Contract wins continue for U.S. firm
Engineering Group Inc
) with the latest one being a consulting engineering services and
project management contract from Qatar Railways Company. The
contract, worth $406.4 million, was inked between the two parties
for a planned $36 billion metro project in Doha, the capital of
The project is a part of the small Gulf nation's preparations to
host the soccer World Cup in 2022. The project will include four
rail lines and will link stadiums for the 2022 tournament, with an
The U.S engineering giant has also been awarded a string of
strategic contracts in the recent past. The first one is a
framework agreement with the UK Government Procurement Service to
provide environmental and sustainability advice, support and
delivery services across the public sector.
This apart, the company was awarded two strategic contracts by
Foskor (Pty) Limited to design and fabricate two final acid towers
and one acid cooler for Foskor's sulfuric acid plants at its Acid
Division in Richards Bay, South Africa.
Jacobs also won a contract from CODELCO, the National Copper
Corporation of Chile, to provide engineering services for an
anticipated 200,000 metric tons per day copper mine. The projects
entail development of Phase II of the Radomiro Tomic (RT) sulfides
mine and the new and independent concentrator facility.
Jacobs continues to receive various strategic contracts both
from federal governments as well as other clients. The increasing
growth opportunity in oil, gas and mining industry is also likely
to boost the company's process, scientific and systems consulting
services. We believe that the company's mounting global coverage
and diversification will enhance investor confidence further.
The company provides stiff competition to other industry players
Foster Wheeler AG
). 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.
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