Fluor To Proceed With Greensville County Power Station Work

Engineering and construction firm Fluor Corporation (NYSE:FLR) received full notice from Dominion Virginia Power to move ahead with its project to build the Greensville County (VA) Power Station. Dominion had awarded the contract to Fluor in April last year on a limited notice-to-proceed basis.

Fluor booked the contract value for the project for an undisclosed amount in the second quarter of 2016.

The project is located on a 1,143-acre site on the Greensville and Brunswick County line in southern Virginia. On completion, the 1,600-megawatt Greensville County Power Station will be the biggest, most efficient natural gas-fueled power station in Virginia. The combined-cycle, natural gas-fired power station will generate enough electricity to power 400,000 homes during peak demand.

Fluor is presently working on the design and construction of the two biggest gas-fueled combined cycle power plants in the U.S. Fluor is a dominant player in the gas-fired engineering, procurement, construction and commissioning business. It has designed and built almost 50,000 megawatts of gas-fueled power facilities over the past two decades.

Fluor has a solid track record of successful project execution in its infrastructure business, which is one of the key growth drivers for the company. However, weaker commodity prices are a major hindrance for Fluor’s customers, as it directly affects funding for new projects. Even the company’s non oil and gas end markets are under pressure due to these macroeconomic concerns.

This Zacks Rank #4 (Sell) company is also grappling with softness in key geographies, weakness in the mining and metals business and a strained global economic growth outlook.

Some better-ranked stocks in the broader industrial products space include Casella Waste Systems Inc. (NASDAQ:CWST) , Landauer Inc. (NYSE:LDR) and Kadant Inc. (NYSE:KAI) , each sporting a Zacks Rank #1 (Strong Buy).