JEC Adds E.ON Contract to its Kitty - Analyst Blog
August 18 2011 - 4:00AM
Zacks
Jacobs Engineering Group
Inc. (JEC) received a strategic contract from E.ON UK
(E.ON), to provide engineering services and construction management
support at the 2000 megawatt (MW) Coal Fired Ratcliffe-on-Soar
Power Station near Nottingham, United Kingdom. The project is a
part of E.ON’s ongoing plant life extension program for the power
plant at Nottingham. The terms of the deal as well as the contract
value have not yet been disclosed.
According to the contract, Jacobs
is expected to design system upgrades for the coal-fired power
plant in the United Kingdom. The scope of work includes the
appraisal of system upgrade requirements; compilation of user
requirement specifications; condition surveys; design of system
upgrade and replacement projects, as well as procurement and
construction management services support.
Over time, Jacobs has been winning
strategic contracts from the federal governments of UK, US and
beyond and diversifying across the emerging economies. The list of
contracts is thus expected to strengthen Jacobs’ position in the
infrastructure market. Moreover, the company’s
diversification across global infrastructure markets, geographies
and services is expected to support steady growth even in a
competitive environment.
Of late, Jacobs registered
satisfactory third-quarter 2011 financial results with net earnings
per diluted share of 71 cents in the quarter and a 9.4%
year-over-year revenue growth based on steady backlog and solid
prospect list of contracts.
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) and 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).
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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