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Released March 02, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--KBR Incorporated (NYSE:KBR) (Houston, Texas) posted a $1.24 billion loss for the fourth quarter of 2014, largely as a result of restructuring-related charges and a drop in revenue. For fourth-quarter 2013, the engineering, procurement and construction (EPC) contractor reported a net loss of $56 million. KBR is heavily involved in oil and gas production projects.
Fourth-quarter revenue totaled $1.42 billion, down from $1.68 billion a year earlier. Impairments and restructuring-related charges amounted to more than $1 billion, according to the company.
"We've sort of made one step back to make two steps forward, said Chief Executive Officer Stuart Bradie during the company's earnings conference call. "We expect a profitable 2015, even as restructuring activities continue."
Industrial Info is tracking 232 KBR-related projects worth $206.42 billion. KBR is involved in engineering projects in all regions of the globe. Asia ranks first in total investment value, with 84 projects worth $61 billion; followed by North America, with 84 projects worth $55 billion; and Oceania, with 21 projects worth $45 billion. Oil and gas production makes up the lion's share of KBR-related work, with 43 projects worth $137 billion. Ninety-seven of the projects, worth $73.84 billion, are under construction; 70 projects, valued at $35.46 billion, are in the engineering phases; and 65 projects, valued at $97.17 billion, are in the planning phases, where a variety of factors could alter their outcome.
Phase I of the grassroot Johan Sverdrup Oil and Gas Production Platform, which is off the shore of Norway in the North Sea, is by far the biggest project involving KBR in terms of total investment value. KBR and Kvaerner ASA (Oslo, Norway) announced in August 2014 they were forming a joint venture to competitively bid on offshore platform topsides contracts for the $22.22 billion project. Lundin Petroleum (Stockholm, Sweden) will operate the platform, which is expected to produce between 315,000 and 380,000 barrels of oil equivalent/day (BOE/d) and 3 million to 5 million cubic meters per day of natural gas. Project kickoff is set for second-quarter 2016, with completion in second-quarter 2019.
The company said it is in a transition phase as it seeks to focus on the global hydrocarbons and international government services markets, and exit non-strategic businesses.
KBR's Technology & Consulting segment reported a drop in fourth-quarter gross profit, while net losses were reported by its Non-Strategic Business and Government Services segments. The Engineering & Construction segment reported a net gain of $32 million, driven by performance on two liquefied natural gas (LNG) projects.
Some of the highlights for the fourth quarter included a technical services contract for the $3 billion Magnolia LNG export project, located at the Port of Lake Charles, Louisiana, and a concept study contract by Statoil ASA (NYSE:STO) (Stavanger, Norway) for the revamp and expansion of its 186,000-barrel-per-day (BBL/d) Mongstad Refinery, located near Bergen, Norway.
Also, in February, KBR announced engineering, procurement and construction contract with Yara International (Oslo, Norway) and BASF Group (Ludwigshafen, Germany) to build a world-scale ammonia plant at BASF's site in Freeport, Texas. The 750,000-ton-per-year ammonia plant project has a total investment value of $600 million, according to Industrial Info. Kickoff is expected in first-quarter 2017, with completion in fourth-quarter 2018.
For all of 2014, KBR reported a net loss of $1.26 billion, compared with a profit of $75 million in 2013. Revenue for 2014 totaled $6.36 billion, down from $7.21 billion in 2013. Looking forward, Bradie said: "It's worth saying, though, the market is tough, that oil prices are obviously depressed. I think the focus for us is on projects capitalizing on low [cost] natural gas feedstocks." He added he expects KBR to maintain a healthy project backlog in 2015.
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.
Fourth-quarter revenue totaled $1.42 billion, down from $1.68 billion a year earlier. Impairments and restructuring-related charges amounted to more than $1 billion, according to the company.
"We've sort of made one step back to make two steps forward, said Chief Executive Officer Stuart Bradie during the company's earnings conference call. "We expect a profitable 2015, even as restructuring activities continue."
Industrial Info is tracking 232 KBR-related projects worth $206.42 billion. KBR is involved in engineering projects in all regions of the globe. Asia ranks first in total investment value, with 84 projects worth $61 billion; followed by North America, with 84 projects worth $55 billion; and Oceania, with 21 projects worth $45 billion. Oil and gas production makes up the lion's share of KBR-related work, with 43 projects worth $137 billion. Ninety-seven of the projects, worth $73.84 billion, are under construction; 70 projects, valued at $35.46 billion, are in the engineering phases; and 65 projects, valued at $97.17 billion, are in the planning phases, where a variety of factors could alter their outcome.
Phase I of the grassroot Johan Sverdrup Oil and Gas Production Platform, which is off the shore of Norway in the North Sea, is by far the biggest project involving KBR in terms of total investment value. KBR and Kvaerner ASA (Oslo, Norway) announced in August 2014 they were forming a joint venture to competitively bid on offshore platform topsides contracts for the $22.22 billion project. Lundin Petroleum (Stockholm, Sweden) will operate the platform, which is expected to produce between 315,000 and 380,000 barrels of oil equivalent/day (BOE/d) and 3 million to 5 million cubic meters per day of natural gas. Project kickoff is set for second-quarter 2016, with completion in second-quarter 2019.
The company said it is in a transition phase as it seeks to focus on the global hydrocarbons and international government services markets, and exit non-strategic businesses.
KBR's Technology & Consulting segment reported a drop in fourth-quarter gross profit, while net losses were reported by its Non-Strategic Business and Government Services segments. The Engineering & Construction segment reported a net gain of $32 million, driven by performance on two liquefied natural gas (LNG) projects.
Some of the highlights for the fourth quarter included a technical services contract for the $3 billion Magnolia LNG export project, located at the Port of Lake Charles, Louisiana, and a concept study contract by Statoil ASA (NYSE:STO) (Stavanger, Norway) for the revamp and expansion of its 186,000-barrel-per-day (BBL/d) Mongstad Refinery, located near Bergen, Norway.
Also, in February, KBR announced engineering, procurement and construction contract with Yara International (Oslo, Norway) and BASF Group (Ludwigshafen, Germany) to build a world-scale ammonia plant at BASF's site in Freeport, Texas. The 750,000-ton-per-year ammonia plant project has a total investment value of $600 million, according to Industrial Info. Kickoff is expected in first-quarter 2017, with completion in fourth-quarter 2018.
For all of 2014, KBR reported a net loss of $1.26 billion, compared with a profit of $75 million in 2013. Revenue for 2014 totaled $6.36 billion, down from $7.21 billion in 2013. Looking forward, Bradie said: "It's worth saying, though, the market is tough, that oil prices are obviously depressed. I think the focus for us is on projects capitalizing on low [cost] natural gas feedstocks." He added he expects KBR to maintain a healthy project backlog in 2015.
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.
