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KBR Secures Asset Monitoring Contract With Petro Rabigh

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KBR, Inc. (KBR - Free Report) has inked a significant five-year asset condition monitoring program contract with Rabigh Refining & Petrochemical Company (Petro Rabigh). This collaboration aims to deploy predictive maintenance services at Petro Rabigh's plant in Rabigh, Saudi Arabia.

The program is geared toward optimizing asset lifecycle, improving machinery performance and bolstering overall reliability. By leveraging innovative technology-led industrial solutions, KBR seeks to enhance energy and equipment efficiency while mitigating operational risks. This aligns perfectly with Petro Rabigh's dedication to safety and sustainability.

This contract not only solidifies the partnership between KBR and Petro Rabigh but also underscores KBR's commitment to delivering smart asset management solutions. KBR aims to assist its clients in optimizing operations, maintenance and revamps, ultimately achieving sustainable world-class performance.

Through this strategic collaboration, KBR is poised to make significant strides in refinery efficiency, setting a benchmark for the industry. As KBR continues to pioneer innovative solutions, investors can expect to see sustained growth and profitability in the coming years.

Continuous Contract Wins, a Boon

As of Dec 29, 2023, the total backlog (including award options of $4.4 billion) was $21.73 billion compared with $19.76 billion reported in 2022-end. Of the total backlog, Government Solutions booked $12.79 billion, and the Sustainable Technology Solutions segment accounted for $4.55 billion.

In the fourth quarter of 2023, KBR received $1.7 billion in bookings and options in highly strategic areas, with a trailing 12-month book-to-bill of 1.1X. This took the fiscal 2023 bookings and options level to $10.5 billion.

Total revenues increased 6% year over year (all organic) to $7 billion in fiscal 2023. The upside was backed by increased new contracts and on-contract growth within all Government Solutions business units, along with activity to support exercises, training and other activities within the European Command. Also, the growing demand for Sustainable Technology Solutions, mainly from engineering and professional services and technology licensing, adds to the growth. The increasing global importance of national security, energy security, energy transition and climate change have been acting as major tailwinds for KBR.
 

Zacks Investment Research
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Shares of this Zacks Rank #3 (Hold) company have risen 13.9% in the past three months compared with the Zacks Engineering - R and D Services industry’s 15.5% growth. KBR’s earnings estimate for 2024 indicates 10% year-over-year growth.

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