ChicagoBridge & Iron(CBI) has recently announced that it has won an offshore engineering contract in Europe. The contract is worth more than $80 million and is expected to be completed in fiscal 2013.
As per the terms of the contract, Chicago Bridge & Iron will be responsible for complete engineering design and will also provide procurement services for the project.
Earlier in June 2012, the company announced the winning of a front end engineering and design (FEED) contract from Nizhnekamskneftekhim OAO, valued at more than $40 million.
Chicago Bridge & Iron Company is one of the few engineering, procurement and construction (EPC) and process technology contractors with in-house fabrication facilities. These facilities allow the company to offer customers a wide range of options in modular construction, wherever feasible.
Going forward, Chicago Bridge & Iron is expected to benefit from the strong and growing energy infrastructure market, especially for liquefied natural gas (LNG). LNG is the company’s strongest market, supported by its ability to participate in multiple stages of development and strong base for investments.
However, the company’s revenue and earnings may be adversely affected by a reduced level of activity in the hydrocarbon industry, especially in light of the global financial and economic crisis. A major competitor of CBI is Matrix Service Co. (MTRX).
Chicago Bridge & Iron Company N.V. is among the world’s leading integrated engineering, procurement and construction service providers and major process technology licensors, providing comprehensive solutions to customers, primarily in the energy and natural resource industries. The company currently holds a Zacks# 4 Rank, which implies a short term ‘Sell’ rating on the stock.