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KBR Clinches Contract for Renewable Power System Upgrade

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KBR, Inc. (KBR - Free Report) has entered into a contract with Odfjell for the development of a carbon-neutral, green ammonia-based power system for a semisubmersible drilling unit owned by the latter. Per the contract, KBR will carry out study for the development through a collaboration with Odfjell, Equinor and Wartsila.

The collaboration will assess the conversion of diesel generators on board drilling units to ammonia-fueled generators. Regarding the award, Jay Ibrahim, KBR president, Sustainable Technology Solutions, said, “We are excited to be a part of a collaborative effort that will fully integrate KBR's semisubmersible technology expertise, Wartsila’s power systems, and Odfjell's and Equinor's operations capabilities, all to deliver a carbon-neutral solution.”

KBR has been a global leader in the ammonia market for decades. The demand for the company’s technological innovations in ammonia for food productions, olefins for non-single-use plastics, and in refining for product diversification and more green solutions to meet tighter environmental standards has been robust.

The determination to lower emissions, product diversification, energy efficiency, and more sustainable technologies and solutions by KBR have been driving its performance. Shares of this global engineering, construction and services firm have advanced 2.2% year to date, outperforming the Zacks Engineering - R and D Services industry’s 12.2% decline.
 

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The Sustainable Technology Solutions segment continues to make progress in its profit growth strategy. However, technology business revenues decreased 7% year over year in first-half 2022 due to the company’s exit from commercial activities in Russia as well as the timing of certain ongoing projects.

Nonetheless, continuous contract wins, strong project execution, a high backlog level, and potential government as well as technology businesses. The Sustainable Technology Solutions segment booked $3.71 billion in backlog during second-quarter 2022 versus $2.35 billion at 2021 end. KBR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Overall, as of Jun 30, 2022, the total backlog (including award options) was $19.21 billion compared to $19.71 billion at  2021 end. This solid backlog level depicts its underlying strength.

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