Chicago Bridge & Iron (CBI - Analyst Report) recently received a contract from Exelon Generation Company, LLC for the maintenance, modification and construction of five additional nuclear power units in New York and Maryland. Valued at $800 million, this five-year contract extends Chicago Bridge & Iron’s existing contract with Exelon under which the former is providing similar services to 17 nuclear power units.
Per the contract, Chicago Bridge & Iron will also supply temporary staffing, painting and insulation services across a total of 22 nuclear power units.
Notably, Exelon Generation’s nuclear division operates the biggest fleet of nuclear plants in the U.S. The company’s fleet comprises 23 reactors across 14 locations. Nuclear energy is a clean, safe, cost effective way to meet future energy demands. Further, nuclear energy enables stable and uninterrupted power supply over a long period. To add to the positives, nuclear energy is also environmentally safe as it emits virtually no greenhouse gases, thereby making it a clean power source that can help address the glaring global warming issue.
Chicago Bridge & Iron’s Engineering, Construction and Maintenance group provides engineering, procurement, fabrication and construction along with comprehensive and integrated maintenance services to major energy infrastructure facilities. This division primarily designs and builds nuclear, fossil and renewable electric generating plants for the power industry and accounted for 61% of the company’s total revenue in fiscal 2013. The segment also reported a robust revenue increase of 392% in the last reported quarter (first quarter 2014).
Separately, Chicago Bridge & Iron is building four new nuclear power plants in China’s State Nuclear Power Technology Company (SNPTC) using Westinghouse Electric Company's AP1000 passive Generation III+ technology. This apart, the company has been awarded a contract by Westinghouse for two nuclear containment vessels for Georgia Power in Waynesboro, GA. Additionally, Chicago Bridge & Iron and Westinghouse are building two AP1000 nuclear electric-generating units at the V.C. Summer Nuclear Station, near Jenkinsville, SC.
Chicago Bridge & Iron primarily provides designing, engineering, construction, fabrication, maintenance and environmental services to government enterprises.
Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold). Some better-ranked companies in the sector include Emcor Group Inc. (EME - Analyst Report) , Sterling Construction Co. Inc. (STRL - Snapshot Report) and Tutor Perini Corporation (TPC - Snapshot Report) . All three carry a Zacks Rank #2 (Buy).