U.S. Markets closed

Foster Wheeler Arm Wins Power Equipment Deal in Saudi Arabia

Zacks Equity Research

A licensee of Foster Wheeler’s (FWLT) Global Power Group, BHI Co. Ltd received a contract from Samsung C&T for the design and supply of six heat recovery steam generators (HRSGs) for the 2,100 megawatt Rabigh II combined-cycle power plant in Saudi Arabia. Though the financial terms of the deal were not disclosed, the royalty revenue received for the contract featured under the first-quarter bookings of the company. Importantly, BHI has received a notice to proceed with the contract.

BHI is primarily engaged in the engineering, production and sale of heat exchangers and boilers in South Korea and internationally. The company has a broad portfolio of products which include HRSGs, pulverized coal (:PC) boilers, circulating fluidized bed (CFB.TO) boilers and oil and gas boilers. All these boilers are integrated with Foster Wheeler’s technology.

Foster Wheeler is one of the leading global companies that designs order specific HRSGs which are both reliable and cost effective. This latest contract reaches the list of Foster Wheeler/BHI reference units to over 70 HRSGs accounting for a total of 7 gigawatts globally. This also brings the total HRSG unit installations by Foster Wheeler to 425 units with over 28 gigawatts.

Foster Wheeler has also been executing engineering, procurement and construction (:EPC) contracts in Saudi Arabia through its Global Engineering and Construction Group for Saudi Aramco. 

Foster Wheeler currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector worth considering at the moment include Willdan Group Inc. (WLDN) and Enersys Inc. (ENS) and AO Smith Corp (AOS). Willdan and Enersys sport a Zacks Rank #1 (Strong Buy) while A O Smith has a Zacks Rank #2 (Buy).

Read the Full Research Report on FWLT
Read the Full Research Report on AOS
Read the Full Research Report on WLDN
Read the Full Research Report on ENS

Zacks Investment Research