KBR, Inc. (KBR)

NetscribeServcs (< 20) Submitted: 3/20/07 8:14 AM : Start Price: $20.88 KBR Score: -3.15

KBR Inc is a leading global engineering, construction and services company supporting the energy, petrochemicals, government services and civil infrastructure sectors, through its two business segments mainly Energy and Chemicals (E&C) and Government and Infrastructure (G&I). Additionally, the company is also the largest provider of defense support and logistic services to the United States Department of Defense (DoD), a major contractor for the U.K. Ministry of Defense (MoD), and other government defense agencies. E&C and G&I generated 25% and 75% of revenues for the fiscal 2006.


The company is well positioned to participate and execute projects amidst very strong oil & gas infrastructure spending. The developing capital spending cycle in North American and International markets for oil and gas related infrastructure, mainly downstream oil processing augurs well for company’s future growth. Globally, throughout 2020, the total estimated investments to go into oil and gas are $ 530 billion.


The company has been recently awarded by Jihua Group, a subsidiary of China National Petroleum, a basic design-engineering package for a new production facility with a nominal propylene capacity of 200,000 ton per year utilizing SUPERFLEXSM technology. As the level of military operations decline in Iraq, contributions from G&I segment could slowdown going forward. However, this would be offset by lift in the capital spending across oil and gas segment. The boom in oil exploration and production offers good opportunity for long-term investors to invest in this stock.

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