Chicago Bridge & Iron Company N.V. (CBI) received a $90 million contract from Abu Dhabi Marine Operating Co. (ADMA-OPCO) for revamping five crude oil storage tanks on Das Island, UAE.
CBI is a leader in the Liquefied Natural Gas (LNG) storage niche market. The company’s experience in the domain dates back over a century. The company plans to aggressively capture market share in this area, specifically for LNG/low temperature storage systems (petrochemicals).
In Aug 2014, CBI had received another storage tank construction contract from Oiltanking Beaumont L.P. Valued at $49 million, the contract required the company to provide engineering, procurement, fabrication and construction services for as many as 12 internal floating-roof crude oil storage tanks at Oiltanking's Texas-based facility.
We believe that the company is well positioned to gain from its strength in waste and waste water tanks, mineral processing storage and power applications. The growth is likely to be driven by the emerging markets, wherein majority of the industrial and infrastructure development is expected. CBI has also been expanding into the mining sector, which should provide additional opportunities and some sector/geographic diversification around oil & gas.
CBI currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include ABB Ltd. (ABB), CLARCOR Inc. (CLC) and Quanta Services, Inc. (PWR). All three stocks hold a Zacks Rank #2 (Buy).
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