Leading engineering and construction services provider KBR, Inc. (KBR - Analyst Report) recently announced that it has received a contract from Algeria-based petrochemical firm Fertial SpA to conduct a study for upgrading a couple of Algerian ammonia plants. The study will primarily focus on increasing the plant’s efficiency and production capacity. The company noted that the contract will be recorded in the fourth quarter bookings, but the financial terms of the deal were not disclosed.
The scope of the study entails KBR to revamp the project in first phase. KBR will also be providing the outlines for technical scope and commercial requirements for the project to be economically viable. The study is expected to make the ammonia plants more efficient while ensuring increased safety and reliability.
The report from the study will also aid in increasing the plants production capacity and it is expected that ammonia production will gradually increase by as much as 50%. This increase will be introduced in phases for these vintage plants, which were established in 1970s.
Fertial SpA is a leading petrochemical firm producing ammonia, compound fertilizers, superphosphate straight fertilizer, granulated ammonium nitrate and calcium ammonium nitrate and urea ammonium nitrate. The company is also a leading exporter of Petrochemicals in Mediterranean Sea and has a significant petrochemical share in Arab.
KBR is an industrial construction and engineering facility provider, offering services to hydrocarbon, chemical and petrochemical industries. KBR has a 60-year old legacy of providing construction and maintenance services. Going forward, with continued growth in demand for construction and maintenance services, we expect the company to secure more such contracts in the imminent future.
KBR currently has a Zacks Rank #5 (Strong Sell). Other stocks in the industry worth reckoning at the moment include Jacobs Engineering Group Inc. (JEC - Analyst Report), Premier Oil plc (PMOIY) and Quanta Services, Inc. (PWR - Analyst Report). All three carry a Zacks Rank #2 (Buy).