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.
Gain valuable insight into the global oil and gas industry's energy transition from Accelerate, the new weekly newsletter from Upstream and Recharge. Sign up here
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.