KBR to Offer Expert Consulting Services for 1st Green Refinery
KBR, Inc. KBR is set to provide expert consulting services to Southern Rock Energy Partners for the development of a first-of-its-kind refinery in Cushing, OK.
Per this feasibility study contract, KBR’s experts will provide consultation services in the formative stages of the project and key technical information for the individual process units. Its intense support in the design stage will reduce emissions of greenhouse gases for a sustainable operation.
Southern Rock's proposed 250,000 bpd refinery will be powered by solar, wind, waste heat and geothermal energy and consume hydrogen and oxygen as a fuel source. This will help make it a truly cutting-edge refinery to become net zero carbon and the first truly green refinery in the United States.
Solid Technology Business Prospect
KBR has been a leader in process technology development, commercialization and plant design for more than 50 years. For about four decades, KBR's process knowledge for the recovery and purification of inorganic materials has been used to design evaporation and crystallization technologies.
The determination to lower emissions, achieve product diversification and energy efficiency and develop more sustainable technologies and solutions has been driving KBR’s performance.
The demand for the company’s technologies across ammonia for food production, olefins for non-single-use plastics, refining for product diversification and greener solutions to meet tighter environmental standards has been going strong. A strategic shift to IP-enabled maintenance is also gaining traction, and KBR’s advisory portfolio continues to see increasing activity, particularly in energy transition.
Share Price Performance
Shares of the company rose 0.23% on Jun 15 and 23.4% in the year-to-date against the industry’s 16.5% decline. Earnings estimates for 2023 reflect 6.3% year-over-year growth. The trend is likely to continue, given the solid backlog level (including award options).
As of Mar 31, 2023, the total backlog (including award options) was $20.89 billion compared with $19.76 billion at 2021-end. Of the total backlog, GS booked $16 billion. The Sustainable Technology Solutions segment accounted for $4.9 billion of the total backlog.
KBR has been gaining from the rising global importance of national security, energy security, energy transition and climate change. It has been gaining from high-end and differentiated government business work, strong margin performance and technology and consulting services.
KBR’s long-term, mission-critical programs provide strong visibility in volatile times. Its determination to reduce emissions, product diversification, inorganic moves and strategic alliances bodes well.
Zacks Rank & Key Picks
KBR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks that warrant a look in the same space are Willdan Group, Inc. WLDN, Sterling Infrastructure, Inc. STRL and Howmet Aerospace, Inc. HWM.
Willdan Group is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.
Willdan Group presently sports a Zacks Rank #1 (Strong Buy). WLDN’s expected earnings growth rate for 2023 is 39.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sterling Infrastructure currently carries a Zacks Rank #2 (Buy), provides transportation, e-infrastructure and building solutions.
STRL’s expected earnings growth rate for 2023 is 11.4%.
Howmet Aerospace is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market. Importantly, share gains in the titanium aerospace market are expected to be a major growth tailwind. Howmet Aerospace currently carries a Zacks Rank of 2.
HWM’s earnings for 2023 are expected to grow 20.7%.
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KBR, Inc. (KBR) : Free Stock Analysis Report
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