Consistent with its deal-winning spree,
Jacobs Engineering Group Inc.
(
JEC
) recently announced that it has secured two strategic contracts
from Methanex Corporation, the world's largest methanol supplier to
major international markets, and Shell Global Solutions
International B.V. ("Shell"), respectively.
Per the Methanex contract, Jacobs will provide engineering,
procurement and construction services for the corporation's
methanol production facility in Louisiana. The plant is expected to
be operational by the second half of 2014. This U.S. Gulf Coast
facility, expected to grow in the coming years, is estimated to
hold a construction value of $550 million.
On the other hand, the contract from Shell entails to provide
engineering and project management services (EPMS) to the company's
European downstream assets. The contract carries options of renewal
for an additional five years and can be extended to other Shell
businesses beyond Europe to the Middle East and Africa.
With this contract, Jacobs' expect to strengthen its
long-standing partnership with Shell; thereby providing services
such as feasibility studies, small plant modifications as well as
discrete services for Shell's major refining and chemical sites in
Pernis, The Netherlands, and Rhineland, Germany.
The company's continued diversification and international
exposure through various contract wins are noteworthy. Besides,
continued investments by the company's pharma clients in emerging
PharmaBio markets of Brazil, China and India leave room for Jacobs
to diversify further, both categorically and geographically.
The company provides stiff competition to other industry players
like
Fluor Corporation
(
FLR
) and
Foster Wheeler AG
(
FWLT
). We currently maintain a Neutral recommendation on Jacobs. The
stock also carries a Zacks #3 Rank, which implies a short-term (1-3
months) Hold rating.
FLUOR CORP-NEW (FLR): Free Stock Analysis
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FOSTER WHELR AG (FWLT): Free Stock Analysis
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JACOBS ENGIN GR (JEC): Free Stock Analysis
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