CB&I swings to second quarter loss
The LNG engineer Chicago Bridge & Iron (CB&I) reported a net loss of $425 million for the second quarter of 2017, as compared to a profit of $123.8 million in the corresponding quarter last year.
Revenue was $1.3 billion in the second quarter of 2017, compared to revenue of $2.2 billion in the second quarter of 2016.
CB&I recorded new awards in the second quarter of 2017 amounted to $1.1 billion, compared to $1.3 billion in the second quarter of last year, with backlog at June 30, 2017, reaching $13.6 billion, compared to a backlog of $14.7 billion at June 30, 2016.
Speaking of the results, Patrick Mullen, president and CEO of CB&I, said the company has “initiated a comprehensive cost reduction program” and suspended its dividend.
“Additionally, we announced today that we are pursuing a sale of our Technology business, which we believe will unlock significant value for stakeholders. We plan to use the proceeds from the sale to significantly enhance CB&I’s financial strength and flexibility,” he said.
The company intends to eliminate the majority of its debt and reinvest into E&C and Fabrication services business that reported a revenue of $702.2 million in the second quarter of 2017, compared to $1.5 billion in the year-ago quarter, due to the wind-down of a large cost-reimbursable LNG mechanical erection project in the Asia-Pacific region and lower revenue on two U.S. LNG projects.
Based on the market conditions and operating environment that CB&I has encountered through the first six months of 2017, the company has revised its outlook for the second half of the year. The company currently expects second-half revenue to be between $3.7 and $4.0 billion.