Chicago Bridge & Iron Company is the world's leading provider
of integrated engineering, procurement and construction services.
We are maintaining a Neutral recommendation with a target price of
$61.00. The company delivered another strong quarter with earnings
up 12.0% year over year and top-line growth of 30.0%. The key
growth drivers for CBI include its diligent operational execution,
its focus on safety and the unique business model. CBI is
benefiting from rising worldwide demand for energy infrastructure,
especially in the LNG, gas processing and oil sands markets.
Exiting the year, the company had a strong backlog driven by
significant new order wins. CBI is positive about increasing orders
in the LNG division, especially for LNG/low temperature storage
systems (petrochemicals). However, unfavorable currency translation
remains a drag.
Chicago Bridge & Iron Company N.V. (CB&I) is among the
world's leading integrated engineering, procurement and
construction service provider and major process technology
licensors, providing comprehensive solutions to customers primarily
in the energy and natural resource industries. For fiscal 2013, the
company reported consolidated revenues of $11.1 billion growing a
robust 102% versus fiscal 2012.
In fiscal 2013, Chicago Bridge formally completed the
acquisition of The Shaw Group Inc for $3.4 billion. This
acquisition will expand its portfolio of engineering and
construction projects and is also expected to boost its nuclear
building services. The Shaw Group primarily serves sectors like
energy, chemicals, power, environmental, infrastructure and
emergency response industries.
Following this acquisition, the company now since the beginning
of 2013, offers services under four operating groups:
Engineering, Construction and Maintenance: This segment provides
engineering, procurement and construction (EPC) services for major
energy infrastructure facilities. This segment also offers
comprehensive and integrated maintenance services and includes the
company's Oil and Gas business unit (formerly the Project
Engineering and Construction segment) and Shaw's former Power and
Plant Services segments. Projects for this operating group
primarily comprise nuclear, fossil and renewable electric
generating plants for the power industry and upstream and
downstream process facilities for the oil and gas industry, such as
refinery process units and petrochemical facilities, as well as
Liquefied Natural Gas liquefaction and regasification
Fabrication Services: Fabrication Services provides fabrication
of piping systems, process and nuclear modules, and fabrication and
erection of storage tanks and pressure vessels for the oil and gas,
petrochemicals, water and wastewater, mining, mineral processing
and power generation industries. This operating group includes the
Steel Plate Structures business unit (formerly the Steel Plate
Structures segment) and Shaw's former F&M segment. Projects for
this operating group include above ground storage tanks, LNG tanks,
pressure vessels, elevated water storage tanks, other specialty
structures, such as nuclear containment vessels and process and
nuclear modules, as well as fabrication of piping and structural
steel, induction bending and module prefabrication and
Technology: Technology provides licensed process technologies,
catalysts, specialized equipment and engineered products for use in
petrochemical facilities, oil refineries, coal gasification plants
and gas processing plants and offers process planning and project
development services, and a comprehensive program of aftermarket
support. This operating group primarily consists of the company's
former Lummus Technology segment.
Government Solutions: Government Solutions provides design-build
infrastructure projects for federal, state and local governments,
design-build services for marine and transportation projects and
full-scale environmental services for government and private sector
clients, including remediation and restoration of contaminated
sites, emergency response, and disaster recovery. This operating
group primarily consists of Shaw's former E&I segment.
Chicago Bridge & Iron Company N.V. (CBI): Read
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