At Bechtel, we know that our customers’ projects demonstrate progress. They bring opportunity for individuals and regions. Infrastructure efforts improve communication, as well as connect communities to commerce and citizens to vital services. Energy projects—from combined cycle to oil and gas—deliver reliable and sustainable access to power for future prosperity. Work in the mining industry delivers natural resources and new sources of revenue to developing regions. Government customers take on nuclear and environmental efforts that create a cleaner, safer society for future generations.
It is our responsibility to help our customers deliver on the promise of these projects and more. We work to ensure we protect the environment and conserve natural resources; support local communities, create new jobs and improve economies.
We are not motivated to be the largest engineering, procurement, and construction (EPC) company in the industry; we are determined to be the best.
We do that by anticipating trends, aligning our expertise with customers’ needs, transforming delivery, building progress, and breaking new ground in everything we do.
To our customers and colleagues:
Every day, around the world, we aspire to achieve extraordinary results for our customers, build satisfying careers for our people, and deliver on our promises. In 2014, we stayed true to that focus.
We completed the Dulles Metrorail Expansion, one of the largest rail projects in the United States, as well as Hamad International Airport, one of the most modern airports in the world, in Qatar.
Elsewhere in the United States, in California’s Mojave Desert, we delivered the award-winning Ivanpah Solar Electric Generating System, which is powering 140,000 homes with clean, solar energy and reducing carbon dioxide emissions by more than 400,000 tons per year. In Texas, Panda Temple and Panda Sherman, two of the country’s cleanest combined-cycle plants, were completed and handed over to our customer ahead of schedule. Our project team at the Pueblo Chemical-Agent Destruction Pilot Plant, in Colorado, is completing systemization and was awarded the operations phase of the contract, important steps toward helping the U.S. meet its treaty obligations to eliminate its remaining inventory of chemical weapons.
We delivered the first cargo of liquefied natural gas (LNG) for export from Curtis Island on schedule for our customer, Queensland Curtis LNG (QCLNG), a BG Group company. This first-of-a-kind project is one of three ongoing Bechtel projects to launch a new coal seam gas industry in Queensland, Australia.
We completed the Caval Ridge metallurgical coal project under budget and three months ahead of schedule. This facility will increase Queensland’s coal exports by 5.5 million metric tons per year.
In the UK, we finished the Reading Station expansion, which has doubled the capacity of one of the busiest stations outside of London. The new station was formally opened by Her Majesty Queen Elizabeth II in July 2014.
These accomplishments—and hundreds more—would not have been possible without the commitment, passion, expertise, and hard work of our 58,000 colleagues worldwide. By partnering with our customers, we are helping to deliver landmark projects that are fostering sustainable progress and helping local economies.
Work-off revenue for 2014 totaled $37.2 billion, down 5.6 percent from 2013. Our New Work Booked result, which fluctuates year to year, was significantly down at $18.4 billion in comparison to our excellent 2013. Our 2014 bookings were impacted by capital cost cuts in the mining and energy sectors, compounded by uncertain world growth that caused many customers to defer anticipated awards into 2015. Our backlog, at $70.5 billion, remains strong.
We look forward to 2015 in anticipation of important awards that have been in development for some time.
We are pleased that our customers continue to trust us to deliver their critical projects that span all industries.
In Canada, we broke ground on the Keeyask Generation and Infrastructure project. This new 695-megawatt powerhouse, in Manitoba, will provide energy to 400,000 homes in Canada and parts of the northern United States. We are working with ExxonMobil on an ethylene plant in Texas, and we began work on a 750-megawatt combined-cycle generating station in Virginia. The U.S. Department of Energy reaffirmed its selection of the Bechtel-led team to manage the consolidation of two nuclear weapons facilities—the Pantex Plant, in Texas, and the Y-12 National Security Complex, in Tennessee—and build a uranium processing facility that will replace aging Cold War-era facilities.
The UK Ministry of Defence selected Bechtel to support its national security efforts by transforming its procurement processes to equip the British Armed Forces with necessary supplies. Following the successful delivery of Kosovo’s first motorway ahead of schedule, the government turned to us to build the new 37-mile (60-kilometer) motorway linking Pristina, the capital, to neighboring Macedonia.
In Africa, Bechtel was selected to manage the construction of the Catembe Bridge in Maputo, Mozambique, and in the Middle East, we were selected to build a new alumina refinery in Abu Dhabi.
SafetyPublic and project safety is—and always will be—paramount for Bechtel. In 2014, we had the best safety performance in our company’s history with our lowest recordable incident rate. Eighty-five percent of all Bechtel locations completed the year without a single lost-time incident, and 11 of our projects recorded more than 10 million or more safe work hours. While we are proud of these achievements, we believe every incident, and therefore every occupational injury, is preventable. Zero incidents is the only acceptable goal, and we work to achieve it for every person, every day, everywhere.
Poised for the Future
In 2014, we took proactive steps to strengthen our business, drive opportunities in new markets, and streamline our cost structure to improve our competitiveness.
We consolidated five global business units into four; Infrastructure; Mining & Metals (M&M); Oil, Gas & Chemicals (OG&C); and Nuclear, Security & Environmental (NS&E).
We are increasing our focus on and investment in engineering skills, with ambition to achieve broad customer recognition as best engineer in our industry. We continue to develop new ways to deliver high-quality projects ahead of schedule and under budget.
We are proud to be shaping our industry with innovative approaches to deliver the complex, unique projects upon which our customers depend. Our new EPC Innovation Centers in Houston and London will push the limits of virtual project delivery and drive improvements in our integrated global EPC delivery model.
Low oil and natural gas prices combined with low worldwide growth and increasing global uncertainty create a challenging macroeconomic environment for EPC companies like Bechtel. However, we anticipate an excellent year in new awards in 2015 as many of our key prospects that have been in development for some time are expected to proceed despite the economic headwinds.
In 2015, we will continue to invest in our business for the long-term and look forward to working with our customers to break new ground, achieve new milestones, and deliver projects that will improve the world.
Chairman of the Board
Chief Executive Officer
President & Chief Operating Officer