Jacobs Engineering Group Inc.
), a technical professional services company, received a program
management contract from Southern California Gas Co. (SoCalGas),
a subsidiary of
). SoCalGas is engaged in the delivery of natural gas to
approximately 20.9 million consumers, in and around central and
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
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
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
National Technical Systems Inc.
) hold a Zacks Rank #2 (Buy).
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