Jacobs to Boost Malaysian Energy Sector on Jimah East Deal
Renowned technical services company Jacobs Engineering Group Inc. JEC recently secured two contracts from Hyundai Engineering Co., Ltd. (‘‘HEC’’) for undisclosed amounts. Related to the Jimah East Power project of Malaysia; the two contracts call for Jacobs’ premium engineering services.
As per the HEC deal, Jacobs will offer engineering services for constructing balanced plant facilities, cooling water intake and a discharge system for a coal-fired power generation project in Port Dickson. With a capacity of 2,000 Mega Watt (‘MW’), the power generation project is ultra-super critical and located roughly 60 kilometers south from Kuala Lumpur, Malaysia.
The project involves construction of two units for a 1,000-MW power plant, which would help lower emission of greenhouse gases with the aid of a critical pressure generation system. The entire project is expected to be accomplished within 2018–2019, through two distinct stages.
Jacobs is one of the leading providers of technical services and construction solutions for diversified public, industrial and commercial clients in the global forum. The company remains keen on improving its business through suitable organic growth plans. Jacobs’ non-imitable services for the Jimah East Power project would serve to boost Malaysia’s aggregate energy generation capacity, thereby reinforcing the country’s economic growth and national grid. On the other hand, for Jacobs, we believe the latest contract would support its growth trajectory and help augment revenues as well as brand status in the near future.
Stocks to Consider
Jacobs currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include KBR, Inc. KBR, Layne Christensen Company LAYN and ABM Industries Incorporated ABM. All three stocks carry a Zacks Rank #2 (Buy).
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