It has been raining contracts for Chicago Bridge & Iron Company N.V. (CBI - Free Report) . The company recently announced having received a liquefied natural gas (LNG) project from Australia-based Bechtel and a pipe fabrication contract from Enterprise Products Partners L.P. (EPD - Free Report) . The aggregate value of the two deals is over $725 million.
Notably, these deals come after the company declared on March 17 that it received a $6 billion LNG contract in a joint venture (JV) with Chiyoda International Corp. The contract was awarded by LA-based Cameron LNG, LLC for construction of its Cameron Liquefaction Project in Hackberry.
The company’s continued contract wins propelled its share prices to craft a new 52-week high of $87.08 on March 18.
Bechtel has awarded the $625 million (about A$690 million) contract for providing diverse services for its Wheatstone Project at Ashburton North. The project operated by Chevron Corp. (CVX - Free Report) , a JV between the Australian units of Apache Corporation, Kuwait Foreign Petroleum Exploration Company, Shell, Kyushu Electric Power Company and PE Wheatstone Pty Ltd.
The contract entails CBI to provide structural, mechanical and piping construction services for external battery limits – that are separate areas in the plant – for processing facilities and services. The company’s expertise in engineering and construction projects will significantly benefit this project.
Enterprise Products Partners awarded CBI a contact worth more than $100 million to provide pipe fabrication for its upcoming propane dehydrogenation unit in Mont Belvieu, TX. The company’s strong presence in the Gulf Coast, along with its expertise in such projects, will significantly benefit this project. Moreover, CBI is one of the few engineering, procurement and construction and process technology contractors with in-house fabrication facilities, for offering modular construction services.
CBI is a leader in the LNG storage market. It has been diligently implementing initiatives to increase its market share in LNG/low temperature storage systems (petrochemicals). The above-mentioned contracts will expectedly strengthen the company’s position and push up its backlog levels as well.
CBI currently has a Zacks Rank #3 (Hold). Investors interested in this sector could also consider better–ranked stocks like MasTec, Inc. (MTZ - Free Report) , which has a Zacks Rank #2 (Buy).