Fluor Corporation (FLR) announced that its offshore solutions unit was awarded a front-end engineering and design (FEED) contract by Woodside for the Browse liquefied natural gas development programme.
The gas fields are located in the Browse Basin, about 425 kilometres north of Broome off the western coast of Australia.
Fluor will staff the program with more than 150 offshore experts from its Perth, Houston and Manila offices. The contract is expected to be completed in late 2011.
The company announced that ExxonMobil Iraq Limited has awarded the firm an early works contract for the West Qurna field near Basra, Iraq. The EPC contract is reimbursable and is a continuing services agreement for oil field related infrastructure development with an expected duration of three years.
Fluor stands out as one of the few engineering and construction companies having the technological expertise, logistics, procurement capabilities and project management experience needed for a large variety of projects, including large complex projects for a diverse group of industrial and government clients virtually anywhere in the world.
Given its strong financial position, Fluor will have ample financial resources to pursue a niche acquisition program aimed at strengthening its considerable service breadth. The company is delivering solid results driven by its diversified business model and targeted new awards strategy.
Flour is one of the best-in-class E&C companies with a favorable contract mix, diverse service offerings, and strong relationships around the world; allowing it to sustain operating margin going forward relative to its peers without diminishing the growth potential. These firms believe project wins in the next few quarters will be fraught with intense competition, raising concerns over potential margins on any new awards.
The current worldwide financial crisis will likely affect a portion of its client base, as well as subcontractors and suppliers, and could materially affect its backlog and profits. Backlog is subject to unexpected adjustments and cancellations and, therefore, may not be a reliable indicator of future earnings.
The Industrial & Infrastructure segment provides design, engineering, procurement and construction services, for new construction and refurbishment, to the transportation, wind power, mining and metals, life sciences, telecommunications, manufacturing, commercial and institutional development, microelectronics and healthcare sectors. These projects often require state-of-the-art application of its clients’ processes and intellectual knowledge.
Acting through its subsidiaries, Fluor Corporation is one of the largest professional services firms, providing engineering, procurement, construction and maintenance as well as project management services on a global basis.
It serves a diverse set of industries worldwide including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the U.S. federal government. Jacob’s Engineering Group (JEC) is a major competitor.
We currently have a Neutral recommendation on Fluor Corporation.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
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