Babcock & Wilcox Power Generation Group Inc., an affiliate of energy engineering and construction services provider The Babcock & Wilcox Company (BWC), has won a contract from Tecnimont S.p.A – an engineering and procurement contractor based in Italy. The Babcock & Wilcox added that the contract was already booked in the second quarter of 2014.
Per the deal, The Babcock & Wilcox subsidiary will provide two boilers of 360-megawatt capacity, coal pulverizers, air heaters, fans and structural steel. The coal-fired boilers are likely to be installed on Punta Catalina Power Plant for a customer of Tecnimont S.p.A namely Corporación Dominicana de Empresas Eléctricas Estatales.
The Babcock & Wilcox added that the front-end engineering and management activities for the boilers have already commenced. These are likely to be concluded by Oct 2017.
The Babcock & Wilcox affiliate management revealed that the demand for affordable power is growing by leaps and bounds in the Caribbean, South and Central America. This in turn creates demand for energy engineering and construction services. We believe that the company is well equipped to capitalize on the increased demand.
Headquartered in Charlotte, NC The Babcock & Wilcox is engaged in providing clean energy technology and services for the nuclear, fossil and renewable power markets worldwide. The company was spun off from the energy-focused engineering and construction firm McDermott International (MDR) in 2010 and currently operates in four business units: Power Generation, Nuclear Operations, Technical Services and Nuclear Energy.
The Babcock & Wilcox currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy sector like ConocoPhillips (COP) and TC PipeLines LP (TCP). Both stocks sport a Zacks Rank #1 (Strong Buy).