DOW JONES NEWSWIRES
Fluor Corp. (FLR) expects to book $1.5 billion this year on an
infrastructure and offlease facilities contract for the first phase
of Imperial Oil Ltd.'s (IMO) Kearl oil sands project in Alberta,
Canada.
The Texas infrastructure-services company said it expects to
book the majority of the award in the second quarter.
Fluor has continued to record strong revenue growth, though the
company lowered its 2009 earnings outlook in May to reflect the
cancellation of $2.1 billion of Kuwaiti contracts. The company also
stands to benefit from the U.S. stimulus package and growth in
nuclear energy, though it has been hurt as energy prices have
tumbled from last summer's peak.
The Kearl project expands Fluor's presence in the exploration
and production side of the Canadian oil-sands business, a key
growth market for the company. Kearl is expected to be developed in
three phases and produce more than 300,000 barrels a day of thick,
sludgy bitumen, which is subsequently processed into higher-grade
synthetic fuel. The first phase of the project is expected to start
production in late 2012.
Fluor shares closed at $47.53 and Imperial Oil closed at $36.35
on Monday. Neither traded premarket Tuesday.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com