CB&I has reported that the second quarter resulted in strong earnings, improved cash flow and consistent operating performance. Net income for Q2 was US$169.5 million, an increase of 14% from adjusted net income for the same time in 2014. Revenues were US$3.2 billion, including a US$240 million negative impact attributable to the translation effect of the strong dollar. Net cash provided by operating activities during Q2 was US$95 million. New awards for the second quarter totalled US$2.8 billion, and new awards for the first six months totalled US$5.9 billion. The backlog remained fairly constant at approximately US$29.4 billion, including an adverse foreign exchange impact of US$270 million year to date.
During the quarter, CB&I and its joint venture partners Chiyoda Corporation and Saipem were selected by Anadarko Petroleum Corporation to design and construct process and ancillary infrastructure associated with its LNG development program in Mozambique. CB&I expects to book its share of the initial phase of the project in Q4.
Other significant awards in Q2 include a combined cycle gas turbine power project in the US, multiple maintenance services awards in North and South America, engineered products in Russia and Mexico, scope increases for a large nuclear project in the US, and a variety of technology and fabrication awards globally.
Philip K. Asherman, CB&I President and CEO said, “we continue to deliver solid performance despite a volatile commodity market and geopolitical issues that create instability in many of the traditional international energy markets. The US remains a great opportunity for us particularly in LNG, petrochemicals and fossil power generation markets. East Africa will be a source of solid backlog for many years as Anadarko and other owners develop these tremendous assets. Additionally, we continue to produce significant profitability from not only our insourcing capabilities but also the diverse portfolio of new opportunities in our facilities maintenance, engineered products, steel plate storage, pipe fabrication, technology licensing and catalyst businesses.”
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/24072015/cbi-q2/