Contract wins continue for U.S. firm Jacobs Engineering Group Inc. (JEC) with the latest one being a consulting engineering services and project management contract from Qatar Railways Company. The contract, worth $406.4 million, was inked between the two parties for a planned $36 billion metro project in Doha, the capital of Qatar.
The project is a part of the small Gulf nation’s preparations to host the soccer World Cup in 2022. The project will include four rail lines and will link stadiums for the 2022 tournament, with an underground component.
The U.S engineering giant has also been awarded a string of strategic contracts in the recent past. The first one is a framework agreement with the UK Government Procurement Service to provide environmental and sustainability advice, support and delivery services across the public sector.
This apart, the company was awarded two strategic contracts by Foskor (Pty) Limited to design and fabricate two final acid towers and one acid cooler for Foskor's sulfuric acid plants at its Acid Division in Richards Bay, South Africa.
Jacobs also won a contract from CODELCO, the National Copper Corporation of Chile, to provide engineering services for an anticipated 200,000 metric tons per day copper mine. The projects entail development of Phase II of the Radomiro Tomic (RT) sulfides mine and the new and independent concentrator facility.
Jacobs continues to receive various strategic contracts both from federal governments as well as other clients. The increasing growth opportunity in oil, gas and mining industry is also likely to boost the company’s process, scientific and systems consulting services. We believe that the company’s mounting global coverage and diversification will enhance investor confidence further.
The company provides stiff competition to other industry players like Fluor Corporation (FLR) and Foster Wheeler AG (FWLT). We currently maintain a Neutral recommendation on Jacobs. The stock also carries a Zacks #3 Rank, which implies a short-term (1-3 months) Hold rating.
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