Zacks_Analysts' Blog : Fluor Receives AVSE II Contract - Analyst Blog

Fluor Corporation (FLR) has received two contracts from Arlington Valley Solar Energy II, LLC (AVSE II), a member of LS Power Group, for its new nominal 125-megawatt solar photovoltaic (PV) facility, located in Maricopa County, Arizona.

One is a lump-sum engineering, procurement and construction (EPC) contract while the other is for operations and maintenance services (O&M) of the new PV facility. The value of the contract is undisclosed and has been included in the fourth-quarter 2011 backlog of Fluor.

With this major contract, Fluor became the leader in the solar power engineering and construction industry. This is one of the largest solar PV projects for LS Power in the world.

All the major permits for the AVSEII project have been received. The project is located on approximately 1,160 acres and will meet the regional need for renewable energy while reducing dependence on fossil fuels. Fluor has also designed and constructed the nearby Arlington Valley Combined Cycle Facility in 2002. 

Further, Fluor’s Southern California operations center has started the engineering and procurement work. The commercial operation on facility is expected to start by the end of 2013. Green energy to be delivered from the project will be beneficial for the State of California.

Acting through its subsidiaries, Fluor Corporation is one of the largest professional services firms, providing engineering, procurement, construction and maintenance as well as project management services on a global basis. It serves a diverse set of industries worldwide including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the U.S. federal government.  The company’s prime competitor is Jacob’s Engineering Group (JEC).

We continue to maintain a Neutral rating on Fluor Corporation, with a Zacks #4 Rank (Sell recommendation) over the next one-to-three months.