Jacobs Engineering Group Inc. (JEC) received a contract from a major oil and gas company for engineering of its thermal facility located near Lac la Biche, Alberta, Canada. However, the contract value is not disclosed.
Jacobs will perform EDS and detailed engineering and procurement services for the 40,000 barrel-per-day in-situ oil sands central processing facility. Engineering activities will begin in December 2009 with 40% or more of the engineering executed from Jacobs' Mumbai, India, office.
This project is expected to strengthen the company’s position as a leader in the in-situ industry. Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services.
With annual revenues exceeding $12 billion, Jacobs is one of the world's largest and most diverse providers of technical, professional and construction services. Its major competitors are Foster Wheeler AG (FWLT) and Fluor Corp. (NYSE:FLR).
The company’s diversification in terms of markets, geography and services will continue to facilitate future growth. Moreover, Jacobs’ cost focus puts it in a dominant position to expand margins under difficult economic circumstances.
Jacobs is among those infrastructure stocks that may benefit from the coming construction boom. Looking forward, as banks get healthy and are willing to lend and the next round of stimulus begins, investors can expect infrastructure projects to increase.
Looking ahead, management expects full-year 2010 earnings per share to be in a range of $2.00 to $2.60.