) received a contract from Qatar's Public Works' Authority for
program management and construction supervision services for the
Sharq Crossing. The contract is valued at $185 million and will
be booked in Fluor's second quarter order book under the
Industrial & Infrastructure segment. The contract is
expected to complete by 2020.
Sharq Crossing is one of the important infrastructure
development plans for Qatar before the 2022 FIFA World Cup. This
will be an important link across the Doha Bay to support the
run-up for the World Cup event. The project will primarily
comprise bridge sections which will be interconnected with an
immersed tube tunnel that will create a new passageway underwater
across the Doha Bay. The total cost of the Sharq Crossing program
is $5 billion.
Fluor Corporation has a strong presence and brand name in the
Middle East, especially in Qatar. Prior to this, Fluor received a
FEED (Front-End Engineering and Design) contract jointly from
Qatar Petroleum and
Royal Dutch Shell plc
) for the Al-Karaana Petrochemicals Complex in Ras Laffan
Industrial City, Qatar. Fluor will book the contract into the
backlog for the first quarter of 2013. However, the contract
value is not disclosed.
In the last reported quarter (1Q13) revenues in the
Industrial & Infrastructure segment came in at $3.1
billion versus $3.0 billion a year ago. The marginal improvement
was driven by increased contributions from the infrastructure
business line. New awards for the segment totaled $2.2 billion in
the first quarter, primarily driven by large infrastructure
programs, including the Tappan Zee Bridge in New York and the
Horseshoe road project in Texas. Backlog at the end of the
quarter was $16.0 billion versus $23.3 billion a year ago, mainly
due to reduced mining and metals awards over the past year.
Fluor currently has a Zacks Rank #3 (Hold). However, some
other companies in the same sector that are worth considering at
the moment are
Chicago Bridge & Iron
Quanta Services Inc
Orion Marine Group Inc
), all having Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
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