Leading global engineering, construction and services company,
) received a project management consultancy (PMC) contract from the
largest operating refinery in Russia, owned by JSC Gazprom Neft.
Per the contract, KBR will provide PMC services for the
construction of the high-tech oil processing complex, which is part
of the major renovation program undertaken by the Russian refinery.
Though the financial details have been kept under wraps, KBR
intends to include the contract in its second-quarter 2014 backlog,
under the hydrocarbon segment.
The scope of the contract requires KBR to provide PMC services
for three new process units and offsites. Per the contract, KBR
will begin utilities construction with the front-end engineering
and design phase and proceed to engineering, procurement and
construction work along with commissioning. Also, KBR will assume
responsibilities for the project start-up.
KBR's hydrocarbon segment provides services ranging from
pre-feasibility studies to front-end engineering design through
construction and commissioning of process facilities in both remote
and developed areas around the world. In the fourth quarter of 2013
(the company has not released its first-quarter 2014, as a results
of restatement of its financial results), revenues at the
Hydrocarbons segment increased 24.8% year over year to $432
million. The revenue growth was driven by developments in the
downstream ammonia, urea and ethylene projects in key regions like
North America, Uzbekistan and Azerbaijan.
KBR currently has a Zacks Rank #4 (Sell). Some better-ranked
stocks 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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