Jacobs Engineering Group Inc. (JEC) recently won a multi-year contract from ConocoPhillips (COP) for supporting the capital program of its Australia Pacific LNG facility. The deal can be extended for four more years. Although the value of the contract was not disclosed, it is expected to aid Jacobs’ organic growth in the long run.
As per the agreement, Jacobs will extend its non-imitable engineering services to the Queensland, Australia-based LNG facility and hence sustain efficient execution of ConocoPhillips’s supporting capital program. The Australia Pacific LNG facility comprises two LNG trains that are equipped to produce 4.5 Mtpa of LNG each.
For all the mid-cap and sustaining capital projects of the Australia Pacific LNG facility, Jacobs would provide designing services related to commission, construction and procurement over four year period. Further, under the contract, the company will offer its specialized Front-End Engineering Design (“FEED”) services to these facility projects.
Jacobs is one of the most popular technical services providers in the global forum. It offers professional, technical and construction services to diversified public, industrial and commercial clients. The new contract is expected to augment the tangible and intangible resource base of Jacobs globally. However, such positive outcomes can be offset by uncertain currency or exchange rate volatilities in the future.
With a market capitalization of $5.32 billion, Jacobs currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include VSE Corp. (VSEC) and Willdan Group, Inc. (WLDN). Both stocks sport a Zacks Rank #1 (Strong Buy).
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