Fluor Joint Venture Receives Notice to Proceed on Hanford Integrated Tank Disposition Contract
Fluor (NYSE: FLR) announced that the U.S. Department of Energy (DOE) has approved Hanford Tank Waste Operations & Closure, (H2C) to begin the Hanford Integrated Tank Disposition Contract. H2C is a joint venture led by a subsidiary of BWX Technologies, Inc., with Fluor and Amentum. The contract has an estimated ceiling of $45 billion over a 10-year period for environmental management operations at the Hanford Site in Washington state.
Fluor will recognize its share of earnings using the equity method of accounting starting in Q4 2024. The contract scope includes operation of Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant, and other core functions. A previous protest against the award was dismissed in the U.S. Court of Federal Claims.
Fluor (NYSE: FLR) ha annunciato che il Dipartimento dell'Energia degli Stati Uniti (DOE) ha approvato le Operazioni e la Chiusura dei Serbatoi di Hanford (H2C) per iniziare il Contratto Integrato per la Disposizione dei Serbatoi di Hanford. H2C è una joint venture guidata da una sussidiaria di BWX Technologies, Inc., con Fluor e Amentum. Il contratto ha un limite stimato di 45 miliardi di dollari su un periodo di 10 anni per le operazioni di gestione ambientale presso il Sito di Hanford, nello stato di Washington.
Fluor riconoscerà la propria quota di utili utilizzando il metodo della contabilizzazione per patrimonio a partire dal quarto trimestre del 2024. L'ambito del contratto include l'operazione delle strutture della fattoria dei serbatoi di Hanford, l'eventuale operazione dell'Impianto di Trattamento e Immobilizzazione dei Rifiuti e altre funzioni principali. Una precedente protesta contro l'assegnazione è stata respinta dalla Corte Federale degli Stati Uniti.
Fluor (NYSE: FLR) anunció que el Departamento de Energía de EE. UU. (DOE) ha aprobado las Operaciones y el Cierre de Residuos de Tanques de Hanford (H2C) para iniciar el Contrato Integrado de Disposición de Tanques de Hanford. H2C es una empresa conjunta liderada por una subsidiaria de BWX Technologies, Inc., junto con Fluor y Amentum. El contrato tiene un techo estimado de 45 mil millones de dólares durante un período de 10 años para las operaciones de gestión ambiental en el Sitio de Hanford en el estado de Washington.
Fluor reconocerá su parte de las ganancias utilizando el método de participación a partir del cuarto trimestre de 2024. El alcance del contrato incluye la operación de las instalaciones de la granja de tanques de Hanford, la eventual operación de la Planta de Tratamiento e Inmovilización de Residuos y otras funciones principales. Una protesta anterior contra la adjudicación fue desestimada por la Corte Federal de EE. UU.
플루어 (NYSE: FLR)는 미국 에너지부(DOE)가 한포드 탱크 폐기물 운영 및 폐쇄(H2C)를 승인하여 한포드 통합 탱크 처분 계약을 시작한다고 발표했습니다. H2C는 BWX Technologies, Inc.의 자회사가 주도하는 조인트 벤처로, 플루어와 아멘텀이 함께 하고 있습니다. 이 계약은 워싱턴주 한포드 사이트에서 환경 관리 작업을 위해 10년 동안 450억 달러로 추산되는 한도를 가집니다.
플루어는 2024년 4분기부터 지분법을 사용하여 이익의 몫을 인식할 것입니다. 계약 범위에는 한포드 탱크 농장 시설 운영, 폐기물 처리 및 고정화 플랜트의 최종 작업 및 기타 핵심 기능이 포함됩니다. 이전에 제기된 수상 반대는 미국 연방 청원 법원에서 기각되었습니다.
Fluor (NYSE: FLR) a annoncé que le département de l'Énergie des États-Unis (DOE) a approuvé les opérations et la fermeture des déchets de réservoirs de Hanford (H2C) pour commencer le contrat intégré de disposition des réservoirs de Hanford. H2C est une coentreprise dirigée par une filiale de BWX Technologies, Inc., avec Fluor et Amentum. Le contrat a un plafond estimé à 45 milliards de dollars sur une période de 10 ans pour les opérations de gestion environnementale sur le site de Hanford dans l'État de Washington.
Fluor reconnaîtra sa part de bénéfices en utilisant la méthode de la mise en équivalence à partir du 4e trimestre 2024. La portée du contrat comprend l'exploitation des installations de la ferme de réservoirs de Hanford, l'exploitation éventuelle de l'usine de traitement et d'immobilisation des déchets, et d'autres fonctions essentielles. Une protestation précédente contre l'attribution a été rejetée par le tribunal fédéral des États-Unis.
Fluor (NYSE: FLR) gab bekannt, dass das US-Energieministerium (DOE) die Hanford Tank Waste Operations & Closure (H2C) genehmigt hat, um den Integrierten Tankentsorgungsvertrag von Hanford zu beginnen. H2C ist ein Joint Venture, das von einer Tochtergesellschaft von BWX Technologies, Inc. geleitet wird, gemeinsam mit Fluor und Amentum. Der Vertrag hat ein geschätztes Kostenlimit von 45 Milliarden US-Dollar über einen Zeitraum von 10 Jahren für umwelttechnische Operationen am Hanford-Standort im Bundesstaat Washington.
Fluor wird seinen Anteil an den Gewinnen ab dem 4. Quartal 2024 nach der Equity-Methode buchen. Der Vertragsumfang umfasst den Betrieb der Hanford-Tankfarm-Anlagen, den späteren Betrieb der Abfallbehandlungs- und Immobilisierungsanlage sowie andere Kernfunktionen. Ein vorheriger Einspruch gegen die Vergabe wurde vom US-Gericht für Bundesansprüche abgewiesen.
- Contract has an estimated ceiling of $45 billion over 10 years
- Fluor will recognize earnings from the contract starting Q4 2024
- Expands Fluor's presence in the Hanford Site cleanup mission
- Protest against the contract award was dismissed, allowing work to proceed
- None.
Insights
This contract award is a significant development for Fluor and its joint venture partners. The
- The contract's scale could provide stability and predictability to Fluor's future earnings, potentially reducing volatility.
- Fluor's use of the equity method of accounting suggests they don't have a controlling interest, which may limit the immediate impact on their financial statements.
- The dismissal of the protest in federal court removes a significant obstacle, allowing work to proceed without further delays.
- Fluor's long-standing presence in the Tri-Cities area and previous experience with Hanford projects may provide operational advantages and efficiencies.
Investors should monitor how effectively Fluor manages this large-scale, complex project, as successful execution could enhance their reputation and lead to future contract opportunities in the government sector.
The Hanford Integrated Tank Disposition Contract represents a critical environmental cleanup mission with far-reaching implications. Key considerations include:
- The project's complexity, involving radioactive waste management and remediation, poses significant technical and safety challenges.
- Successful execution could position Fluor and its partners as leaders in nuclear waste management, a growing field as many countries grapple with legacy nuclear sites.
- The contract's scope, including operation of tank farm facilities and the Waste Treatment Plant, requires a high level of expertise and carries substantial operational risks.
- Environmental performance on this project could have long-term impacts on Fluor's reputation and future contract eligibility in both government and private sector environmental projects.
Investors should closely monitor project milestones, safety records and any cost overruns or delays, as these factors could significantly impact Fluor's performance and stock valuation over the contract's duration.
An aerial view of the Hanford Site in
Earlier in 2024, the DOE announced that the contract had been awarded to H2C. A protest against this award was recently dismissed in the
“Fluor and our H2C partners are ready to get to work on this important DOE cleanup mission,” said Tom D’Agostino, Group President of Fluor’s Mission Solutions business. “We’ve been a proud member of the Tri-Cities community for more than 25 years, beginning with the Project Hanford Management Contract in 1996 and continuing through to our role today on the Central Plateau Cleanup Contract. We look forward to supporting the DOE and other site contractors in continuing our effort and in working with the community.”
The contract scope includes the operation of the Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant, and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s nearly 34,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of
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Brett Turner
Media Relations
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Jason Landkamer
Investor Relations
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Source: Fluor Corporation
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