FWLT (MM)

Global Power Group of Foster Wheeler AG (FWLT) has received two contracts to provide solar steam generator systems to two different solar projects in Spain. The first contract is with an Engineering, Procurement and Construction (EPC) contractor, UTE Africa Solar, for the La Africana Solar Thermal Power Plant, located in Fuente Palmera (Cordoba, Spain). As per the first contract, Foster Wheeler will provide for a single 50 MWe train thermal plant steam generating components (feedwater heaters, preheaters, evaporators, superheaters, and reheaters) as well as site advisory services at the plant’s commissioning phase. The expected delivery date for the equipment is second-quarter 2012.

Scope of work in the second contract, which is with UTE Termosolar Olivenza (a joint venture created by Acciona and Seridom), is similar to the first one. This contract is for the Olivenza Solar Thermal Power Plant, located in Olivenza (Badajoz, Spain). The expected delivery date for the equipment is first-quarter 2012.

Foster Wheeler has received clearance to carry on with both the contracts. The first-quarter 2011 bookings of the company include the contract values. The terms of the contract were not yet disclosed.

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.

 
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
 
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
 
Zacks Investment Research