Chicago Bridge & Iron Wins 3 Back-to-Back Deals Worth $200M - Analyst Blog

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Chicago Bridge & Iron ( CBI ) secured three contracts valued over $200 million yesterday. The first one was a renewal of contract in the leading global speciality chemicals industry for long-term maintenance, operations, engineering and other industrial services at multiple chemical facilities across the U.S. This contract renewal opens up opportunities worth $110 million for Chicago Bridge & Iron.

The second was awarded by LSB Industries Inc . ( LXU ) - a subsidiary of El Dorado Ammonia L.L.C. The scope of this deal requires Chicago Bridge & Iron to provide engineering, procurement, fabrication and construction services for a 30,000 ton, full-containment, low-temperature ammonia storage tank. This storage tank is an essential requirement for LSB's ammonia plant expansion in El Dorado, AR. Notably, Chicago Bridge & Iron is a leading constructor of low temperature storage tanks.

The third contract was a front end engineering and design (FEED) one from NefteGazIndustriya, LLC for the latter's Afipsky Oil Refinery in Krasnodar, Russia. Apart from the FEED services, the $90 million contract requires Chicago Bridge & Iron to provide technology licenses for the project.

Per this contract, Chicago Bridge & Iron will provide FEED services to multiple new process units, which include a 2.5 million ton annual production hydrocracker unit licensed by Chevron Lummus Global - a joint venture between Chicago Bridge & Iron and Chevron Corporation ( CVX ). FEED services will also be provided to the hydrogen and sulfur units licensed by Chicago Bridge & Iron and other associated units. Additionally, Chicago Bridge & Iron will provide technology and FEED services for a crude distillation/vacuum distillation/visbreaker complex. For this, the company will employ the Shell Soaker Visbreaking technology which is jointly licensed by it and Shell ( RDS.A ).

Chicago Bridge & Iron primarily provides designing, engineering, construction, fabrication, maintenance and environmental services to government enterprises. The stock currently has a Zacks Rank #3 (Hold).

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

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

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