JEC Adds New Contracts to its Kitty - Analyst Blog
October 13 2011 - 4:00AM
Zacks
One of the world’s largest
engineering and construction services firm, Jacobs
Engineering Group Inc. (JEC) recently announced winning of
new strategic contracts from seven clients in the Alberta Oil Sands
to support steam assisted gravity drainage (SAGD) and bitumen
upgrading expansion projects. The company has also been awarded an
extension contract for current marine environmental services from
Horizon Nuclear Power Limited, targeted to support the company's
new build nuclear power station development at Wylfa, Anglesey in
the United Kingdom.
The combined total construction
value of Alberta Oil Sands projects is estimated to soar above $1.4
billion, the values of each ranging from $15 million to more than
$650 million. However, the contract value of Horizon Nuclear Power
Limited Officials has not yet been disclosed.
Jacobs already has a prominent,
long-term presence in the Alberta Oil Sands. The scope of new
contracts in the region, includes a variety of mid- and large-cap
projects, call for engineering procurement and construction (EPC),
front end engineering and design (FEED), fabrication and
construction management (CM) services. Leveraging on the pipeline
of a series of new contracts, Jacobs hopes to maintain its
industry-leadership in heavy oil recovery in the region and upgrade
expertise at its offices in Calgary and Edmonton in Alberta,
Canada.
On the other hand, Jacobs has been
rendering ongoing support to UK energy company, Horizon Nuclear
Power in the preparation of key elements of the environmental
consents submissions for the development of major nuclear power
station over time. The recent service extension contract from
Horizon Nuclear Power currently includes delivering a baseline
marine ecology survey program covering fisheries, benthos, marine
birds, plankton and water quality; environmental impact
assessments; option appraisals; and Habitat Regulations Assessments
(HRA) for the new nuclear power station and its associated
infrastructure.
Apart from the above contract wins,
mention may be made of Jacobs’ recent agreement with the
International Council on Systems Engineering (INCOSE), allowing the
company to leverage the INCOSE Systems Engineering Professional
(SEP) program and certify appropriately experienced Jacobs systems
engineers in collaboration with INCOSE for value-added performance,
thereby boosting client’s confidence.
Jacobs Engineering Group Inc.
provides 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 hold a Neutral
recommendation on the stock. Jacobs has a Zacks #3 Rank, implying a
short-term (1-3 months) Hold rating.
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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