Chicago Bridge & Iron
) recently received a contract from Exelon Generation Company, LLC
for the maintenance, modification and construction of five
additional nuclear power units in New York and Maryland. Valued at
$800 million, this five-year contract extends Chicago Bridge &
Iron's existing contract with Exelon under which the former is
providing similar services to 17 nuclear power units.
Per the contract, Chicago Bridge & Iron will also supply
temporary staffing, painting and insulation services across a total
of 22 nuclear power units.
Notably, Exelon Generation's nuclear division operates the
biggest fleet of nuclear plants in the U.S. The company's fleet
comprises 23 reactors across 14 locations. Nuclear energy is a
clean, safe, cost effective way to meet future energy demands.
Further, nuclear energy enables stable and uninterrupted power
supply over a long period. To add to the positives, nuclear energy
is also environmentally safe as it emits virtually no greenhouse
gases, thereby making it a clean power source that can help address
the glaring global warming issue.
Chicago Bridge & Iron's Engineering, Construction and
Maintenance group provides engineering, procurement, fabrication
and construction along with comprehensive and integrated
maintenance services to major energy infrastructure facilities.
This division primarily designs and builds nuclear, fossil and
renewable electric generating plants for the power industry and
accounted for 61% of the company's total revenue in fiscal 2013.
The segment also reported a robust revenue increase of 392% in the
last reported quarter (first quarter 2014).
Separately, Chicago Bridge & Iron is building four new
nuclear power plants in China's State Nuclear Power Technology
Company (SNPTC) using Westinghouse Electric Company's AP1000
passive Generation III+ technology. This apart, the company has
been awarded a contract by Westinghouse for two nuclear containment
vessels for Georgia Power in Waynesboro, GA. Additionally, Chicago
Bridge & Iron and Westinghouse are building two AP1000 nuclear
electric-generating units at the V.C. Summer Nuclear Station, near
Chicago Bridge & Iron primarily provides designing,
engineering, construction, fabrication, maintenance and
environmental services to government enterprises.
Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold).
Some better-ranked companies in the sector include
Emcor Group Inc.
Sterling Construction Co. Inc
Tutor Perini Corporation
). All three carry a Zacks Rank #2 (Buy).
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CHICAGO BRIDGE (CBI): Free Stock Analysis
EMCOR GROUP INC (EME): Free Stock Analysis
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STERLING CONSTR (STRL): Free Stock Analysis
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