US engineering and construction contractor Fluor has unveiled a new strategy that sets it on course for reaping 70% of its revenue from non-traditional oil and gas segments by 2023.
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In addition, the company has committed to achieving net zero for scopes 1 and 2 carbon dioxide equivalent emissions by the end of that year.
Also, by 2024, Fluor plans to lower and maintain a debt to capitalisation ratio corridor of between 20% and 40%, generate return on invested capital in excess of 20%, secure investment grade credit ratings and deliver top quartile shareholder returns.
The company is aiming for earnings per share range of $3 to $3.50, also by 2024.
The final priority is increasing diversity, including more women in leadership roles.
Chief executive David Constable said: “My top priority since being named Fluor’s chief executive has been to work closely with the board and the management team to develop a strategy that addresses the mega trends that are impacting how we do business.”
“With an emphasis on sustainable outcomes and creating shareholder value, our new strategy leverages our world-class expertise and rewards Fluor for the value we provide while improving our financial position and creating a fit-for-purpose organisation.”
Late last year, Fluor said it will no longer participate in competitive lump-sum bidding processes for its energy and chemicals business, saying they created too much risk for the company.
