Strategy

Our strategic priorities

We are pursuing a clear and focused strategy. Our strategic priorities are to:

Focus on our core, building on our strengths to

  • Enhance our competitive position
  • Build on our record of operational excellence

Deliver organic growth in both complementary geographies and adjacent sectors by

  • Broadening and deepening our downstream credentials
  • Extending our service offerings into complementary sectors, where they can be differentiated
  • Extending existing service links into new geographies where synergies exist

Reduce capital intensity to improve the overall resilience, agility and financial efficiency of the business, by

  • Divesting non-core assets
  • Maintaining our focus on cash management
  • Protecting shareholder value

We are making progress

In 2017 we delivered solid full year results, good operational performance and strong financial discipline, while maintaining our focus on best-in-class and safe project execution for our clients. In a busy year, we also demonstrated our track record for operational delivery with more than 239 million man-hours worked across the portfolio.

The Group secured awards in a broad range of markets during 2017. Operational excellence is maintaining our strong competitive position and protecting our differentiated margins. Furthermore, we are continuing to reduce capital intensity and enhance returns, evidenced by the disposal of non-core assets and our decision to exit the deep-water market.

Progress: focus on our core

In 2017, we:

  • Completed several major projects
  • Secured subsequent phases of existing contracts in several markets
  • Extended our value engineering capabilities
  • Improved on our already strong health and safety record 
  • Brought continuous improvements to human resources, corporate responsibility and compliance management
  • Saw a strong recovery in new orders while maintaining our bidding discipline in a competitive market
  • Confirmed our intention to exit the deep-water market

Progress: deliver organic growth

During 2017 we:

  • Won US$2.1 billion of new contract awards in complementary geographies (such as Turkey and Russia) and in adjacent sectors
  • Extended our downstream capabilities with another new refinery win

Progress: reduce capital intensity

During 2017, we:

  • Strengthened our balance sheet
  • Cut costs by 16%
  • Reduced capital expenditure by 44%
  • Rebased the dividend
  • Continued to reposition IES
    • Divested the Pánuco Production Enhancement Contract
    • Migrated the Santuario Production Enhancement Contract to a Production Sharing Contract

Near-term priorities

Our near-term priorities are to build upon our financial and operational successes in 2017. With good revenue visibility and strong credentials in promising sectors of the market, we are well positioned for the future.

Priorities: focus on our core

Our priorities in the near-term are to:

  • Investigate the deployment of digital technologies with a view to achieving further differentiation, and to take operational excellence to a new level
  • Continue to focus on process improvements and cost-base reductions in key markets
  • Continue to secure supply chain improvements by the introduction of new vendors and greater alignment with subcontractors

Priorities: deliver organic growth

Our priorities in the near-term are to:

  • Continue to increase our visibility and bidding activity in complementary geographies
  • Continue to position ourselves to participate in the forecasted increase of downstream investments in the Middle East and North Africa
  • Continue to seek opportunities in offshore wind

Priorities: reduce capital intensity

Our priorities in the near-term are to:

  • Negotiate the migration of our remaining Mexican operations to equity contracts
  • Continue to appraise the strategic value of all assets and divest non-core assets
  • Continue to focus on cash management efficiencies

Our success rests on building trusted, long-term client relationships, and our focus remains on delivering first class project execution, cost control and effective risk management, building on our track record in core markets to win new business and strengthen our position.

 

Market outlook

Long-term market fundamentals remain robust

Key performance indicators (KPIs)

We monitor and assess our performance by using stretching targets that help us deliver value

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