Leading global engineering, construction and services company, KBR Inc. (KBR) received a project management consultancy (PMC) contract from the largest operating refinery in Russia, owned by JSC Gazprom Neft. Per the contract, KBR will provide PMC services for the construction of the high-tech oil processing complex, which is part of the major renovation program undertaken by the Russian refinery. Though the financial details have been kept under wraps, KBR intends to include the contract in its second-quarter 2014 backlog, under the hydrocarbon segment.
The scope of the contract requires KBR to provide PMC services for three new process units and offsites. Per the contract, KBR will begin utilities construction with the front-end engineering and design phase and proceed to engineering, procurement and construction work along with commissioning. Also, KBR will assume responsibilities for the project start-up.
KBR’s hydrocarbon segment provides services ranging from pre-feasibility studies to front-end engineering design through construction and commissioning of process facilities in both remote and developed areas around the world. In the fourth quarter of 2013 (the company has not released its first-quarter 2014, as a results of restatement of its financial results), revenues at the Hydrocarbons segment increased 24.8% year over year to $432 million. The revenue growth was driven by developments in the downstream ammonia, urea and ethylene projects in key regions like North America, Uzbekistan and Azerbaijan.
KBR currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the sector include Emcor Group Inc. (EME), Sterling Construction Co. Inc. (STRL) and Tutor Perini Corporation (TPC). All three carry a Zacks Rank #2 (Buy).