KBR Wins Contract From DFPCL for the Smart Factory Project
KBR, Inc. KBR is selected by Deepak Fertilisers and Petrochemicals Corporation Limited (“DFPCL”) for a multi-year service contract for the development of its Smart Factory project.
Per the contract, KBR will design and deploy real-time monitoring and diagnostics, first-principles modeling, artificial intelligence and machine learning, accompanied by advanced process control, to optimize operations in the four nitric acid plants, located in Dahej and Taloja, India. These digital solutions will help provide dynamic decision support and automation as well as enhance energy efficiency and value from DFPCL's existing assets, thus driving its plant operations to the top.
KBR is optimistic about the new contract win as it believes that its state-of-the-art digital offerings accompanied by decades of industry and domain expertise will help in delivering the services efficiently.
KBR’s Consistent Contract Wins
KBR’s focus on a resilient business model and efficiency-boosting initiatives have sparked its project-winning momentum. Also, the increasing global importance of national security, energy security, energy transition and climate change have been acting as major tailwinds. In the second quarter of 2023, it received $2.2 billion in bookings and options in highly strategic areas, thus taking its backlog and option level to $21.1 billion. This uptrend was backed by increased activity to support exercises, training and other related activities in the European Command, along with on-contract growth in Science & Space. Also, the growing demand for Sustainable Technology Solutions (STS), primarily from engineering and professional services and technology licensing, added to the growth.
Since second-quarter 2023, the company announced nine contract wins. Recently, on Sep 25, it won an engineering, procurement and construction management contract by Woodside Energy, as an operator for and on behalf of the Pluto Joint Venture. Under the contract, it will undertake modifications for Train 1 of Woodside's Pluto Liquefied Natural Gas facility near Karratha, Western Australia. Furthermore, on Sep 26, KBR secured a blue hydrogen process technology and front-end engineering design (FEED) contract from EET Hydrogen. It will provide technology licensing, proprietary engineering design, equipment, catalyst, and FEED services for a potential plant capacity of up to 1000 megawatts.
Going forward, KBR expects broad-based growth across both Government Solutions and STS segments. Primary growth drivers include high-end and differentiated government business work, strong margin performance and technology and consulting business.
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Shares of this engineering, construction and services firm have gained 6.7% in the past six months, outperforming the Zacks Engineering - R and D Services industry’s 5.7% growth. The uptrend is attributable to the ongoing contract wins and the solid backlog level.
Zacks Rank
KBR currently carries a Zacks Rank #2 (Buy).
Other Key Picks
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