synfuel

AECOM Wins Multi-Million Contracts: Will it Rebound?

California based Fortune 500 company, AECOM ACM, has secured a couple of multi-million dollar government contracts and a lucrative construction service in the past week, which are expected to be conducive to its future growth. These contracts further strengthen the company’s already strong backlog level.

Precisely, the company won a $45 million task order from the United States Navy and a $92 million worth of fixed-rate task order from the General Services Administration (GSA) Logistics Worldwide (LOGWORLD) schedule. Also, it has won a construction services contract to diversify the Dakota Gasification company’s Synfuels plant product plate. 

The Government Contracts

The radar division of the Naval Surface Warfare Center (NSWC), alternatively called Q40, is working on developing both the Navy and Marine’s latest radars and has selected AECOM owing to its expertise in providing superior quality design, development and engineering services across the globe. The Navy division is building advanced missile defense radar, multi-function radar and dual-band radar, while the Marine division is developing ground/air task-oriented radar.

As per the contract with the United States Navy, AECOM will offer the whole spectrum of engineering and technical support services to the Dahlgren Division of the NSWC. The contract will have a base period of one year alongside four other one-year options.

AECOM will be responsible for all services relating to the modeling, testing and evaluation of tactical fire control radars for their flawless performance. In addition, it will aid software specialists design and develop supreme quality strategic computer programs that can support government defense missiles. This apart, AECOM will also supervise program management, system integration and field testing for NSWC and look after the mission’s safety and security.

As per the $92 million General Services Administration (GSA) Logistics Worldwide (LOGWORLD), AECOM will be responsible for providing mechanics and specialties services for repairing aircrafts and its components in the Corpus Christi Army Depot (CCAD) in Texas. This task order has a base period of one year including two one-year options.

Construction Services Contract

AECOM was chosen by Dakota Gasification Company to provide commissioning and start-up assistance for its Great Plains Synfuels plant in Beulah. AECOM will be supervising all the major functions for the project’s entire lifecycle. This contract was included in the company’s backlog for the third quarter of fiscal 2015.

This contract is indeed a prestigious one for AECOM, considering that the Synfuels plant is the sole commercial scale coal-gasification facility in the U.S. that specializes in production of natural gas. Moreover, Dakota Gasification and AECOM have a long-standing relationship and the latest contract reflects the faith of the former in AECOM’s undisputed construction services track record.

To Conclude

AECOM won $4.8 billion (up 118.2%) of contracts in the third quarter of fiscal 2015 and ended the quarter with about $40.4 billion (up 97.1%) in backlog. Encouragingly, this is the seventh consecutive quarter in which the company’s book-to-burn ratio exceeded 1. As contracted backlog is a key indicator of future revenue growth, AECOM’s profitability is expected to improve in the long run.

Despite lucrative contract wins, AECOM’s business is currently plagued by the uncertain global, political and economical conditions. The current volatility in the oil and gas market, with declining prices and spending levels, is affecting the company’s projects and orders. If the volatility persists, it will likely be a significant drag on the company’s financial performance.

Moreover, the Zacks Rank #4 (Sell) company’s government contracts are highly prone to unfavorable changes in the government rules and regulations. Also, government contracts are mostly long-term contracts and any budgetary changes in the tenure can affect AECOM’s business.

Some better ranked stocks in the industry include Dycom Industries Inc. DY, KBR, Inc. KBR and Graco Inc. GGG. While Dycom sports Zacks Rank #1 (Strong Buy), both KBR, Inc. and Graco Inc. carry a Zacks Rank #2 (Buy).

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Aecom to provide construction services for Great Plains Synfuels plant in US

Dakota Gasification Company (Dakota Gas) has selecte Aecom (ACM) to provide construction services at the company’s Great Plains Synfuels plant in Beulah, North Dakota, US.

AECOM to provide construction services for Dakota Gasification Company plant

AECOM to provide construction services for Dakota Gasification Company plant

LOS ANGELES–(BUSINESS WIRE)–Aug. 24, 2015– AECOM (NYSE:ACM), a premier, fully integrated global infrastructure firm, announced today that it has been selected by Dakota Gasification Company, also known as “Dakota Gas” to provide construction services at the company’s Great Plains Synfuels plant in Beulah, N.D.

AECOM will provide construction services at the Synfuels plant to diversify the plant’s product slate. AECOM’s services are expected to follow the project lifecycle through commissioning and start-up assistance.

“AECOM is pleased to have been selected by Dakota Gasification Company to deliver this important project,” said AECOM Chairman and Chief Executive Officer Michael S. Burke. “This contract extends our successful relationship with Dakota Gas and our continuing joint commitment to meeting the company’s objectives in North Dakota.”

The Synfuels plant is the only U.S. commercial-scale coal-gasification facility that produces natural gas.

The contract was included in AECOM’s backlog for the third quarter of fiscal year 2015.

About AECOM

AECOM is a premier, fully integrated professional and technical services firm positioned to design, build, finance and operate infrastructure assets around the world for public- and private-sector clients. The firm’s global staff - including architects, engineers, designers, planners, scientists and management and construction services professionals - serves clients in over 150 countries around the world. AECOM is ranked as the #1 engineering design firm by revenue in Engineering News-Record magazine’s annual industry rankings, and has been recognized by Fortune magazine as a World’s Most Admired Company. The firm is a leader in all of the key markets that it serves, including transportation, facilities, environmental, energy, oil and gas, water, high-rise buildings and government. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering customized and creative solutions that meet the needs of clients’ projects. A Fortune 500 firm, AECOM companies, including URS Corporation and Hunt Construction Group, had revenue of approximately $19 billion during the 12 months ended June 30, 2015. More information on AECOM and its services can be found at www.aecom.com .

Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including statements relating to the future term, value and performance under the Dakota Gasification assignment as well as future economic and industry conditions. Actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2015, and our other reports filed with the U.S. Securities and Exchange Commission. AECOM does not intend, and undertakes no obligation, to update any forward-looking statements.

NR 15-0803

View source version on businesswire.com: http://www.businesswire.com/news/home/20150824005079/en/

Source: AECOM

Media:
AECOM
Ed Mayer
Vice President, Corporate Communications
732.564.3380
Ed.Mayer@aecom.com

AECOM to provide construction services for Dakota Gasification Company plant - 24-Aug-2015

AECOM to provide construction services for Dakota Gasification Company plant - 24-Aug-2015

AECOM will provide construction services at the Synfuels plant to diversify the plant’s product slate. AECOM’s services are expected to follow the project lifecycle through commissioning and start-up assistance.

“AECOM is pleased to have been selected by Dakota Gasification Company to deliver this important project,” said AECOM Chairman and Chief Executive Officer Michael S. Burke. “This contract extends our successful relationship with Dakota Gas and our continuing joint commitment to meeting the company’s objectives in North Dakota.”

The Synfuels plant is the only U.S. commercial-scale coal-gasification facility that produces natural gas.

The contract was included in AECOM’s backlog for the third quarter of fiscal year 2015.

About AECOM
AECOM is a premier, fully integrated professional and technical services firm positioned to design, build, finance and operate infrastructure assets around the world for public- and private-sector clients. The firm’s global staff - including architects, engineers, designers, planners, scientists and management and construction services professionals - serves clients in over 150 countries around the world. AECOM is ranked as the #1 engineering design firm by revenue in Engineering News-Record magazine’s annual industry rankings, and has been recognized by Fortune magazine as a World’s Most Admired Company. The firm is a leader in all of the key markets that it serves, including transportation, facilities, environmental, energy, oil and gas, water, high-rise buildings and government. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering customized and creative solutions that meet the needs of clients’ projects. A Fortune 500 firm, AECOM companies, including URS Corporation and Hunt Construction Group, had revenue of approximately $19 billion during the 12 months ended June 30, 2015. More information on AECOM and its services can be found at www.aecom.com .

Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including statements relating to the future term, value and performance under the Dakota Gasification assignment as well as future economic and industry conditions. Actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2015, and our other reports filed with the U.S. Securities and Exchange Commission. AECOM does not intend, and undertakes no obligation, to update any forward-looking statements.

NR 15-0803

Source: AECOM

Media Contact:
Ed Mayer
Vice President, Corporate Communications
732.564.3380
Ed.Mayer@aecom.com