News Column

United States : KBR Announces Second Quarter 2014 Financial Results

August 1, 2014

KBR, Inc., a global engineering, construction and services company supporting the energy, hydrocarbons, power, industrial, civil infrastructure, minerals, government services and commercial markets, announced today its second quarter 2014 financial results.

Net loss attributable to KBR was $8 million, or $0.06 per diluted share, compared to net income attributable to KBR of $90 million, or $0.61 per diluted share, in the second quarter of 2013. Consolidated revenue in the second quarter of 2014 was $1.7 billion compared with $2.0 billion in the second quarter of 2013.

While our second quarter consolidated results improved sequentially, they remain well below our expectations and reflect ongoing losses in our Canadian pipe fabrication and module assembly business, said Stuart Bradie, President and Chief Executive Officer of KBR, Inc. However, we delivered significantly improved overall bookings, particularly in our Hydrocarbons and Infrastructure, Government and Power segments and our Gas Monetization and Hydrocarbons segments continue to perform well. Looking forward, we have a number of good Engineering, Procurement and Construction prospects in our Gas Monetization and Hydrocarbons segments, especially in North America. Fundamentally, KBR remains a strong, global company with talented people and a diverse portfolio of businesses and technical capabilities. Our goal is to deliver safe, best-in-class operational performance, improved cash management and efficient capital allocation.

Gas Monetization revenue was $362 million, down $231 million, primarily due to reduced business volumes on a gas-to-liquids (GTL) project in Nigeria and a liquefied natural gas (LNG) project in Algeria as these major projects were mainly completed in 2013. Gross profit was $48 million, down $32 million, primarily due to additional fees and recoveries recognized on an LNG project in 2013 that did not reoccur in 2014 and higher bid and proposal costs related to multi-billion dollar EPC projects that the company is pursuing in 2014 for expected awards in 2015.

Gas Monetization equity in earnings of unconsolidated affiliates was $18 million, up $1 million, due to increased activity on an LNG project in Australia. This project continues to perform well. Hydrocarbons revenue was $533 million, up $189 million, while Hydrocarbons gross profit was $34 million, down $10 million. Revenue growth is primarily due to the high volume of EPC projects the Company is executing for the Downstream ammonia, urea and ethylene markets in North America. During the quarter, the segment had solid bookings globally, particularly in petrochemicals and refining.

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Source: TendersInfo (India)

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