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15 Largest EPC Companies in the World

In this article we take a look at the 15 largest EPC companies in the world. Click to skip ahead and jump to the 5 largest EPC companies in the world.

The largest EPC companies in the world are responsible for the top turnkey projects worldwide. These are the companies which bring magnanimous engineering and construction projects to reality through their expertise.

So what is an EPC company? Simply put, EPC companies are engaged in engineering, procurement, and construction services on contract basis, for contracts awarded for particular project work. Therefore, the projects handled by an EPC company can lie in varied domains, awarded on a turnkey basis. Even though these companies are primarily involved in construction, the sectors they cater to might fall in a diversified range. For example, an EPC company can be involved in completion of projects for the Oil and Gas industry or plant projects for the Power sector.

Christian Lagerek/Shutterstock.com

While the largest construction companies might be involved in turnkey construction projects, it is the format of EPC contracts that separate the EPC companies. Often, the two terms turnkey and EPC are used interchangeably, but in reality there are differences between the two and EPC can be a broader concept. While, in EPC, like turnkey, projects are awarded on a contract to commissioning basis on a predetermined time and budget or a Lump Sum Turn Key (LSTK) contract, the nature of EPC contracts can be different. In an EPC contract the client has no responsibility to oversee the work of other sub-contractors deployed by the main contractor, as the contracts are awarded independently and might be for a part of or certain area of the project. In a turnkey contract on the other hand the client’s authority prevails over the sub-contractors as well. These projects are generally awarded on a start to finish basis. The contractor is responsible for the complete execution of the projects and hands the client the project in a ready to start condition.

The EPC market in the oil and gas sector is expected to grow at 6.5% between 2020-2027, and has many prominent players like South Korean giant Samsung Engineering and UK’s Petrofac. In the last few years, competition in the oil and gas sector has gotten acutely fierce, especially in the Middle East as contract awards are on a declining trend while major players are vying for the few contracts in the pipeline. This has sparked changes and developments in the EPC markets as companies are required to be more ambitious and be prepared against the ever-changing industry requirements. However, as some of the largest energy companies such as Saudi Aramco are investing into redevelopment of older assets, some EPC companies in the upstream have reaped the benefits.

To arrive at our list of the largest EPC companies in the world, we have ranked each EPC player by their 2019 revenues, and have also reported their number of employees, which enunciates the scale on which these companies operate. EPC companies often are labor intensive; however, the workforce can be a complex mix of permanent and temporary employees, as well as subcontractors. While there are some major American players like Fluor Corporation (NYSE:FLR) and KBR (NYSE:KBR), there are quite a few Asian players that are leading the market. A major player Chicago Bridge & Iron Company (NYSE:CBI) was merged into McDermott (NYSE:MDRIQ) in 2018, though unfortunately McDermott has suffered to bring the integration into fruitful effect and obtain synergy and has recently filed for bankruptcy.

Let’s take a look at the 15 largest EPC Companies in the world!

15. Bilfinger

Revenue - $ 5,176.93 million

Number of employees - 35,905

Germany based civil and industrial construction, engineering and services company, Bilfinger mainly caters to the energy and utilities sector. The company was awarded a series of EPC contracts by Abu Dhabi National Oil Company in 2019, with some projects being due for completion in 2020.

yuttana Contributor Studio/Shutterstock.com

14. Petrofac

Revenue - $ 5,530 million

Number of employees - 11,500

British, EPC company, Petrofac has completed over 200 engineering, procurement and construction (EPC) projects worldwide in over 30 years of its presence. The company is involved in designing, building and managing infrastructure for the energy sector.

weerasak saeku/Shutterstock.com

13. Técnicas Reunidas

Revenue - $ 5,622 million

Number of employees - 9,461

Spain’s Técnicas Reunidas, S.A., or TRSA, is a general contractor providing engineering, procurement and construction of industrial and power generation plants. The company mostly operates in the oil & gas industry.

goodluz/Shutterstock.com

12. KBR (NYSE:KBR)

Revenue - $ 5,639 million

Number of employees - 28,000

KBR, headquartered in Houston, Texas, is a former subsidiary of Halliburton. The company provides various engineering solutions, like basic engineering designing, detail designing, front-end engineering design, and systems engineering integration among others. The company was awarded a Front-End Engineering Design (FEED) and EPC contract by a Tier 1 International Oil Company for improvements to an oil storage facility in the Permian Basin.

Roman Motizov/Shutterstock.com

11. Samsung Engineering

Revenue - $ 5,748 million

Number of employees - 5,566

South Korea’s Samsung Engineering is the first engineering firm in the country. The company provides a full range of engineering services right from feasibility studies, design, procurement, construction, to commissioning. The company recently received a $ 1.07 billion contract for the Sarawak Methanol Project in Malaysia.

Lisa-Lisa / Shutterstock.com

10. SK Engineering & construction

Revenue - $ 7,080 million

Number of employees - 3,337

Another South Korean player, SK E&C, is an engineering and construction company under the SK Group. In 2019, the company was awarded EPC to construct three underground storage caverns, of capacity of 14 million barrels, by ADNOC as part of its underground project for oil storage. The EPC contract is valued at $1.21 billion.

Lukasz Szwaj/Shutterstock.com

9.Daewoo Engineering & Construction Co., Ltd.

Revenue - $7,809 million

Number of employees - 6,211

Headquartered in Seoul, South Korea, Daewoo E&C, has been instrumental in the construction of the Wolseong Nuclear Power Plant, Nurimaru, Busan-Geoje Fixed Link. This year the company has been awarded a highway construction project in Qatar for $910 million, which marks the third-largest road construction order secured by the company. Daewoo E&C also won the $545.8m contract for a degassing station in Iraq.

stockphoto mania/Shutterstock.com

8. Daelim Industrial

Revenue - $8,755 million

Number of employees - 7,523

Yet another South Korean company that is one of the largest EPC companies in the world, Daelim mainly delves into the Petrochemicals sector. Daelim won a $462 million order to build a petrochemical plant in South Korea in November 2019, under which along with Hyundai Chemical Co, Daelim Industrial is set to build the heavy-feed petrochemical complex in Daesan. The contracted plant will be capacitated to produce 250,000 tons of polypropylene and 600,000 tons of polyethylene each year.

MDR engineering construction stocks gas oil tubes colossal steel welded pipelines
MDR engineering construction stocks gas oil tubes colossal steel welded pipelines

rob3rt82/shutterstock.com

7. GS Engineering & Construction Corporation

Revenue - $9,402 million

Number of employees - 6,831

GS E&C is mainly involved in the infrastructure sector. In 2019, amongst major projects won and executed by the company were that of the Zakarpattia solar power projects in Ukraine and other 400 million dollar plant investment projects in Turkey.

Most Affordable Engineering Schools in The US
Most Affordable Engineering Schools in The US

Sergey Nivens/Shutterstock.com

6. Wood

Revenue - $9,900 million

Number of employees -55,000

Wood is a full-service supplier with experience in engineering from concept studies and pre-front-end engineering design (pre-FEED) activities. It operates mainly in the oil and gas industries, and noted 29% of its revenue from upstream oil and gas activities in 2018. The company has increased its presence in the Middle East, specifically in Iraq, in the recent years where it is collaborating with ExxonMobil (NYSE:XOM) and Basrah Gas Company.

Click to continue reading and see the 5 largest EPC companies in the world. Disclosure: No positions. 15 Largest EPC Companies in the world is originally published on Insider Monkey.

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