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KBR Inks License Deal With JS Energy for PDH Technology

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KBR, Inc. (KBR - Free Report) announced that it has entered into an agreement with JS Energy Limited. Per the agreement, KBR’s K-PRO™ Propane Dehydrogenation (“PDH”) technology will help JS Energy to convert propane into propylene for a PDH project in Pakistan, which is anticipated to be commissioned in 2024. However, financial terms of the agreement have been kept under wraps.

In 2019, KBR introduced K-PRO that offers propylene selectivity and conversion. K-PRO is a revolutionary step for the PDH industry that furnishes innovative designs at a very low cost of capital. Also, K-PRO's proprietary catalyst doesn’t require high-cost metals and pollutants, consequently resulting in an ideal environment and lower business overhead.

With respect to this, KBR's President, Technology, Doug Kelly said, “KBR offers various sustainable technologies that are energy efficient and environmentally friendly. K-PRO is based on an innovative catalyst that does not contain costly precious metals or environmentally-sensitive chromium and is a continuous process with efficient energy integration, heat recovery and high conversion.”

Prospects in Technology Solutions

The Technology Solutions segment integrates proprietary KBR technologies, knowledge-based services and the company’s three specialty consulting brands — Granherne, Energo and GVA — under a sole customer-centric business across the world. The Technology segment mainly provides ultra-sophisticated technological and consulting services to oil and gas companies that help the brands to coordinate their value-chain activities efficiently.

KBR, an industry leader in petrochemical plant design construction and technology development for more than 50 years, initiated the PDH technology (K-PROTM) in December 2018.

Its shares have surged 26.2% so far this year compared with the industry’s 24.1% rally. The company’s performance was backed by solid contract winning spree, strong project execution, backlog level, and potential government and technology businesses. On a further encouraging note, it has a robust earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing 12 quarters.

Zacks Rank & Other Key Picks

KBR currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Jacobs Engineering Group Inc. (J - Free Report) , Howmet Aerospace Inc. (HWM - Free Report) and Altair Engineering Inc. (ALTR - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Jacobs’ fiscal 2021 earnings are expected to rise 5.1%.

Howmet Aerospace and Altair are expected to witness 15% and 45.2% earnings growth in 2021, respectively.

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