The Global Engineering and Construction Group of
Foster Wheeler AG
) received a contract from
Petróleo Brasileiro S.A. (Petrobras)
) for the construction of a world-scale grassroots gas-to-chemicals
complex in Linhares, Espirito Santo State, southeast Brazil. It
will be called Complexo Gás-Químico UFN-IV. However, the value of
the contract was not disclosed.
This complex is expected to aid in reducing Brazil's imports of
ammonia and urea fertilizers, methanol, acetic acid, plus formic
acid and melamine produce. This state-of-the-art complex is
expected to have a production capacity in excess of one million
tonnes per annum (TPA) of these products.
As per the terms of the contract, Foster Wheeler will be
providing basic engineering design (BED) and front-end engineering
design (FEED). In addition, the company will also be providing
technical assistance and training throughout the engineering,
procurement, construction (EPC) phase.
The design part of this contract will be included in the
company's third-quarter 2012 order bookings. The BED/FEED phase is
expected to be completed by the end of 2013. The provision of
technical assistance and training will be included later, once the
FEED is complete and Petrobras advises that it is going ahead with
the EPC (implementation) phase of the project.
In the recently reported quarter, Foster Wheeler's Global
Engineering and Construction Group's operating revenue (FW scope)
was $417 million, up 14.3% compared with $365.0 million in the
prior-year period. Therefore, the company has a good and a rich
experience in executing large, complex integrated chemicals
projects, hence proving that it has the ability to support
Petrobras through to start-up of this world-scale facility.
Jacobs Engineering Group Inc. (
is a major competitor of Foster Wheeler with a series of contract
wins over the past quarter. Foster Wheeler currently has a short
term Zacks Rank of # 5 which implies a strong 'Sell'.
FOSTER WHELR AG (FWLT): Free Stock Analysis
JACOBS ENGIN GR (JEC): Free Stock Analysis
PETROBRAS-ADR C (PBR): Free Stock Analysis
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