Chicago Bridge & Iron (CBI) recently received another engineering, procurement and construction (EPC) contract valued over $60 million from Petrofac Saudi Arabia Co. Ltd. Per the deal, Chicago Bridge & Iron is entailed to construct storage spheres at a grassroots refinery in Saudi Arabia. Over the last four months, Chicago Bridge & Iron has been awarded EPC contracts worth $585 million, excluding the latest Petrofac contract.
In Jun 2014, Chicago Bridge & Iron received an EPC deal from AES Corporation, a subsidiary of Indianapolis Power & Light Company. Valued at approximately $500 million, the contract requires Chicago Bridge & Iron to provide EPC services to AES Corp.’s 671-Megawatt Combined-Cycle Gas Turbine Power Station to be constructed near Martinsville, IN.
Separately, Chicago Bridge & Iron received an $85 million contract from a consortium led by BP plc (BP) for the Shah Deniz Stage II project on Apr 15, 2014. The company will also provide core services including engineering and project management for advancing the South Caucasus Pipeline Expansion (SCPX) in the Shah Deniz project.
Chicago Bridge & Iron’s Engineering, Construction and Maintenance division provides EPC services to major energy infrastructure facilities. This segment also offers comprehensive and integrated maintenance services. This operating group primarily executes nuclear, fossil and renewable electricity generation projects for the power industry and upstream and downstream process facilities in the oil and gas industry. Such process facilities include refinery process units, petrochemical facilities as well as natural gas liquefaction and re-gasification terminals. This segment accounted for 61% of the total revenue in fiscal 2013 and reported a robust revenue increase of 392% in the last reported quarter (first quarter 2014).
Chicago Bridge & Iron primarily focuses on providing energy infrastructure and takes up government contracts. The company offers designing, engineering, construction, fabrication, maintenance and environmental services.
Chicago Bridge currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include ITT Corp. (ITT), United Technologies Corp. (UTX) and CLARCOR Inc. (CLC). All three carry a Zacks Rank # 2 (Buy).
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