Jacobs Wins over $900M Contracts - Analyst Blog
October 09 2013 - 2:00PM
Zacks
Construction and engineering
company Jacobs Engineering Group Inc. (JEC) has
recently secured two contracts. The company won a contract from BP
Exploration Operating Company Ltd., the holding entity for several
of the exploration and production subsidiaries of energy giant
BP plc (BP). The contract is related to BP
Exploration’s intervention project at the Sullom Voe Terminal,
Scotland. The four-year project has an estimated installed value of
$200.0 million.
The intervention project aims to
develop the reliability of the terminal in view of the increased
production demand in the West of Shetland area. Europe-based Sullom
Voe terminal handles oil and gas from roughly 30 surrounding
fields. Per the contract, Jacobs will provide tankage and process
unit turnarounds, project management, engineering and construction
for extensive fabric maintenance works.
Jacob intends to use its terminal
management experience in local as well as global arena to execute
the contract.
On the same day, Jacobs won another
contract from NASA’s Langley Research Center in Hampton, Virginia.
The Center Maintenance, Operations, and Engineering contract
comprises sustaining services as well as an Indefinite
Delivery/Indefinite Quantity (IDIQ) component. The $742.0 million
contract spans a maximum of 10 years.
Under the contract, Jacobs will
facilitate central utilities operations, research and institutional
maintenance, research facility operations, technology
development/administration and facility engineering.
Continuous contract wins by Jacobs
raises our faith about a relatively stable future with a steady
revenue stream. Jacobs currently carries a Zacks Rank #2 (Buy).
Other stocks worth a watch in the industry include Foster
Wheeler AG (FWLT) and Quanta Services,
Inc. (PWR). Both the companies carry a Zacks Rank #2.
BP PLC (BP): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis Report
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