Foster Wheeler's Boiler Contract - Analyst Blog
February 29 2012 - 11:57AM
Zacks
Foster Wheeler AG’s (FWLT) Global Engineering
and Construction Group received a contract from JSC LUKOIL’s
subsidiary. As per the deal, the company will provide a waste heat
boiler for LUKOIL Nizhegorodnefteorgsyntez Refinery in the Nizhny
Novgorod region of Russia.
The contract value for Foster Wheeler is undisclosed. The
fourth-quarter 2011 bookings of the company are inclusive of this
contract.
Downstream of a fluid catalytic cracking unit will have the
waste heat boiler from Foster Wheeler. The boiler will help in the
production of gasoline, which will comply with the European Union
Euro-5 standards. A same type of unit was supplied to the refinery
by Foster Wheeler, which is being used satisfactorily by Likoil
since 2010.
By March 2013, Foster wheeler is expected to be through with its
scope of work.
Recently, Foster Wheeler came out with its fourth-quarter 2011
earnings result. The company’s Global Engineering and Construction
Group revenue increased by $54.3 million year over year to $453.1
million in fourth quarter 2011. The company expects Global E&C
Group revenue to increase in 2012 versus 2011. Global E&C
Group EBITDA margin on scope revenue in 2012 is expected to be in
the range of 12%–14%.
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 maintain a Zacks #3 Rank (Hold recommendation) over the next
one-to-three months on Foster Wheeler.
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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