Fluor JV Clinches Contract From U.S. Department Of Energy
Zacks Investment Research | May 30, 2017 09:53PM ET
Fluor Corporation (NYSE:FLR) recently announced that Four Rivers Nuclear Partnership (“FRNP”), LLC, a joint venture comprised of CH2M, Fluor Corporation and BWX Technologies, has clinched a contract from the U.S. Department of Energy (“DOE”). The premium engineering and construction firm is set to lead the Paducah Deactivation and Remediation (“D&R”) contract at the Paducah Gaseous Diffusion Plant in Kentucky.
This is a performance-based contract, valued at roughly $1.5 billion and spans over a period of 10 years. The base term is five years, valued at approximately $750 million. This is followed by three-year and two-year option periods, valued at a combined approximate of $750 million. The scope of the work includes management of more than 650 structures, properties and buildings. Per the contract, Fluor will help optimize surveillance and maintenance costs to improve stabilization, deactivation and remediation activities.
The company has been providing its services in the Paducah site for long and has made it safer by removing hazardous and radioactive materials. Also, Fluor has been a partner of DOE for more than seven decades now, aiding in key projects such as Idaho Site, Savannah River Site and Strategic Petroleum Reserve. The latest contract win adds another feather to the company’s cap.
Fluor has a solid track record of receiving awards. Management remains optimistic about continuation of this trend in the future as well, which is expected to drive growth for the company. Consolidated backlog at the end of 2016 was $41.7 billion. Fluor remains optimistic about its long-term prospects that include growth opportunities in renewable energy, gas-fired combined cycle generation and air emissions compliance projects.
Despite long-term growth drivers, Fluor’s profitability in the near term remains questionable. The stock has lost 15.7% in the last six months, wider than the average loss of 12.1% recorded by the Zacks Categorized Engineering Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.