HomeMost PopularInvestingUnlocking Prosperity: KBR Secures Lobito Refinery Project Management Contract

Unlocking Prosperity: KBR Secures Lobito Refinery Project Management Contract

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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 projectโ€™s engineering, procurement, and construction phases, KBRโ€™s role is pivotal in steering this ambitious endeavor to success.

The companyโ€™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 Sonangolโ€™s business objectives but also meets stringent emission standards and emphasizes environmental sustainability, fitting seamlessly into KBRโ€™s green-centric strategy.

A Winning Streak

KBRโ€™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 KBRโ€™s ascendancy.

With a total backlog of $21.73 billion as of December 29, 2023, including award options amounting to $4.4 billion, KBRโ€™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 KBRโ€™s strategic prowess. Not to be outdone, the selection of K-GreeN technology for Lotte Chemicalโ€™s green ammonia project in Sarawak, Malaysia, on January 8, amplifies KBRโ€™s reputation as an industry trailblazer.

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KBRโ€™s shares have surged by 11.3% in the last three months, outpacing the 10% growth observed in the Zacks Engineering โ€“ 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.

NVRโ€™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 Brothersโ€™ 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.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Itโ€™s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is โ€œWill you get into the right stocks early when their growth potential is greatest?โ€

Zacks has released a Special Report to help you do just that, and today itโ€™s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

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KBR, Inc. (KBR) : Free Stock Analysis Report

Toll Brothers Inc. (TOL) : Free Stock Analysis Report

NVR, Inc. (NVR) : Free Stock Analysis Report

Sterling Infrastructure, Inc. (STRL) : 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.

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