Jacobs' New Joint Venture - Analyst Blog
July 01 2011 - 11:33AM
Zacks
Jacobs Engineering Group Inc. (JEC) entered
into a joint venture with AMEC and Costain to provide waste
retrieval, processing and filling services. The joint venture will
serve Magnox Limited at eight of their nuclear power station sites
across the UK.
Under the contract, the joint venture will retrieve and process
wet and solid intermediate level radioactive waste by designing,
constructing, commissioning and operating facilities. Further,
these selected organizations can bid for specific projects under
the Magnox ILW Management Program.
The company has also agreed to provide infrastructure and
construction supervision services to the largest Saudi real estate
developer, Injaz Development Company, for its Marina
project. The financial terms of the transaction were not
disclosed.
Based in Saudi Arabia, the Marina project, comprised of luxury
villas, multi-use towers, buildings, coastal houses, hotels,
schools, mosques and a variety of public and tourist facilities,
will be constructed on a 36 million square foot plot.
California-based Jacobs is
one of the leading providers of professional, technical and
construction services to industrial, commercial and governmental
clients.
We believe that Jacobs’
diversification across markets, geographies and services with a
number of new contracts will help it generate growth in future.
Moreover, Jacobs is likely to win new contracts as the economic
conditions and the end-markets served by the company show
improvement.
However, the company operates in a highly competitive market.
Jacobs directly competes with Fluor Corporation
(FLR) and Foster Wheeler AG (FWLT).
We currently have a Neutral recommendation on Jacobs supported
by a Zacks #3 Rank.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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