Foster Wheeler AG
) recently stated that one of the subsidiaries of its Global Power
Group has received a contract from SCS Proyectos, S.A.P.I. de C.V.
The contract involves the design and supply of two heat recovery
steam generators that are needed to be installed in a cogeneration
power plant for the TEREFTALATOS MEXICANOS S.A. DE C.V. TOP 1002
Cogeneration Project in Cosoleacaque, Veracruz, Mexico. This plant
is owned by Cogeneración de Energía Limpia de Cosoleacaque, S.A. de
Although the financial terms of the contract were not disclosed,
Foster Wheeler has received the necessary approvals to execute on
this contract. The contract value was, however, included in the
company's second-quarter 2012 order bookings. The company intends
to deliver the two steam generators by mid 2013.
As per the terms of this contract, Foster Wheeler will design,
supply and provide advisory services for the production and
start-up of the two heat recovery steam generators, which will be
attached to two LM 6000PF combustion turbines.
In the recently reported quarter, Global Power operating revenue
(FW Scope) stood at $275.0 million, down 4.8% from $289.0 million
in the year-ago quarter. Penalty component of an adverse court
decision, foreign exchange loss of $3.2 million and quarterly delay
in profit recognition from a recently signed agreement led to a
loss in the reported quarter. However,it witnessed an improvement
in demand for its services globally, resulting in an increase of
Scope backlog during the quarter.
Jacobs Engineering Group Inc
) is a major competitor of Foster Wheeler with a series of contract
wins over the past quarter. Foster Wheeler currently has a
short-term Zacks #3 Rank, which implies 'Hold' rating on the
FOSTER WHELR AG (FWLT): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
To read this article on Zacks.com click here.