we serve a diverse set of markets

“Global economic growth continues to be weak and commodities prices remain low. We expect economic growth of the year to be similar of the past few years. Yet we also expect commodity prices to stabilize during this year and perhaps even begin to improve in the last part of the year. The lower commodity prices obviously continue to impact our customers’ cash flows and, therefore, their ability on fund certain new projects at the same pace as they’ve done previously. Many of our customers have already announced significant reductions in their capital expenditure budget of 2016. However, Fluor serves a diverse portfolio of industries and regions, which provides the company opportunities even in difficult market environments.”

This year will probably be more lumpy and back end loaded than previous years

” I think it’s going to be even more lumpy in 2016 than we’ve seen in the past. The – what we’re going to see is that many of the customers are still taking an extra quarter or so to make their decisions. So we run the risk of having a project go from first quarter to the second quarter or second quarter to the third quarter. So I think it’s going to be somewhat more lumpy and I believe backend loaded more so this year than in previous years.”

I don’t see the doom and gloom that a lot of people see out there

“I guess there’s a bit of a bearish tone in terms of the overall, and most of that bearish tone is coming from the press. I’m fairly bullish about our ability to deliver on 2016. I’m pretty bullish about our position in the marketplace to add backlog as – at least stay flat with backlog as we enter 2017. So the glass is half full, and I don’t see the doom and gloom that a lot of people are and I guess your question kind of leads us towards.”

Seeing opportunities in infrastructure, pharma/biotech and gas fired power plants

“We’re seeing an uptick in opportunity in the Infrastructure group. They kind of hit a lull as you ended 2014 and early 2015. And we’re seeing a significant slate of opportunities that are there, and part of that is I think the U.S. government focus on infrastructure and the things that are necessary to keep the U.S. economy going. So that’s a bright spot. We’re seeing an uptick in terms of pharmaceutical and biotech opportunities. With the FDA approving drugs, some of those projects are getting off of the mark. We’re seeing a significant amount of frontend work, study work on gas-fired power plants, and we see a pretty robust opportunity slate there.”

The awards slate is pretty robust heading into 2017 and the glass is half full

“we’ve got good visibility into – the priority of the projects that our customers were taking, the economic viability of those projects based on current economic factors, and that’s what leads us to say that we’ll have a pretty robust – the award slate that’s – in robust to me means equal to this year, and certainly provides some visibility into the opportunities of 2017. So again I go back to what I said during Jamie’s question, the glass is half full. And it’s half full for us because of the fact that we’ve really stuck to our customers, and we’ve answered their call for integrated solutions and capital efficiency.”

Swings in energy prices will fix themselves

“This isn’t the first time me or people within our industry or our company have seen these kind of swings and volatility in markets. And they will fix themselves. I mean when you think – right now, there’s an oversupply of oil products. There’s an oversupply of gas. There’s an oversupply of LNG. It’s going to take a while for that to clear, but it will clear.’

I don’t think you’re going to see the supply situation change until the middle part of the year

“As I said, I don’t think you’re going to see the supply situation change dramatically until as we get into the mid part of the year. But once that glut kind of clears, I think you can see commodity prices kind of stabilize if not rise as we get to the backend. But the other thing that I’d warn everybody about is when you think about the long-term nature of Oil & Gas developments, from exploratory well to production, it’s a decade. So they’re not thinking about spending today for tomorrow. They’re thinking about spending today so that either the reserve base or their product mix or whatever is just focused on that further longer view”

Taxing regimes mean that pharma is not going to be a US based business by and large

“I mean, when you think about life sciences, pharmaceuticals, well, the taxing regimes in places like Ireland and Singapore and some of the other places around the world have attracted those businesses, so that’s not going to be a U.S.-based business by and large.”

People aren’t focusing enough on demand growth

“I think the one thing that’s not being spoken off is the demand growth in this discussion. And when you look at those demand growths, we’re still looking at 1 million barrels a day kind of growth in the midterm, I would say. So when you think about some of the production that’s going to naturally come off due to depletion curves, you look at – I guess, the Saudis and the Russians kind of put, for lack of a better term, a ceiling on production. You can see where that glut’s going to clear pretty quickly.”

Right now people are nervous

“I go back to what Buffett says, and I am not signaling any more acquisitions. But Warren Buffett says that he’s nervous when people are greedy, and he’s greedy when people are nervous. Well, right now people are nervous.”

Jacobs Engineering 3Q15 Earnings Call Notes

Steven Demetriou – President and Chief Executive Officer


“I want to welcome all of you to our 2015 fiscal year end and fourth quarter earnings call, my first since joining Jacobs.”

It’s clear that there are a lot of ways to improve Jacobs

“What has also been exciting to learn during my initial months of engaging with employees and customers are the numerous opportunities to improve and grow Jacobs. First it’s clear the company impressively grew over the past several decades as a result of numerous organic and inorganic initiatives.”

Continue to see adverse market conditions in multiple sectors

“We continue to see adverse market conditions in multiple sectors, particularly in oil and mining commodity markets and these were major contributors to the year-over-year decline in both the fourth quarter and total fiscal year. We also faced competitive pricing pressures and cyclical economic patterns in certain key markets which negatively impacted our revenue mix and unit margins.”

Believe we are near the bottom in energy capex

“we do believe we are near the bottom and demand will stabilize in this new fiscal year.”

Chemicals sector is strongest for us

“The strongest part of our process segment is in the chemicals sector. We are in the mix for several interesting growth prospects across the globe. In fact we were just informed of a major win with one of the largest petrochemical companies which we will provide further information about later in the first quarter.”

Strong growth in Pharma bio space

“In the pharma-bio space we’re clearly experiencing a strong growth and our backlog has significant increased from a year ago. Increased M&A consolidations are occurring driving select opportunities for Jacobs to help clients with portfolio consolidation and optimization.”

Pulp and paper companies expanding offshore

“Several of our pulp and paper clients are expanding offshore and we’re leveraging our strong domestic position to follow these customers in their overseas expansions. We’re increasing focus on consumer products globally.”

Government business is picking up momentum

“Our national government business is picking up momentum and is positively positioned in 2016. While challenges exist with reductions in government spending and delayed award cycles, we’re continuing to gain market shares to offset these dynamics and believe that the recent federal budget deal provides stability over the next few years.”

We do think our industrial clients have hit or are close to bottom

“when we report altogether for fiscal year 2016 we believe we will continue to face a very challenging global environment with uncertainty and limited visibility in several of our markets. It is clear that in petroleum and mining and general industrial commodity markets our clients are waiting to decide when and how to spend their cash.

We do believe that the clients in some of these end markets have either hit or are close to bottom. On the flip side, we believe that our buildings, infrastructure, pharma and federal work will provide growth opportunities in 2016, thus balancing and demonstrating the strength of our diversity which provides the ability to deliver stable earnings in uneven market conditions.”

There’s still integration work that can be done on acquisitions that were done years ago

“The company was very focused on aggressive growth. Frankly, as we all, the leadership team looked back at the acquisitions we feel like they were excellent strategic acquisitions, and but we could probably have done better on the integration side and driving the full benefits of cost synergies. ”

When we say we’re close to a bottom it’s mostly because we’re focused on refining and chemicals

“That’s a good question and my comments on hitting the bottom and stabilizing is more from a Jacobs position in that industry and what gives me confidence that we are near bottom of and should see stable profile and in fact may be some momentum by the second half is that most of our activity is focused on refining and chemicals.”

Kevin Berryman – EVP and Chief Financial Officer

Constant currency revenue growth despite economic headwinds

“While we continue to see macroeconomic headwinds and continued commodity weakness that has impacted certain of our end markets this quarter, it is important to note that on a constant currency basis our revenues actually grew at a rate of 2%. ”

Gary Mandel – President, Petroleum & Chemicals

Andy Kremer – President, Industrial

Robust nuclear new build programs in the UK

“The nuclear new build programs particularly in the UK are robust. We are heavily involved in all of the major programs that are taking place there primarily in the civil structural side of this, but certainly in the planning and the support areas those projects and we’ve been involved in those for the past year and a half or so.”

Phil Stassi – President, Buildings & Infrastructure

Chicago Bridge and Iron 2Q15 Earnings Call Notes

A sample of new awards for the quarter

“New awards totaled $2.8 billion for the quarter and included a diverse mix of size, location, and end markets. Significant awards included a confidential client combined cycle gas turbine power project in the U.S. for $600 million, several maintenance services awards in North and South America, engineered products in Russia and Mexico, and in the U.S. scope increases for our large nuclear projects, as well as a variety of technology and fabrication awards globally. This mix underscores the benefits of our diversified offerings versus pure EPC models.”

Continue to believe that our stock is a great value

“We’re also pleased to report that we have repurchased over 4 million shares in the past few weeks, almost half the stock used for the Shaw transaction. And we’ll continue to be in the market with the expectation to spend up to our $200 million cap within the week. We continue to believe that our stock is a great value,”

Long term backlogs got boost from project with Anadarko in Mozambique

“our long-term backlog projections got a real boost this quarter when we were selected by Anadarko Petroleum Corporation along with our joint venture partners Chiyoda Corporation and Saipem to design and construct process and ancillary infrastructure associated with their LNG development program in Mozambique. In the fourth quarter, we expect to book around $3 billion, which represents our share of the initial phase of the project.”

Technology segment has been most impacted by volatile oil and gas prices

“when we first talked about where our company may be impacted by volatile oil and gas prices, we talked about Technology as certainly, in some parts of the world, being subjected to that softness. And that’s what we’ve seen. Russia and China are a big part of our markets for many of our technologies. And of course with the foreign exchange and the ruble to the dollar as well as the sluggishness in the Chinese economy, many of those opportunities that we saw in the first half of the year seem to be shifting to – are shifting to the right.”