Fluor (FLR) Selected by Cormorant for its Blue Ammonia Plant
Fluor Corporation FLR secured a front-end engineering and design (FEED) and procurement services contract from the subsidiary of 8 Rivers Capital, LLC, Cormorant Clean Energy, LLC.
Per the contract, Fluor will provide FEED services for a low-carbon blue ammonia production facility, including process units, utilities, offsites, buildings and roads. It will develop deliverables for multiple licensed technology units, using process design packages from the licensors. The contract will be recognized in the third quarter of 2023.
The facility will be the first commercial-scale application of 8 Rivers’ 8RH2 ultra-low-carbon hydrogen production technology. The produced hydrogen will be converted into ammonia for easy storage and transportation. This ammonia will be categorized as ‘blue’ due to the capture of over 99% of carbon dioxide during the process. The stored ammonia can be ‘cracked’ back into hydrogen after reaching the end user.
The company recognizes the significance of breakthrough hydrogen technologies in meeting the global demand for ultra-low-carbon hydrogen and its derivatives, including ammonia, methanol, and sustainable aviation fuels. It remains optimistic in this regard and supports 8 Rivers and Cormorant Clean Energy to achieve its decarbonization goals.
Share Price Performance
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Shares of FLR gained 23.2% in the past six months compared with the Zacks Engineering - R and D Services industry’s 6.3% rise. The company has been benefiting from the solid demand for its engineering and construction solutions. Its total new awards in the second quarter of 2023 came in at $3.71 billion compared with $3.55 billion in the year-ago period. New awards also demonstrate that clients are moving forward with capital spending plans in a challenging business environment.
For 2026, it anticipates adjusted earnings of $3.10-$3.60 per share and adjusted EBITDA in the range of $800-950 million. The long-term prospects of the company remain strong with existing growth opportunities in renewable energy, gas-fired combined cycle generation and air emissions compliance projects for existing coal-fired power plants.
Zacks Rank & Other Key Picks
Fluor currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the Zacks Construction sector are:
Construction Partners, Inc. ROAD sports a Zacks Rank #1. ROAD has a trailing four-quarter earnings surprise of 10.6% on average. Shares of ROAD have gained 42.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ROAD’s 2023 sales and earnings per share (EPS) indicates gain of 19.4% and 112.2%, respectively, from the year-ago period’s levels.
TopBuild Corp. BLD flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 14.1% on average. Shares of BLD have surged 37.7% in the past year.
The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gain of 3.3% and 8.4%, respectively, from the year-ago period’s levels.
EMCOR Group, Inc. EME flaunts a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 69.9% in the past year.
The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.3% and 35.4%, respectively, from the year-ago period’s levels.
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