HOUSTON - KBR, Inc. (NYSE: NYSE:KBR) has been awarded a contract to provide engineering and procurement services for the onshore portion of Shell (LON:SHEL)'s Manatee gas field project in Trinidad and Tobago, the company announced today. The Manatee project is poised to bolster global energy security by contributing natural gas to the Atlantic LNG facility in the country.
The contract signifies a continuation of KBR's involvement in the Manatee project, following the company's completion of front-end engineering design as part of Shell's development team. Jay Ibrahim, President Sustainable Technology Solutions at KBR, expressed the company's enthusiasm for being a key contributor to the project, emphasizing its role in supporting the provision of reliable energy resources.
KBR, a global provider of science, technology, and engineering solutions, has a history of delivering LNG projects across the world. The company's commitment to aiding clients through the energy transition is evident in its focus on including gas within the energy mix.
The company employs about 36,000 people globally, offering a range of services, including technology, value-added services, and operations and maintenance, to ensure consistent and predictable results for its customers.
While KBR's announcement reflects its optimistic outlook on the contract's potential impact on its business, the company also cautions stakeholders about forward-looking statements. As detailed in its filings with the U.S. Securities and Exchange Commission, such statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations.
This news is based on a press release statement from KBR, Inc. and does not include any promotional content or endorsements of the claims.
In other recent news, KBR Inc . has secured several significant contracts and made notable strategic moves. The company was awarded a $230 million contract for the modernization of IT systems for the U.S. Navy's Naval Air Systems Command (NAVAIR), and a $140 million contract extension from the Air Force Life Cycle Management Center. KBR also completed the acquisition of LinQuest Corporation, enhancing its national security services.
In terms of financial performance, KBR reported a robust second quarter of fiscal 2024, with a 6% increase in revenue year-on-year and a 13% rise in adjusted EBITDA, raising its revenue expectations for the year to between $7.4 billion and $7.7 billion. However, TD Cowen downgraded KBR's stock from Buy to Hold, citing potential execution and timing risks.
KBR was also awarded contracts to conduct a conceptual study on floating blue ammonia production for Samsung (KS:005930) Heavy Industries and to design topsides facilities for two floating production storage and offloading units in Brazil's Santos Basin. These recent developments highlight KBR's ongoing strategy to expand its service offerings and maintain its financial performance.
InvestingPro Insights
KBR's recent contract award for Shell's Manatee gas field project aligns with the company's strong financial performance and market position. According to InvestingPro data, KBR's revenue growth stands at 7.22% over the last twelve months, with a robust revenue of $7,173 million. This new project is likely to contribute positively to the company's future revenue streams.
InvestingPro Tips highlight that KBR has raised its dividend for 4 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given the company's involvement in large-scale energy projects, which often require significant capital investment.
The company's price-to-earnings (P/E) ratio of 28.18 (adjusted for the last twelve months) suggests that investors are optimistic about KBR's growth prospects. This optimism is further supported by the fact that KBR is trading near its 52-week high, with a price that is 99.41% of its 52-week peak.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips on KBR, providing a deeper understanding of the company's financial health and market position.
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