Fluor Corporation FLR is set to implement its Econamine FG Plus carbon capture technology for Federated Co-Operatives Limited’s (FCL) Co-op Renewable Diesel Complex in Regina, Saskatchewan, Canada. Fluor has entered into a licensed agreement with FCL for the same.
The renewable diesel project of FCL is a portion of its $2 billion investment in the construction of an integrated agriculture complex, which is planned to be operational by 2027.
Meanwhile, FLR received a contract from FCL for developing the process design package for this facility. This will assist FCL to meet its goal of reducing 40% greenhouse gas emissions by 2030.
Focus on Decarbonization Initiatives
Shares of FLR have increased 7.7% in the past year compared with the Zacks Engineering - R and D Services industry’s growth of 4.4%.
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Fluor’s market diversity remains a key strength that 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. The consolidated backlog at the end of 2022 came in at $26.05 billion, up from $20.8 billion at 2021-end.
Fluor intends to drive growth across diverse portfolios by enhancing markets outside of the traditional oil and gas sector, including energy transition, advanced technology and life sciences, high-demand metals, infrastructure and mission solutions.
Notably, the Energy Solutions segment mainly offers services to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels and other low-carbon energy sources. On the other hand, the Urban Solutions segment provides EPC and project management services to advanced technologies, life sciences, mining and metals, and infrastructure industries as well as professional staffing services.
In the fourth quarter of 2022, consolidated revenues of FLR increased 2.4% to $3,709 million year over year. The upside was primarily attributable to higher contribution from the Energy Solutions segment. In 2022, the Energy Solutions and Urban solutions segments contributed 42.7% and 28.5, respectively, to the consolidated revenues.
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.
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CRH plc CRH currently sports a Zacks Rank #1. Shares of CRH have gained 44.2% in the past six months. The long-term earnings growth rate is anticipated to be 10.2%.
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Quanta Services, Inc. PWR currently carries a Zacks Rank #1. PWR has a trailing four-quarter earnings surprise of 4.7%, on average. Shares of the company have gained 20.6% in the past six months.
The Zacks Consensus Estimate for PWR’s 2023 sales and EPS indicates growth of 8.8% and 10.3%, respectively, from the previous year’s reported levels.
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