Fluor Gets Contract Extension From Netherlands' Delamine
Stork — a unit of Fluor Corporation’s FLR Diversified Services business — has received a maintenance contract from Delamine B.V in the Netherlands. This five-year maintenance contract will commence from Jul 1, 2020 and Fluor will book the undisclosed contract value in second-quarter 2020.
Since 2006, Stork has been supporting Delamine’s production facilities. Per the latest contract renewal, Stork will provide maintenance and capital expenditure services. This also includes multidisciplinary piping and mechanical, electrical and instrumentation, along with other specialty services.
According to Carla Rodenburg, Stork’s vice president, Europe, "This contract demonstrates the excellent work performed and importance of strong relationships with clients in the Eemsmond region of the Netherlands,". "It strengthens our continuity and offers a foundation to pursue many inspiring new energy and other innovative industrial initiatives in the northern region of the Netherlands.”
New Awards to Revive Fluor’s Diversified Services
Fluor’s Diversified Services segment, which accounts for more than 13% of total revenues, is set to benefit from contract wins. In January, Stork received a four-year framework contract from Neptune Energy for the latter’s brownfield and decommissioning project. Notably, Fluor booked its portion of the undisclosed contract value in first-quarter 2020.
Again, on Dec 11, 2019, Stork received a contract from HES Hartel Tank Terminal — a project of HES International — to support the new tank terminal’s construction. Notably, Fluor’s fourth-quarter 2019 backlog will reflect the contract value.
The company has been posting dismal results over the last few quarters due to unimpressive segmental performance. Nonetheless, it believes that the diversified service business will improve in the upcoming quarters as clients have already started increasing maintenance spending. The company initiated certain restructuring activities to optimize costs and improve operational efficiency in the Stork business during the first quarter.
Shares of Fluor have gained 114.2% in the past three months, outperforming the industry's 30.7% growth. We believe new contract wins and the above-mentioned initiatives will help revive the company’s performance. Over the last few quarters, major contract wins have allowed Fluor to expand long-term recurring revenue opportunities.
Zacks Rank
Fluor — which shares space with Gates Industrial Corporation plc GTES, Quanta Services, Inc. PWR and AECOM ACM in the same industry — currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quanta Services, Inc. (PWR) : Free Stock Analysis Report
AECOM (ACM) : Free Stock Analysis Report
Fluor Corporation (FLR) : Free Stock Analysis Report
Gates Industrial Corporation PLC (GTES) : Free Stock Analysis Report
To read this article on Zacks.com click here.
