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KBR to Provide Technical Solutions for SK Hydrogen Development Plan

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KBR, Inc. (KBR - Free Report) recently received a contract from SK E&S to provide technical advisory services for SK Hydrogen Development Project in South Korea.

According to the agreement, KBR will provide technical solutions to assist SK's project to construct a 30,000 metric-ton-per-annum liquefied hydrogen facility and supply liquefied hydrogen to different metropolitan areas across South Korea.

KBR has licensed more than 260 syngas projects involving hydrogen production and has completed a large number of projects involving gas compression and cryogenic handling and storage.

With respect to this, KBR President, Technology Solutions, Jay Ibrahim stated, " This contract award aligns with KBR's strategic decision to provide differentiated and sustainable solutions to our customers. As a premier provider of technologies, value added design and project integration capability, KBR will leverage its hydrogen and cryogenic domain expertise to support SK in this critical phase of the project.”

Continuous Contract Wins Bode Well

On Jan 14, 2021, KBR entered into an agreement with Mura Technology Limited to offer an innovative advanced plastics recycling process namely — Cat-HTR. Per the agreement, KBR will become the exclusive licensing partner for Mura Technology, thereby offering studies, basic engineering, technical services, proprietary equipment and modules for the Cat-HTR technology to customers across the world.

We believe that strengthening the Technology Solutions business with its high-end, sustainability-focused industrial sector expertise and client relationships will create exciting synergy opportunities going forward.

KBR’s solid backlog level of $12.8 billion (as of Sep 30, 2020) highlights its underlying strength.

However, KBR’s business is being affected by intense competition and volatility of commodity prices, impacting the share performance over the past six months. The stock has gained 37.9% compared with the industry’s 54.4% rally in the timeframe.


Nonetheless, increased focus on contract wins, strong project execution and a solid backlog level are likely to help the company.

Zacks Rank & Key Picks

KBR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Better-ranked stocks in the same space include Gates Industrial Corporation plc (GTES - Free Report) , AECOM (ACM - Free Report) and Mayville Engineering Company, Inc. (MEC - Free Report) . While Gates Industrial currently sports a Zacks Rank #1, AECOM and Mayville Engineering carry a Zacks Rank #2 (Buy).

Gates Industrial’s 2021 earnings are expected to grow 22.3%.

AECOM has an expected earnings growth rate of 21.9% for fiscal 2021.

Mayville Engineering has an impressive earnings growth rate of 224.4% for 2021.

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