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BECHTEL REPORT 2006 New Work Booked in Billions of Dollars

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BECHTEL REPORT 2006 New Work Booked in Billions of Dollars BECHTEL REPORT 2006 New Work Booked in billions of dollars Workoff Revenue 25 in billions of dollars { bechtel } $21.0 REPO20R T 2 0 0 6 20 $18.1 $18.5 $17.4 $16.3 $15.7 15 15 $13.4 $12.7 $11.6 To 10our customers, employees,10 $9.3 partners, suppliers,5 and friends 5 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 hen Bechtel rapidly provided Safety First W Number of lost-workday incidents housing for tens of thousands of per 100 workers per year displaced Mississippians following Industry Average 3.60 Bechtel US 0.14 Hurricane Katrina, the Federal Emer- 0.2 Bechtel Global 0.10 gency Management Agency called 0.1 it a “remarkable success.” The same could be said about Bechtel’s overall 0 2001 2002 2003 2004 2005 performance in 2005. Our hurricane relief work typified the speed, skill, and to use its tools, Six Sigma is becoming an everyday part of commitment that our 40,000 employees brought to hundreds the way we work. of projects around the world last year. With liquefied natural Another priority was our global workforce. We know that gas projects and work on fossil and nuclear plants, we helped our employees—representing some 100 nationalities—are our customers meet growing worldwide demand for clean energy greatest resource and the key to the company’s future. In 2005 and power. We continued to be a major service provider to the we put new emphasis on finding new ways to recruit and retain U.S. government. And with projects such as a new mega-airport talented workers, while at the same time developing the next in Qatar, a major suspension bridge in the United States, and an generation of Bechtel leaders. aluminum smelter in Iceland, we showcased the diversity that In 2005, as in past years, we tackled projects too challeng- makes us the global leader in our industry. ing for others, and brought unmatched experience and expertise Our strong project execution and commitment to our to our work. We are confident that by continuing to help our customers paid off with record workoff revenue for the third customers maximize their return on investments, we will remain straight year. In addition, we booked new work at the third- the world’s top choice for engineering and construction. highest level in the company’s history. We also achieved our best overall safety performance ever and continued to rank as one of the safest companies in our industry. During 2005, more than 50 Bechtel projects recorded at least Riley P. Bechtel CHAIRMAN & CHIEF EXECUTIVE OFFICER 1 million consecutive job hours without losing time because of an accident. We continued to improve quality—and save customers money—by using Six Sigma, a data-driven methodology now Adrian Zaccaria in its sixth year at Bechtel. With thousands of employees trained PRESIDENT & CHIEF OPERATING OFFICER { bechtel } REPO R T 2 0 0 6 Business Review Our Power unit broke ground on the $2.15 billion Elm Road power plant in Wisconsin, and is partnering with GE Energy on echtel’s broad portfolio of businesses and our global B designs for a plant in Ohio using “cleaner coal” technology. presence—strengths that have set us apart in the engineer- Bechtel Telecommunications continued to help Cingular ing and construction industry—proved more valuable upgrade its U.S. wireless network to high-speed service, and than ever in 2005 as we achieved one of the best overall supported Vodafone in its high-speed rollout in Australia. performances in our 108-year history. Last year, Bechtel and Shell sold their InterGen joint ven- With solid contributions across our multiple global business ture, which developed and operated fossil power projects around units, we posted record workoff revenue of $18.1 billion, up the world. We also reached a settlement with the government of from $17.4 billion in 2004. The value of new work rose from India after more than three years of negotiations associated with $15.7 billion to $18.5 billion, the third highest in our history. the suspended Dabhol power project. Additionally, we began 2006 with a healthy backlog of work. In the following pages you’ll read about dozens of major Leading the way in 2005 were our Oil, Gas & Chemicals unit, projects that made 2005 a very good year and kept us at the which capitalized on worldwide demand for new energy, and top of our industry. New Work Booked Bechtel National, our government services unit. OG&C, a leader in billions of dollars in the fast-growing market for liquefied natural gas production, Workoff Revenue 25 had LNG projects in Australia, Egypt, Equatorial Guinea, and in billions of dollars $21.0 Trinidad—and a regasification project in Louisiana. OG&C 20 20 $18.1 $18.5 also landed a pair of large gas projects in the Middle East. $17.4 $16.3 $15.7 Bechtel National, consistently one of our strongest business 15 15 $13.4 units, continues to be a major provider to the U.S. government. $12.7 $11.6 In addition to ongoing projects involving environmental remedi- 10 10 $9.3 ation, defense readiness, and chemical demilitarization, we made steady progress in reconstructing vital infrastructure in Iraq and 5 5 provided temporary housing for hurricane victims in Mississippi. In December, the U.S. Department of Energy selected a group 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 led by Bechtel and the University of California to manage and operate the prestigious Los Alamos National Laboratory. New Work Booked in billions of dollars About half of our new work and half of our workoff revenue came from outsideWorkof Northf Revenue America, with OG&C again setting 25 Safety First in billions of dollars Number of lost-workday incidents the pace. Work continued in 2005 on three rail projects in the UK, $21.0 per 100 workers per year 20 20 a motorway in Romania, and a new airport in Qatar.$18.1 $18.5 $17.4 Industry Average 3.60 In the United States, the $1Boston6.3 Central Artery/Tunnel $15.7 Bechtel US 0.14 15 15 0.2 Bechtel Global 0.10 project, also known$13.4 as the Big Dig, achieved substantial com- $12.7 pletion, while in Washington$11.6 State, construction of the new $9.3 Tacoma Narrows10 Bridge moved into the final phase. 10 0.1 It also was another busy year for our Mining & Metals 5 5 unit, which completed the expansion of an aluminum smelter in Bahrain, made good progress on a new smelter in eastern 0 0 0 2001 2002 2003 2004 2005 Iceland, and began2001 yet another2002 2003smelter 2004project 2005in Oman. 2001 2002 2003 2004 2005 Safety First Number of lost-workday incidents per 100 workers per year Industry Average 3.60 Bechtel US 0.14 0.2 Bechtel Global 0.10 0.1 0 2001 2002 2003 2004 2005 Fjarðaál Smelter Metrorail Building a Tacoma Chemical Sammis Extension Central Artery/Tunnel 322,000- Narrows Bridge Weapons Retrofit A Bechtel-led tonne-per-year Major work was Partnering to design Elimination Elm Road Awarded a partnership is aluminum Global Highlights developing a completed on the smelter in and build the longest Working to destroy Power Plant contract to 37-kilometer modernization of eastern U.S. suspension chemical agent Designing and construct new air extension of the Boston’s aging Iceland. bridge in more than stockpiles at U.S. building a quality control Metrorail line in highway system. four decades, in defense sites in 1,230-megawatt systems at a Washington State. coal-fired power northern Virginia. Maryland, Kentucky, coal-fired facility Vivatel Iraq and Colorado. in eastern plant in Ohio. Romanian Program Reconstruction Wisconsin. Motorway Jubail II Managing Working for USAID Industrial City Anode Plant Building a deployment to reconstruct vital 415-kilometer Working on Jubail II, Missile Defense System Constructing a of cellular sites infrastructure in Iraq, Transylvanian the continuation of a facility in Norway for a Bulgarian including roads, New Doha Constructed a missile-launch motorway linking 30-year program to produce anodes wireless bridges, power, water, International Airport complex in Alaska as part of Brasov to the that has built a city for the smelter in network. and telecommunications. the Ground-based Midcourse Hungarian border. from the ground up. Designing and building major Defense system. Iceland. new airport in Qatar. Waste Treatment Plant Building a facility at a former nuclear West Coast Route Sakhalin Gas Processing production site in Washington State Modernization Partnering on construction services to vitrify high-level nuclear waste. Renewing and upgrading for an onshore gas processing a busy mixed-use rail facility in Russia. Yucca Mountain Repository corridor from London to Scotland to accommodate Providing scientific study and licensing Sohar Smelter high-speed trains. support for a proposed national nuclear Designing and managing construction waste repository in Nevada. of a major aluminum smelter in Oman. London Underground Mountainview Power Plant Part of a public-private partnership modernizing the Nanhai Petrochemicals Complex Designing and building a 1,000- Jubilee, Northern, and Piccadilly Led a consortium that managed a massive megawatt natural gas-fired combined lines of London’s subway system. project in southern China including 11 cycle facility in southern California. processing plants. Steam Generator Replacements Channel Tunnel Rail Link Trans-Thailand-Malaysia Pipeline Worked on SGR projects at nuclear power Working on Section 2 of a Completed a pipeline to carry natural gas plants in Pennsylvania, Nebraska, Texas, high-speed rail line connecting from the Gulf of Thailand to Malaysia.
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