Chicago Bridge & Iron Company N.V. (CBI - Free Report) won an engineering, procurement and construction contract for the Kearl oil sands project in Alberta, Canada.
The contract was from Imperial Oil Resources and involves more than $900 million of work to be executed by Chicago Bridge & Iron, of which $500 million of expansion work was booked before 2011.
The company’s work on the project is expected to be completed in the third quarter of 2012, involving EPC work of the bitumen extraction plant and tank farms and designing, supply and building of additional storage vessels.
Chicago Bridge & Iron Co. is a worldwide provider of fully integrated specialty engineering, procurement and construction (EPC) services and related licensed processes, primarily used by the energy markets for large-scale storage and refining of liquids and gases. The company's improving outlook and strong fundamentals strengthen its appeal.
CBI designs, procures, fabricates and builds facilities and major equipment for power industry customers around the globe. Its expertise encompasses both traditional and emerging technologies, including electric, cogeneration nuclear, LNG, hydroelectric and wind power.
The business depends on major construction projects from clients. The unpredictable timing of these projects may result in significant fluctuations in cash flow and earnings due to timing between the award of the project and payment under the contract. A major competitor of Chicago Bridge & Ironis Matrix Service Co. (MTRX - Free Report) .
Chicago Bridge & Iron Company N.V. was founded in 1889. The company segments its operations into four broad market sectors: Liquefied Natural Gas (LNG), Energy Processes, Steel Plate Structures, and Lummus Technologies.
We currently maintain our Neutral rating on Chicago Bridge & Ironfor the long term, with a Zacks #3 Rank (short-term Hold recommendation) over the next one-to-three months.