Fluor wins EPCM contract for Malaysia aroma ingredients facility Fluor announced that it was awarded an engineering, procurement and construction management contract by BASF PETRONAS Chemicals for an integrated aroma ingredients facility in Kuantan, Malaysia. Fluor booked the undisclosed contract value into backlog in 1Q14. Fluor completed the front-end engineering and design for the facility in September 2013 and was awarded the EPCM phase once the project was sanctioned by the owner. In addition, Fluor began FEED services for the downstream menthol unit that is planned for the Kuantan facility. Among other chemicals, the new facility will produce citral.
Fluor downgraded to Underperform from Buy at BofA/Merrill As previously reported, BofA/Merrill assumed coverage on Fluor with an Underperform rating from a Buy rating. The firm sees better value elsewhere in the sector and expects double-digit backlog decline and peak earnings in 2015. Price target is $51.