KBR plunges into red
Houston-based LNG engineer KBR reported a third-quarter net loss of US$63 million compared to a $55 million profit during the same period a year earlier.
According to the company’s report, consolidated revenue in the third quarter of 2016 was $1.1 billion compared to $1.2 billion in the third quarter of 2015.
Engineering & Construction gross profit was $1 million, down $47 million from the prior year, partly due to the lower activity on several projects including an LNG project in Australia.
KBR said the LNG market continues to show signs of increasing activity with the awards to KBR of the second phase of a contract with Woodfibre LNG for multi-phased FEED services, a confidential FEED services contract for a North American mid-scale LNG project, a high-level feasibility study for SLNG’s Jurong Island LNG terminal and a pre-FEED study for AALNG’s new proposed LNG Hub terminal in Indonesia.
Stuart Bradie, president and CEO of KBR, said that the growth in backlog in the third quarter is predominantly from longer-term, low risk and reimbursable contracts which despite the ongoing challenges in the hydrocarbons sector, will result in improving margins and greater free cash flow in 2017 and beyond.
He added that, due to the growth, the company expects its opportunity pipeline to continue growing.
KBR further confirmed its previously issued full year 2016 fully diluted earnings per share guidance of $0.30 to $0.50 per share, from previous guidance of between $1.20 and $1.45 per share.