CB&I sees strong operational performance in 2014

CB&I has reported its financial results for 4Q14 and the full year 2014. Adjusted net income for 2014 was US$568.7 million, or US$5.21 per diluted share, excluding integration related costs of US$25.1 million net of tax, or US$0.23 per diluted share. For the year, GAAP net income was US$543.6 million, or US$4.98 per diluted share. CB&I's consolidated 2014 revenue was US$13.0 billion, up from US$11.1 billion, a 17% increase from the prior year. New awards for the year totalled US$16.3 billion, which resulted in a backlog of US$30.4 billion.

Awards included strong bookings in the US, such as the engineering and construction of a three train LNG export terminal; two combined cycle gas turbine power projects; an ammonia storage tank; pipe fabrication for a propane dehydrogenation unit; nuclear and petrochemical facility maintenance work; as well as various decommissioning and decontamination, environmental remediation and government services awards. Globally, the company booked awards for engineering and procurement for a clean fuels project; structural, mechanical and piping construction for an LNG project; construction of petroleum storage tanks; licensing for a grassroots ethylene plant; engineered products for refining, petrochemicals and gas processing facilities; strategic technology licenses; and numerous additional steel plate storage and fabrication awards.

For 4Q14, CB&I's adjusted net income was US$161.3 million, or US$1.47 per diluted share, excluding acquisition and integration related costs of US$10.9 million net of tax, or US$0.10 per diluted share. GAAP net income for the quarter was $150.4 million, or US$1.37 per diluted share. Revenue for 4Q14 was US$3.4 billion with new awards of US$3.3 billion. Cash from operating activities for 4Q14 was $613.3 million, resulting in US$264.0 million for the year.

"We are pleased to deliver another year of strong safety, operational and financial performance. Our new awards and backlog are at record levels, and our prospect list for 2015 supports our outlook for sustained earnings growth," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "Despite the uncertainty generated by lower oil prices, our customers continue to rely on us to deliver solutions for their major capital projects. Over the last two years we made great progress in reducing costs and generating efficiencies across the organisation, and believe our cost discipline coupled with the benefits of our diversified integrated offerings will allow us to maintain our performance and provide solid returns for our shareholders.

"We project less than 5% of our revenue from new bookings could be affected by timing risks associated with lower oil prices. Accordingly, we think it is prudent to marginally adjust our guidance to revenue of US$14.4 billion - US$15.2 billion and earnings per share of US$5.55 - US$6.05,” Asherman concluded.

Adapted from press release by Rosalie Starling

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