Houston-based technology, engineering, procurement and construction company KBR, Inc.'sKBR winning streak continues with an Engineering, Procurement and Construction ("EPC") services contract from Monroe Energy.
The contract calls for EPC services for the Tier 3 Ultra-Low-Sulfur Gasoline Project at Monroe's Refinery in Trainer, PA.
Per the terms of the deal, KBR will handle the relocation and reconstruction of an idle 60,000 Barrels per Day SCANfining unit from another facility to Monroe's Refinery. The work is expected to be completed in 2017, with the unit slated to start operations in the same year.
The revenues connected with this project will be accounted for in the backlog of unfilled orders during the second quarter of 2016, under KBR's Engineering & Construction Business Segment.
In addition to strengthening its robust foothold in the north-east U.S. region, this noteworthy contract also emphasizes KBR's wide-ranging refining capabilities and proven expertise.
Just last week, KBR secured a Bankable Feasibility Study contract by ECOWAS Refinery Liberia Limited, under which it will conduct refinery configuration development, a market study and an Environmental, Social and Health Impact Assessment study for the project.
Earlier this month, KBR also won a contract extension with Qatar's Expressway Program, wherein it will continue its role as a program management consultant for the project for the next three years. The extension, awarded by Qatar's Public Works Authority's (Ashghal) program management contractor, is valued at over $185 million.
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Such lucrative contract wins, coupled with KBR's ability to execute large-scale logistics and project management services, further add to its strength and are expected to boost its financials. In addition, the company's capital allocation strategies and partnerships are expected to propel growth in the forthcoming quarters.
However, a steep decline in revenues over the past few quarters, owing to macroeconomic concerns, has been weighing on KBR's financials.
KBR currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industrial products sector include Eaton Corporation plc ETN , Powell Industries, Inc. POWL and ESCO Technologies Inc. ESE , each holding a Zacks Rank #2 (Buy).