KBR To Benefit From LNG Projects Surge
As the global economy struggles along especially in emerging markets, the domestic engineering firms have seen revenues and profits stagnate this year. Ironically, an unlikely source is now contributing to huge growth expectations over the next couple of years.
The shale gas revolution in North America is pushing LNG export projects, and ammonia and ethylene plants back to the US where chemical construction projects had dried up for decades. In the case of KBR, Inc (KBR), analysts expect dramatic earnings increases in out years while the stock still trades at a below market multiple.
The company is off to a good start with FEED work on a couple of LNG export projects in British Columbia and the recent announcement of a $600M ammonia project in Louisiana.
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