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Released May 10, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--AECOM Technology Corporation (NYSE:ACM) (Los Angeles, California), a provider of engineering, procurement and construction (EPC) services, is shifting its outlook after it achieved a record work backlog at the end of its fiscal second quarter. Although growth in the pipeline and transportation-related businesses has been impressive, uncertainties in the power-generation business have altered future projects substantially. Industrial Info is tracking more than $50 billion in active projects involving AECOM, including more than $10.4 billion worth that are nearing or under construction.
Click on the image at right for a graph detailing active global projects featuring AECOM, by industry.
The company saw $6.9 billion in contract wins during the quarter, which led to a record $50 billion total, as well as an 8% growth in revenue to $4.79 billion. But AECOM reported a net loss of $120 million, compared with net income of $109 million in the same period last year.
During an earnings-related conference call, AECOM executives announced that the company will no longer pursue fixed-price projects for natural gas-fired, combined-cycle (NGCC) power plants, citing "unfavorable market conditions" and a strategic review that deemed them too risky. They also said the company planned to divest some of its less profitable, non-core oil and gas operations.
AECOM is at work on only one NGCC project at present, which will be its last: Alliant Energy Corporation's (NYSE:LNT) (Madison, Wisconsin) $725 million Riverside Energy Center expansion in Beloit, Wisconsin, which will add 700 megawatts (MW) of generation to the 603-MW facility through the installation of two combustion turbines and a steam turbine, all from General Electric (NYSE:GE) (GE). For more information, see Industrial Info's project report.
"Our ongoing work on Alliant's Riverside gas plant in Wisconsin is progressing well, with the team working diligently to ensure an outstanding outcome for the client," said Michael Burke, the chief executive officer of AECOM, in an earnings-related conference call. "We expect construction to be completed on-time and on-budget in 2019."
Oil & Gas Pipeline projects account for some of the highest spending among projects featuring AECOM, with one of the longest-delayed seeing signs of life: Exxon Mobil Corporation (NYSE:XMO) (Irving, Texas) and TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) proposed, $5.5 billion natural gas pipeline from Alaska's North Slope to the Kenai Peninsula. The 807-mile line is related to Chevron Corporation's (NYSE:CVX) (San Ramon, California) $45 billion-to-$65 billion Alaska LNG Project, which would produce liquefied natural gas (LNG) and ship it to overseas markets.
Earlier this week, a gas sales agreement between Alaska and BP plc (NYSE:BP) (London, England) was touted as "a historic milestone" in the decades-long effort. The pipeline, as designed, would move an estimated 30 trillion cubic feet of gas from Prudhoe Bay to Nikiski, where it would be processed into liquefied natural gas (LNG) at a plant before being shipped overseas. Still, the project would not begin construction until 2020 at the earliest. For more information, see Industrial Info's project report.
AECOM is attached to a smaller pipeline project that also is seeing improved odds: New Jersey Resources Corporation's (Wall, New Jersey) Southern Reliability Link, which will provide a secondary interstate feed into the southern end of the New Jersey Natural Gas delivery system. The project includes a $55 million pipeline that will transport up to 180 million standard cubic feet per day of natural gas from Burlington County to Ocean County; it will be supported by a $25 million compressor station with a turbine-driven compressor gas package.
New Jersey Resources said earlier this month that it continues to make progress on the remaining easement and road-opening permits. Once these are obtained, construction will begin. The Southern Reliability Link is expected to be in service during 2019. For more information, see Industrial Info's project reports on the pipeline and compressor station.
Transportation-related projects hold the highest total investment value for any sector featuring AECOM, although the single largest has been on the books for a very long time: Metropolitan Transit Authority's $5 billion Phase II of the Second Avenue Subway in New York City. After decades upon decades of planning, cancellations, restarts and delays, the first phase of the Second Avenue Expansion was completed and opened last year. Originally designed to replace two elevated lines that shut down in the post-World War II era, the 8.5-mile project's second phase will extend the twin-tube subway service 2.25 miles. For more information, see Industrial Info's project report.
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/.
Click on the image at right for a graph detailing active global projects featuring AECOM, by industry.The company saw $6.9 billion in contract wins during the quarter, which led to a record $50 billion total, as well as an 8% growth in revenue to $4.79 billion. But AECOM reported a net loss of $120 million, compared with net income of $109 million in the same period last year.
During an earnings-related conference call, AECOM executives announced that the company will no longer pursue fixed-price projects for natural gas-fired, combined-cycle (NGCC) power plants, citing "unfavorable market conditions" and a strategic review that deemed them too risky. They also said the company planned to divest some of its less profitable, non-core oil and gas operations.
AECOM is at work on only one NGCC project at present, which will be its last: Alliant Energy Corporation's (NYSE:LNT) (Madison, Wisconsin) $725 million Riverside Energy Center expansion in Beloit, Wisconsin, which will add 700 megawatts (MW) of generation to the 603-MW facility through the installation of two combustion turbines and a steam turbine, all from General Electric (NYSE:GE) (GE). For more information, see Industrial Info's project report.
"Our ongoing work on Alliant's Riverside gas plant in Wisconsin is progressing well, with the team working diligently to ensure an outstanding outcome for the client," said Michael Burke, the chief executive officer of AECOM, in an earnings-related conference call. "We expect construction to be completed on-time and on-budget in 2019."
Oil & Gas Pipeline projects account for some of the highest spending among projects featuring AECOM, with one of the longest-delayed seeing signs of life: Exxon Mobil Corporation (NYSE:XMO) (Irving, Texas) and TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) proposed, $5.5 billion natural gas pipeline from Alaska's North Slope to the Kenai Peninsula. The 807-mile line is related to Chevron Corporation's (NYSE:CVX) (San Ramon, California) $45 billion-to-$65 billion Alaska LNG Project, which would produce liquefied natural gas (LNG) and ship it to overseas markets.
Earlier this week, a gas sales agreement between Alaska and BP plc (NYSE:BP) (London, England) was touted as "a historic milestone" in the decades-long effort. The pipeline, as designed, would move an estimated 30 trillion cubic feet of gas from Prudhoe Bay to Nikiski, where it would be processed into liquefied natural gas (LNG) at a plant before being shipped overseas. Still, the project would not begin construction until 2020 at the earliest. For more information, see Industrial Info's project report.
AECOM is attached to a smaller pipeline project that also is seeing improved odds: New Jersey Resources Corporation's (Wall, New Jersey) Southern Reliability Link, which will provide a secondary interstate feed into the southern end of the New Jersey Natural Gas delivery system. The project includes a $55 million pipeline that will transport up to 180 million standard cubic feet per day of natural gas from Burlington County to Ocean County; it will be supported by a $25 million compressor station with a turbine-driven compressor gas package.
New Jersey Resources said earlier this month that it continues to make progress on the remaining easement and road-opening permits. Once these are obtained, construction will begin. The Southern Reliability Link is expected to be in service during 2019. For more information, see Industrial Info's project reports on the pipeline and compressor station.
Transportation-related projects hold the highest total investment value for any sector featuring AECOM, although the single largest has been on the books for a very long time: Metropolitan Transit Authority's $5 billion Phase II of the Second Avenue Subway in New York City. After decades upon decades of planning, cancellations, restarts and delays, the first phase of the Second Avenue Expansion was completed and opened last year. Originally designed to replace two elevated lines that shut down in the post-World War II era, the 8.5-mile project's second phase will extend the twin-tube subway service 2.25 miles. For more information, see Industrial Info's project report.
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/.
