FWLT in 2nd Phase of Refinery Upgrade - Analyst Blog
August 12 2011 - 4:15AM
Zacks
Global Engineering and Construction
Group of Foster Wheeler AG (FWLT) has been granted
release to perform the second phase work for the Modernization of
the Refinery in Barrancabermeja (PMRB) in Colombia. The release has
been given as per an existing contract with Ecopetrol S.A and
includes additional project management consultancy (PMC) and front
end engineering design (FEED)and detailed engineering for the crude
unit restoration.
The company will also provide
support to Ecopetrol in the selection process for engineering,
procurement and construction (EPC) contracts, and control and
supervise the EPC and construction contractors. The second phase of
the PMRB has been approved by the board of directors and being
proceeded by Ecopetrol. The upgrade of the refinery will decline
the production of fuel oil thus meeting the clean fuels product
specifications in Columbia while enhancing profitability.
This release includes additional
project management consultancy (PMC) and front end engineering
design (FEED), detailed engineering for the crude unit revamps,
assisting Ecopetrol in the selection process for engineering,
procurement and construction (EPC) contracts, and control and
supervision of the EPC and construction contractors.
The value of the contract has not
been disclosed by Foster Wheeler. The contract has been included in
the company’s second-quarter 2011 bookings. The contract was first
entered in November 2008 and the second-quarter 2011 booking was
the largest single booking made against this contract.
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 #3 Rank (Hold
recommendation) over the next one-to-three months.
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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