Jacobs Bags New Contract from Shell - Analyst Blog
March 06 2013 - 8:20AM
Zacks
Jacobs Engineering Group
Inc. (JEC), a construction services provider, received a
contract from Shell Company of Australia Ltd., a subsidiary of
Royal Dutch Shell Plc. (RDS.A), for Shell’s Clyde
Terminal Project, based in Sydney, Australia. The contract value
was not disclosed.
According to the agreement, work
for the contract will be carried on by Jacobs’ operations at its
units in Sydney and Melbourne. The contract involves the conversion
of the Clyde Refinery and associated satellite Gore Bay Terminal
into competitive product import terminals. Jacobs is expected to
provide a Basic Design and Engineering Package (BDEP) for the
same.
Subsequent to shareholders’
approval in July 2011, it was decided in June 2012 that the Clyde
refinery will cease its operations from September 2012, and will be
eventually converted into a terminal. The refinery covers around
40% of Sydney’s petroleum requirements along with 50% of New South
Wales’ needs.
The Clyde Terminal is currently
used to provide services to the Sydney airport while helping Shell
to distribute its fuels to the New South Wales market. Subsequent
to regulatory approvals, Jacobs will also be needed to provide
Engineering, Procurement and Construction Management (EPCm)
services to the project.
Prior to this contract, Jacobs was
involved in bringing about clean fuel upgrades for another project
for Shell Australia, at the Shell Geelong and Clyde refineries.
Jacobs’ association with Shell is not confined to Australia alone.
In August last year, the company received a contract from Shell
Global Solutions International B.V., Shell’s European subsidiary,
to provide engineering and project management services to its
European downstream assets, over a term of five years.
Jacobs currently holds a Zacks Rank
#3 (Hold). Other stocks worth a look in the services industry are
AECOM Technology Corporation (ACM) and
Tyco International (TYC); both holding a Zacks
Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report
TYCO INTL LTD (TYC): Free Stock Analysis Report
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