Denver Transit Partners ("DTP"), a team led by Fluor Corporation (FLR) and Macquarie Capital Group Limited, has been chosen by the Regional Transportation District ("RTD") in Denver, Colorado for its Eagle Commuter Rail Project. The team will develop, make, operate, maintain and finance the Eagle Project in the metropolitan regions of Denver.
Fluor expects to secure all finances for the project by the end of this year, after which it will be recorded in the company's backlog. The RTD has undertaken a 12-year multi-billion dollar program, the FasTracks Plan, to expand and modernize its railway network throughout the eight-country area. Eagle Project is part of the FasTracks Plan.
As per the agreement, Fluor would be responsible for 50% of the engineering, procurement and construction contract, 33% of the operations and maintenance contract and 10% of the equity in a financing arrangement linked to the project.
Recently, through its JV with AMEC Americas Limited, Fluor also won a mining contract in Canada. Through this 50:50 joint venture, the companies would give engineering, procurement and construction management services to Terrane Metals Corp.'s $915 million Mt. Milligan copper-gold project.
The initial share from this project will be realized by Fluor in the second quarter of 2010, with the full amount projected to be received in the first half of 2011.
The company is delivering strong results driven by its diversified business model and new awards strategy. With a proven management team and a strong balance sheet, Fluor is poised to outperform in the current market settting. A key competitor of Fluor is Jacobs Engineering Group Inc. (JEC).
Headquartered in Irving, Texas, Fluor Corporation is a Fortune 200 company offering expertise in the fields of engineering, procurement, construction, commissioning, operations, maintenance as well as project management.
We currently maintain our Neutral rating on Fluor Corporation.
