Foster Wins Contract - Analyst Blog
March 15 2012 - 8:30AM
Zacks
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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