Leading engineering and construction services provider KBR, Inc. (KBR - Analyst Report) recently announced that it has received a contract from Midwest Fertilizer Corporation for its upcoming facility in Mt. Vernon, Indiana. The deal will be booked in the company’s fourth quarter backlogs, but financial terms remained undisclosed.
The scope of the deal requires KBR to provide its globally renowned Purifier technology for the new fertilizer manufacturing plant. This innovative technology had been designed to optimize operational efficiency while significantly reducing capital costs. Also, this technology has been established as the lowest energy-consuming solution in the industry. Apart from this, the company will also have to provide engineering and design package, proprietary equipment, and technology license for the facility.
This facility has a per day ammonia production capacity of 2,200 metric ton, critical for the overall development of Indiana. The facility is likely to improve agriculture production and provide employment opportunities in the region.
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.
In Nov 2013, KBR had received a contract from Algeria-based petrochemical firm Fertial SpA to conduct a study for upgrading a couple of regional ammonia plants. 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). Better-ranked stocks in the engineering and construction sector worth considering at the moment include VSE Corp. , which carries a Zacks Rank #1 (Strong Buy), and Jiangsu Expressway Co. Ltd. (JEXYY - Snapshot Report) and Rexnord Corp. (RXN - Analyst Report), both carrying a Zacks Rank #2 (Buy).