) recently received a $1-billion worth contract from Ingleside
Ethylene LLC for the engineering, procurement and construction of
an ethane cracker and associated utilities and off-sites. This
ethane cracker facility will be constructed at Occidental
Chemical Corporation's complex at Ingleside, Texas.
According to the contract, CBI will provide the technology
license and basic engineering for the ethylene technology, five
SRT (short residence time) cracking heaters and the front end
engineering and design (FEED) services.
Ingleside Ethylene LLC, is a joint venture between Occidental
Chemical Corp. (OxyChem), a subsidiary of
Occidental Petroleum Corp.
), and Mexichem, S.A.B. de C.V. (Mexichem). The ethane cracker
will be located in OxyChem's complex, in Texas and once
operational, it will produce about 1.2 billion pounds of ethylene
annually. Primary feedstock for this cracker will be the ethane
derived from domestic shale gas.
CBI primarily engages in the design, build, repair and
modification of steel tanks and other steel plate structures. In
addition, the company also has expertise in the design and build
of petroleum terminals, refinery pressure vessels, low
temperature and cryogenic storage facilities and elevated water
storage tanks for clients internationally.
Engineering company, Chicago Bridge & Iron reported
third-quarter 2013 adjusted earnings of $121.3 million or $1.12
per share (excluding the one time items), in line with the Zacks
Consensus Estimate. Adjusted net income improved 46.7% year over
year on the back of strong project activities during the
Further, revenues for the quarter increased a robust 106.8%
year over year to $3.0 billion, driven by healthy revenue growth
across all the three legacy business units of the company due to
the rising demand for energy infrastructure, especially in the
LNG, gas processing and oil and gas markets across the world.
CBI currently has a Zacks Rank #3 (Hold). Some better-ranked
stocks in the energy and utility sector include
A O Smith Corp.
). Both carry a Zacks Rank #1 (Strong Buy).
SMITH (AO) CORP (AOS): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
OCCIDENTAL PET (OXY): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
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