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Jacobs Wins over $900M Contracts

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Construction and engineering company Jacobs Engineering Group Inc. (JEC) has recently secured two contracts. The company won a contract from BP Exploration Operating Company Ltd., the holding entity for several of the exploration and production subsidiaries of energy giant BP plc (BP). The contract is related to BP Exploration’s intervention project at the Sullom Voe Terminal, Scotland. The four-year project has an estimated installed value of $200.0 million.

The intervention project aims to develop the reliability of the terminal in view of the increased production demand in the West of Shetland area. Europe-based Sullom Voe terminal handles oil and gas from roughly 30 surrounding fields. Per the contract, Jacobs will provide tankage and process unit turnarounds, project management, engineering and construction for extensive fabric maintenance works.

Jacob intends to use its terminal management experience in local as well as global arena to execute the contract. 

On the same day, Jacobs won another contract from NASA’s Langley Research Center in Hampton, Virginia. The Center Maintenance, Operations, and Engineering contract comprises sustaining services as well as an Indefinite Delivery/Indefinite Quantity (:IDIQ) component. The $742.0 million contract spans a maximum of 10 years.

Under the contract, Jacobs will facilitate central utilities operations, research and institutional maintenance, research facility operations, technology development/administration and facility engineering.

Continuous contract wins by Jacobs raises our faith about a relatively stable future with a steady revenue stream. Jacobs currently carries a Zacks Rank #2 (Buy). Other stocks worth a watch in the industry include Foster Wheeler AG (FWLT) and Quanta Services, Inc. (PWR). Both the companies carry a Zacks Rank #2.

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