Back to top

Image: Bigstock

Jacobs (J) to be Owner's Engineer for LNG Terminal in Philippines

Read MoreHide Full Article

Jacobs Engineering Group Inc. (J - Free Report) has been selected by FGEN LNG Corporation to serve as Owner's Engineer for its Interim Terminal project to be situated in the First Gen Clean Energy Complex in Batangas City, Philippines. Jacobs would be responsible for engineering, procurement and construction of the project.

The project involves modernization of an existing liquid fuel jetty so that it can fit in a floating storage regasification unit and liquefied natural gas (LNG) carrier for receiving, storing as well as dispatching LNG across Philippines. The redesigned terminals will help meet the power demands of 4.5 million houses by providing LNG to the existing gas-fired power plants.

As Owner’s Engineer, Jacobs will also be responsible for reviewing design, managing the project, and leading and regulating the entire construction framework.

With respect to this, executive vice president of Jacobs’ People & Places Solutions (P&PS) International, Patrick Hill, said, “Supporting a project that will help deliver a more reliable, lower carbon power supply for the people of the Philippines further demonstrates Jacobs' commitment to a more sustainable future.”

P&PS Prospects Driving Jacobs’ Performance

Jacobs’ P&PS accounted for 63.4% of fiscal 2020 total revenues. This segment serves clients of broad sectors like water, transportation, building and semiconductors. The P&PS unit has an appreciable track record of delivering owner's engineer services across a wide range of diversified, difficult and demanding infrastructure projects. In particular, the company’s background in LNG projects is praiseworthy.

The P&PS segment’s overall sales pipeline has increased, given pro-environmental Biden administration, broader potential infrastructure stimulus in the United States and an improving economic outlook.

Jacobs’ shares have gained 20.8% in the year-to-date period compared with the Engineering - R and D Services industry’s 24.2% rally. Although the stock has underperformed the industry during the said period, the company’s earnings estimates for 2021 have moved up over the past 30 days, depicting analysts’ optimism regarding its bottom-line growth potential. On a further encouraging note, Jacobs surpassed earnings estimates in 10 of the trailing 12 quarters.

Zacks Rank & Other Key Picks

Jacobs currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the same industry include Mayville Engineering Company, Inc. (MEC - Free Report) , Howmet Aerospace Inc. (HWM - Free Report) and Altair Engineering Inc. (ALTR - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Mayville Engineering delivered an average earnings surprise of 23.5% in the last four quarters.

Howmet Aerospace and Altair are expected to witness 15% and 45.2% earnings growth in 2021, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>