Recently, Fluor Corporation (FLR - Analyst Report) received a contract from Qatar’s Public Works’ Authority for program management and construction supervision services for the Sharq Crossing. The contract is valued at $185 million and will be booked in Fluor’s second quarter order book under the Industrial & Infrastructure segment. The contract is expected to complete by 2020.
Sharq Crossing is one of the important infrastructure development plans for Qatar before the 2022 FIFA World Cup. This will be an important link across the Doha Bay to support the run-up for the World Cup event. The project will primarily comprise bridge sections which will be interconnected with an immersed tube tunnel that will create a new passageway underwater across the Doha Bay. The total cost of the Sharq Crossing program is $5 billion.
Fluor Corporation has a strong presence and brand name in the Middle East, especially in Qatar. Prior to this, Fluor received a FEED (Front-End Engineering and Design) contract jointly from Qatar Petroleum and Royal Dutch Shell plc (RDS-A) for the Al-Karaana Petrochemicals Complex in Ras Laffan Industrial City, Qatar. Fluor will book the contract into the backlog for the first quarter of 2013. However, the contract value is not disclosed.
In the last reported quarter (1Q13) revenues in 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 #3 (Hold). However, some other companies in the same sector that are worth considering at the moment are Chicago Bridge & Iron (CBI - Analyst Report), Quanta Services Inc. (PWR - Analyst Report) and Orion Marine Group Inc. (ORN - Snapshot Report), all having Zacks Rank #2 (Buy).