Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 2 related plants in PECWeb
Released November 07, 2014 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Energy services provider The Babcock & Wilcox Company (NYSE:BWC) (B&W) (Charlotte, North Carolina) saw mixed financial but strong operational results in third-quarter 2014, as the Nuclear Operations segment reported record revenues and the company prepared to spin off its Power Generations segment. Net income was reported to be $61.21 million, a 1.27% increase from third-quarter 2014.
Industrial Info is tracking about $5.5 billion in active projects involving B&W, including the ongoing addition of two SO2 scrubber control units at the coal-fired Rollin M. Schahfer Power Station in Wheatfield, Indiana. B&W, which is performing engineering, procurement and construction services for the project, plans to install its wet flue gas desulphurization scrubbers on a B&W supercritical, cyclone-fired, wet-bottom boiler and a Foster Wheeler (NASDAQ:FWLT) opposed-fired, dry-bottom boiler. The project is expected to be completed in the second quarter of 2015.
View Project Report - 300023144
Also tracked by Industrial Info is the $1.65 billion FutureGen 2.0 Power Project in Meredosia, Illinois. B&W is performing design-engineering services on the proposed project, which will employ advanced coal-combustion technology to capture up to 90% of the plant's emissions. The project, which has faced many delays and is watched closely by the coal industry, is now looking at a first-quarter 2015 kick-off date. For more information, see April 19, 2014, article - FutureGen 2.0 Power Project Moves Forward, Eyes Late-2014 Construction Start.
View Project Report - 300016456
Total revenues stood at $737.9 million, a 4.77% decrease from the same period last year. The Nuclear Operations segment benefited from federal government programs for nuclear component manufacturing, while the Nuclear Energy segment reported more than $100 million in bookings. However, B&W announced earlier in the year that it would exit the nuclear projects business due to low margins, which caused the Nuclear Energy segment to see a revenue drop of almost 50%. B&W's June acquisition of MEGTEC (De Pere, Wisconsin) for $155 million added $48.9 million in revenues.
The Power Generation segment reported lower revenues following a decline in new-build environmental equipment work. The loss of contracts with Pantex (Amarillo, Texas) and the U.S. Department of Energy's Y-12 National Security Complex reduced income in the Technical Services segment.
Capital expenditures were reported to be $18.06 million in the third quarter, compared with $11.86 million in third-quarter 2013. The strongest spending increases were seen in the Power Generation segment, which more than tripled to $4.79 million, and the Nuclear Energy segment which more than quadrupled to $4.85 million.
A day before it published its third-quarter results, B&W announced that it would spin-off its Power Generation business to its shareholders. The action is expected to create two independent, publicly traded companies: Babcock & Wilcox, which will comprise the Power Generation business, and BWX Technologies, which will comprise the Government & Nuclear Operations business and will consist of the Nuclear Operations, Technical Services, Nuclear Energy and mPower businesses.
Consolidated revenues for full-year 2014 are expected to be $2.9 billion. Power Generation revenues are expected to grow 10%, fuelled by the integration of MEGTEC. The planned refurbishment of Canadian units owned by Bruce Power and Ontario Power Generation over the next 15 years is expected to generate $150 million to $200 million in annual revenues.
Late last month, B&W announced that it had been awarded a $35 million-plus contract by the University of Alaska Fairbanks to design and manufacture two boilers and air-quality control equipment for a power plant. Up to 280,000 pounds per hour of steam from the two circulating fluidized bed boilers will be used to heat and power the campus.
"At approximately $2.9 billion, the bid pipeline has increased noticeably in the past quarter, reflecting the additional opportunities we are pursuing, mostly in international markets," Ferland said. "There remain a number of large, international fossil and renewable projects we expect to book in the fourth quarter, and in subsequent months that will contribute to our backlog and international growth. We continue to expand our international business development activities, with the recent hire in the European Union, and continue to work in Asia, which has markets in which we see considerable opportunity."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking about $5.5 billion in active projects involving B&W, including the ongoing addition of two SO2 scrubber control units at the coal-fired Rollin M. Schahfer Power Station in Wheatfield, Indiana. B&W, which is performing engineering, procurement and construction services for the project, plans to install its wet flue gas desulphurization scrubbers on a B&W supercritical, cyclone-fired, wet-bottom boiler and a Foster Wheeler (NASDAQ:FWLT) opposed-fired, dry-bottom boiler. The project is expected to be completed in the second quarter of 2015.
View Project Report - 300023144
Also tracked by Industrial Info is the $1.65 billion FutureGen 2.0 Power Project in Meredosia, Illinois. B&W is performing design-engineering services on the proposed project, which will employ advanced coal-combustion technology to capture up to 90% of the plant's emissions. The project, which has faced many delays and is watched closely by the coal industry, is now looking at a first-quarter 2015 kick-off date. For more information, see April 19, 2014, article - FutureGen 2.0 Power Project Moves Forward, Eyes Late-2014 Construction Start.
View Project Report - 300016456
Total revenues stood at $737.9 million, a 4.77% decrease from the same period last year. The Nuclear Operations segment benefited from federal government programs for nuclear component manufacturing, while the Nuclear Energy segment reported more than $100 million in bookings. However, B&W announced earlier in the year that it would exit the nuclear projects business due to low margins, which caused the Nuclear Energy segment to see a revenue drop of almost 50%. B&W's June acquisition of MEGTEC (De Pere, Wisconsin) for $155 million added $48.9 million in revenues.
The Power Generation segment reported lower revenues following a decline in new-build environmental equipment work. The loss of contracts with Pantex (Amarillo, Texas) and the U.S. Department of Energy's Y-12 National Security Complex reduced income in the Technical Services segment.
Capital expenditures were reported to be $18.06 million in the third quarter, compared with $11.86 million in third-quarter 2013. The strongest spending increases were seen in the Power Generation segment, which more than tripled to $4.79 million, and the Nuclear Energy segment which more than quadrupled to $4.85 million.
A day before it published its third-quarter results, B&W announced that it would spin-off its Power Generation business to its shareholders. The action is expected to create two independent, publicly traded companies: Babcock & Wilcox, which will comprise the Power Generation business, and BWX Technologies, which will comprise the Government & Nuclear Operations business and will consist of the Nuclear Operations, Technical Services, Nuclear Energy and mPower businesses.
Consolidated revenues for full-year 2014 are expected to be $2.9 billion. Power Generation revenues are expected to grow 10%, fuelled by the integration of MEGTEC. The planned refurbishment of Canadian units owned by Bruce Power and Ontario Power Generation over the next 15 years is expected to generate $150 million to $200 million in annual revenues.
Late last month, B&W announced that it had been awarded a $35 million-plus contract by the University of Alaska Fairbanks to design and manufacture two boilers and air-quality control equipment for a power plant. Up to 280,000 pounds per hour of steam from the two circulating fluidized bed boilers will be used to heat and power the campus.
"At approximately $2.9 billion, the bid pipeline has increased noticeably in the past quarter, reflecting the additional opportunities we are pursuing, mostly in international markets," Ferland said. "There remain a number of large, international fossil and renewable projects we expect to book in the fourth quarter, and in subsequent months that will contribute to our backlog and international growth. We continue to expand our international business development activities, with the recent hire in the European Union, and continue to work in Asia, which has markets in which we see considerable opportunity."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
