Foster Wheeler AG (FWLT) recently announced that subsidiaries of its Global Engineering and Construction Group received a contract from Apache Khalda Corporation LDC. As per the contract, Foster will be providing technical consultancy services to supervise the engineering, procurement and construction (:EPC) phase of the Qasr Compression Project in Egypt. The EPC phase is expected to be completed in the first quarter of 2015.
The financial details of the contract were not disclosed but Foster will include the contract in its first quarter bookings. Prior to this, Foster had initially provided its consultancy services to Apache Khalda when the Qasr Compression Project was in the front-end engineering design phase.
The scope of the contract also includes that Foster will support Apache Khalda in the management and administration of the EPC phase of the project as part of a joint project management team.
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 period.
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.
Recently, the company’s Global E&C Group received a contract from Valero Energy Ltd, to provide support services to Valero’s Pembroke Refinery and other facilities in the UK.
Foster, currently has a Zacks Rank #5 (Strong Sell) and is not a good option as of now. But some of the other players within the same industry that can be considered are AECOM Technology Corporation (ACM), Jacobs Engineering Group Inc. (JEC) and Chicago Bridge & Iron (CBI), which currently have a Zacks Rank #2 (Buy).
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