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KBR Wins FNTP Contract from Alliant Energy

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KBR Inc. (KBR) recently received a full notice to proceed FNTP contract from Interstate Power and Light Company, a subsidiary of Alliant Energy Corp. (LNT). KBR will be booking the contract in the second-quarter 2014 backlogs of its Infrastructure, Government and Power (IGP.V) segment. However, it kept the financial terms undisclosed.

The contract is for the engineering, procurement, and construction (:EPC) phase of Alliant Energy’s upcoming natural-gas-fueled generating station located in Marshalltown, IA.

This advanced generating station has a capacity of 650-megawatt and will be utilizing a combined-cycle heat engine for power generation. More specifically, the engines have a configuration of 2x1 combined-cycle consisting of a couple of combustion turbines, two heat recovery steam generators complete with a steam turbine. This station will be located near Alliant Energy’s present generating station in Marshalltown.

Alliant Energy already received regulatory approval for the project from the Iowa Utilities Board (:IUB) last year after obtaining the conditional pre-construction permits. Alliant Energy selected KBR for this critical task after it received the unconditional Generating Certificate from the IUB, in May 2014. The company had to obtain the clearance Air Permit receipt from the Iowa Department of Natural Resources (:IDNR) for getting the unconditional Generating Certificate. 

KBR is a global engineering, construction and services company. Its IGP business group delivers effective solutions to industrial commercial, defense and governmental agencies across the world, providing base operations, facilities management, border security, EPC services and logistics support. The segment specializes in providing EPC services to heavy industrial and advanced manufacturing companies. This contract is a strategic move by KBR to strengthen this segment, which has been sluggish for a while owing to the reductions in infrastructure- and mineral-based projects.

KBR currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the sector include Emcor Group Inc. (EME) and Tutor Perini Corporation (TPC), both carrying a Zacks Rank #2 (Buy).

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