AKRON, Ohio - Babcock (LON:BAB) & Wilcox Enterprises, Inc. (NYSE: BW), known for its energy and environmental products, has secured a contract exceeding $8 million to provide a cooling system for a renewable energy facility in the United Kingdom. The announcement made today by the company's B&W Environmental segment underlines its role in supporting the U.K.'s clean energy initiatives.
The contract involves the design and supply of an air-cooled condenser (ACC) system by B&W's subsidiary, SPIG S.p.A. This system, known for its high efficiency, is intended to generate low-carbon baseload electricity for the plant. The ACC technology, which condensates turbine exhaust steam using ambient air without the need for water, boasts benefits such as high corrosion resistance and low operating noise, making it suitable for renewable energy applications.
Jimmy Morgan, B&W's Executive Vice President and Chief Operating Officer, expressed the company's enthusiasm for contributing to the U.K.'s renewable energy sector and emphasized B&W Environmental's position as a reliable solutions provider.
Based in Akron, Ohio, Babcock & Wilcox has established itself as a leader in the global power and industrial markets, offering a range of energy and environmental products and services.
The company has cautioned that this press release contains forward-looking statements regarding the contract's potential outcomes. These statements are based on current management expectations and are subject to risks and uncertainties. Babcock & Wilcox advises that actual results could differ materially if any of these risks materialize.
The information reported is based on a press release statement from Babcock & Wilcox Enterprises, Inc.
In other recent news, Babcock & Wilcox Enterprises has secured a $25 million contract for upgrades and maintenance services at a thermal power plant in the United States. In addition, the company has entered into a registration rights agreement with B. Riley Securities, providing a potential liquidity path for B. Riley's holdings. Babcock & Wilcox has also amended its existing credit agreement, allowing for asset sales and rearranging financial obligations.
The company recently sold its subsidiary, Babcock & Wilcox Renewable Service A/S, to Hitachi (OTC:HTHIY) Zosen Inova AG for $87 million, as part of a strategy to streamline its business. Furthermore, Babcock & Wilcox has secured contracts totaling over $18 million for its Environmental segment, focusing on upgrades for electrostatic precipitators at utility and industrial plants.
Recent financial performance has been strong, with first-quarter results for 2024 exceeding expectations, despite a decrease in total revenue to $84.1 million. The company's environmental business segment saw a 23% increase in revenue. Babcock & Wilcox has also partnered with NorthStar Clean Energy to convert a former coal-fired power plant into a Bioenergy with Carbon Capture and Storage facility, leveraging the company's proprietary SolveBright technology.
InvestingPro Insights
Babcock & Wilcox Enterprises, Inc. (NYSE: BW), while recently announcing a promising contract that may bolster its role in the renewable energy sphere, presents a mixed financial picture according to InvestingPro data. The company's market capitalization stands at a modest $101.42 million, indicating a relatively small size within the industry. Despite the potential for growth with new contracts, Babcock & Wilcox operates with a significant debt burden, an InvestingPro Tip that suggests financial caution. The company's net income, however, is expected to grow this year, hinting at a potential turnaround in its financial performance.
InvestingPro data highlights a negative price-to-earnings (P/E) ratio of -0.53, which may raise concerns about the company's profitability in the recent past. This is reinforced by the company's negative price/book value of -0.51, suggesting that the market values the company at less than the net value of its assets. Furthermore, with a gross profit margin of 23.35% over the last twelve months as of Q2 2024, Babcock & Wilcox maintains a decent level of operational efficiency in generating profit from its revenues.
The stock's performance has seen significant return over the last week with a price total return of 7.84%, yet it has fared poorly over the last month, experiencing a price total return of -29.94%. This volatility is reflected in another InvestingPro Tip, indicating that the stock generally trades with high price volatility. Investors interested in Babcock & Wilcox should note that there are 16 additional InvestingPro Tips available, which can provide a deeper analysis of the company's financial health and stock performance.
For those closely watching Babcock & Wilcox's trajectory, the next earnings date is set for November 7, 2024, which will be a critical moment for assessing the company's financial trends and the impact of its recent contract wins.
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