Foster Wheeler AG’s (FWLT) Global Engineering and Construction Group have been pretty busy lately winning deals. The division announced last Tuesday that it has won a pre-feasibility study contract from the Kuwait-based Petrochemical Industries Company for their proposed aromatic plant.
The financial terms of this deal remain undisclosed, though it will be recorded in the third quarter of Foster. The scope of the contract requires Foster to provide its comprehensive experience in chemical industry along with its profound technical expertise. The pre-feasibility study along with a market report is scheduled to complete in the fourth quarter of 2013.
This comes close on the heels of a deal win from Abu Dhabi Polymers Company Ltd. late last month which required Fosters to provide engineering and consultancy services in the United Arab Emirates in the middle east region.
By establishing such long term sustainable relations, Foster expects to achieve its key strategic objective of having a strong presence in the Middle Eastern region. Hence, this contract marks an important milestone for Foster Wheeler, as Middle East is one of the primary growth regions for Foster’s business. During fiscal 2012, Middle East contributed 7.3% of the total geographic revenue and 9.7% of the total revenue generated by the Global Engineering and Construction division. Further, about 26.8% of the total new orders booked by Foster in fiscal 2012 were from the Middle East region.
Fosters E&C division also won a contract from Wood Mackenzie to provide consultancy services for two projects in Peru and another one from LLC KINEF in Russia on in late September.
Foster Wheeler’s Global E&C Group provides technical and economic analyses and study reports to owners, investors, developers, operators and governments. These services include concept and feasibility studies, market studies, asset assessments, environmental assessments, energy and emissions management, product demand and supply modeling and technology evaluations.
Foster currently has a Zacks Rank #2 (Buy). Other stocks in the industry worth buying at the moment are Jacobs Engineering Group Inc. (JEC), Pernix Group Inc (PRXG) and KBR, Inc. (KBR) all three carry a Zacks Rank #2 (Buy).