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Investing.com-- Shares of Hyundai Engineering & Construction (KS:000720) jumped on Monday after media reports stated that the company had secured its first major U.S. nuclear power contract.
The South Korean builder signed a basic design agreement with U.S. energy developer Fermi America to lead front-end engineering work for four large nuclear reactors in Texas, reports showed.
The deal, signed on Oct. 24 at Hyundai E&C’s Seoul headquarters, marks the first time a South Korean construction firm has won a basic design contract for a large U.S. nuclear project.
Seoul-listed shares of Hyundai E&C jumped as much as 11.7% to 74,400 won as of 05:41 GMT.
"This development implies positive read-throughs for Doosan Enerbility, which signed an MOU with Fermi America in August," Morgan Stanley analysts said in a note.
"While the news is likely to provide a near-term sentiment boost, we await further details and management guidance during the upcoming 3Q earnings for better visibility on the order pipeline," they added.
The work is part of Fermi America’s planned “Complex Energy and Artificial Intelligence Campus,” an initiative valued at about 700 trillion won ($480 billion).
The site, near Amarillo, Texas, will generate up to 11 gigawatts of power through a mix of large reactors, small modular reactors, and solar facilities to supply energy for a large AI data center, according to the reports.