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Jacobs secures major desalination plant project in Perth

EditorAhmed Abdulazez Abdulkadir
Published 19-04-2024, 08:34 pm

PERTH, Australia - Jacobs (NYSE: J), a global provider of technical, professional, and construction services, has been contracted by Water Corporation to spearhead the Alkimos Seawater Desalination Plant in Perth. The initiative is set to enhance the drinking water supply infrastructure for over 2.5 million residents in Western Australia.

The project, which is part of a broader program valued at around $1.83 billion (AUS $2.8 billion), aims to deliver a reliable and sustainable water source, independent of climate variability. Upon completion, the facility is expected to produce 13 billion gallons (50 billion liters) of drinking water annually, with the potential to double its output in the future.

Keith Lawson, Senior Vice President at Jacobs, emphasized the significance of the partnership with Water Corporation, highlighting Jacobs' expertise in global water projects and desalination technology. The company has a history of involvement in major desalination projects, including those in Sydney, Gold Coast, California, and Singapore.

The Alkimos plant's design includes a 2.5 mile (4.1 kilometer) offshore outfall tunnel and a 1.6 mile (2.6 kilometer) intake tunnel for clean seawater, both of which will be constructed beneath the seabed using tunnel boring machines.

Jacobs, known for its innovative solutions to water scarcity challenges, has been recognized by Engineering News Record as a top design firm in water treatment and desalination. The company's broader mission involves addressing critical global issues such as resilient environments and operational advancement, with a workforce of over 60,000 and annual revenues nearing $16 billion.

The information for this article is based on a press release statement.

InvestingPro Insights

Jacobs (NYSE: J), a key player in the Professional Services industry, has recently made headlines with its involvement in the Alkimos Seawater Desalination Plant project. As investors consider the company's prospects, certain financial metrics and analyst insights from InvestingPro stand out.

Firstly, Jacobs is trading at a P/E ratio of 25.44, which is considered high in relation to its near-term earnings growth, indicating that investors are expecting higher future earnings. The company's revenue growth has been steady, with a reported increase of 8.94% over the last twelve months as of Q1 2024, reflecting its capacity to expand its operations effectively.

Moreover, Jacobs has demonstrated a commitment to shareholder returns, raising its dividend for 5 consecutive years, with a notable dividend growth of 26.09% in the last twelve months as of Q1 2024. This could be a sign of the company's financial health and management's confidence in its future cash flows.

InvestingPro Tips suggest that while Jacobs operates with a moderate level of debt, analysts predict the company will be profitable this year, which is further substantiated by its profitability over the last twelve months. However, it's important to note that 4 analysts have revised their earnings downwards for the upcoming period, signaling potential caution for investors.

For those seeking a more in-depth analysis, there are additional InvestingPro Tips available on the platform. Use coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to comprehensive insights that could further inform investment decisions.

As Jacobs embarks on this significant water infrastructure project, the company's financial stability and industry position, as reflected in these InvestingPro metrics and tips, will be key factors for investors to watch.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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