Another Contract for Jacobs - Analyst Blog
January 23 2013 - 8:00AM
Zacks
Jacobs Engineering Group
Inc. (JEC), a technical professional services company,
received a program management contract from Southern California Gas
Co. (SoCalGas), a subsidiary of Sempra Energy
(SRE). SoCalGas is engaged in the delivery of natural gas to
approximately 20.9 million consumers, in and around central and
Southern California.
The contract involves managing the
Pipeline Safety Enhancement Program of the company, which was
initiated as per state regulations of pressure testing of all the
gas pipelines. The contract, with its value still undisclosed, has
a duration of five years. It also bears five extension options of
one year each.
The contract will be executed in
phases of which until now only the phase 1A has been implemented.
This phase consists of various operations such as pressure testing
pipelines, replacing some of the existing pipelines along with
upgrading or replacing mainline valves as deemed necessary. The
approval to execute the program is still awaited from the
California Public Utilities Commission (CPUC).
This contract, being the first one
with SoCalGas, the world’s largest natural gas distribution
utility, is expected to usher in new opportunities for operational
expansion for Jacobs in the same field. With this deal, the total
contract count moves up to five in the year 2013. The company will
announce its first quarter 2013 results today after the market
closes. The Zacks Consensus Estimate for the quarter is 76 cents,
with an expected year-over-year increase of 8.38%.
Jacobs is one of the world's
largest and most diverse providers of technical, professional and
construction services. The stock currently holds a Zacks Rank #3
(Hold). Its peers Willdan Group (WLDN) and
National Technical Systems Inc. (NTSC) hold a
Zacks Rank #2 (Buy).
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
(NTSC): ETF Research Reports
SEMPRA ENERGY (SRE): Free Stock Analysis Report
(WLDN): ETF Research Reports
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