Fluor Receives Williams Contract - Analyst Blog
February 04 2013 - 1:59PM
Zacks
Fluor Corporation (FLR) announced that it has
received a contract from Williams Companies Inc.
(WMB) to provide groundwork engineering services for a propane
dehydrogenation project set to come up in Alberta, Canada.
With the help of this new propane dehydrogenation, Williams
intends to utilize the propane recovered from its extraction
facility at Alberta and convert it into polymer grade propylene,
which is used to make plastics.
Fluor has logged this contract in the fourth quarter order book
in the Power segment (contributing 3.2% of consolidated revenues).
This segment primarily provides a full range of services to the gas
fueled, solid fueled, renewables, nuclear and plant betterment
marketplaces.
In the gas fueled market, it offers a full range of services for
simple and combined cycle reference designs as well as complete
solutions for Integrated Gasification Combined Cycle (IGCC)
technologies.
Williams is a leading diversified company focused on natural gas
transportation; gathering, treating, and processing; storage;
natural gas liquid (NGL) fractionation; and oil transportation.
Given Fluor’s expertise, logistics and procurement capabilities
as well as project management experience, the company is all set to
provide its skill to the first propane dehydrogenation facility in
Canada. The financial terms of the contract were not disclosed.
In the first half of 2012, Fluor received a number of contracts
including the TCO contract in Kazakhstan, a contract from Reliance
Industries in India and Pemex in Mexico. In addition, the company
also had incremental scope on oil sands and offshore projects in
Canada.
In the last reported quarter (3Q12), new awards remained strong
at $6.3 billion. In 2011, new awards were $26.9 billion. The
company is benefiting from substantial increase in sizable orders
within the Oil & Gas segment.
Consolidated backlog rose to a new high of $40.8 billion in
2011, an increase of 13% from the end of 2010. The company’s
international marketremained robust, with 84% of awards derived
from outside the US with focus on Australia, the Middle East, Latin
America and Canada.
Fluor currently has a Zacks Rank #3 (Hold) while some of its
competitors such as Jacobs Engineering Group
(JEC), Tyco International Ltd. (TYC),
Clean Energy Fuels Corp. (CLNE) carry a Zacks Rank
#2 (Buy).
CLEAN EGY FUELS (CLNE): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
TYCO INTL LTD (TYC): Free Stock Analysis Report
WILLIAMS COS (WMB): Free Stock Analysis Report
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