) recently announced that it has been selected by a major leading
chemical company to perform turnaround services for its pyrolysis
gasoline (pygas) unit on the US Gulf Coast. As per the terms of
the contract, KBR will look after the issues relating to
regulatory maintenance, mechanical fixed equipment, piping
systems, electrical and instrumentation services for the pygas
In addition, KBR will also be responsible for the entire
activities of event management, project controls and
subcontractor management, being the general contractor for this
The contract value has not yet been disclosed by either party.
KBR expects that this turnaround execution will increase the
efficiency and extend the operational life of the unit. KBR is
experiencing strong growth opportunities in the area of
turnaround project execution.
Recently, KBR won 2 turnaround contracts, the most recent
being a three-year agreement from
Suncor Energy Inc
) to provide turnaround services for its refinery in Edmonton,
Canada. Prior to this, KBRreceived a turnaround services contract
from a leading supplier of agricultural products.
Since the last reported quarter, contracts have been pouring
in for KBR. The company received a number of multi-million
contracts including the recent $145 million contract from
VicRoads, a state government agency in Victoria, Australia, for a
road and rail project. With this steady inflow of new orders, the
company is expected to report an increase in revenue and margins
in the coming quarters. As per Zacks Consensus estimates, the
company has a positive expected earnings growth of 12%.
The contract will be included in KBR's services segment.
Services business group primarily delivers full-scope
construction, construction management, fabrication,
operations/maintenance, commissioning/startup and turnaround
expertise worldwide to a broad variety of markets including oil
and gas, petrochemicals processing, mining, power, alternate
energy, pulp and paper, industrial and manufacturing and consumer
Services revenue increased by $43 million in 2012 as compared
to 2011. This increase is primarily driven by increases of $167
million in our Canada product line and $121 million in our U.S.
Construction product line due to several new awards and increased
activity on new projects
KBR currently holds a Zacks Rank #3 (Hold). Other stocks worth
a look in the services sector are
Michael Baker Corporation
) , holding a Zacks Rank #1 (Strong Buy),
Harris & Harris Group, Inc.
) carrying a Zacks Rank #2 (Buy) each.
BAKER (MICHAEL) (BKR): Free Stock Analysis
KBR INC (KBR): Free Stock Analysis Report
SUNCOR ENERGY (SU): Free Stock Analysis
HARRIS & HARRIS (TINY): Get Free Report
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