Quantcast

KBR Wins EPCM Deal, Bolsters Hydrocarbons Services Business


Shutterstock photo

KBR Inc. KBR recently secured a multi-year Engineering, Procurement, and Construction Management (EPCM) services contract from a Fortune 100 chemicals manufacturer.

Per the deal, KBR will offer EPCM services for the Fortune 100 chemicals manufacturer's facilities located in the United States and Mexico. Notably, KBR will provide the services from a number of offices in Wilmington, Houston Raleigh and Monterrey. Estimated revenues related to this contract will be booked as unfilled orders in the Hydrocarbons Services Business segment's backlog in second-quarter 2018.

Other Notable Contracts

Some other significant deals recently inked by KBR include a contract modification from the Army Contracting Command, an EPCM contract from Basra Oil Company, a pre-FEED contract from INPEX Masela, and an ammonia plant contract for the Hindustan Urvarak and Rasayan Ltd (HURL) greenfield urea project in India.

Existing Business Scenario

KBR's Hydrocarbons Services Business is poised to grow backed by opportunities in downstream petrochemical and ethylene projects, and an increasing number of small-scale LNG projects in North America. Also, LNG activity is on the rise driven by increased demand from China and India for environmental reasons. Moreover, the company remains optimistic about backlog growth in the early 2018, courtesy of the pipeline of opportunities.

Also, the company expects growth across all its key markets in the United States, the UK and Australia backed by continued opportunities across the lifecycle of projects. The company foresees decent opportunities in ammonia, petrochemical and refining as well. Per KBR, healthy balance between hydrocarbons and government projects positions it well for future growth. In a year's time, this Zacks Rank #2 (Buy) company's shares have returned 24.1%, against the industry 's decline of 0.6%.

We are impressed with KBR's penchant for acquisitions and strategic alliances, which is allowing it to bolster the company's inorganic growth and expand market share. In this regard, some notable acquisitions made by KBR include the SGT and the Aspire buyouts. Impressively, the company remains optimistic about the prospects of both the buyouts mainly on account of increased government spending across space and defense. Such strategic buyouts are likely to supplement KBR's top-line performance, moving ahead.

Other Stocks to Consider

Some other top-ranked stocks in the same space include Quanta Services, Inc. PWR , Jacobs Engineering Group Inc. JEC and Rayonier Inc. RYN . All these three companies carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Quanta Services surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 6.7%.

Jacobs Engineering Group outpaced estimates in the preceding four quarters, with an average earnings surprise of 12.3%.

Rayonier exceeded estimates in the preceding four quarters, with an average earnings surprise of 144.5%.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Rayonier Inc. (RYN): Free Stock Analysis Report

Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report

Quanta Services, Inc. (PWR): Free Stock Analysis Report

KBR, Inc. (KBR): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: RYN , JEC , PWR , KBR



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?