KBR Wins Contract For ECOWAS Refinery Project In Liberia

Houston-based technology, engineering, procurement and construction company KBR, Inc. (NYSE:KBR) secured a Bankable Feasibility Study (“BFS”) contract by ECOWAS Refinery Liberia Limited. The contract calls for the development of a 100kbbl/day refinery in Buchanan, Liberia.

Per the agreement, KBR will conduct refinery configuration development, a market study and an Environmental, Social and Health Impact Assessment study for the project.

The task will be performed over a period of five months. Revenues associated with the task, which were kept under wraps, will be booked into second-quarter 2016 backlog for the KBR's Technology & Consulting business segment.

KBR will design the optimal refinery configuration and build the financial model, which will incorporate capital and operational cost estimates. China Huanqiu Contracting and Engineering Corporation will provide support to KBR on the project, and is advising on the tailoring of the product for the potential future phase of Chinese investments.

Just last week, KBR secured a contract extension with Qatar's Expressway Program, wherein it will continue its role as a program management consultant for the project for the next three years. The extension, awarded by Qatar's Public Works Authority's (Ashghal) program management contractor, is valued at over $185 million.

KBR’s Technology & Consulting business has been performing strongly, with revenues soaring 34.7% year over year in the last reported quarter. Solid sales of increased proprietary equipment and top line contribution from previously completed acquisitions have been adding to the momentum of the unit.

Such deals will propel growth in KBR’s business and will boost its operations significantly.

KBR currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industrial products sector include Eaton Corporation plc (NYSE:ETN) , Powell Industries, Inc. (NASDAQ:POWL) and ESCO Technologies Inc. (NYSE:ESE) , each holding a Zacks Rank #2 (Buy).