KBR, Inc. KBR has been chosen as the chief integrated project management contractor for BP’s global hydrogen project portfolio. This contract will start under the existing global engineering services agreement with BP.
KBR will employ the experience of its Integrated Project Management Team (IPMT) to deliver services required for safe, efficient and high-quality project delivery. These include performance management of individual projects as well as relevant subcontractors.
Per the contract, KBR’s services will jointly contribute to front-end, optimization and execution project phases along with management support. The work will be carried out through construction, commissioning and startup for BP's global hydrogen projects.
Pertaining to the contract, the president of KBR's Sustainable Technology Solutions business, Jay Ibrahim said, “This contract award aligns with KBR's mission of providing our customers with differentiated, sustainable solutions that are enabling the energy transition. KBR is proud of its long-standing relationship with BP. By leveraging that relationship and our premier hydrogen domain expertise, we will continue to collaboratively deliver successful projects that support their business objectives.”
Shares of KBR have gained 9.7% in the past three months compared with the Zacks Engineering - R and D Services industry’s growth of 6.4%.
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KBR has been a leader in energy transition and has wide-ranging experience supporting sustainable energy projects worldwide. The determination to achieve lower emissions, product diversification, energy efficiency and more sustainable technologies and solutions has been driving KBR’s performance. The demand for the company’s technologies in ammonia for food production, olefins for non-single-use plastics, refining for product diversification, and green solutions to meet tighter environmental standards has been going strong. A strategic shift to IP-enabled maintenance is also gaining traction. KBR continues to see increasing activity across the advisory portfolio, particularly in energy transition.
The company’s Sustainable Technology Solutions (STS) segment integrates more than 70 innovative, proprietary, sustainability-focused process technologies and remains focused on energy transition and net-zero carbon emission consulting as well as technology-led industrial solutions.
STS segment revenues increased 17.3% year over year to $352 million in fourth-quarter 2022. Also, its backlog increased 71% to $4.01 billion in 2022-end compared to $2.3 billion at 2021-end. STS benefited from strong end markets, superior technology offerings and highly sought-after engineering solutions.
The company’s total backlog increased to $19.76 billion as of 2022-end from $19.71 billion at 2021-end.
KBR’s solid backlog level highlights its underlying strength, which is backed by a solid contract-winning spree, strong project execution and the impressive performance of its government and technology businesses.
Zacks Rank & Key Picks
KBR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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