Q4 restructuring pushed KBR’s net loss to USD 1.24 bln
LNG engineer KBR posted a net loss of $1.24 billion in the fourth quarter of 2014, compared to a net loss of $56 million for the same period a year ago.
Consolidated revenue in the fourth quarter of 2014 was $1.4 billion, compared to $1.7 billion in the fourth quarter of 2013.
“Our fourth quarter consolidated results reflect the significant charges associated with the company’s restructuring previously announced in December 2014. The transformation of KBR has begun and is proceeding according to plan. While oil prices remain depressed, KBR’s technology and project delivery capability for natural gas derivative products and associated downstream facilities positions us well for project awards during 2015,” said Stuart Bradie, President and Chief Executive Officer of KBR.
The company’s Engineering & Construction (E&C) revenue was $1,038 million, a decrease of $68 million, while E&C gross profit was $32 million, an increase of $72 million.
According to KBR, Revenue declined primarily due to lower progress on large gas-to-liquid and LNG projects as they neared completion during 2014, offset by growth in ammonia, oil and gas projects and activities in Canada.
Gross profit was primarily driven by continued strong performance on two major LNG projects.
Looking forward, the company continues to see opportunities for certain LNG, FLNG, oil & gas, ammonia and other downstream projects, it added.