) was awarded a contract by petrochemical giant Sasol Technology
(Pty) Ltd, the technology arm of the Sasol Group (Sasol), to
provide engineering, procurement and construction management
(EPCm) services for its gaseous oxygen compressor at the Oxygen
East Plant in South Africa. The financial details of the contract
have not yet been disclosed.
KBR would provide time control as well as cost and quality
control and management services along with a full range of
engineering services that will vary in scope depending on Sasol's
needs for restoring the plant efficiency. The contract will be
carried out as per the terms of the existing agreement between
Sasol and KBR.
Earlier in 2009, KBR had received two contracts from Sasol
with a combined value of about $2.7 million for projects in
Sasolburg, South Africa. For these projects, KBR provided EPCm
services for Sasol's high sulphur diesel project. In addition,
the company offered the conceptual design to convert Sasol's
existing polyvinyl chloride (PVC) open reactor technology plant
to closed reactor technology.
In 2010, the company was awarded another Framework Contract by
Sasol to provide engineering services across various sectors
including downstream, petrochemical, and upstream businesses in
South Africa. With years of relevant experience and continued
partnership with Sasol, management at KBR is confident of
performing well on the current contract as well.
KBR is a leading global engineering, construction and services
company supporting the energy, hydrocarbon, government services,
minerals, civil infrastructure, power and industrial markets.
During the last month, the company received 7 new contracts the
most recent being $17.9 million Air force task order awarded to
its joint venture with CH2M Hill. With a steady influx of
contracts, KBR has a high positive earnings growth expectation of
12% for the next 5 years.
Other Stocks to Consider
KBR is a high beta stock (with beta of 1.3). This means
greater volatility, which renders the stocks riskier. But under
favourable conditions along with a strong volume support, the
stocks also obtain the potential for high returns. With KBR, it
has been a blessing and thus investors will derive gains, which
will tend to be more heavily driven by capital gains from stock
price hikes and less from direct dividend income.
KBR currently has a Zacks Rank #3 (Hold). Other stocks from
the same sector that look promising include
Michael Baker Corporation
), with a Zacks Rank #1 (Strong Buy), while both
Harris & Harris Group, Inc.
Willdan Group, Inc.
) have a Zacks Rank #2 (Buy) each.
BAKER (MICHAEL) (BKR): Free Stock Analysis
KBR INC (KBR): Free Stock Analysis Report
HARRIS & HARRIS (TINY): Get Free Report
WILLDAN GROUP (WLDN): Get Free Report
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