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Released November 22, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) giant Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) reported an all-time-high backlog for its 2017 fiscal year, as sequential revenues grew and the company prepared to wrap up its acquisition of CH2M Hill Companies Limited (Denver, Colorado). Industrial Info is tracking more than $91 billion in active projects involving Jacobs, including $23.5 billion under construction.
Northstar (Bellvue, Washington), a joint venture between Jacobs and CH2M, is serving as construction manager for Sound Transit's (Seattle, Washington) $2.1 billion Northgate Link light rail extension in Seattle, Washington, which is one of the largest U.S.-based projects under construction involving Jacobs. The project, which is ahead of schedule, is expected to extend Seattle's light-rail system more than four miles north from the University of Washington to the urban village of Northgate. For more information, see Industrial Info's project report.
The expansion is part of Seattle's broader plan to encourage developers to build out affordable housing near transit centers and businesses, thus bolstering urban communities like Northgate. The transit element is essential, as nearly one-third of new apartment buildings in the affected areas do not provide space for cars under years-old regulations, according to The Seattle Times. The regulations were intended to make it more affordable for developers to add housing, but residents frequently have criticized the rules as unrealistic.
The bulk of Jacobs projects under construction are found in Asia, where the company is serving as EPC contractor on one of the largest mining projects in the world: Rio Tinto plc's (NYSE:RIO) (London, England) $5.3 billion expansion of the Oyu Tolgoi copper mine in South Govi, Mongolia. The addition of a 95,000-ton-per-day block-cave underground mine, including five vertical shafts, is expected to expand the mine's capacity to 430,000 tons per year of copper and 495,000 ounces per year of gold. The mine is valued not just for its size, but for the quality of its ore grades--something that has been declining globally for many years. For more information, see Industrial Info's project report.
Jacobs also is a consultant on two projects in India's Petroleum Refining Industry that are set to wrap up before the end of the year: Chennai Petroleum Corporation Limited's (Chennai, Tamil Nadu) $650 million Delayed Coker Unit Addition at the Manali Refinery in Chennai, and Reliance Industries Limited's (Mumbai, Maharashtra) $500 million Ethylene Glycol Unit Addition at the SEZ Refinery in Jamnagar, Gujarat. The expansions will bring an extra 44,000 barrels per day (BBL/d) of refined products and 720,000 metric tons per year of ethylene glycol at the two facilities, respectively. For more information, see Industrial Info's reports on the Manali and SEZ refineries.
CH2M's Slate Includes $17.4 Billion Worth of Projects Under Construction
Jacobs executives say the company is on track to close its acquisition of CH2M in mid-December 2017. When it does, it will inherit CH2M's architectural and engineering responsibilities for one of the most ambitious industrial projects worldwide: Tesla Incorporated's (NASDAQ:TSLA) (Palo Alto, California) $5 billion lithium-ion battery "Gigafactory" project in McCarran, Nevada. The massive complex is now 30% complete and on track to becoming the biggest manufacturing plant in the world, according to The New York Times. For more information, see Industrial Info's project report.
The Gigafactory faced setbacks earlier this month, when Tesla had to delay production on the battery module assembly line for its Model 3 car to fix glitches. But the company still expects the first Model 3s to ship by the end of 2018, when it expects the factory to produce enough batteries for 500,000 cars. Tesla CEO Elon Musk--never one to appear less than fully confident--has already announced plans to build four more Gigafactories.
Industrial Info is tracking more than $55 billion in active projects featuring CH2M, including $17.4 billion under construction. CH2M is a consultant on a pair of high-value transportation projects underway in Hawaii: Honolulu Rail Transit's $3.72 billion high-capacity transit corridor (projects I and II) in Honolulu, and the City of Honolulu Transportation Department's $2.72 billion commuter rail system (segment I) in Kapolei. The four-mile Honolulu line will connect the Pearl Highlands commercial area to Aloha Stadium, and will include two stations, while the seven-mile Kapolei line will connect the University of Hawaii at West Oahu, Leeward Community College, Pearl Highlands and other locations, with seven stations. For more information, see Industrial Info's project reports on the Honolulu and Kapolei lines.
Jacobs' net earnings for 2017 were reported to be $293.7 million, a 39.5% increase from 2016. Revenues stood at $10 billion, a 9% decrease. Earnings for 2016 had been weighed down by charges related to the previous year's extensive restructuring, as well as charges related to the divestment of a French subsidiary. Backlog stood at $19.8 billion, compared with $18.8 billion in 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Northstar (Bellvue, Washington), a joint venture between Jacobs and CH2M, is serving as construction manager for Sound Transit's (Seattle, Washington) $2.1 billion Northgate Link light rail extension in Seattle, Washington, which is one of the largest U.S.-based projects under construction involving Jacobs. The project, which is ahead of schedule, is expected to extend Seattle's light-rail system more than four miles north from the University of Washington to the urban village of Northgate. For more information, see Industrial Info's project report.
The expansion is part of Seattle's broader plan to encourage developers to build out affordable housing near transit centers and businesses, thus bolstering urban communities like Northgate. The transit element is essential, as nearly one-third of new apartment buildings in the affected areas do not provide space for cars under years-old regulations, according to The Seattle Times. The regulations were intended to make it more affordable for developers to add housing, but residents frequently have criticized the rules as unrealistic.
The bulk of Jacobs projects under construction are found in Asia, where the company is serving as EPC contractor on one of the largest mining projects in the world: Rio Tinto plc's (NYSE:RIO) (London, England) $5.3 billion expansion of the Oyu Tolgoi copper mine in South Govi, Mongolia. The addition of a 95,000-ton-per-day block-cave underground mine, including five vertical shafts, is expected to expand the mine's capacity to 430,000 tons per year of copper and 495,000 ounces per year of gold. The mine is valued not just for its size, but for the quality of its ore grades--something that has been declining globally for many years. For more information, see Industrial Info's project report.
Jacobs also is a consultant on two projects in India's Petroleum Refining Industry that are set to wrap up before the end of the year: Chennai Petroleum Corporation Limited's (Chennai, Tamil Nadu) $650 million Delayed Coker Unit Addition at the Manali Refinery in Chennai, and Reliance Industries Limited's (Mumbai, Maharashtra) $500 million Ethylene Glycol Unit Addition at the SEZ Refinery in Jamnagar, Gujarat. The expansions will bring an extra 44,000 barrels per day (BBL/d) of refined products and 720,000 metric tons per year of ethylene glycol at the two facilities, respectively. For more information, see Industrial Info's reports on the Manali and SEZ refineries.
CH2M's Slate Includes $17.4 Billion Worth of Projects Under Construction
Jacobs executives say the company is on track to close its acquisition of CH2M in mid-December 2017. When it does, it will inherit CH2M's architectural and engineering responsibilities for one of the most ambitious industrial projects worldwide: Tesla Incorporated's (NASDAQ:TSLA) (Palo Alto, California) $5 billion lithium-ion battery "Gigafactory" project in McCarran, Nevada. The massive complex is now 30% complete and on track to becoming the biggest manufacturing plant in the world, according to The New York Times. For more information, see Industrial Info's project report.
The Gigafactory faced setbacks earlier this month, when Tesla had to delay production on the battery module assembly line for its Model 3 car to fix glitches. But the company still expects the first Model 3s to ship by the end of 2018, when it expects the factory to produce enough batteries for 500,000 cars. Tesla CEO Elon Musk--never one to appear less than fully confident--has already announced plans to build four more Gigafactories.
Industrial Info is tracking more than $55 billion in active projects featuring CH2M, including $17.4 billion under construction. CH2M is a consultant on a pair of high-value transportation projects underway in Hawaii: Honolulu Rail Transit's $3.72 billion high-capacity transit corridor (projects I and II) in Honolulu, and the City of Honolulu Transportation Department's $2.72 billion commuter rail system (segment I) in Kapolei. The four-mile Honolulu line will connect the Pearl Highlands commercial area to Aloha Stadium, and will include two stations, while the seven-mile Kapolei line will connect the University of Hawaii at West Oahu, Leeward Community College, Pearl Highlands and other locations, with seven stations. For more information, see Industrial Info's project reports on the Honolulu and Kapolei lines.
Jacobs' net earnings for 2017 were reported to be $293.7 million, a 39.5% increase from 2016. Revenues stood at $10 billion, a 9% decrease. Earnings for 2016 had been weighed down by charges related to the previous year's extensive restructuring, as well as charges related to the divestment of a French subsidiary. Backlog stood at $19.8 billion, compared with $18.8 billion in 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
