Fluor Corporation FLR has recently announced that it has clinched a front-end engineering design (FEED) contract from Egypt’s state energy firm Enppi.
The company will offer FEED services for the offsites and utilities portion of the main plant complex as well as support services for the Waphco phosphoric acid production plant at Abu Tartour, New Valley. The engineering and construction firm booked undisclosed value of the contract in first-quarter 2018.
In collaboration with Enppi, Flour will fast-track the FEED for the plant that will produce merchant-grade phosphoric acid by using resources from the Abu Tartour mine. Per the contract, the company’s scope of work includes all process facilities including a sulfuric acid plant, utilities with a cogeneration system, storage as well as other required units. Notably, the facility will produce 500,000 metric tons of wet process phosphoric acid per year, once it is finished.
Fluor has a solid track record of receiving awards and its management remains optimistic about this trend to continue in the future as well. This in turn is expected to drive growth for the company. Flour believes that clients’ enthusiasm has improved over the past two quarters as mining clients move forward with development plans.
The company also continues to receive awards for FEED and pre-FEED work for gold, bauxite and copper projects. Moreover, the company’s healthy level of backlog in infrastructure, government, life sciences and advanced manufacturing enables it to offset a multi-year decline in the mining, metals and oil & gas markets.
Additionally, the company remains upbeat about investment projects, particularly on LNG projects in North America including the LNG Canada project for Shell, chemical facilities as well as pipeline projects in the United States. It also anticipates strong prospects for the refining and chemical projects in the Middle East and Asia.
This Zacks Rank #1 (Strong Buy) stock has returned 8% in the past three months, outperforming the industry’s decline of 14.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Further, the company is encouraged by its end markets including mining as leading indicators like industrial production and capacity utilization are improving in several regions and industries, which signal higher capital spending going forward. This apart, being an industry leader in nuclear remediation at government facilities throughout the United States, the company is likely to benefit from rising demand for energy across the globe.
Other Stocks to Consider
Some other top-ranked stocks from the same space are Rayonier Inc. RYN, Jacobs Engineering Group Inc. JEC and Willdan Group, Inc. WLDN, each carrying a Zacks Rank #2 (Buy).
Rayonier surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 109.9%.
Jacobs Engineering Group outpaced estimates in the preceding four quarters with an average beat of 11.4%.
Willdan Group exceeded the Zacks Consensus Estimate in the last four quarters with an average positive surprise of 45.4%.
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