A subsidiary of Foster Wheeler AG’s (FWLT - Analyst Report) Global Engineering and Construction Group has recently inked a Master Service Agreement with Enterprise Products Operating LLC, a subsidiary of Enterprise Products Partners L.P. Foster will be providing services for multiple projects that will be awarded in a release arrangement. The bookings will be recorded by Foster as and when it receives the orders.
The scope of the contract primarily involves supporting Enterprise Products Operating’s North American capital project program. Enterprise is a leading U.S. midstream company. It primarily processes, transports and/or fractionates natural gas, natural gas liquids, crude oil and refined products.
Prior to this, Foster had received a contract from OJSC Gazpromneft Moscow Refinery, for its Combined Oil Refinery Unit (CORU) Project. Foster Wheeler had also received a contract for the process design package for Moscow refinery’s crude and vacuum distillation units and the gas plant.
Foster Wheeler has more than 60 years of experience in designing steam generator products. Foster’s Global E&C Group’s (Engineering and Construction) operating revenue (FW scope) was $588 million in 1Q13, down 12.4% from $671 million in the prior-year period. The segment reported a 30% decline in new order bookings during the first quarter.
Foster Wheeler currently has a Zacks Rank #2 (Buy). Other companies that are also worth considering at the moment include Willdan Group Inc. (WLDN) and Orion Marine Group Inc. (ORN - Snapshot Report). Both have a Zacks Rank #1 (Strong Buy). In addition, Chicago Bridge & Iron (CBI - Analyst Report) is also a good option at the moment with a Zacks Rank #2 (Buy).