CBI Wins Engineering Contract for PKN Propylene Facility

Zacks

Chicago Bridge & Iron Company N.V. (CBI) recently announced that it has received a contract from Pesky Koncern Naftowy Orlen S.A. (:PKN). CBI will be providing engineering services for licensing and designing of PKN’s forthcoming on-purpose propylene production facility in Plock, Poland. The announcement on Aug 21 did not provide much momentum to the stock that has gained about 1.2% so far.

The contract entails CBI to utilize its Olefins Conversion Technology (:OCT) to aid the production of 100,000 metric tons per annum (:MTA) of propylene. OCT is the proprietary technology of the company’s Lummus Novolen Technology GmbH (Novolen) subsidiary for producing polymer grade propylene.

The technology, designed to deal with a diverse range of feedstock compositions, will utilize the same from PKN's Refinery and Petrochemical Complex at Plock. This apart, OCT not only produces high quality propylene, but also reduces the recurring costs.

CBI is the leading provider of integrated engineering, procurement and construction services across the globe. Recently, the company reported second-quarter 2014 results with adjusted earnings of $1.36 per share that surpassed the Zacks Consensus Estimate of $1.27 by 7.1%.  Revenues for the quarter came in at $3.3 billion, reflecting year-over-year growth of 15.6%.

Chicago Bridge & Iron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Willdan Group Inc. (WLDN), Blount International Inc. (BLT) and VSE Corp. (VSEC). While Willdan Group and Blount International sport a Zacks Rank #1 (Strong Buy), VSE has a Zacks Rank #2 (Buy).

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