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KBR & LTHE Unite for Refinery and Petrochemical Projects
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KBR, Inc. (KBR - Free Report) recently announced that it has signed a memorandum of understanding or MoU with an India-based technology, engineering, construction, manufacturing and financial services conglomerate — Larsen & Toubro Limited (L&T).
KBR’s Technology Solutions unit has excellent opportunities through this contract. Per the MoU, KBR will collaborate with L&T Hydrocarbon Engineering Ltd (LTHE) to bid for refinery and petrochemical projects. LTHE will utilize KBR's solid acid alkylation technology (K-SAAT), solvent de-asphalting technology (ROSE) and catalytic olefins technology (K-COT) to serve various projects globally. LTHE will act as an EPC modular solution provider, with major focus on India, South East Asia, Middle East and Africa.
KBR's Integrated & Innovative IT Solutions Bode Well
KBR has been delivering innovative and reliable process technologies to help refinery and petrochemical plants offer optimum production and lower operating costs over the past several years.
The K-SAAT is a next generation solid acid alkylation technology that provides high alkylate yield and feed flexibility. ROSE, a solvent de-asphalting technology, has gained more than 90% market share among other available technologies. Moreover, the K-COT is a catalytic olefins technology that converts low-value olefinic, paraffinic or mixed streams into high-value propylene, ethylene and aromatics.
At first quarter-end, the segment booked $527-million contract backlog. KBR expects thriving global technology opportunities — led by ammonia, refining and olefins projects — to persist.
KBR is the only license holder of polycarbonate technology, which positions it pretty well for future expansion. The segment continues to perform well in recent times, driven by refining and petrochemicals projects in China, India and Africa, as well as strong technologies demand. Additionally, the company acquired RRT Global’s isomerization technologies in August 2019 in order to offer more octane and clean fuel technology solutions to customers.
A Look at KBR’s Performance & Prospects
The latest collaboration reflects KBR’s ability to cash in on big projects for driving revenues. The company’s backlog of $13.92 billion (as of Mar 31, 2020) highlights underlying strength. It believes that the solid project execution strategy will ultimately help the company in margin expansion.
Shares of KBR have broadly outperformed the industry in the past three months. Its shares have surged 58.9% compared with the industry’s growth of 45.6% in the same period owing to ongoing contract wins, acquisitions and robust organic growth. We believe that the recent move will further boost the company’s performance.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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KBR & LTHE Unite for Refinery and Petrochemical Projects
KBR, Inc. (KBR - Free Report) recently announced that it has signed a memorandum of understanding or MoU with an India-based technology, engineering, construction, manufacturing and financial services conglomerate — Larsen & Toubro Limited (L&T).
KBR’s Technology Solutions unit has excellent opportunities through this contract. Per the MoU, KBR will collaborate with L&T Hydrocarbon Engineering Ltd (LTHE) to bid for refinery and petrochemical projects. LTHE will utilize KBR's solid acid alkylation technology (K-SAAT), solvent de-asphalting technology (ROSE) and catalytic olefins technology (K-COT) to serve various projects globally. LTHE will act as an EPC modular solution provider, with major focus on India, South East Asia, Middle East and Africa.
KBR's Integrated & Innovative IT Solutions Bode Well
KBR has been delivering innovative and reliable process technologies to help refinery and petrochemical plants offer optimum production and lower operating costs over the past several years.
The K-SAAT is a next generation solid acid alkylation technology that provides high alkylate yield and feed flexibility. ROSE, a solvent de-asphalting technology, has gained more than 90% market share among other available technologies. Moreover, the K-COT is a catalytic olefins technology that converts low-value olefinic, paraffinic or mixed streams into high-value propylene, ethylene and aromatics.
At first quarter-end, the segment booked $527-million contract backlog. KBR expects thriving global technology opportunities — led by ammonia, refining and olefins projects — to persist.
KBR is the only license holder of polycarbonate technology, which positions it pretty well for future expansion. The segment continues to perform well in recent times, driven by refining and petrochemicals projects in China, India and Africa, as well as strong technologies demand. Additionally, the company acquired RRT Global’s isomerization technologies in August 2019 in order to offer more octane and clean fuel technology solutions to customers.
A Look at KBR’s Performance & Prospects
The latest collaboration reflects KBR’s ability to cash in on big projects for driving revenues. The company’s backlog of $13.92 billion (as of Mar 31, 2020) highlights underlying strength. It believes that the solid project execution strategy will ultimately help the company in margin expansion.
Shares of KBR have broadly outperformed the industry in the past three months. Its shares have surged 58.9% compared with the industry’s growth of 45.6% in the same period owing to ongoing contract wins, acquisitions and robust organic growth. We believe that the recent move will further boost the company’s performance.
KBR — which shares space with Gates Industrial Corporation plc (GTES - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>