JEC Jacobs Engineering Group Inc

Yesterday, Jacobs Engineering Group Inc. (JEC) announced winning of two strategic contracts, one from BP Raffinaderij Rotterdam B.V. and another from Saudi Basic Industries Corporation (SABIC).

For the Rotterdam refinery facility in Netherlands, Jacobs will be providing engineering and procurement services, as well as engineering assistance during the phases of construction, commissioning and startup for a major shutdown of the fluid catalytic cracker unit (FCCU). For the start up work, Jacobs will replace end-of-life power recovery train, regenerator ballistic separator and cyclones. Jacobs' BP Program task force in Leiden, Netherlands and Mumbai, India will be responsible for executing the FCCU project.

On the other hand, Jacobs will be providing engineering, procurement, and construction management (EPCM) services at SABIC's petrochemical production complex in Geleen, Netherlands, as per the contract from SABIC. The company will be supporting the upgradation of an Olefins 4 plant, which involves numerous modifications to the existing Olefins 4 naphtha cracker, targeted to increase energy efficiency and ethylene production capacity. The project is scheduled to be completed in 2013.

Jacobs’ Group Vice President, Robert Matha was extremely delighted with the two contracts. He looks forward to a successful collaboration with BP at the Rotterdam Refinery and is enthusiastic about extending relationship with SABIC's supporting its business goals at the Geleen site. However, the values of both the contracts have not yet been disclosed.

Jacobs’ growing international exposure through contract wins as well as diversification across markets, geographies and services has been providing it with an edge over the industry players, such as Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).

We currently have a long-term ‘Neutral’ recommendation on the stock. Moreover, the company maintains a Zacks #3 Rank, which translates into a short-term (1-3 months) ‘Hold’ rating.

 
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