HOUSTON – KBR, Inc. (NYSE: KBR), a global technology and engineering firm, has secured a front-end engineering design (FEED) contract for the Qalhat LNG complex expansion in Sur, Oman, the company announced today. The project is aimed at increasing the production capacity of the complex to meet the rising global energy demands while emphasizing sustainable operations.
The FEED contract involves KBR providing engineering services for a new liquefied (LNG) production train, the complex’s fourth, with a planned annual capacity of 3.8 million tons. The expansion will encompass additional utilities, an LNG tank, a jetty, and related infrastructure.
Jay Ibrahim, KBR President of Sustainable Technology Solutions, expressed the company’s commitment to the project, stating, “LNG will play an increasingly vital role in the global energy mix, and we are honored to continue our collaboration with Oman on this critical project.” He highlighted the project’s alignment with Oman’s energy security and sustainability objectives.
KBR, with a workforce of approximately 37,000 people worldwide, is recognized for its extensive experience in designing and constructing LNG facilities globally. This new contract further establishes KBR’s role in bolstering reliable and sustainable energy supplies.
The press release also contains forward-looking statements regarding KBR’s project performance and future demand for its products and services. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.
The information provided is based on a press release statement from KBR, Inc.
In other recent news, KBR Inc (NYSE:). has been the subject of positive analyst attention, with DA Davidson maintaining a Buy rating and raising the price target to $84.00, up from $78.00. This decision was influenced by the company’s strong financial prospects, including anticipated contributions from the LinQuest business and growth opportunities. The analyst highlighted KBR’s strategic moves, such as cross-country relocations and the addition of new vendors, as positive developments.
KBR’s recent earnings call revealed a 10% year-on-year increase in group revenue and an 18% rise in adjusted EBITDA. The company’s sustainability efforts contributed to over $2.5 billion in revenue, with significant project wins such as contracts for Aramco (TADAWUL:)’s liquid to chemicals project and various LNG contracts. The acquisition of LinQuest also enhanced KBR’s military space capabilities, contributing to over $60 million in new orders.
The company’s 2024 revenue guidance was raised to $7.5 billion-$7.7 billion and adjusted EBITDA to $840 million-$870 million. KBR’s progress in emerging technologies like sustainable aviation fuel and plastics recycling was noted, and the company expressed confidence in achieving 11% to 15% growth expectations for its STS segment in the upcoming year. These are recent developments that underscore KBR’s robust growth and strategic positioning.
InvestingPro Insights
KBR’s recent FEED contract for the Qalhat LNG complex expansion in Oman aligns well with the company’s strong financial performance and growth prospects. According to InvestingPro data, KBR’s revenue grew by 7.55% over the last twelve months, with a notable 10% quarterly growth in Q3 2024. This growth trajectory is likely to be further supported by projects like the Qalhat LNG expansion.
An InvestingPro Tip highlights that KBR’s net income is expected to grow this year, which could be partly attributed to such high-profile contracts in the LNG sector. Additionally, the company’s strong return over the last five years, as noted in another InvestingPro Tip, suggests a consistent track record of successful project execution and financial management.
KBR’s P/E ratio of 24.96 (adjusted for the last twelve months) indicates that investors are willing to pay a premium for the company’s earnings, possibly due to its growth potential in the expanding LNG market. The company’s dividend yield of 0.86% and a dividend growth of 11.11% over the last twelve months further underscore its financial stability and commitment to shareholder returns.
For investors interested in a deeper analysis of KBR’s financial health and growth prospects, InvestingPro offers 12 additional tips, providing a comprehensive view of the company’s potential in the evolving energy landscape.
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