More Contracts in JEC List - Analyst Blog

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Jacobs Engineering Group Inc. ( JEC ) has recently been awarded a contract from a premier real estate development, management and investment company in the United Arab Emirates, named Aldar. The contract entails JEC to provide project management support services for the construction of a new retail mall at Yas Island in Abu Dhabi.

The development of 2.53 million square feet (235,000 square meters) "Yas Mall Project," is a key landmark for the expansion of the leisure and entertainment destination in Abu Dhabi. Jacobs will be executing the project management support services from its offices in Abu Dhabi. The value of the contract is estimated at $8 million and is expected to be completed in 2014.

Under the terms of the contract, JEC will provide construction management; design and leasing change coordination; project controls; logistics coordination; coordination of site, project health, safety, security and environment (HSSE) and quality; and implementation of all associated systems, processes and procedures on behalf of Aldar.  

On the other hand, Jacobs announced receipt of a framework contract from Gassnova SF for its "CO2 Capture Mongstad ( CCM ) Project" at the Mongstad Refinery site in Norway. Jacobs, the sole provider of engineering and technical assistance services for the framework contract, will be executing the project from its office in Leiden, The Netherlands.

Jacobs will be providing engineering and technical assistance services to support the installation of a large-scale carbon dioxide (CO 2 ) capture plant for a combined heat and power (CHP) plant at the refinery. The work involves individual call-off contracts including feasibility and concept studies, 3D modeling, interface coordination, detailed engineering and construction plans, health, safety and environmental (HSE) management and HSE engineering activities with a site-wide noise control strategy, and cost estimates.

The CCM Project, planned to meet Norway's rigorous standards for health, safety and environmental management, is at an early development stage funded by the Norwegian State and being undertaken by a joint venture between Gassnova SF and Statoil ASA. The contract value has not yet been disclosed.

Jacobs' worldwide ever-increasing presence is thus a splendid indication of its strong growth trajectory in the infrastructure market across the globe. This has also been winning investor confidence over time and is expected to continue with such outlook in future. The company directly competes with its peers, viz. Fluor Corporation ( FLR ) and Foster Wheeler AG ( FWLT ).

We currently hold a Neutral recommendation on the stock. Jacobs has a Zacks #2 Rank, implying a short-term (1-3 months) Buy rating.


 
FLUOR CORP-NEW ( FLR ): Free Stock Analysis Report
 
FOSTER WHELR AG ( FWLT ): Free Stock Analysis Report
 
JACOBS ENGIN GR ( JEC ): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CCM , FLR , FWLT , JEC

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