Foster Wheeler AG (FWLT) through a subsidiary of its Global Engineering and Construction Group received a basic design and front-end engineering design contract from Complejo GNL del Este, a Consortium formed by Dominican and Colombian companies. The companies included in the Consortium work in energy sector of the countries. The project involves construction of a new LNG receiving terminal and jetty in San Pedro de Marcorís in the Dominican Republic.

Contract value is undisclosed but included in Foster Wheeler’s first-quarter 2012 results.

Technology for the new terminal has been selected by Foster Wheeler through a feasibility study conducted by it.  The new terminal is planned to have a send-out capacity of 240 million standard cubic feet per day (MMscf/d), with an LNG storage tank of 160,000 cubic meters. The work on this project will be executed by Foster Wheeler together with a local partner and is expected to be completed in September 2012.

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 the fourth quarter of 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. The major competitors of Foster Wheeler are Fluor Corporation (FLR) and Jacobs Engineering Group Inc. (JEC).

Currently, we are maintaining a Zacks #3 Rank (short-term Hold recommendation) 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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