Premium heavy construction company, Fluor Corporation FLR has been selected by Sasol Group Technology for offering services for a range of projects. The deal depicts both the companies’ motive of jointly working small and medium oil and gas projects.
In particular, both companies have penned a three-year deal and as per this Fluor will work on various projects of Sasol as an integrated team at its Secunda and Sasolburg facilities in South Africa. Additionally, through on-the-job participation, Fluor will edify selected employees of Sasol Group Technology about its proficient engineering and project execution tools and systems.
The abovementioned agreement strengthens Fluor’s long-standing relationship with Sasol, which commenced in 1960s with the first project attained in Sasolburg. After that, Sasol named Fluor as the managing contractor for its Sasol III in 1975 and since then Fluor has managed several other projects of the company.
Moreover, the latest award win underlines Fluor’s solid track record of completing projects on time, thereby ensuring client satisfaction. We believe this will pave way for earnings enhancement of this Zacks Rank #5 (Strong Sell) stock.
Why a Zacks Rank #5?
Fluor’s operations have been encountering certain issues in recent times. Weakening prices of metals and crude oil are weighing on the company’s gas end-markets as well as mining trade. Moreover, current volatility in commodity prices has been posing significant challenges for Fluor. Since April 2015, the company has been witnessing a downward movement in the prices of crude oil and certain metals, which in turn, is proving to be a drag on its financial performance. Due to such factors, Fluor had a dismal performance in the last reported quarter.
Stocks to Consider
Some better-ranked stocks in the industry include KBR, Inc. KBR, ACCO Brands Corporation ACCO and Global Brass and Copper Holdings, Inc. BRSS. While KBR and ACCO brands carry a Zacks Rank #2 (Buy), Global Brass has a Zacks Rank #1 (Strong Buy).
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Click to get this free report FLUOR CORP-NEW (FLR): Free Stock Analysis Report KBR INC (KBR): Free Stock Analysis Report ACCO BRANDS CP (ACCO): Free Stock Analysis Report GLOBAL B&C HLD (BRSS): Free Stock Analysis Report To read this article on Zacks.com click here.