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L.B. Foster's (FSTR) Unit Provides Flow Metering Solutions

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L.B. Foster Company’s (FSTR - Free Report) subsidiary, Chemtec Energy Services, LLC, recently announced its contract with Howard Energy Partners (“HEP”) to design and build five custody transfer metering skids. This is for the delivery of various feedstocks and the transfer of clean burning, renewable diesel after the fuel is produced at a new site in Port Arthur, TX.

This new renewable diesel production facility is owned and operated by Diamond Green Diesel, LLC, a joint venture between San Antonio, TX-based Valero Energy Corp. and Irving, TX-based Darling Ingredients, Inc.

HEP is growing its Port Arthur terminal facility to help Diamond with logistics solutions through the construction of various pipelines, rail unloading/loading facilities, truck unloading facilities, tank storage and a Panamax-class-capable deep-water dock.

The joint venture will manufacture renewable biomass-based diesel from recycled animal fats, used cooking oil and fuel-grade corn oil. When fully operational, the plant will be capable of converting roughly 2.3 billion pounds of rendered and recycled material into more than 470 million gallons of renewable diesel annually, Diamond noted.

With the increase in demand for several types of renewable and sustainable fuels, Chemtec’s business is well positioned to provide metering and additive injection systems for new facilities being built to support growth, the company noted.

Shares of L.B. Foster have gained 17% in the past year compared with a 135.4% surge of the industry.

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L.B. Foster is seeing strong order activity for infrastructure projects. In the second quarter of 2021, the company recorded the highest level of order activity since fourth-quarter 2019. The company has a robust backlog which along with improving commercial and operating environment makes it optimistic about its prospects for year-over-year revenue growth in the second half of 2021.

Zacks Rank & Key Picks

L.B. Foster currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .

Nucor has a projected earnings growth rate of around 494% for the current year. The company’s shares have soared 163.7% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 44.9% in the past year. It currently holds a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 48.7% in the past year. It currently carries a Zacks Rank #2.


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