Fluor Wins Contracts – Analyst Blog

Denver Transit Partners (“DTP”), a team led by Fluor Corporation (FLR) and Macquarie Capital Group Limited, has been selected by the Regional Transportation District (“RTD”) in Denver, Colorado for its Eagle Commuter Rail Project. The team will develop, build, operate, maintain and finance the Eagle Project in the metropolitan regions of Denver.

 

Fluor expects to secure all finances for the project by the end of 2010, after which it will be recorded in the company’s backlog. The RTD has undertaken a 12-year multi-billion dollar program, the FasTracks Plan, to expand and modernize its railway network throughout the eight-country area. Eagle Project is part of the FasTracks Plan.

 

As per the deal, Fluor would be responsible for 50% of the engineering, procurement and construction contract, 33% of the operations and maintenance contract and 10% of the equity in a financing arrangement related to the project.

 

Recently, through its joint venture with AMEC Americas Limited, Fluor also won a mining contract in Canada. Through this 50:50 joint venture, the companies would provide engineering, procurement and construction management services to Terrane Metals Corp.’s $915 million Mt. Milligan copper-gold project.

 

The initial share from this project will be realized by Fluor in the second quarter of 2010, with the full amount expected to be received in the first half of 2011. 

 

The company is delivering solid results driven by its diversified business model and new awards strategy. With a proven management team and a strong balance sheet, Fluor is poised to outperform in the current market environment. A major competitor of Fluor is Jacobs Engineering Group Inc. (JEC).

 

Headquartered in Irving, Texas, Fluor Corporation is a Fortune 200 company offering expertise in the fields of engineering, procurement, construction, commissioning, operations, maintenance and project management.

 

We currently maintain our Neutral rating on Fluor Corporation.