IRVING, Texas - Fluor Corporation (NYSE: NYSE:FLR) has secured a new contract to proceed with Phase 2 front-end engineering and design (FEED) for a small modular reactor (SMR) facility in Doicesti, Romania. The contract, signed with RoPower Nuclear, will be recognized as a new award in the third quarter of 2024, following the completion of Phase 1 FEED in the last quarter of 2023.
The project will employ NuScale Power's SMR technology, which is the first of its kind to receive design approval from the U.S. Nuclear Regulatory Commission. Fluor, as the majority investor in NuScale, will adapt the technology to produce up to 462 megawatts of carbon-free power, aligning with European codes and standards. This initiative underscores Romania's commitment to clean energy and marks a significant step in the country's clean energy initiatives.
A ceremony to mark the contract signing was held during the Partnership for Transatlantic Energy and Climate Cooperation summit in Bucharest on Wednesday, July 24. The event highlighted the collaborative efforts between the U.S. and Romania, with the attendance of key figures such as Romanian Minister of Energy Sebastian Burduja and U.S. Secretary of Energy Jennifer Granholm. Both governments have shown substantial support for the project, recognizing the importance of SMR technology in the transition to carbon-free power and improved energy security.
Pierre Bechelany, President of Fluor's LNG & Power business, expressed satisfaction with the company's continued involvement in deploying advanced nuclear power for the production of clean and reliable electricity in Romania and Europe. Upon completion, the facility is expected to be the first operational SMR in Europe.
Fluor Corporation, with a workforce of nearly 34,000 and revenue of $15.5 billion in 2023, has a long history of delivering professional and technical solutions in engineering, procurement, and construction across various sectors. The information in this article is based on a press release statement.
InvestingPro Insights
In light of Fluor Corporation's (NYSE: FLR) recent contract for the small modular reactor (SMR) facility in Romania, it's noteworthy to consider the company's financial health and market performance as of the last twelve months leading into Q1 2024. With a market capitalization of $8.17 billion, and a P/E ratio that stands at 30.23, Fluor demonstrates a robust valuation in the market. This is particularly interesting as the company holds more cash than debt on its balance sheet, an InvestingPro Tip that suggests financial stability and potential for investment.
Fluor's revenue has seen a growth of 7.53% during the last twelve months as of Q1 2024, indicating a steady increase in its business activities. Despite a slight quarterly dip in revenue growth by 0.48%, the company's gross profit margin remains at 3.97%, which, although considered weak according to another InvestingPro Tip, has not deterred the company from making significant strides in its industry.
Investors may also take interest in Fluor's stock performance, which has seen a substantial return of 57.25% over the past year. This level of return, coupled with the fact that analysts predict the company will be profitable this year, positions Fluor as a potentially attractive option for those looking to invest in the Construction & Engineering sector.
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