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KBR Clinches Contact From CPC Corp. for ROSE Technology

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KBR, Inc. (KBR - Free Report) has nabbed a contract from Taiwan's state-owned oil company, CPC Corporation, for its market-leading Rose technology.

Shares of KBR gained 1.1% during the trading session on Apr 13, 2022.

Per the contract, KBR will provide a license, basic engineering and proprietary equipment to CPC for its ROSE supercritical Solvent De-Asphalting (SDA) technology and Vacuum Distillation Unit (VDU).

Pertaining to the last award, Doug Kelly, KBR president, Technology, said, “KBR's design features an innovative integration solution between the VDU and ROSE unit, which significantly reduces the project's carbon footprint.”

The demand for KBR’s technologies across ammonia for food productions, olefins for non-single-use plastics, and in refining for product diversification and more green solutions to meet tighter environmental standards has been going strong.

Being a leader in residue upgrading technologies, KBR has the largest installed base and has been involved in the licensing, design, engineering, and/or construction of 70 ROSE units worldwide, with a combined licensed capacity of nearly 1.6 million barrels per stream day.

Overall, the determination to lower emissions, product diversification, energy efficiency, and more sustainable technologies and solutions have been driving KBR’s performance. At present, the company’s ROSE technology — which delivers 50% energy savings compared to conventional SDA technologies — is a cost-effective residue upgrading process. It enables refiners to produce higher grade, cleaner products while reducing the facility's carbon footprint.

KBR has been performing pretty well. KBR’s solid backlog level of $14.97 billion (as of Dec 31, 2021) highlights its underlying strength. This was backed by a solid contract-winning spree, strong project execution, and impressive performance of its government and technology businesses.

KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. KBR’s shares have gained 12.7% year to date, outperforming the Zacks Engineering - R and D Services industry’s 3.9% rise.

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Zacks Rank

Currently, KBR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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