Foster Wheeler on a Roll (FWLT)

Pritchard Capital Partners is out with a brief research note on Foster Wheeler AG FWLT this morning, which cites the increasing contract signings the company has been seeing as of late. The PCP analysts said, “(FWLT) announced the company’s Global E&C Group signed a Framework Agreement with Statoil ASA STO, on behalf of Gassco AS, that allows for a series of FEEDs to be awarded for the modification of the Kårstø process plant. The modification project enables the Norwegian plant, which is the 3rd largest LPG export facility in the world, to process oil/condensate coming from the Norwegian North Sea. The first of a series of FEEDs will hit the company’s backlog in Q2, which will be followed by additional FEED call-off contracts.” They also noted, “This rounds out a strong week of bookings which also included: (1) Abu Dhabi Company for Onshore Development (ADCO) PMC award at the Bida Al Qemzan oilfield development, part of ADCO’s multi-field ~$3B expansion plans; undisclosed value hits Q2 backlog and (2) South Oil Company (SOC), a subsidiary of the Ministry of Oil of the Republic of Iraq, PMC award for the Iraq Crude Oil Expansion Project, expands the existing facility’s export capacity to 4.5MMbbl/d from 1.8MMbbl/d; undisclosed value hits Q3 backlog.” “The read through is definitely positive for FWLT as the pent up E&C demand is finally flowing into the company’s backlog. We anticipate that EPC awards may also start flowing into the company’s backlog in the next ~6-12 months.”