Jacobs Engineering Group Inc. JEC has been selected for AusNet Services' Regulated Energy Services panel for engineering and design work associated with regulated transmission and distribution assets. This three-year contract incorporates both greenfield and brownfield asset upgrades, infrastructure replacements, and the delivery of new energy infrastructure in an evolving and innovative sector. The contract also involves two single-year extensions.
Meanwhile, a second panel agreement has also been signed by Jacobs to facilitate engineering and design services for AusNet Services' Commercial Energy Services (“CES”) unregulated business. This includes renewable energy connections.
Being one of the trusted partners of AusNet Services in delivering new unregulated infrastructure projects, Jacobs had contributed significantly for the development of high voltage infrastructure for AusNet Services in Victoria over the past decade. The company had provided concept design support for the development of 'build, own, operate' proposals for network connections to renewable energy developers and clients.
Elevated construction spending in the United States, impressive labor market scenario, modest inflation and Trump’s impetus to boost infrastructure spending have been triggering demand for Jacob’s state-of-the-art construction and engineering services since the past few quarters.
Share Price Performance
Shares of Jacobs, a Zacks Rank #1 (Strong Buy) stock, have outperformed the industry so far this year. Earnings estimates for fiscal 2018 and 2019 have been revised upward by 6.2% and 5.2%, respectively, over the past two months. The company’s earnings per share are expected to grow 31.5% for fiscal 2018 and 18% for fiscal 2019. Notably, Jacobs currently flaunts a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jacobs has an impressive contract-winning history. In the past few months, the company secured several contracts from renowned institutions and public-sector agencies like ENCINA Chemicals, LLC, Sasol Group Technology, Shell Oil Company, Chevron Products Company, the U.S. Army, Equate Petrochemical Company, Exxon Mobil Corporation XOM, TransCanada Corporation TRP, Sellafield Ltd, Saudi Aramco, Suncor Energy, Sipchem Lubrizol, Kraton Corporation KRA and Codelco.
Such profitable deals will continue to boost its competency going forward and are expected to escalate revenues in the upcoming quarters.
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