A subsidiary of
Foster Wheeler AG
Global Engineering and Construction Group (Global E&C)
received a contract from Abu Dhabi Polymers Company Ltd.
(Borouge) to provide engineering and consultancy services in the
United Arab Emirates. The financial details were undisclosed and
Foster intends to record the booking as and when the work is
released by Borouge.
The contract win comes close on the heels of a contract win
for the subsidiary from Wood Mackenzie to provide consultancy
services for two projects in Peru. The contract was announced on
Sep 25 and the two projects that require consultancy services
include the Energy Security and South Pipeline Project in
Coming back to the contract from Borouge, Foster is required
to conduct studies and provide the front end engineering design,
engineering, project management and support services for capital
projects and plant modifications for the projects assigned by
Borouge, as per their client specifications. This will require
Foster to provide long-term sustainable relationship with
Borouge's customers as it will be providing comprehensive
services for their projects.
Therefore, by establishing long term sustainable relations,
Foster expects to achieve its key strategic objective of having a
strong presence in the Middle Eastern region. Hence, this
contract marks an important milestone for Foster Wheeler, as
Middle East is one of the primary growth regions for Foster's
business. During fiscal 2012, Middle East contributed 7.3% of the
total geographic revenue and 9.7% of the total revenue generated
by the Global Engineering and Construction division. Further,
about 26.8% of the total new orders booked by Foster in fiscal
2012 were from the Middle East region.
Foster Wheeler's Global E&C Group provides technical and
economic analyses and study reports to owners, investors,
developers, operators and governments. These services include
concept and feasibility studies, market studies, asset
assessments, environmental assessments, energy and emissions
management, product demand and supply modeling and technology
evaluations. In the recent past, the Global E&C Group has
also received a contract from
) to conduct a feasibility study to upgrade the latter's
Mongstad Refinery in Norway.
Foster currently has a Zacks Rank #2 (Buy). Other stocks in
the industry worth buying at the moment are
Pernix Group Inc.
). Both have a Zacks Rank #2 (Buy).
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