Foster Wheeler AG (FWLT) recently announced that its subsidiary - Global Engineering and Construction Group received a contract from BOC. BOC is a member of the leading global gases and engineering company - The Linde Group. The company received this engineering, procurement and construction management (EPCm) services contract for installing the replacement heat exchangers at BOC’s Teesport facility in England. The deal is being recorded in Foster Wheeler’s first-quarter 2014 bookings, though its financial terms are undisclosed.
The Teesport facility is crucial for England, especially its northern regions as the industrial facilities there can avail oxygen and other gases from this plant. The air separation plant possesses a capacity of 1,300 tons per day and is scheduled to be installed by the fourth quarter of 2014.
The scope of this agreement requires Foster Wheeler to provide integrated services that include project management, front-end engineering design (:FEED), comprehensive engineering designs as well as procurement and construction supervision service post the designing phase. Apart from these, Foster Wheeler will ensure the quality compliance required to replace the present aluminium plate fin exchangers in the plant.
Foster Wheeler’s Global Engineering and Construction Group operates worldwide and designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure, including power generation and distribution facilities, and gasification facilities. The company is benefiting significantly from the segment’s robust performance and healthy backlog levels.
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), Enersys Inc. (ENS) and AO Smith Corp (AOS). Willdan and Enersys sport a Zacks Rank #1 (Strong Buy) while AO Smith has a Zacks Rank #2 (Buy).