Two large orders received by Skanska joint ventures across Atlantic Ocean

Skanska (OMX: SKA B) noted of two large orders before market open on Tuesday. In total these will add over 2.5 billion SEK into Q1 2012 orders received. The stock was up 1.5% on Tuesday following an afternoon surge.

As a leader of a consortium, Skanska was awarded Engineering, Procurement and Construction contract from Petrobras to increase natural gas treatment & compressing capacity of Cabiúnas Terminal (TECAB) in Rio de Janeiro, Brazil by 25 percent. Skanska’s share in the joint venture with local companies is 33%, so its portion of the total 1.3 billion BRL (currently ~5.2 billion SEK) order is some 450 million BRL (~1.7 BSEK).

The over 5 million cubic metre per day increase demands seven new processing units and interconnections with exiting units. Pre-salt oil and gas fields observed by Petrobras are part of the plan. Work will start immediately with around 3000 people involved at peak construction. Completion is expected in Q4 2014.

Skanska will also build a 2.8 million square foot (260 000 m2) research and development facility in the U.S. in 50/50 joint venture with DPR Construction. The initial contract is valued 256 million USD, making Skanska’s share at 128 million (~860 million SEK). Skanska said it is expecting amendments to the contract for additional phases once prices are agreed upon.