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The Dow Chemical Company (DOW - Analyst Report) announced that it has awarded a contract to Wood Group Mustang, under which, the latter will provide services for the construction of 140 miles of ethane, ethylene, propane and propylene pipelines, associated interconnections and station modifications between Dow Texas operations in Freeport and facilities at Mt. Belvieu Texas.

The contract supports the construction of new world scale ethylene unit falling within Dow’s wide ranging plan to enhance the U.S. Gulf Coast advantage. Wood Group will deliver engineering, field services and construction management for the project. Earlier, Wood Group provided a broad range of services for Dow’s pipeline projects, which include services for the company’s Texas pipeline integrity program. The project began in Feb 2013 and is expected to be complete by 2016.

Wood Group is a leading international energy services company and provides a range of engineering, production support, maintenance management and industrial gas turbine overhaul & repair services to the oil & gas and power generation industries worldwide.

Dow, which currently retains a short-term Zacks Rank #3 (Hold), is benefiting from strong fundamentals in agriculture and food markets. A string of innovative products in its pipeline adds to its strength.

Dow reported its first-quarter 2013 results in Apr 2013. The company posted a profit of $550 million or 46 cents a share, a roughly 33% rise from $412 million or 35 cents a share earned a year ago. Profits soared on the strength of the agriculture science business, which witnessed record sales of seeds and crop protection products.

Excluding one-time items, Dow earned 69 cents a share in the quarter, up from 61 cents a year ago. It comfortably beat the Zacks Consensus Estimate of 60 cents.

Other companies in the chemical industry having favorable Zacks Rank are Shin-Etsu Chemical Co., Ltd. (SHECY), Celanese Corporation (CE - Analyst Report) and Methanex Corporation (MEOH - Analyst Report) . All of them retain a Zacks Rank #1 (Strong Buy).
 

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