KBR, Inc. has announced its fourth quarter and annual 2014 financial results. The results reflect charges associated with the company’s restructuring previously announced in December 2014.
Net loss attributable to the company was US$1.24 billion, or US$8.57 per diluted share, in the fourth quarter of 2014 compared to a net los of US$56 million, or US$0.38 per diluted share in the fourth quarter of 2013. Consolidated revenue in the fourth quarter of 2014 was US$1.4 billon compared to US$1.7 billion in the fourth quarter of 2013.
Stuart Bradie, President and CEO said, “our fourth quarter consolidated results reflect the significant charges associated with the company’s restructuring previously announced in December 2014. The transformation of KBR has begun and is proceeding according to plan. While oil prices remain depressed, KBR’s technology and project delivery capability for natural gas derivative products and associated downstream facilities positions us well for project awards during 2015. In recent months we have won a number of key contracts that reflect our strategy, including a large scale ammonia EPC project for Yara and BASF, BG Group’s Global Upstream Alliance Partnership, a long term agreement for Offshore Oil & Gas Projects for Saudi Aramco, and a reimbursable construction project in North America. Looking forward, we are on track to achieve the 2016 targets set forth on our analyst day for segment profit margin percentages and a US$200 million cost reduction.”
Technology and Consulting
T&C revenue was US$68 million, a decrease of US$26 million, primarily due to a decline in volume from completed basic engineering design activities on several projects. Gross profit was US$5 million, a decline of US$12 million, resulting from changes in revenue estimates at completion on a number of legacy projects. Looking forward, the company sees continued global opportunities for ammonia related projects and for refining and olefins projects including new builds and revamps to improve efficiencies of exiting facilities.
Engineering and Construction
E&C revenue was US$1038 million, a decrease of US$68 million, while E&C gross profit was SU$32 million, an increase of US$72 million. Revenue declined primarily due to lower progress on large gas to liquids and LNG projects as they neared completion last year, offset by growth in ammonia, oil and gas projects and activities in Canada. Gross profit was primarily driven by continued strong performance on two major LNG projects, partially offset by a US$22 million net increase in forecast costs to complete certain projects, including a gain on Canadian pipe and module assembly projects from claims settlements and project close out activities.
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/02032015/kbr-2014-results/