) recently announced that its Hydrocarbons segment has received a
couple of contracts from
) for its project Lone Star based in Borger, Texas. The financial
terms for the same were not disclosed. Notably, the contracts
were recorded in fiscal second-quarter and third-quarter 2013
According to these contracts, KBR will provide engineering,
procurement and construction (EPC) services to Agrium's new urea
Agrium has intentions to ramp up the production facility at
the plant to meet the rising demand in the North American
agriculture industry. Once functional, the plant is expected to
have a production capacity of 670,000 tons of urea and 700,000
tons of ammonia per annum.
KBR has been focusing on developing technological equipment to
exploit the booming ammonia processing market worldwide. Apart
from strengthening its position in the ammonia processing market,
the above-mentioned contracts will enable KBR to further increase
its market share in the hydrocarbon business.
In fiscal 2013, the segment accounted for more than 20% of the
company's total revenue compared with 16% in the prior year. This
growth reflects the increasing share of the segment in the
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 last reported
quarter (fourth-quarter 2013), revenues in 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 holds a Zacks Rank #5 (Strong Sell). Some
better-ranked stocks that can be considered at the moment include
Quanta Services, Inc.
). Both of these have a Zacks Rank #2 (Buy).
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