Chicago Bridge & Iron Company N.V.CBI has recently won a $70 million contract from JG Summit Petrochemical Corporation (JGSPC) for the Stage 1 Expansion project, located in Batangas City of Philippines.
Notably, the company's work will include the engineering, fabrication and construction of ten traditional field erected storage tanks along with one double-wall liquefied petroleum gas storage tank and three spheres. The scope of work also consists of technical evaluation to service numerous tanks on the project. Earlier the company also provided a technology license, basic engineering package as well as heater supply to the project.
Existing Business Scenario
Moving ahead, Chicago Bridge & Iron expects multiple opportunities in its key end markets, including the U.S., East Africa and the Middle East. Meanwhile, the company is well placed for major EPC and storage projects for multiple regasification terminals in the Asia-Pacific region owing to significant increase in demand for LNG worldwide. The uptick in storage and pipe fabrication awards around the world, and significant opportunities in petrochemicals and refining are expected to act as key catalysts.
Furthermore, the company is taking multiple strategic investments and collaborations in technology to boost profitability and market share. Also, Chicago Bridge & Iron's concerted efforts to reinvent its supply chain are expected to generate returns more than the typical margins associated with engineering and construction projects.
Additionally, the company seems to benefit from its diligent execution of strategies, restructuring and cost-saving initiatives culture. As a result of its continual focus on efficiency, Chicago Bridge & Iron has been able to reduce overhead costs. Notably, in the past six months, this Zacks Rank #3 (Hold) stock has gained 29.8% outperforming the industry 's rally of 15.1%.
Some better-ranked stocks from the same space are Potlatch Corporation PCH , EMCOR Group, Inc. EME and Dycom Industries, Inc. DY . While Potlatch sports a Zacks Rank #1 (Strong Buy), EMCOR Group and Dycom Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Potlatch has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 36.9%.
EMCOR Group has outpaced estimates in the preceding four quarters, with an average earnings surprise of 28.1%.
Dycom Industries has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 7.1%.
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