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KBR Secures Contract for Statoil's Northern Lights Project
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KBR Inc. (KBR - Free Report) recently won the Concept and FEED (front-end engineering design) contract from Statoil for the latter’s revolutionary Northern Lights Project, which will develop an onshore carbon dioxide (CO2) storage terminal in Norway. Revenues related to the project will be booked into the backlog of unfilled orders under KBR's Engineering & Construction Segment in fourth-quarter 2017.
The terminal is a vital part of the Carbon Capture and Storage demonstration project that Gassnova is commencing. Statoil, in partnership with Shell and Total, are in charge of storage and transport.
Under the contract, KBR’s engineering scope will extend toward addressing the import jetty topsides, the CO2 re-injection lines and related utilities. Construction of the full-scale project (including the onshore terminal) remains subject to investment approval of the Norwegian parliament, which is scheduled for 2019.
The project’s first phase will offer storage for up to 1.5 million tonnes of CO2 annually, and will allow further expansion eventually, as it aims to encourage new commercial carbon capture projects in Norway, Europe and other countries across the world.
Other Contract Wins
Some other notable contracts that KBR’s Engineering & Construction segment recently won include an engineering and project management services contract from JVGAS, and a pre- FEED (Front-End Engineering Design) and project support services deals from BP. KBR also secured a FEED contract with SKLLC for the topsides of the Absheron Early Production Project a week back.
The company also clinched a contract to provide Engineering Support Services for Operations for Abu Dhabi Gas Development Company — a 60/40 joint venture of Abu Dhabi National Oil Company and Occidental of Abu Dhabi Ltd.
Our Take
KBR’s Engineering & Construction segment is anticipated to benefit from growing client operational expenditure. Going forward, backlog of this segment is likely to gain momentum, primarily owing to increased work in consulting areas and numerous contract wins.
Over the last six months, this Zacks Rank #2 (Buy) company returned 36.8%, outperforming the industry’s average growth of 14.7%. The company is banking on the strength and momentum of its Government Services businesses to optimize growth potential. Further, it remains bullish about prospects, primarily driven by lucrative contracts from the U.S. military and the new wins on work with the U.K. Ministry of Defense.
KBR remains optimistic that the present economic conditions in the Middle East, particularly in Iraq and Eastern Europe, will offer lucrative prospects for its Government Services business. The segment has been witnessing phenomenal growth, driven by the HTSI acquisition and continued expansion of task orders on the existing U.S. Government contracts. Growth on existing program management projects in the U.K also contribute to the growth.
Thor Industries has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 15.3%.
Willdan Group has outpaced estimates each time in the preceding four quarters, with an average earnings surprise of 44.8%.
Toll Brothers has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 8.5%.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
KBR Secures Contract for Statoil's Northern Lights Project
KBR Inc. (KBR - Free Report) recently won the Concept and FEED (front-end engineering design) contract from Statoil for the latter’s revolutionary Northern Lights Project, which will develop an onshore carbon dioxide (CO2) storage terminal in Norway. Revenues related to the project will be booked into the backlog of unfilled orders under KBR's Engineering & Construction Segment in fourth-quarter 2017.
The terminal is a vital part of the Carbon Capture and Storage demonstration project that Gassnova is commencing. Statoil, in partnership with Shell and Total, are in charge of storage and transport.
Under the contract, KBR’s engineering scope will extend toward addressing the import jetty topsides, the CO2 re-injection lines and related utilities. Construction of the full-scale project (including the onshore terminal) remains subject to investment approval of the Norwegian parliament, which is scheduled for 2019.
The project’s first phase will offer storage for up to 1.5 million tonnes of CO2 annually, and will allow further expansion eventually, as it aims to encourage new commercial carbon capture projects in Norway, Europe and other countries across the world.
Other Contract Wins
Some other notable contracts that KBR’s Engineering & Construction segment recently won include an engineering and project management services contract from JVGAS, and a pre- FEED (Front-End Engineering Design) and project support services deals from BP. KBR also secured a FEED contract with SKLLC for the topsides of the Absheron Early Production Project a week back.
The company also clinched a contract to provide Engineering Support Services for Operations for Abu Dhabi Gas Development Company — a 60/40 joint venture of Abu Dhabi National Oil Company and Occidental of Abu Dhabi Ltd.
Our Take
KBR’s Engineering & Construction segment is anticipated to benefit from growing client operational expenditure. Going forward, backlog of this segment is likely to gain momentum, primarily owing to increased work in consulting areas and numerous contract wins.
Over the last six months, this Zacks Rank #2 (Buy) company returned 36.8%, outperforming the industry’s average growth of 14.7%. The company is banking on the strength and momentum of its Government Services businesses to optimize growth potential. Further, it remains bullish about prospects, primarily driven by lucrative contracts from the U.S. military and the new wins on work with the U.K. Ministry of Defense.
KBR remains optimistic that the present economic conditions in the Middle East, particularly in Iraq and Eastern Europe, will offer lucrative prospects for its Government Services business. The segment has been witnessing phenomenal growth, driven by the HTSI acquisition and continued expansion of task orders on the existing U.S. Government contracts. Growth on existing program management projects in the U.K also contribute to the growth.
Other Stocks to Consider
Other top-ranked stocks from the same space include Thor Industries, Inc. (THO - Free Report) , Willdan Group, Inc. (WLDN - Free Report) and Toll Brothers Inc. (TOL - Free Report) , each carrying the same rank as KBR. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thor Industries has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 15.3%.
Willdan Group has outpaced estimates each time in the preceding four quarters, with an average earnings surprise of 44.8%.
Toll Brothers has surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 8.5%.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>