Fluor secures FEED contract for carbon capture project

IRVING, Texas - Fluor Corporation (NYSE: NYSE:FLR), a company currently trading at $54.70 with a "GOOD" financial health rating according to InvestingPro, has entered into a contract with Heidelberg (ETR:HDDG) Materials to carry out Front-end Engineering and Design (FEED) work for the GeZero project, aimed at incorporating a large-scale carbon capture and storage (CCS) system into Heidelberg's cement production facility in Geseke, Germany. The contract value, which was not disclosed, will be recognized in Fluor's fourth-quarter earnings for 2024, adding to its robust $15.88 billion in trailing twelve-month revenue.

The GeZero initiative represents a significant move in Heidelberg Materials' decarbonization strategy, with Fluor playing a critical role in the deployment of this groundbreaking technology. Mike Alexander, Group President of Fluor's Energy Solutions business, expressed the company's enthusiasm for the project, highlighting the importance of CCS in achieving sustainability targets.

Under the contract, Fluor is tasked with the design integration of various decarbonization technologies at the Geseke facility. The construction phase is scheduled to begin in 2026, followed by the commissioning process three years later.

Heidelberg Materials' project, leveraging advanced second-generation Oxyfuel technology, is set to capture approximately 700,000 tonnes of CO2 annually. The captured CO2 will then be transported to offshore storage locations in the North Sea, either by pipeline or ship, where it will be permanently and securely stored.

Fluor Corporation, a global engineering and construction firm, is known for delivering professional and technical solutions across numerous industries. With revenues totaling $15.5 billion in 2023 and a workforce of nearly 34,000, the company is recognized as a Fortune 500 entity, providing services for over 100 years. The company's stock has shown strong momentum, gaining over 27% in the past six months, while maintaining a healthy balance sheet with more cash than debt. This new venture into CCS technology with Heidelberg Materials is part of Fluor's ongoing commitment to addressing the challenges of climate change and sustainability. For detailed analysis and 14 additional exclusive insights about Fluor's financial outlook, visit InvestingPro, where you can access comprehensive Pro Research Reports covering what really matters for smarter investment decisions.

This article is based on a press release statement.

In other recent news, Fluor Corporation reported strong Q3 2024 results, announcing a revenue of $4.1 billion and new awards totaling $2.7 billion. The company's total backlog reached $31.3 billion, with 80% being reimbursable contracts, and reported a consolidated segment profit of $117 million and adjusted earnings per share of $0.51. These developments occur amidst strategic shifts, including a focus on growth in non-traditional oil and gas projects and expectations of strong revenue growth through 2028.

In leadership news, Fluor's CFO Joe Brennan is set to retire, with John Regan, the current Chief Accounting Officer, named as his successor, a transition that Citi maintains confidence in. Despite a reduction in its price target for Fluor shares to $60 from $65, Citi continues to endorse a Buy rating, citing potential upturn in project awards in 2025 and strong demand trends in Life Sciences and Data Centers.

However, Fluor has lowered its adjusted EBITDA expectations for 2024, while expressing anticipation for strong growth in revenue and EBITDA through 2028. These recent developments highlight Fluor's strategic approach and resilience amid challenging circumstances.

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