One of the world’s largest engineering and construction services firm, Jacobs Engineering Group Inc. (JEC) recently announced winning of new strategic contracts from seven clients in the Alberta Oil Sands to support steam assisted gravity drainage (SAGD) and bitumen upgrading expansion projects. The company has also been awarded an extension contract for current marine environmental services from Horizon Nuclear Power Limited, targeted to support the company's new build nuclear power station development at Wylfa, Anglesey in the United Kingdom.
The combined total construction value of Alberta Oil Sands projects is estimated to soar above $1.4 billion, the values of each ranging from $15 million to more than $650 million. However, the contract value of Horizon Nuclear Power Limited Officials has not yet been disclosed.
Jacobs already has a prominent, long-term presence in the Alberta Oil Sands. The scope of new contracts in the region, includes a variety of mid- and large-cap projects, call for engineering procurement and construction (EPC), front end engineering and design (FEED), fabrication and construction management (CM) services. Leveraging on the pipeline of a series of new contracts, Jacobs hopes to maintain its industry-leadership in heavy oil recovery in the region and upgrade expertise at its offices in Calgary and Edmonton in Alberta, Canada.
On the other hand, Jacobs has been rendering ongoing support to UK energy company, Horizon Nuclear Power in the preparation of key elements of the environmental consents submissions for the development of major nuclear power station over time. The recent service extension contract from Horizon Nuclear Power currently includes delivering a baseline marine ecology survey program covering fisheries, benthos, marine birds, plankton and water quality; environmental impact assessments; option appraisals; and Habitat Regulations Assessments (HRA) for the new nuclear power station and its associated infrastructure.
Apart from the above contract wins, mention may be made of Jacobs’ recent agreement with the International Council on Systems Engineering (INCOSE), allowing the company to leverage the INCOSE Systems Engineering Professional (SEP) program and certify appropriately experienced Jacobs systems engineers in collaboration with INCOSE for value-added performance, thereby boosting client’s confidence.
Jacobs Engineering Group Inc. provides services to a variety of industrial, commercial and government clients across a global network. The company directly competes with its peers, such as Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).
We currently hold a Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, implying a short-term (1-3 months) Hold rating.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment