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$JEC General Update: JEC announced its Consultancy business was awarded a contract by DECC, a department of UK Government, to provide technical advisory services to DECC’s Office of Carbon Capture & Storage. Company officials did not disclose the contract value, but noted that the two-year contract is being delivered from its London operations.
$JEC has delivered a real-time, virtual reality visualization environment to the Welsh Government to support the upgrade program for two sections of the A465 Heads of Valley highway project in South Wales. The solution is part of the technical advisory services $JEC is providing to the A465 project.
$JEC has been awarded an engineering services contract from BHP for a new nickel sulphate facility located at the company’s Kwinana Nickel Refinery in Western Australia. The new facility is being designed to produce 100,000 tonnes per annum (tpa) of nickel sulphate hexahydrate, with the option to increase processing capacity to 200,000 tpa.
$JEC through its JV with Aurecon, has been selected by John Holland and CPB Contractors consortium to carry out the engineering design for the $5.1Bil West Gate Tunnel Project that is now proceeding after receipt of all approvals. The project is located in Melbourne’s inner west and will become Melbourne’s alternative to the West Gate Bridge.
$JEC has received an engineering, procurement and construction management contract from Pfizer Inc. for a new gene therapy manufacturing facility located in North Carolina. $JEC will perform all required services to design, build and qualify the multi-product facility, which will manufacture gene therapy products upon completion.
$JEC, a provider of engineering consultancy, has closed the acquisition of CH2M Hill, strengthening its position in the field. Former CH2M director Barry Williams has joined Jacobs Board. The deal is expected to be accretive to Jacobs’ FY18 non-GAAP earnings by 15%. The company reaffirmed its FY18 non-GAAP earnings per share guidance of $3.55-3.95.
$JEC gets a contract from Canada Kuwait Petrochemical Corp. to provide front-end engineering design services for a proposed greenfield, integrated propane dehydrogenation and polypropylene facility in Sturgeon County, Alberta, Canada. The project is expected to mobilize immediately.
$JEC expects to see solid backlog growth in its global Buildings & Infrastructure business going through FY18. The North American market remains strong with a strong economy and good demand. There is robust activity across all sectors of Infrastructure. The company remains optimistic about backlog growth in this business.
$JEC is focused on driving the gross profit level of the company, which is translating into improved margins. The company believes this will continue to happen regardless of the mix of professional services versus field services. $JEC expects gross profit dollars and gross margin dollars to improve going forward albeit not at the rate seen in 2017.
During 4Q17, $JEC’s backlog growth was strong and increased 6.4% sequentially and 5.5% YoY. This excludes over $850MM in Aerospace & Technology awards which are under protest. The YoY growth in backlog was driven by higher-value professional services, which grew 10.8% YoY, indicating a strong pipeline for future revenue growth.
$JEC reported net earnings of $94.1MM or $0.78 per share in 4Q17 compared to $29.6MM or $0.24 per share in 4Q16. 4Q17 earnings included approx. $24.2MM or $0.20 per share in after tax charges related to restructuring and other costs associated with the CH2M acquisition. Total revenues were $2.7Bil compared to $2.6Bil last year.
$JEC has been awarded a contract by Invex Infraestructura 4, S.A.P.I. de C.V. for a greenfield fuel storage and distribution terminal in Tula Hidalgo, Mexico. Under the terms of the contract, $JEC is expected to perform engineering services and support INI4 with regulation compliance and safe and efficient execution.
$JEC was awarded a continuation contract for the US Air Force Communication, Navigation, Surveillance/Air Traffic Management (CNS/ATM) software development. The software supports the fleet of Air Mobility and Air Combat Command aircraft. The contract is valued at $34.6MM over five years if all options are exercised.