KBR Study for Upgrading Algerian Plants - Analyst Blog
November 08 2013 - 6:00PM
Zacks
Leading engineering and construction services provider
KBR, Inc. (KBR) recently announced that it has
received a contract from Algeria-based petrochemical firm Fertial
SpA to conduct a study for upgrading a couple of Algerian ammonia
plants. The study will primarily focus on increasing the plant’s
efficiency and production capacity. The company noted that the
contract will be recorded in the fourth quarter bookings, but the
financial terms of the deal were not disclosed.
The scope of the study entails KBR to revamp the project in
first phase. KBR will also be providing the outlines for technical
scope and commercial requirements for the project to be
economically viable. The study is expected to make the ammonia
plants more efficient while ensuring increased safety and
reliability.
The report from the study will also aid in increasing the plants
production capacity and it is expected that ammonia production will
gradually increase by as much as 50%. This increase will be
introduced in phases for these vintage plants, which were
established in 1970s.
Fertial SpA is a leading petrochemical firm producing ammonia,
compound fertilizers, superphosphate straight fertilizer,
granulated ammonium nitrate and calcium ammonium nitrate and urea
ammonium nitrate. The company is also a leading exporter of
Petrochemicals in Mediterranean Sea and has a significant
petrochemical share in Arab.
KBR is an industrial construction and engineering facility
provider, offering services to hydrocarbon, chemical and
petrochemical industries. KBR has a 60-year old legacy of providing
construction and maintenance services. Going forward, with
continued growth in demand for construction and maintenance
services, we expect the company to secure more such contracts in
the imminent future.
KBR currently has a Zacks Rank #5 (Strong Sell). Other stocks in
the industry worth reckoning at the moment include Jacobs
Engineering Group Inc. (JEC), Premier Oil
plc (PMOIY) and Quanta Services,
Inc. (PWR). All three carry a Zacks Rank
#2 (Buy).
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
KBR INC (KBR): Free Stock Analysis Report
PREMIER OIL-ADR (PMOIY): Get Free Report
QUANTA SERVICES (PWR): Free Stock Analysis Report
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