Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Fluor Corporation (FLR - Analyst Report) has procured a front-end engineering and design (FEED) contract for Sasol’s Lake Charles Chemical Complex situated in Louisiana. This facility, once completed, will be a world-class ethane cracker and associated derivative chemicals facility of this Johannesburg-based integrated energy and chemical company, Sasol Ltd. The project is expected to begin operations by 2017 and is expected to produce 1.5 million of ethylene every year.     

Valued at approximately $120 million, the contract is expected to be completed by the end of 2013. Fluor has booked the contract in its second quarter order book under the Industrial & Infrastructure segment. The Lake Charles Chemical Complex is also the single-largest manufacturing investment ever made in Louisiana State. 

Fluor and Sasol have been working together for over five decades on various projects ranging from coal to liquids and chemical facilities. Fluor Corporation has a strong presence and brand name in executing the FEED contracts in large petrochemical and petroleum companies. In March 2013, Fluor received a FEED (Front-End Engineering and Design) contract jointly from Qatar Petroleum and Royal Dutch Shell plc (RDS.A - Analyst Report) for the Al-Karaana Petrochemicals Complex in Ras Laffan Industrial City, Qatar.

In the last reported quarter (1Q13), Fluor’s revenues for the Industrial & Infrastructure segment came in at $3.1 billion versus $3.0 billion a year ago. The marginal improvement was driven by increased contributions from the infrastructure business line. New awards for the segment totaled $2.2 billion in the first quarter, primarily driven by large infrastructure programs, including the Tappan Zee Bridge in New York and the Horseshoe road project in Texas. Backlog at the end of the quarter was $16.0 billion versus $23.3 billion a year ago, mainly due to reduced mining and metals awards over the past year.

Fluor currently has a Zacks Rank #4 (Sell), which might not be a good option at the moment. However, some other companies in the same sector that are worth considering at the moment are Chicago Bridge & Iron (CBI - Analyst Report), Dycom Industries (DY - Analyst Report) and Emcor Group Inc. (EME - Analyst Report). All three carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
VERTEX ENERG VTNR 8.25 +10.59%
MODINE MANUF MOD 17.12 +8.77%
CLAYTON WILL CWEI 140.03 +7.27%
E*TRADE FINA ETFC 22.67 +5.44%
KNIGHTSBRIDG VLCCF 13.22 +5.42%