Fluor's KPJV Develops 3D Plant Design For Kazakhstan Project
Zacks Investment Research | Nov 14, 2018 04:00AM ET
Fluor Corporation’s (NYSE:FLR) joint venture KPJV has developed one of the largest 3D plant design models for Tengizchevroil LLP’s Future Growth Project — Wellhead Pressure Management Project (FGP-WPMP) — in Kazakhstan’s Tengiz oil field.
The KPJV team members include Fluor, the Kazakh Institute of Oil and Gas (“KING”), KazGiproNefteTrans Engineering Company ("KGNT EC") and WorleyParsons. The team is entitled to provide engineering, procurement and construction management services for this oil and gas project.
The move underscores the company’s expertise in providing advanced engineering, construction and technology services along with digital infrastructure. The project’s 3D model offers latest design plant coupled with 2D and 3D information.
Meanwhile, Fluor has been serving Tengizchevroil and its joint venture partners in Kazakhstan for more than 20 years.
Solid Energy Market Potential
Fluor enjoys a solid track record of contracts, courtesy of its market diversity and robust end-market potential. Management remains optimistic about the continuation of this trend, which is expected to drive growth. Importantly, within the Energy & Chemicals segment, relative stability in commodity prices is expected to boost investments in downstream as well as petrochemicals.
Fluor is also tracking multiple large projects, including derivative and LNG plants in North America, along with upstream projects that include pipelines and downstream projects in the Middle East. The company is optimistic about investment projects, particularly LNG projects in North America, including the LNG Canada project for Shell (LON:RDSa), chemical facilities as well as pipeline projects in the United States. It also expects healthy prospects for the refining and chemical projects in the Middle East and Asia.
As of Sep 30, 2018, new awards recorded an increase of 152.3% to $9.6 billion, courtesy of improvements in energy and commodity markets, and achievements in infrastructure and government business. Total backlog came in at $34.9 billion in the said period, marking an increase of 6% year over year and 19% sequentially. In fact, the book-to-bill ratio of 2.0 in the third quarter was the highest in 10 years.
Meanwhile, shares of Fluor have declined 1.7%, outperforming the Zacks Investment Research
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