Fluor renews contract with SunCoke Energy

IRVING, Texas – Fluor Corporation (NYSE: ) has solidified its ongoing relationship with SunCoke Energy, Inc. by signing a seven-year contract extension to maintain operations at SunCoke's five U.S. coking plants. The contract will be awarded as a new contract in the first quarter of 2024 and financial details have not been disclosed.

Since 2017, Fluor's Operations and Maintenance segment, now known as Plant and Facility Services, has played a key role in providing maintenance and small capital project services. These efforts support SunCoke's commitment to efficiently and reliably producing high-quality coke, a critical component of steelmaking.

The partnership between the two companies has grown over the past seven years, with Fluor playing a vital role in the maintenance and improvements of SunCoke's facilities. “Fluor and SunCoke have developed a strong partnership over the past seven years, and we look forward to continuing to support SunCoke's investments in maintaining assets,” said Dale Barnard, president of Fluor's plant and facilities services business.

SunCoke plants benefit from Fluor's expertise and are strategically located in Illinois, Indiana, Virginia and Ohio, where it operates two plants. Fluor's Plant and Facility Services business is recognized for its proficiency in maintenance, reliability solutions, asset management technologies and small capital project services, serving more than 85 sites across North America.

Fluor Corporation, headquartered in Irving, Texas, has been providing professional and technical solutions, including engineering, procurement and construction services, for more than 110 years. The company reported 2023 revenue of $15.5 billion and ranked No. 303 on the Fortune 500 list.

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The extension is expected to strengthen Fluoro's position in the industry through continued valuable collaborations, thereby helping to increase the productivity and sustainability of SunCoke's operations. Information reported is based on press releases.

Investment Professional Insights

As Fluor Corporation (NYSE: FLR ) announces a contract renewal with SunCoke Energy, the company's financials and market performance provide context for understanding its potential trajectory. According to InvestingPro data, Fluor has a market capitalization of US$6.97 billion and its revenue grew by 12.59% in the past 12 months as of the fourth quarter of 2023, showing the steady expansion of its business operations. Although the P/E ratio of 73.85 indicates a high market valuation, analysts remain optimistic about the company's future profit potential.

One of Fluor's key InvestingPro tips is its strong cash position, as the company holds more cash than debt on its balance sheet. This financial stability is a positive sign for investors, especially given the company's role in the capital-intensive construction and engineering industry. Another important observation is that Fluor is expected to be profitable this year, with net income expected to grow. These insights point to a positive outlook for the company as it continues to secure long-term contracts like SunCoke Energy's.

For investors looking for a more in-depth analysis of Fluor's financial and market performance, InvestingPro provides additional tips, including insights into the company's price-to-earnings ratio, profit margins, and share price volatility. There are also 10 InvestingPro tips available, accessible through the dedicated InvestingPro platform.To get a full understanding of Fluor's investment potential, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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InvestingPro's fair value estimate is $40.48, slightly below the previous closing price of $40.95, and investors can gauge current market sentiment and consider the company's future prospects based on the recent contract extension news.

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