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KBR Gets Contract for Nigeria's First Floating LNG Project

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KBR, Inc. (KBR - Free Report) recently announced that it has been awarded a contract by UTM Offshore in an effort to develop Nigeria's first Floating Liquefied Natural Gas (FLNG) facility.  

Following this contract, KBR will be accountable for a multi-disciplined due diligence assessment of the Pre-Front End Engineering Design, being finalized by Japanese engineering company JGC. This will help UTM Offshore support de-carbonization in Nigeria through gas monetization.

Jay Ibrahim, KBR president of Sustainable Technology Solutions, said, “Through our highly experienced team, rich history in LNG and clear focus on shaping sustainable solutions that support effective energy transition and carbon footprint reduction, we're excited by the opportunity to support UTM Offshore and the Nigerian National Petroleum Corporation to drive Nigeria's wider energy ambitions.”

Overall, focus on lowering emissions, product diversification, energy efficiency, and more sustainable technologies and solutions have been driving KBR’s performance. Shares of the company have gained 29.8% year to date, compared with the industry’s rally of 25.2%.

 

Contract Win to Drive Growth

The company’s performance was backed by solid contract wining spree, strong project execution, and the backlog level. Recently, KBR inked a contract from BUA Group, one of the leading agricultural and industrial chemicals conglomerates, to provide efficient and sustainable engineering solutions.

The Technology Solutions segment — comprising 20.3% of the company’s total revenues — includes Energy Solutions, Technology Solutions and Non-strategic Business segments. This segment is anchored by innovative, proprietary process technologies.

As of Mar 31, 2021, total backlog was $14.6 billion compared with $15.1 billion at 2020-end. Of the total backlog, Government Solutions booked $12.3 billion. Sustainable Technology Solutions segment accounted for $2.3 billion of the total backlog.

Zacks Rank

KBR — which shares space with AECOM (ACM - Free Report) , Jacobs Engineering Group Inc. (J - Free Report) and Quanta Services Inc. (PWR - Free Report) in the Zacks Engineering - R and D Services 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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