HOUSTON - KBR, Inc. (NYSE: NYSE:KBR), a global technology and engineering firm, has secured an advisory consulting contract from Kuwait Oil Company to assist in developing a comprehensive renewable energy and green hydrogen masterplan. The initiative aims to establish 17 gigawatts (GW) of renewable energy and 25 GW of green hydrogen production by 2050.
The strategic project, unfolding over the next 18 months, involves KBR providing a suite of advisory services. These services include the creation of a phased deployment strategy for wind and solar power generation, integrated with energy storage solutions. Additionally, the plan will facilitate the production of green hydrogen, intended for both domestic industrial use and export.
Jay Ibrahim, KBR President of Sustainable Technology Solutions, expressed enthusiasm for the company's role in shaping Kuwait's national energy strategy and emphasized KBR's commitment to sustainability and the energy transition. He highlighted the company's extensive experience in the region and its strategic focus on supporting major energy investments at a national scale.
KBR's involvement is expected to include market analysis, techno-commercial feasibility studies, and the training of Kuwaiti nationals, contributing to the country's expertise in renewable energy.
This contract aligns with KBR's global operations, which span over 30 countries, employing approximately 35,000 people. The company is known for delivering scientific, technological, and engineering solutions to government and industry clients worldwide.
This news is based on a press release statement.
In other recent news, KBR, a global provider of technology and engineering solutions, has made significant strides in its operations. The company announced plans to acquire LinQuest Corporation, a move that is expected to strengthen KBR's services in the national security domain. The transaction, valued at $737 million, is anticipated to close later this year.
KBR has also secured several notable contracts. The company was awarded an $82 million task order to continue its support for the United States Air Force's B-52 bombers. In addition, KBR secured a spot on a $43 billion military health contract aimed at delivering health and wellness services to U.S. military personnel and their families. Furthermore, the company was chosen for a $2 billion contract to support U.S. Navy facilities globally.
On the environmental front, KBR has obtained a contract to provide a training simulator for OCI Global's Texas Blue Clean Ammonia facility. Analyst firms BofA Securities and Stifel have expressed confidence in KBR's growth outlook, with BofA reiterating a Buy rating and Stifel raising its stock price target.
These are the recent developments shaping KBR's strategic direction.
InvestingPro Insights
KBR, Inc. (NYSE: KBR), while embarking on an ambitious renewable energy project, shows a mixed financial canvas as reflected in the latest InvestingPro data. The company's market capitalization stands at a solid $9.03 billion, indicating a strong position in the market. Despite a challenging past, with the company not being profitable over the last twelve months, analysts are optimistic about KBR's future, predicting net income growth this year. This optimism is underscored by a revenue growth of 7.9% in the last twelve months as of Q1 2024, which suggests that KBR is expanding its operations effectively.
InvestingPro Tips reveal a company with a commitment to shareholder returns, having raised its dividend for four consecutive years and maintained dividend payments for 17 consecutive years. Additionally, the company's stock trades with low price volatility, providing a sense of stability for investors. However, it's important to note that KBR is trading near its 52-week high and at a high Price/Book multiple of 6.41, which could suggest the stock is valued on the higher side relative to its book value.
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