It has been raining contracts for
Chicago Bridge & Iron Company N.V.
). The company recently announced having received a liquefied
natural gas (LNG) project from Australia-based Bechtel and a pipe
fabrication contract from
Enterprise Products Partners L.P.
). The aggregate value of the two deals is over $725 million.
Notably, these deals come after the company declared on March
17 that it received a $6 billion LNG contract in a joint venture
(JV) with Chiyoda International Corp. The contract was awarded by
LA-based Cameron LNG, LLC for construction of its Cameron
Liquefaction Project in Hackberry.
The company's continued contract wins propelled its share
prices to craft a new 52-week high of $87.08 on March 18.
Bechtel has awarded the $625 million (about A$690 million)
contract for providing diverse services for its Wheatstone
Project at Ashburton North. The project operated by
), a JV between the Australian units of Apache Corporation,
Kuwait Foreign Petroleum Exploration Company, Shell, Kyushu
Electric Power Company and PE Wheatstone Pty Ltd.
The contract entails CBI to provide structural, mechanical and
piping construction services for external battery limits - that
are separate areas in the plant - for processing facilities and
services. The company's expertise in engineering and construction
projects will significantly benefit this project.
Enterprise Products Partners awarded CBI a contact worth more
than $100 million to provide pipe fabrication for its upcoming
propane dehydrogenation unit in Mont Belvieu, TX. The company's
strong presence in the Gulf Coast, along with its expertise in
such projects, will significantly benefit this project. Moreover,
CBI is one of the few engineering, procurement and construction
and process technology contractors with in-house fabrication
facilities, for offering modular construction services.
CBI is a leader in the LNG storage market. It has been
diligently implementing initiatives to increase its market share
in LNG/low temperature storage systems (petrochemicals). The
above-mentioned contracts will expectedly strengthen the
company's position and push up its backlog levels as well.
CBI currently has a Zacks Rank #3 (Hold). Investors interested
in this sector could also consider better-ranked stocks like
), which has a Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
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MASTEC INC (MTZ): Free Stock Analysis Report
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