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KBR to Serve Monolith Materials' Fertilizer Project in Hallam

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KBR, Inc. (KBR - Free Report) has inked a contract from Monolith Materials, Inc. for the latter’s environmentally transformative fertilizer project in Hallam, Nebraska for an ammonia synthesis loop (synloop).

In words of Doug Kelly, president of Technology KBR, "Our sustainable process technology solutions are leading the energy transition industry globally." The company’s innovative ammonia technology is valued for low energy usage, higher reliability and lower capital costs.

Per the latest contract, KBR will provide a technology license, basic engineering design package, proprietary equipment and catalyst for the 930 metric tons per day ammonia synloop project, which will consume hydrogen as feedstock from an emission-free, commercial-scale facility developed by Monolith Materials to produce both carbon black and ammonia from natural gas, air and 100% renewable power.

KBR's Integrated & Innovative Solutions Bode Well

KBR has been delivering innovative and reliable process technologies over the past several years. It has licensed, engineered or constructed more than 244 ammonia plants worldwide since 1960, making the company the world's leading ammonia technology licensor.

Overall, the determination to lower emissions, product diversification, energy efficiency, and more sustainable technologies as well as solutions have been driving KBR’s performance. Demand for the company’s technologies across ammonia for food productions, olefins for non-single-use plastics and in refining for product diversification and more green solutions to meet tighter environmental standards has been going strong. A strategic shift to IP-enabled maintenance is also gaining traction and KBR continues to see increasing activity across the advisory portfolio, particularly in energy transition.

Meanwhile, shares of KBR have underperformed the industry year to date. Nonetheless, earnings estimates for the current year and the next have increased 4.9% and 11.4%, respectively, for the past 60 days, depicting analysts’ optimism over the company’s prospects. KBR’s performance was backed by solid contract wining spree, strong project execution, backlog level, and potential government as well as technology businesses. It has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing 11 quarters. Meanwhile, revenues topped the consensus mark in each of the trailing eight quarters. KBR’s solid backlog level of $12.8 billion (as of Sep 30, 2020) highlights its underlying strength.

Zacks Rank

KBR — which shares space with Fluor Corporation (FLR - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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