Dominion Virginia Power, a division of
Dominion Resources Inc.
), has handed
) the full notice to begin construction on its new
1,358-megawatt, natural gas-fueled power station in Brunswick
County, VA. The contract is valued at approximately $800 million,
which Fluor has booked in its backlog for the third quarter of
2013 in the Power segment.
Dominion Virginia Power had received the go ahead from the
Virginia State Corporation Commission on Aug 2, 2013 for the
construction. Once operational by 2016, this natural gas-fired
power station is believed to meet the growing customer demand and
replace electricity from older coal-fired generating units to
renewable natural gas. Prior to this, Dominion Virginia Power had
successfully converted Altavista Power Station from coal to
renewable biomass as its fuel source. The idea behind the
conversion is to reduce the green house gas emissions in the
process of electricity generation.
The Dominion Virginia Power division primarily deals with
regulated electric transmission and distribution operations that
serve residential, commercial, industrial, and governmental
customers in Virginia and North Carolina; and non regulated
retail energy marketing operations.
Fluor had already begun the engineering and procurement
services on the Brunswick Country Power Station in 2012, from its
Charlotte, N.C. office, as Dominion Virginia Power was awaiting
the regulatory approval. In May 2013, Fluor Corporation, in a
consortium with GE Hitachi Nuclear Energy, had received a
contract from Dominion Virginia Power to provide project
development services for its proposed 1,470MW nuclear unit at its
North Anna Power Station in Louisa County, Va. The project still
awaits regulatory approval to proceed.
The contract from Dominion Virginia Power further emphasizes
the expertise and core competence of Fluor's engineering,
procurement and construction services (EPC) for the energy
projects. Specifically, over the past decade, Fluor has provided
EPC services to about 34,000 megawatts of gas-fired power
Fluor's Power Group segment provides a full range of services
to the gas fueled, solid fuels, environmental compliance,
renewables, and nuclear and power services markets. Its services
include engineering, procurement, construction, program
management, start-up and commissioning, operations and
maintenance and technical services. In the latest reported
quarter, revenues grew 105% to $423 million from $206 million in
the year-ago quarter. The significant increase was driven by
progress in gas-fired and solar projects. New contracts in
the quarter totaled $59 million.
Fluor currently carries a Zacks Rank #3 (Hold). Stocks in the
same sector that are worth a look include
Lennox International, Inc.
Meritage Homes Corporation
). While Lennox has a Zacks Rank #1 (Strong Buy), Meritage
carries a Zacks Rank #2 (Buy).
DOMINION RES VA (D): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
LENNOX INTL INC (LII): Free Stock Analysis
MERITAGE HOMES (MTH): Free Stock Analysis
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