Fluor to Get $3B Contract - Analyst Blog

Fluor Corp. (FLR) won a chain of contracts from a joint venture comprising Saudi Arabian Mining Company and Alcoa. The company will be providing services for the development of the integrated Ras Az'Zawr aluminum complex. 

In the second quarter of 2010, Fluor anticipates booking of roughly $3.0 billion worth of contract from different sources for the Ras Az'Zawr complex. The company will be providing program management consultancy (PMC) services for the development of the entire complex; engineering, procurement, construction, maintenance (EPCM) services for the mine and alumina refinery in association with Australia's WorleyParsons; EPCM services for the rolling mill; and EPCM services for the Ras Az'Zawr site's integrated infrastructure. 

Ras Az'Zawr aluminum complex, a $10.8 billion project will house a bauxite mine with an annual capacity of 4 million tons, a 1.8 million tons-per-year alumina refinery, a 740,000 tons-per-year smelter and a rolling mill with a 460,000 ton capacity.
 
With increasing capital spending due to long-term investment plans and commodity pricing recovery and the Ras Az'Zawr complex contact win, the company seems well-positioned for growth in the mining and metals sector. Ending the first quarter of 2010, new project awards totaled $3.4 billion, while consolidated backlog was $25.7 billion. 

Fluor, through its subsidiaries, provides engineering, procurement, construction and maintenance as well as project management services on a global basis. The company serves a diverse set of industries worldwide including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. Prime competitors include Jacobs Engineering Group Inc. (JEC), Bechtel Group, Inc. and Bilfinger Berger AG (BFLBY).
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