KBR's K-GreeN to Support Madoqua's Green Ammonia Project
KBR, Inc.’s KBR K-GreeN technology was selected by Madoqua Power2X for its green ammonia project at Sines Industrial Zone in Portugal.
Per the deal, KBR’s Technology unit will provide a technology license, proprietary engineering design and equipment and catalyst solutions to Madoqua. On the other hand, Madoqua will implement KBR's suite of advanced digital solutions to optimize operations and energy efficiency for the facility.
The Sines project, one of the leading clean hydrogen and ammonia projects in Europe, is held by a joint venture between Madoqua Renewables, Power2X and Copenhagen Infrastructure Partners.
KBR’s Low-Carbon Ammonia Offerings Bode Well
Since 1943, KBR has licensed, engineered and constructed more than 250 grassroot ammonia plants worldwide, capturing approximately 50% of the market share of licensed capacity. The determination to lower emissions, achieve product diversification and energy efficiency and develop more sustainable technologies and solutions has been driving KBR’s performance.
To expand its low-carbon ammonia offerings for the energy transition, KBR has been working on multiple contracts. In April, it won a deal to provide the K-GreeN technology for Atlas Agro AG’s planned investment in a series of green nitrate plants. The technology was chosen by Avina Clean Hydrogen for its green ammonia project in the United States. Earlier in February, KBR secured a K-GreeN contract from Enaex, S.A., for the HyEx green ammonia project in Chile, South America.
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 strong. A strategic shift to IP-enabled maintenance is also gaining traction and KBR’s advisory portfolio continues to see increasing activity, particularly in the energy transition.
Contract Wins: A Boost for the Backlog
KBR has been gaining from the rising global importance of national security, energy security, energy transition and climate change. It has been benefiting from high-end and differentiated government business work, strong margin performance, technology and consulting services.
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Shares of the company rose by 8.8% in the past six months, outperforming the industry’s 7.4% growth. The trend is likely to continue, given the solid backlog level (including award options).
As of Jun 30, 2023, the total backlog (including award options) of KBR was $21.06 billion compared with $19.76 billion at 2022-end. Of the total backlog, Government Solutions booked $11.82 billion and the Sustainable Technology Solutions segment accounted for $5.06 billion.
At the end of the second quarter, the company delivered a trailing 12-month book-to-bill of 1.1x and recorded $2.2 billion in bookings and options.
Zacks Rank & Other Key Picks
KBR carries a Zacks Rank #2 (Buy).
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