Fluor Corporation (FLR - Analyst Report) announced that it has received a contract from Williams Companies Inc. (WMB - Analyst Report) to provide groundwork engineering services for a propane dehydrogenation project set to come up in Alberta, Canada.
With the help of this new propane dehydrogenation, Williams intends to utilize the propane recovered from its extraction facility at Alberta and convert it into polymer grade propylene, which is used to make plastics.
Fluor has logged this contract in the fourth quarter order book in the Power segment (contributing 3.2% of consolidated revenues). This segment primarily provides a full range of services to the gas fueled, solid fueled, renewables, nuclear and plant betterment marketplaces.
In the gas fueled market, it offers a full range of services for simple and combined cycle reference designs as well as complete solutions for Integrated Gasification Combined Cycle (IGCC) technologies.
Williams is a leading diversified company focused on natural gas transportation; gathering, treating, and processing; storage; natural gas liquid (NGL) fractionation; and oil transportation.
Given Fluor’s expertise, logistics and procurement capabilities as well as project management experience, the company is all set to provide its skill to the first propane dehydrogenation facility in Canada. The financial terms of the contract were not disclosed.
In the first half of 2012, Fluor received a number of contracts including the TCO contract in Kazakhstan, a contract from Reliance Industries in India and Pemex in Mexico. In addition, the company also had incremental scope on oil sands and offshore projects in Canada.
In the last reported quarter (3Q12), new awards remained strong at $6.3 billion. In 2011, new awards were $26.9 billion. The company is benefiting from substantial increase in sizable orders within the Oil & Gas segment.
Consolidated backlog rose to a new high of $40.8 billion in 2011, an increase of 13% from the end of 2010. The company’s international marketremained robust, with 84% of awards derived from outside the US with focus on Australia, the Middle East, Latin America and Canada.
Fluor currently has a Zacks Rank #3 (Hold) while some of its competitors such as Jacobs Engineering Group (JEC - Analyst Report), Tyco International Ltd. (TYC - Analyst Report), Clean Energy Fuels Corp. (CLNE - Snapshot Report) carry a Zacks Rank #2 (Buy).