Foster Wheeler AG ( FWLT ) recently
announced that one of the subsidiaries of its Global Power Group
received a contract from GS Engineering & Construction
Corporation. Foster Wheeler will be responsible for the design and
supply of one circulating fluidized-bed (CFB) steam generator for
the Dangjin 4 Biomass Power Plant Project for GS EPS, a subsidiary
of GS Group.
The financial terms of the contract were not disclosed. The
contract will be booked in the company's first quarter 2013.
Foster Wheeler has full authorization to commence work at the
Biomass Power Plant project, located in Dangjin, in South
Chungcheong Province, South Korea. The operations of the new steam
generator are expected to begin by the third quarter of 2015.
The steam generator, designed and supplied by Foster, will burn
palm kernel shells along with coal, wood pellets (back-up fuel)
while ensuring that its meets all the environmental standards and
regulatory compliance. In South East Asia, Biomass residue
generated from palm oil is the primary source of renewable energy
that is available in abundance.
In Feb 2013, Foster Wheeler received an Australian contract for
the design and supply of three utility package steam generators
located at the Ichthys Project. As per the terms of the contract,
Foster will design and supply the package steam generators as well
as auxiliary equipment.
The design will comply with the environmental regulatory
requirements for burning both low pressure natural gas and liquid
iso-pentane. Total capacity of the three steam generators is
expected to be 278 tons per hour.
Foster Wheeler has more than 60 years of experience in designing
steam generator product range. Foster's Global E&C Group's
(Engineering and Construction) operating revenue (FW scope) was
$424 million, down 6.4% from $453 million in the prior-year
However, the segment reported a 130% surge in new orders during
the quarter. The increase was primarily attributable to booking of
a large PMC (project management consultancy) contract for a clean
fuels project in Kuwait. The segment ended the quarter with a
strong backlog of $2.2 billion.
Foster Wheeler, which currently has a Zacks Rank #5 (Strong
Sell), is not a good option at this moment. But some of the other
players within the same industry that can be considered are
AECOM Technology ( ACM ), Jacobs
Engineering Group ( JEC ) and
Anixter International ( AXE ), which currently
have a Zacks Rank #2 (Buy).AECOM TECH CORP (ACM): Free Stock Analysis
ReportANIXTER INTL (AXE): Free Stock Analysis ReportFOSTER WHELR AG (FWLT): Free Stock Analysis
ReportJACOBS ENGIN GR (JEC): Free Stock Analysis
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