Fortune favors the bold, and KBR, Inc. has proven this adage yet again by clinching the project management contract for the Lobito Refinery Project, a testament to their enduring partnership with Sonangol spanning over two decades.
Building a Bright Future
In the heart of Angola, KBR is set to carve out a new chapter with the construction of a cutting-edge 200,000 barrels-per-day refinery in Lobito. Tasked with overseeing the project’s engineering, procurement, and construction phases, KBR’s role is pivotal in steering this ambitious endeavor to success.
The company’s innovative approach shone brightly during the Front End Engineering Design (FEED) phase completion in early 2023. Their cost-competitive design not only aligns with Sonangol’s business objectives but also meets stringent emission standards and emphasizes environmental sustainability, fitting seamlessly into KBR’s green-centric strategy.
A Winning Streak
KBR’s relentless dedication to fortifying its business model and driving efficiency has paid off, propelling the company into a streak of lucrative contract wins. Moreover, the global spotlight on national security, energy transition, and climate change has provided a tailwind for KBR’s ascendancy.
With a total backlog of $21.73 billion as of December 29, 2023, including award options amounting to $4.4 billion, KBR’s growth trajectory is on a firm footing compared to the $19.76 billion recorded at the close of 2022. The Government Solutions sector claimed $12.79 billion of the backlog, while the Sustainable Technology Solutions segment held $4.55 billion.
Recent victories, such as securing a contract on January 10, 2024, with INPEX Corporation and LSB Industries for a major clean ammonia production and export project in the U.S. Gulf Coast, underscore KBR’s strategic prowess. Not to be outdone, the selection of K-GreeN technology for Lotte Chemical’s green ammonia project in Sarawak, Malaysia, on January 8, amplifies KBR’s reputation as an industry trailblazer.
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KBR’s shares have surged by 11.3% in the last three months, outpacing the 10% growth observed in the Zacks Engineering – R and D Services industry.
Charting Future Growth
As of now, KBR maintains a Zacks Rank #3 (Hold), signaling strong potential amidst a backdrop of continued expansion and strategic positioning. For investors eyeing promising prospects in the Construction sector, companies like NVR, Inc., Toll Brothers, Inc., and Sterling Infrastructure, Inc., with their Zacks Rank #1 (Strong Buy) ratings, provide compelling options for those seeking to fortify their portfolios.
NVR’s robust track record, showcasing an average earnings surprise of 8.1% over the past four quarters and a stock surge of 22.4% in the previous six months, paints a promising picture. Meanwhile, Toll Brothers’ impressive average earnings surprise of 30.2% and a stock upsurge of 54.3% in the last six months indicate a potent growth trajectory.
Sterling Infrastructure, Inc., with an average earnings surprise of 20.4% and an impressive stock rally of 44.6% in the preceding six months, rounds up the trio of top picks in the sector, displaying robust growth potential.
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KBR, Inc. (KBR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
