KBR's Distill-Max Technology Used In HollyFrontier Startups

KBR, Inc. (NYSE:KBR) recently announced that its state-of-the-art Distill-Max technology is being used in two of HollyFrontier Corporation’s (NYSE:HFC) Dividing Wall Columns ("DWC"), situated in El Dorado Refinery, KS. While one of the DWC is a grassroots startup, the other one is a revamp column startup.

KBR’s Distill-Max Plus technology has been deployed for the grassroots column, bringing down capital and operational expenditure of the MSAT II Compliance Naphtha Fractionation Project. This, in turn, has helped HollyFrontier reduce 25% of column area as well as improve energy savings by 30% for the grassroots column. Similarly, Distill-Max, another proprietary DWC technology of KBR, has been used for the revamp column. Remodeling of the existing column to DWC technology has enabled HollyFrontier enjoy the benefits of separation efficiency and 25% energy reduction.

KBR has been offering HollyFrontier a diversified range of comprehensive technical solutions, including basic design and the supply of column trays, since 2013. The company is of the opinion that its Distill-Max technology portfolio will assist clients to significantly slash energy consumption and enhance separation efficiency.

We believe that KBR’s Technology & Consulting segment will remain a key growth driver for the company. During second-quarter 2016, KBR’s Technology and Consulting sector clinched lucrative contracts, fuelling the company’s growth momentum. This apart, the company’s diversified mix of business portfolio helps it to combat the cyclicality associated with any single market. We note that the thriving Government Services and robust Technology portfolio provides KBR an excellent balance between hydrocarbons and government projects, thereby signaling bright prospects.

KBR currently carries Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Willdan Group, Inc. (NASDAQ:WLDN) and Franklin Electric Co., Inc. (NASDAQ:FELE) . Both stocks carry a Zacks Rank #2 (Buy).