Recently, KBR Inc. (KBR) won a turnaround services contract from a leading supplier of agricultural products. The scope of the contract involves providing turnaround services for the agricultural company’s ammonia furnace revamp and supporting expansion project in Borger, Texas. The financial terms of the deal were not disclosed.
As per the agreement, KBR will be providing turnaround construction and project management services for the shutdown, maintenance and retubing of the ammonia furnace. The ammonia furnace revamp is expected to take place in Aug 2013.
The proposed plant turnaround services are expected to increase efficiencies and operational life of the furnace that will be designed by KBR. The contract will be included in KBR’s services segment.
Services business group primarily delivers full-scope construction, construction management, fabrication, operations/maintenance, commissioning/startup and turnaround expertise worldwide to a broad variety of markets including oil and gas, petrochemicals processing, mining, power, alternate energy, pulp and paper, industrial and manufacturing and consumer product industries.
Services revenue increased by $43 million in 2012 from 2011. This increase is primarily driven by increases of $167 million in Canada product line and $121 million in our U.S. Construction product line due to several new awards and increased activity on new projects.
Recently, KBR received a contract for the inspection and repair for a large recovery boiler in Jesup, Georgia. As per the terms of the contract, KBR will execute project management and field construction services during the inspection and repair of the recovery boiler. The contract will also be booked into the company’s Industrial Services division.
KBR currently holds a Zacks Rank #3 (Hold). Other stocks worth a look in the services sector are Chicago Bridge & Iron (CBI - Analyst Report), AECOM Technology Corporation (ACM - Analyst Report) and Jacobs Engineering Group Inc. (JEC - Analyst Report); all having a Zacks Rank #2 (Buy).