KBR Procures New Contract

Zacks Equity Research

Recently KBR Inc. (KBR) received a front-end engineering and design (FEED) contract from Pacific NorthWest LNG Ltd, a subsidiary of PETRONAS - Malaysia’s state-owned oil company, and Japan Petroleum Exploration Co., Ltd. (:JAPEX). The contract will be executed for a world scale LNG project in British Columbia. KBR will also enter into a partnership with JGC Corporation for the project.

The project is targeted towards processing shale gas produced in the North Montney region of British Columbia into LNG and providing detailed engineering work for LNG plant with an annual capacity of 12 million tons. Though the financial details of the contract were not disclosed, the size and volume of the project envision a significant revenue increase for the company. In addition, it will also help KBR with better resource allocation among other projects currently ongoing in British Columbia.

During the last few quarters, a number of new contracts have been showering upon KBR. Two of them were turnaround contracts. These include a contract from a leading chemical company to perform turnaround services for its pyrolysis gasoline (pygas) unit on the US Gulf Coast and another from Suncor Energy Inc. (SU) to provide turnaround services for its refinery in Edmonton, Canada.

Massive new supplies of natural gas have been discovered in the U.S., which lead the domestic price to fall nearly 70% below international price. These low prices are creating a windfall for businesses that are big consumers of it and thus will also fetch big profits for the companies that help them expand. KBR is an industrial construction and engineering businesses that specialize in hydrocarbon, chemical and petrochemical industries and is benefiting extensively from the demand boost for its services. This demand shows no sign of abating in the near future given the exceptional prospects for additional new contracts over the next 7 to 10 years as demand for low price gasoline continues.

Under such a prospective scenario, we expect KBR stocks to experience a revision and show a rising trend in coming quarters. It is to be noted that KBR also recently hit a 52 week high level on May 15, with a price of $32.82, beating its previous high of $32.65 attained on March 28, 2013.

KBR currently has Zacks Rank #3 (Hold). Other stocks from the same sector that look promising include Michael Baker Corporation (BKR) with a Zacks Rank #1 (Strong Buy), and Harris & Harris Group, Inc. (TINY) with a Zacks Rank # 2 (Buy).

Read the Full Research Report on SU

Read the Full Research Report on KBR

Read the Full Research Report on TINY

Read the Full Research Report on BKR

Zacks Investment Research



More From Zacks.com

  • Business

    Mylan CEO Blamed Obamacare for EpiPen Sticker Shock

    The price of the EpiPen has soared 500% since generic drug company Mylan bought the treatment nine years ago. On an earnings call earlier this month, Bresch blamed EpiPen sticker shock in part on Obamacare. Mylan is no stranger to controversy (see my profile last year, “Why Wall Street Loves to Hate Mylan’s CEO”).

    Fortune
  • Business

    When It's Time to Stop Saving for Retirement

    You’ve done all the right things – financially speaking, at least – to get ready for retirement. You started saving early to take advantage of the power of compounding, maxed out your 401(k) and individual retirement account (IRA) contributions every year, made smart investments, squirreled away money into additional savings, paid down debt and figured out how to maximize your Social Security benefits. Now what? When do you stop saving – and start enjoying the fruits of your labor? A Nice Problem to Have (But a Problem All the Same) Many people who have saved consistently for retirement have trouble making the transition from saver to spender when the time comes. Careful saving – for decades,

    Investopedia
  • News

    Please stop suggesting these inventions to Ford

    If you’ve ever had an idea that you think would change the way we get around, Ford would like to hear it. The company has a portal open to employees and the public where anyone can suggest an idea to Ford, and, if the company likes it, it may work with the person to help them secure the intellectual property. On the site, Ford has a list of a few suggestions that it would really prefer if you didn’t send them, because the company is either already working on similar ideas, or it’s just heard it a ton of times before and can’t do anything with. “We do not want you to waste your time submitting these ideas (or our time reviewing them), as we will reject your submission,” Ford says on the site.

    Quartz
  • KR

    Kroger is taking drastic measures to slash prices — and Walmart should be terrified

    The grocery store chain recently cut the cost of 1,000 popular items in 120 of its stores, retail consultant David Merrefield writes on industry website The Robin Report. Kroger has annual sales of $115 billion, about half of Walmart's US sales. Walmart is reacting to Kroger's success by investing more heavily in its grocery experience, the Cincinnati Business Courier reports.

    Business Insider
  • Business

    Why Emergency Funds Are A Bad Idea

    Along with changing your oil every 3,000 miles and checking your child’s trick-or-treat bag for weaponized apples, the common advice to create an emergency fund is overly prudent. All you need is an objective understanding of risk to realize that there are far better places to put your money than an inert account that can’t enrich you. The most recognizable personal finance mavens are almost unanimous in their advocacy of the emergency fund as a vital part of any common-sense financial plan. Their recommendations differ only on size – three months’, six months’, perhaps eight months’ worth of living expenses are enough to accommodate whatever misfortune might befall you. But to what end? And

    Investopedia
  • Sports

    The best way to sink Kobe Bryant’s new $100 million fund would be to invest in sports

    Kobe Bryant’s work ethic is legendary: he’s known for showing up three hours early to practice, sinking 400 shots in drills, and taking midnight bike rides to cross train. Now he’ll be looking for similar qualities in entrepreneurs he’s backing as part of his new $100 million venture capital fund, Bryant Stibel. The recently retired NBA star co-founded the firm with Jeff Stibel, a former brain researcher and technology company founder, to invest in technology, media, and data companies. Existing investments include video-game designer Scopely and legal-services company LegalZoom, but the pair’s interest already includes sports investments in companies such as sports media site The Players’ Tribune and Kobe’s personal investment in sports drink company BodyArmor (which later secured a merchandise partnership with the Los Angeles Lakers).

    Quartz
  • Entertainment

    Former Fox News Host Andrea Tantaros Files Suit Alleging Sexual Harassment

    Andrea Tantaros, a former host of Fox News Channel program like “The Five” and “Outnumbered,” is the latest female staffer at the popular cable-news outlet to levy sexual-harassment charges at the 21st Century Fox-owned property. In a lawsuit filed Monday in the Supreme Court of the State of New York, Tantaros alleged that senior executives at the network retaliated against her after she complained about being inappropriate remarks made to her by Roger Ailes, the former chairman and chief executive of the network. Ailes left Fox News last month in the wake of an internal investigation that is believed to have turned up evidence of several female employees at the operation being harassed sexually during their time of employment.

    Variety
  • Business

    5 Dividend Stocks to Consider Selling Now

    With interest rates in the basement and likely to stay there for some time, investors have, for good reason, flocked to dividend-paying stocks. But demand has pushed up the prices of many popular payers to possibly unsustainable levels. These stocks could be vulnerable to steep declines. People who can live off of their dividend income and can ignore share-price fluctuations may not have to worry much about a market reversal. After all, given enough time, the price of a good company will eventually recover. But investors who can’t stomach a downturn—even if it proves temporary—may want to lighten up on some overpriced dividend stocks. We’ve identified five dividend payers that look overvalued

    Kiplinger.com
  • Business

    Shares of Teva Pharmaceuticals fall after US Patent Office invalidates two patents

    Shares of Teva Pharmaceuticals fell as much as 6 percent on Wednesday after the U.S. Patent Office invalidated two of the company's patents. Mylan had filed a total of four claims related to Copaxone 40 mg. The two patents invalidated on Wednesday are owned by Yeda Research & Development and licensed to Teva. The involved parties are still waiting on a ruling for a third patent, which is expected by Sept. 1. Earlier this month, the Patent Office had ruled that a fourth patent was not eligible for review due to procedural reasons. On Wednesday, Mylan said that it believes the favorable rulingundermines that earlier judgement. The company said it will be "pursuing all avenues to challenge" the

    CNBC.com
  • Business

    Utility Stocks Are About To Pull Back -- Get Ready To Buy

    There's no arguing that utility stocks have knocked it out of the park this year. Utility stocks are always attractive to income oriented investors because of their dividend yields. In fact, I recently recommend taking profits in utility bellwether Southern Company (NYSE: SO).

    StreetAuthority Network
  • News

    Ford Recalls Over 88K Vehicles Due to Stalling Problem

    Ford is recalling more than 88,000 cars and SUVs in North America because the engines can stall without warning due to a fuel pump problem. The recall covers certain Ford Taurus and Police Interceptor sedans, Ford Flex wagons, Lincoln MKS sedans and Lincoln MKT SUVs from the 2013 through 2015 model years. All have 3.5-liter turbocharged six-cylinder engines. Ford says the fuel pump control modules can fail, and the engines may not start, or they could stall, leaving drivers without the ability to restart them. The company says it's not aware of any crashes or injuries from the problem. Dealers will replace the control module at no cost to owners.

    ABC News
  • News

    World's largest aircraft damaged on 2nd test flight

    The developer of the world's largest aircraft says the blimp-shaped airship sustained damage after it made a bumpy landing Wednesday on its second test flight in eastern England. Hybrid Air Vehicles said it is trying to figure out what caused the rough landing of the 302-foot (92-meter) Airlander 10 during its 100 minute flight Wednesday in Bedfordshire, north of London. "The Airlander experienced a heavy landing and the front of the flight deck has sustained some damage, which is currently being assessed," the company said.

    Associated Press
  • News

    Putin's plans put in perspective

    Russian president Vladimir Putin makes a key Kremlin change

    Financial Times Video
  • Business

    How to Get Serious About Building an Emergency Fund

    You’ve heard it time and time again: Everyone should build an emergency fund. Easier said than done, right? Saving can feel like an impossible task when you’re just getting by each month. But even if you’re living paycheck to paycheck, it’s still possible

    Money
  • Entertainment

    UK report urges social media companies to tackle extremism

    A new U.K. parliamentary report is demanding that social media companies do more to tackle sites that promote extremism. The Home Office Committee report says Google, Facebook and Twitter are leaving cyberspace "ungoverned and lawless," making it possible for the forums to be the lifeblood of Islamic State. Despite their size, Vaz says the companies deploy only a "few hundred" employees to monitor billions of accounts.

    Associated Press
  • Business

    Lincoln, Honda, Toyota, BMW are tops in customer satisfaction (Acura, VW not so much)

    ACSI's 2016 Automobile Report polled 3,776 auto customers, asking them to evaluate their experiences with a wide range of car brands, using a scale of 0 (not at all satisfied) to 100 (over the moon). The 2015 ACSI survey saw continued declines in satisfaction, which was attributed to several years of high-profile recalls. On ACSI's 100-point scale, the average score in 2016 is 82, up 3.8 percent from last year.

    The Car Connection
  • SBUX

    No, Starbucks isn't cheating customers by adding ice to drinks, judge says

    It seems that Starbucks (SBUX) can put as much ice as it wants in your beverage. A judge in California dismissed a case that accused the coffee chain of under-filling its iced drinks, saying the plaintiff had "not alleged any viable claims" against the company. "If children have figured out that including ice in a cold beverage decreases the amount of liquid they will receive, the Court has no difficulty concluding that a reasonable consumer would not be deceived into thinking that when they order an iced tea, that the drink they receive will include both ice and tea and that for a given size cup, some portion of the drink will be ice rather than whatever liquid beverage the consumer ordered," wrote Percy Anderson, the U.S. District Judge presiding over the case in his dismissal of the lawsuit last Friday.

    CNBC
  • Politics

    Lawmakers demand information on EpiPen price increase

    Sen. Charles Grassley, R-Iowa, wrote Mylan, the company that manufactures the devices, and asked for more information on why the prices have increased. Two other senators, Democrats Mark Warner of Virginia and Richard Blumenthal of Connecticut, also wrote the company about the high prices. Warner said in a letter Tuesday that the issue is personal for him.

    Associated Press
  • Business

    Pharma nerves hit global stocks, dollar wobbles before Fed gathering

    European stocks saw their biggest fall in three weeks on Thursday and currency markets were noticeably subdued as investors took to sidelines ahead of one of the big global central banker gatherings of the year. Japanese and Chinese stocks had suffered modest drops in Asia and the pace picked up in Europe as London's FTSE sank 0.4 percent and Frankfurt and Paris lost as much as 1.2 percent in a region-wide slide. Wall Street was also set for an all-red start for its main S&P 500 , Dow and Nasdaq indexes where weekly jobless claims, big ticket goods and Markit PMI data is on the slate.

    Reuters
  • Business

    CrowdStrike, other cybersecurity firms integrating industry cooperative

    Some information security companies that were shut out of the leading system for sharing data on malicious software are revealing more about how their own systems work in hopes of rejoining the cooperative effort, a shift that should improve protections for customers throughout the industry. CrowdStrike, one of the most prominent young security companies threatened with exclusion from some shared services, said it has integrated part of its system for detecting malicious software with VirusTotal, the main industry repository for disclosing and rating risks of malware and suspect files. Alphabet Inc's Google runs the VirusTotal database so security professionals can share new examples of suspected malicious software and opinions on the danger they pose.

    Reuters
  • Health

    How EpiPen's maker raised prices, and hackles, so much

    Sky-high price hikes for EpiPen, the injected emergency medicine for severe allergic reactions to foods and bug bites, have made its maker the latest target for patients and politicians infuriated by soaring drug prices. The company, Mylan, has a virtual monopoly on epinephrine injectors, potentially life-saving devices used to stop a runaway allergic reaction. Mylan N.V., which has headquarters in Hertfordshire, England, and Pittsburgh, has hiked prices as frequently as three times a year over the past nine years, pushing its list price for a package of two syringes to more than $600.

    Associated Press
  • News

    World's first self-driving taxis debut in Singapore

    The world's first self-driving taxis will be picking up passengers in Singapore starting Thursday. Select members of the public will be able to hail a free ride through their smartphones in taxis operated by nuTonomy, an autonomous vehicle software startup. It will beat ride-hailing service Uber, which plans to offer rides in autonomous cars in Pittsburgh, by a few weeks.

    Associated Press
  • AAPL

    According to this chart, Apple shares are approaching a critical breaking point

    For Jonathan Krinsky, technical analyst MKM Partners, Apple's chart has become a heated battleground between bulls and bears. But he observes that Apple shares, which are up about 10 percent in the past month, have recently reached up to the top of this channel. The story of the $90 level on Apple's chart starts in April 2012, when the stock topped out at $92 — which was then actually $644, as it was before Apple's 7-to-1 stock split.

    CNBC
  • Science

    Investors urge G20 nations to ratify Paris climate deal this year

    Investors managing more than $13 trillion of assets urged leaders of the Group of 20 on Wednesday to ratify a global climate deal by the end of 2016 and to step up efforts to shift from fossil fuels. A total of 130 investors, grouped in six coalitions, wrote a letter to G20 leaders and also called on them to double global investment in clean energy, develop carbon pricing and phase out fossil fuel subsidies. Among backers were the California Public Employees' Retirement System, Swedish National pension funds, Aegon, AustralianSuper, the Church of England Pensions Board and the New York City Comptroller, it said.

    Reuters