Yahoo Finance Fluor's (FLR) Backlog Gets a Boost With Harbour Energy Deal Win
Fluor Corporation’s FLR subsidiary, Stork entered into a five-year contract with London-based Harbour Energy with additional five one-year extension options.
Stork will provide asset integrity services that include planning, inspection, fabric maintenance, access solutions, hot bolting and composite repair applications in the North Sea on various Harbour Energy hubs. Also, the company will deliver additional deck crew services across the Armada, Everest, Lomond and Erskine (AELE) hub. The contract is set to commence in the second quarter of 2023.
The areas covered under the contract include the AELE hub, along with extended services to Solan, the J-Area and the Great Britannia Area.
Price Performance
Fluor’s market diversity helps it mitigate the cyclicality of markets in which it operates. The company’s strategy of maintaining a good business portfolio mix permits it to focus on the more stable business markets and capitalize on developing the cyclical markets at suitable times. The long-term prospects of the company also remain strong with existing growth opportunities in renewable energy, gas-fired combined cycle generation and air emissions compliance projects for existing coal-fired power plants.
Fluor's total new awards in first-quarter 2023 came in at $3.23 billion compared with $1.93 billion in the year-ago period. The consolidated backlog at first-quarter end came in at $25.62 billion, up from $19.3 billion a year ago.
In the first quarter of 2023, consolidated revenues of FLR increased 20% year over year to $3,752 million. The upside was primarily attributable to solid contributions from all its segments. In first-quarter 2023, the Energy Solutions and Urban solutions segments’ revenues grew 37.3% and 13.9%, respectively, year over year.
Zacks Rank & Key Picks
FLR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some top-ranked stocks that investors may consider from the Zacks Construction sector.
Martin Marietta Materials, Inc. MLM currently sports a Zacks Rank #1. MLM delivered a trailing four-quarter earnings surprise of 31%, on average. Shares of the company have gained 10.6% in the past six months.
The Zacks Consensus Estimate for MLM’s 2023 sales and EPS indicates growth of 19% and 32.1%, respectively, from the previous year’s reported levels.
Vulcan Materials Company VMC currently carries a Zacks Rank #1. VMC has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of the company have gained 7.8% in the past six months.
The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates growth of 5.9% and 26.2%, respectively, from the previous year’s reported levels.
Watsco, Inc. WSO currently sports a Zacks Rank #1. WSO delivered a trailing four-quarter earnings surprise of 5.3%, on average. Shares of the company have gained 21% in the past six months.
The Zacks Consensus Estimate for WSO’s 2023 sales and EPS indicates growth of 3.1% and 2.1%, respectively, from the previous year’s reported levels.
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