ShawCor wins Chevron contract

Article Excerpt

SHAWCOR LTD. $35 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.6 million; Market cap: $2.5 billion; Price-to-sales ratio: 2.4; Dividend yield: 0.9%; TSINetwork Rating: Average; www.shawcor.com) has won a contract from Chevron Corp. (New York symbol CVX) to coat pipelines that will pump oil from Chevron’s Jack/St. Malo offshore oilfield in the Gulf of Mexico. ShawCor will start work on this contract later this year, and complete the job in mid-2012. The deal is worth $40 million U.S. That’s just 4% of ShawCor’s annual revenue of over $1 billion (Canadian). However, it will probably lead to more pipeline-coating contracts from Chevron. ShawCor is a buy. buy…

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