Bechtel posts record results
08 May 2008
US: Bechtel has posted record revenues for the second year in a row. Its sales grew to US$ 17.4 billion in 2004, up +7% from the previous record of US$ 16.3 billion in 2003. The privately owned firm does not disclose profit.
Bechtel's growth comes despite the value of its new orders falling -25% compared to the previous year, to US$ 15.7 billion from US$ 21 billion in 2003. But according to the report, the high order level in 2003 was due to the award of US$ 5 billion multiyear contract for clean up of chemical waste plant in Washington, US.
More than a third of Bechtel's revenues last year were generated by Bechtel National, which provides services to the US government and is involved in the reconstruction of Iraq. Bechtel Power also performed well during 2004.
Almost 50% of Bechtel's 2004 revenues were generated from projects outside the US. Bechtel executive vice president and deputy chief operating officer Jude Laspa said, “We are seeing a worldwide upturn in mining and metals, a big upturn in oil and chemicals and a return in power. We're seeing a lot more development in areas that had been cut back.”
According to Mr Laspa, Bechtel's prospects for 2005 are also good, particularly for Bechtel Power. The company is currently undertaking a number of major power schemes including construction of liquefied natural gas facilities in Egypt, Equatorial Guinea, Trinidad, Tobago and Australia and coal fired power stations in the US.