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KBR Inks Deal With Papua New Guinea Department of Petroleum

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KBR, Inc. (KBR - Free Report) recently signed an agreement with Papua New Guinea's Department of Petroleum to provide services for existing and future energy projects across Papua New Guinea.

Per the deal, KBR will provide consulting, advisory and engineering services to various energy and resource developments across Papua New Guinea in upstream, LNG and downstream sectors.

The move underscores KBR's commitment to provide integrated and diversified services in developing markets.

Diverse Portfolio Highlights Underlying Strength

KBR, a leading global engineering, construction and services company, has a diversified business portfolio, which helps combat cyclicality associated with any single market. The company continues to explore opportunities in its key markets like the United States, U.K. and Australia.

KBR’s total backlog level of $13.5 billion as of Sep 30, 2018, highlights its underlying strength. Backlog, in particular, is expected to continue to rise in 2018 primarily on work in consulting areas. The company is optimistic about backlog growth in 2018 due to solid opportunities.

The company’s revenues grew 10.8% year over year in the first three quarters of 2018, courtesy of accretive growth from Aspire and SGT buyouts, strong organic growth in Government Services and Technology businesses, along with buoyant government contracting and hydrocarbons end markets.

Meanwhile, shares of the company have gained 6.3% in the past six months against its industry’s 3.3% decline. Encouragingly, the company’s earnings surpassed the Zacks Consensus Estimate in five of the last seven quarters. We believe the company’s extensive knowledge and experience in providing strategic solutions to customers will further bolster its business.

Zacks Rank & Other Stocks to Consider

KBR currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Construction sector are Great Lakes Dredge & Dock Corporation (GLDD - Free Report) , Altair Engineering Inc. (ALTR - Free Report) and EMCOR Group, Inc. (EME - Free Report) . While Great Lakes sports a Zacks Rank #1 (Strong Buy), Altair Engineering and EMCOR carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Great Lakes’ 2018 earnings are expected to increase 111%.

Altair Engineering has an expected earnings growth rate of 23.1% for the current year.

EMCOR has a projected earnings growth rate of 20% for the current year.

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