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KBR, Inc. (KBR - Free Report) , along with its subsidiary, Weatherly Inc., unveiled the new Weatherly Dual Pressure Nitric Acid Technology, which will help produce Nitric Acid economically and in large quantities.
Weatherly's technology is designed to enable production of Nitric Acid on a large scale (over 1,000 Mtons/day) at very low costs, as part of large fertilizer production complexes.
The technology has a highly efficient heat recovery design, which helps convert tail gas heat into energy, which in turn is used to power up the plant. This allows the production of nitric acid at a much lower operating cost (about $4 to $5 per ton lower) compared with competing dual pressure plants of the same capacity.
Further, Weatherly's Dual Pressure plants entail lower capital investment (up to 10% less) relative to competing designs, thanks to their compact design and proven vertical reactor, which needs less steel and piping than traditional plants.
The new technology meets a growing need for larger nitric acid plants as part of larger fertilizer complexes globally.
Also, this Dual Pressure design rounds up KBR’s portfolio, as it is already a market leader in smaller-scale nitric acid production with its advanced High Mono-Pressure Nitric Acid technology.
KBR bought Weatherly in the first-quarter 2016, and since then it has strengthened KBR’s foothold in the fertilizer technologies and life cycle services offerings platform. Weatherly also added market-leading ammonia solutions to KBR’s portfolio. At the time of the acquisition, Weatherly had an installed base of 80 nitric acid plants across the world, with approximately 30% market share of installed plants.
KBR has a diversified business portfolio which helps combat cyclicality associated with any single market. Presently, the company is banking on the strength of its Technology & Consulting and Government Services businesses to optimize its growth potential. Of late, it has won multiple key contracts and deal extensions that have proved conducive to growth.
However, a steep decline in revenues over the past few quarters, owing to macroeconomic concerns, have been weighing on KBR’s financials. Also, lower oil prices, uncertain global economical conditions, and sluggish activities in several projects approaching completion, continue to act as headwinds for this Zacks Rank #3 (Hold) company.
Some better-ranked stocks in the broader industrial products sector include Willdan Group, Inc. (WLDN - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) , AO Smith Corp. (AOS - Free Report) , each holding a Zacks Rank #2 (Buy).
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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KBR Weatherly Unveils Dual Pressure Nitric Acid Technology
KBR, Inc. (KBR - Free Report) , along with its subsidiary, Weatherly Inc., unveiled the new Weatherly Dual Pressure Nitric Acid Technology, which will help produce Nitric Acid economically and in large quantities.
Weatherly's technology is designed to enable production of Nitric Acid on a large scale (over 1,000 Mtons/day) at very low costs, as part of large fertilizer production complexes.
The technology has a highly efficient heat recovery design, which helps convert tail gas heat into energy, which in turn is used to power up the plant. This allows the production of nitric acid at a much lower operating cost (about $4 to $5 per ton lower) compared with competing dual pressure plants of the same capacity.
Further, Weatherly's Dual Pressure plants entail lower capital investment (up to 10% less) relative to competing designs, thanks to their compact design and proven vertical reactor, which needs less steel and piping than traditional plants.
The new technology meets a growing need for larger nitric acid plants as part of larger fertilizer complexes globally.
Also, this Dual Pressure design rounds up KBR’s portfolio, as it is already a market leader in smaller-scale nitric acid production with its advanced High Mono-Pressure Nitric Acid technology.
KBR INC Price and Consensus
KBR INC Price and Consensus | KBR INC Quote
KBR bought Weatherly in the first-quarter 2016, and since then it has strengthened KBR’s foothold in the fertilizer technologies and life cycle services offerings platform. Weatherly also added market-leading ammonia solutions to KBR’s portfolio. At the time of the acquisition, Weatherly had an installed base of 80 nitric acid plants across the world, with approximately 30% market share of installed plants.
KBR has a diversified business portfolio which helps combat cyclicality associated with any single market. Presently, the company is banking on the strength of its Technology & Consulting and Government Services businesses to optimize its growth potential. Of late, it has won multiple key contracts and deal extensions that have proved conducive to growth.
However, a steep decline in revenues over the past few quarters, owing to macroeconomic concerns, have been weighing on KBR’s financials. Also, lower oil prices, uncertain global economical conditions, and sluggish activities in several projects approaching completion, continue to act as headwinds for this Zacks Rank #3 (Hold) company.
Some better-ranked stocks in the broader industrial products sector include Willdan Group, Inc. (WLDN - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) , AO Smith Corp. (AOS - Free Report) , each holding a Zacks Rank #2 (Buy).
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>