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Jacobs' (JEC) Sulfur Recovery Technology Picked by Tupras

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Jacobs Engineering Group Inc. recently announced that its state-of-the-art EUROCLAUS sulfur recovery technology has been picked by Tupras for the latter’s new sulfur recovery units.

The recovery units would be installed in Tupras’ Turkey refineries located in Izmit, Izmir and Kirikkale. The EUROCLAUS sulfur recovery technology will augment the crude slate of the units by processing more sour crudes. Moreover, the technology would help in reducing environmental footprint by lowering the SO2 emissions from the refineries.

Jacobs will also provide basic engineering, technology licensing and start-up services for the sulfur recovery units of Tupras.

Existing Scenario

Over the last one month, Jacobs’ shares yielded a return of 0.44%, underperforming 1.33% growth recorded by the sector.

Challenging energy market conditions, lackluster field services business and reduced public spending in the UK are expected to dent the company’s near-term results.

However, over the last 30 days, the Zacks Consensus Estimate for Jacobs remained changed for fiscal 2017 (ending Sep 2017), reflecting neutral market sentiments.

This Zacks Rank #3 (Hold) company is poised to brave headwinds backed by diligent business contracts and strategic restructuring moves. Notably, the company recently (Aug 7, 2017) inked an agreement to acquire CH2M HILL Companies Ltd. (CH2M), in a bid to become a $15-billion global solutions provider. This transaction is anticipated to reinforce Jacobs’ competency in the contemporary design, engineering, consulting and construction market.

We believe that the aforementioned deal will boost Jacobs’ organic growth trajectory in the near term.

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