Jacobs Engineering Group Inc. (JEC - Analyst Report), a construction services provider, received a contract from Shell Hong Kong Limited, a subsidiary of Royal Dutch Shell Plc. (RDS.A - Analyst Report), for Shell’s Transformer Oil Project based in Hong Kong. The contract value was not disclosed.
Royal Dutch Shell is a group of energy and petrochemical companies while Shell Hong Kong Limited deals in retail, commercial fuel, bitumen, marine and chemical businesses.
The oil project located at Tsing Yi installation site is involved in the supply of oil, gas and natural products to Hong Kong and Macau. According to the contract, Jacobs will offer design engineering services for the terminal facility through its China operations in Hong Kong and Macau.
This is not the first contract between Jacobs and Shell. Earlier last month, Jacobs received a contract from Shell for its operations in Australia. This continuous flow of contracts portrays a strong relationship between the two companies displaying the trust and efficiency employed by both.
On the same day, Jacobs inked another contract, being a renewal of a previous deal, with NASA for its Manufacturing Support and Facility Operations Contract (“MSFOC”) at the George C. Marshall Space Flight Center’s Michoud Assembly Facility (“MAF”). The contract based in New Orleans, La., values roughly $138.0 million.
This agreement is a renewal of the initial contract between the two parties inked on May 12, 2009, to provide manufacturing support and facilities operations management services. The earlier contract involved three base years along with two option years, the second of which has been initiated now.
MAF helps the space program teams with the production of large aerospace structures at a single location. Also, MAF supports the manufacture and development of hardware like Space Launch Systems to facilitate the American space exploration plans.
Jacobs currently carries a Zacks Rank #2 (Buy). Other stocks worth a look in the technical services industry are AECOM Technology Corporation (ACM - Analyst Report) and Mistras Group Inc. (MG - Snapshot Report); both carrying a Zacks Rank #2 (Buy) as well.