FWLT (MM)

A subsidiary of Foster Wheeler AG’s (FWLT) Global Engineering and Construction Group received a contract in Argentina for delayed coker heater from YPF S.A. The company will be providing engineering, equipment supply and supervision to construction and start-up services for the delayed coker heater for the new delayed coking unit at YPF’s Complejo Industrial La Plata in Argentina. The terms of the deal are not yet disclosed.

The company's fourth-quarter 2010 bookings included the value of the contract. The new coker will have a fired heater, which will be built on Foster Wheeler’s leading Selective Yield Delayed Coking (SYDECSM) technology. The delayed coker heater for the new delayed coking unit is expected to be completed by June 2012.

YPF’s refinery has been using Foster Wheeler’s coking solution for the past three years. The cokers from Foster Wheeler delivered excellent performance and reliability. The company leads the market in delayed coking and has provided its process technology worldwide for over 80 new cokers and has restored more than 70 delayed cokers.

Foster Wheeler AG is based in Zug Switzerland, but its operational headquarters are in Clinton NJ USA. The majority of Foster’s revenues and new businesses originate from outside the United States.  The company serves the following industries: Oil and Gas; Oil Refining; Chemical & Petrochemical; Pharmaceutical; Environmental; Power Generation; and Power Plant Operation and Maintenance. Major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).

We continue to maintain a Neutral rating on Foster Wheeler, with a Zacks #2 Rank (Buy recommendation) over the next one-to-three months.

 
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