JEC Jacobs Engineering Group Inc

Foster Wheeler AG (FWLT) through a subsidiary of its Global Engineering and Construction Group received a contract from TOTAL Raffinage-Chimie, involving engineering, procurement and construction management (EPCm) services. The contract is for the restoration of a hydrodesulfurization unit at TOTAL’s refinery in Antwerp, Belgium. The contract value is undisclosed.

Notice to start its work on the contract has been received by Foster Wheeler. Foster Wheeler has obtained the green signal to start its work as per the contract. The value of engineering and procurement services would form part of the company’s first quarter 2012 bookings while construction management services are likely to be included in Foster Wheeler’s third quarter 2012 bookings if the agreement for these services is reached by the companies.

As per the European Union, jet fuel produced should contain sulfur below 30 parts per million (ppm) and in diesel the content should be below 10 ppm. The renovation of the refinery will enable TOTAL to meet this standard.

By the end of July 2013, restoration work of the refinery is expected to be completed, with the front-end engineering design already having been completed by Foster Wheeler.

Recently, Foster Wheeler entered into yet another agreement; Srategic Umbrella Agreement with The Dow Chemical Company (DOW) to deliver its project management, consulting, engineering, procurement, construction management, and construction services. The contract is for a period of three years during which Foster Wheeler will support certain global capital projects of Dow.

Based in Zug Switzerland, Foster Wheeler AG has its operational headquarters in Clinton NJ USA. The majority of Foster’s revenues and new businesses come 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, the stock retains a Neutral rating on Foster Wheeler, with a Zacks #3 Rank (short-term Hold recommendation).

 
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