FWLT (MM)

Jacobs Engineering Group Inc. (JEC) has recently won a contract from Suncor Energy to provide support for sustaining works program as part of its Firebag Stage Three oil sands project near Fort McMurray, Canada.

The detailed design phase of Firebag Stage Three in Canada has already been completed by Jacobs and the company is now prepared to provide support for the sustaining Firebag oil sands project in the next step. The contract value has not yet been disclosed.

The Firebag Stage Three contract marks another transition for the engineering company, from delivering capital projects to providing project sustenance and support. This shift leverages on the company’s relationship-based model to continue delivering increasing value on an ongoing basis.

Jacobs has been capitalizing on their technical experience and continuously upgrading standards and processes to facilitate operational effectiveness and reduce costs; ensuring safety at the same time. The company envisages continuous support to Suncor Energy's operations with the commitment to deliver increasing value to the client on an ongoing basis.

Over time, Jacobs has been winning strategic contracts from the federal governments of UK, US and beyond and diversifying across the emerging economies. The company’s diversification across geographies and services is therefore expected to support steady growth even in a competitive environment. Moreover, the solid prospect list of contracts is anticipated to strengthen Jacobs’ position in the infrastructure market.

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 have a Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, which implies a short-term (1-3 months) Hold rating.

 
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