Jacobs Engineering Group Inc. (JEC) has won a contract from Saudi Aramco, the state-owned oil company of Saudi Arabia , to develop a basic engineering package for four sulfur recovery units, each with an expected production capacity of 1,200 tons per day.
This new, four-train sulfur plant will be part of the Wasit Gas Development Program in the Kingdom. Jacobs has designed over 350 sulfur recovery units since 1985, and it will license its proprietary EUROCLAUS and sulfur degassing technology for the project.
The project will be executed from Jacobs’s office in Calgary, Alberta, Canada. Saudi Aramco’s Wasit Gas Development Program will provide for the production and processing of up to 2.5 billion standard cubic feet per day of gas from the Aribiyah and Hasbah offshore non-associated sour gas fields.
This investment involves building gas processing plants, two offshore gas platforms, one tie-in platform, subsea power and communication links and pipelines.
With annual revenues exceeding $11 billion, Jacobs is one of the world’s largest and most diverse providers of technical, professional and construction services. Its major competitors are Foster Wheeler AG (FWLT) and Fluor Corp. (FLR).
The project meets Jacob’s corporate objective to continue expanding in Middle East. Jacobs is also planning to expand and consolidate in India and China, respectively. Jacobs’ diversification in terms of markets, geography and services will continue to facilitate future growth. Recently, Jacobs reported in-line results for the first quarter of fiscal 2010.
Net earnings were $72.4 million, or 58 cents per share compared to $116.4 million, or 94 cents during the same period in fiscal 2009. The EPS matched the Zacks Consensus Estimate. The fall in earnings was attributable to project cancellations in its construction services division.
Revenues of $2,477.8 million for the quarter were well below revenues of $3,232.7 million in the first quarter of fiscal 2009. The fall in revenues stemmed from difficult economic conditions. Looking ahead, management has reiterated its full-year 2010 guidance and expects earnings per share in the range of $2.00 to $2.60.
Jacobs’ cost-control initiatives help to deliver superior technical, professional and construction services safely, efficiently and within the cost and time parameters of clients. Moreover, Jacobs’ ongoing acquisition strategy will help to strengthen its position in future.
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