CB&I reported net income of US$123.8 million, or US$1.17 per diluted share, for the second quarter of 2016, as compared to US$169.5 million, or US$1.55 per diluted share for the second quarter of 2015. On an adjusted basis, net income for the second quarter of 2015 was US$125.7 million, or US$1.15 per diluted share.
Revenues for the second quarter of 2016 were US$2.7 billion, as compared to US$3.2 billion in the second quarter of 2015, or US$2.6 billion on an adjusted basis.
Net cash provided by operating activities during the second quarter of 2016 increased by 86%, to US$177 million, as compared to US$95 million of net cash provided by operating activities in the second quarter of 2015. At the end of the second quarter of 2016, the company's total debt was US$2.3 billion, down 10% from the end of 2015.
New awards for the second quarter of 2016 totaled US$1.8 billion, as compared to US$2.8 billion for the second quarter of 2015, or US$2.3 billion on an adjusted basis. The company's backlog at the end of the second quarter of 2016 was US$19.6 billion.
"Our sound performance for the second quarter was highlighted by impressive cash flow, solid earnings, reduced debt and continued progress in lowering our effective tax rate," said Philip K. Asherman, CB&I's President and Chief Executive Officer. "We also resumed our stock repurchase program earlier this month and to date have purchased approximately 3.6 million shares, and we will continue to be active in the market until we reach our US$200 million limit.”
"Despite ongoing market uncertainty delaying the timing of final investment decisions, we were encouraged to see a meaningful rebound in new awards in our Technology operating group, which is often a leading indicator for subsequent EPC awards," said Asherman.
Although CB&I's unique business model and backlog position the company well for the long term, energy customers continue to defer the timing of new projects. As a result, the company is lowering its 2016 guidance as follows:
- Revenue: US$10.6 - US$11.0 billion.
- Earnings per diluted share: US$4.70 - US$5.00.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/28072016/cbi-reports-second-quarter-2016-financial-results-3801/