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Chicago Bridge Wins Low-Temp Tank Award

Zacks Equity Research

Chicago Bridge and Iron Company N.V. (CBI) recently received a contract for the construction of two low-temperature tanks from Sunoco Partners Marketing and Terminals L.P. for their project in Nederland, Texas.

Valued at over $50 million, the deal requires Chicago Bridge to provide Engineering, Procurement, Construction (:EPC) and pre-commissioning for a couple of large low-temperature tanks at Mariner South project of Sunoco Logistics.

In Jul 2013, Chicago Bridge had received a construction contract from Sunoco for a turnkey propane terminal and a de-ethanizer facility in Marcus Hook, Penn.

Chicago Bridge is a leader in the LNG storage niche market. The company expects more contract wins in the near term in this segment specifically for the low temperature storage systems in petrochemicals industry. Chicago Bridge plans to aggressively capture market share in this domain.

Chicago Bridge is expected to benefit from the rising global demand for energy infrastructure, especially in the LNG, gas processing and oil sands markets. The surge in shale gas revolution in North America and the recent approval from the U.S. Department of Energy (:DOE) for the export of LNG has created a strong opportunity and thereby a good market for Chicago Bridge.

Chicago Bridge is among the world’s leading integrated EPC service provider and major process technology licensors, providing comprehensive solutions to customers primarily in the energy and natural resource industries.
Chicago Bridge currently carries a Zacks Rank #3 (Hold). Stocks in the same sector that are worth reckoning include Lennox International, Inc. (LII), which carries a Zacks Rank #1 (Strong Buy), Hopewell Highway Infrastructure Limited (HHILY) and Meritage Homes Corp. (MTH), both of which carry a Zacks Rank #2 (Buy).

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