FWLT (MM)

Jacobs Engineering Group Inc.(JEC) has been awarded two significant contracts, one from the North West Redwater Partnership, and the other from EDF's NNB Generation Company Ltd. The values of both the contracts have not yet been disclosed.

Jacobs will be providing detailed engineering, procurement and construction services to North West Redwater Partnership for the development of a new oil refinery in Alberta, Canada. Under this contract, Jacobs will be supporting the critical phases of project development of the North West Redwater Refinery through sustaining operations.

The refinery is expected to utilize carbon capture technology, ceasing the natural gas usage, thereby sustaining and promoting oil sands development under the Bitumen Royalty in Kind (BRIK) policy partnership between North West Redwater and the Province of Alberta .

Project development and coordination of overall project delivery will be led by the integrated team of individuals from both North West Redwater and Jacobs.

On the other hand, Jacob’s will be providing consultancy professional services to NNB Generation Company Ltd (NNB GenCo) on its new UK nuclear build program. NNB GenCo is the prospective licensee for future nuclear plants, expected to be owned and operated by EDF Energy within UK.

According to the two-year agreement, Jacobs will be providing technical support to the Design Authority department. The department, on behalf of NNB GenCo, owns and protects the integrity of design and safety case of the UK EPR, a pressurized water reactor. The department is responsible for meeting the regulatory requirements, minimizing safety, environmental, regulatory and commercial risk.

Jacobs Engineering Group Inc. is one of the world's largest engineering and construction companies providing services to a variety of industrial, commercial and government clients across a global network. The company directly competes with its peers, such as Fluor Corporation (FLR), Foster Wheeler AG (FWLT).

We currently maintain a long-term Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, which translates into a short-term Hold rating (1-3 months).

 
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