Construction services company, Jacobs Engineering Group Inc. (JEC), recently won an engineering services contract from BP Chembel N.V. Financial terms of the contract have not been disclosed.
As per the terms of the contract, Jacobs will be engaged in upgrading PTA units of BP Chembel’s facility in Geel, Belgium. Also, the company will install new equipments at the facility, thereby, enhancing its operating capacities.
In Dec 2014, Jacobs was selected by BP p.l.c. (BP) for continuing its tenure as the latter’s strategic supplier of mid-cap work. Under this contract, the company is required to provide procurement and construction management services to BP’s refinery, petrochemical and terminal sites.
Such contract wins clearly depict the preference of customers for Jacobs’ world-class technologies and services. While exiting fiscal fourth-quarter 2014 (ended Sep 26, 2014), the company had a project backlog of $18.4 billion, reflecting an increase of 7% from $17.2 billion in the year-ago quarter.
With its strong contract pipeline, Jacobs caters to an array of sectors like oil and gas, petrochemical, mining, IT services and power. The company presently claims a significant share in the huge global infrastructure market, which is predicted to grow further in the quarters ahead.
Jacobs is expected to report first-quarter fiscal 2015 (ended Dec 2014) results on Jan 28, 2015. The Zacks Consensus for the quarter is pegged at 79 cents per share, while that for fiscal 2015 and 2016 stand at $3.61 and $3.97, respectively.
With a market capitalization of $5.4 billion, Jacobs Engineering Group currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include AECOM Technology Corporation (ACM), Pernix Group Inc (PRXG) and Quanta Services, Inc. (PWR). While AECOM Technology sports a Zacks Rank #1 (Strong Buy), both Pernix Group and Quanta Services carry a Zacks Rank #2 (Buy).
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