KBR's Backlog Ticks Down as Drilling, Chemical, Other Projects Near Completion

Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) giant KBR Incorporated (NYSE:KBR) (Houston, Texas) is under or nearing construction on projects ranging from the U.S. Midwest to the Middle East, from deep-sea oil drilling to ammonia processing. Although the company's backlog has steadily declined over the past few quarters as a result, it remains at more than $10 billion.

The total investment value of projects involving KBR stands at more than $100 billion, according to Industrial Info's project database. Nearly half of the total value is attributed to projects that are in an advanced engineering or construction phase.

In the U.S., KBR has made progress on one of its largest projects: Koch Industries Incorporated's (Wichita, Kansas) $600 million revamp and expansion of ammonia units and $400 million addition of a urea unit at a nitrogenous fertilizers plant in Enid, Oklahoma. The 2,425-ton-per-day Stamicarbon urea unit has entered its final commissioning phase and is expected to start up late in the third quarter; the new ammonia units will boost fertilizer production by 1 million tons per year, by increasing capacity at the two existing ammonia units from 1,600 tons to about 1,700 tons per day, and 1,600 tons to about 1,900 tons per day. For more information, see Industrial Info's project reports on the urea and ammonia units.

The plant, one of the largest fertilizer production facilities in North America, will become operational after going through a series of structural tests, according to Tulsa World. Koch built the facility in response to a growing demand for fertilizer amid an increase in crop production across North America.

Another KBR project, E.I. du Pont de Nemours and Company's (NYSE:DD) (Wilmington, Delaware) $275 million commercial-scale fuel ethanol plant in Nevada, Iowa, entered its final commissioning phase in the third quarter and is set to open its doors in the near future. The plant will process cellulosic material to produce 27.5 million gallons per year of ethanol. For more information, see Industrial Info's project report.

In the North Sea, KBR and Maersk Oil (Copenhagen, Denmark) recently finished installing the last of three jackets at Maersk's Culzean offshore gas field development, which includes a $1 billion central processing platform and a $700 million accommodation platform. Last month, Maersk announced installation work for the jackets had been completed "on time and on budget," and that it is on track to deliver first gas from a major North Sea field in 2019 after completing foundation work at the development, according to BBC.

The Culzeon field is expected to produce about 400 million standard cubic feet per day; Maersk told BBC that it could meet 5% of U.K. gas demand by 2020-21. For more information, see Industrial Info's project reports on the central and accommodating platforms.

Construction began earlier this summer on a major offshore drilling project in the Middle East: Abu Dhabi National Oil Company's Al-Nasr Package 2 Complex in the Persian Gulf. The multi-phase project includes a $900 million natural gas-processing platform, which has a processing capacity of 200 million standard cubic feet per day; a $550 million crude oil-processing platform, with a 65,000-barrel-per-day capacity; a $550 million platform for living quarters, accommodating up to 100 crew; and a $500 million subsea cable installation. For more information, see Industrial Info's project report on the natural gas, crude oil and housing platforms, and the subsea cable.

Outside the energy-related industries, KBR is nearing completion on two U.S. projects: International Paper's (NYSE:IP) (Memphis, Tennessee) $80 million in upgrades, and $13 million in capital improvements to a recycled linerboard mill in Maysville, Kentucky. International Paper hopes to rebuild key components, increase paper-machine speeds, and boost production capacity from 1,200 to 2,100 tons per day, as well as add a pair of high-density kraft pulp storage tanks. For more information, see Industrial Info's project reports on the upgrades and storage tanks.

KBR's profits for second-quarter 2017 were reported to be $77 million, a 64% increase from the same period last year. Revenues stood at $1.09 billion, an 8.4% increase.

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