CBI Wins FEED Contract

Zacks

Recently, Chicago Bridge & Iron Company N.V. (CBI) received a front end engineering and design (FEED) contract from Nizhnekamskneftekhim OAO (:NKNK), valued at more than $40 million. The FEED services will be provided by CBI for a new ethylene plant, with the work expected to be completed by 2013. 

The feasibility study for this project was completed by CBI last year and was recently awarded the technology license. The new ethylene plant will produce 1.0 million tons per year. The company will also provide its services for a butadiene extraction unit and a pyrotol unit, including offsites and utilities.

Chicago Bridge & Iron Company is one of the few engineering, procurement and construction (:EPC) and process technology contractors with in-house fabrication facilities. These facilities allow the company to offer customers the option of modular construction, wherever feasible.

Moving ahead, Chicago Bridge & Iron is expected to benefit from the strong and growing energy infrastructure market, especially liquefied natural gas (LNG). LNG is the company’s strongest market, supported by its ability to participate in multiple stages of development and strong base for investments.

However, revenue and earnings may be adversely affected by a reduced level of activity in the hydrocarbon industry, especially in light of the global financial and economic crisis. A major competitor of CBI is Matrix Service Co. (MTRX).

Chicago Bridge & Iron Company N.V. is among the world’s leading integrated engineering, procurement and construction service provider and major process technology licensors, providing comprehensive solutions to customers, primarily in the energy and natural resource industries.

Read the Full Research Report on CBI

Read the Full Research Report on MTRX

Zacks Investment Research



More From Zacks.com
View Comments