KBR, Inc. has announced net income of US$44 million for the first quarter of this year, compared to a net loss of US$43 million for the same time last year. Consolidated revenue in the first quarter of the year was US$1.4 billion compared to US$1.6 billion in the first quarter of 2014.
Stuart Bradie, President and CEO said, “our first quarter consolidated results reflect improved operational and financial performance across our business segments and continued progress against our cost reduction targets. While KBR’s transformation continues 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 annual cost reduction. To date, the company has identified and actioned more than US$100 million of the US$200 million savings target. The identified savings will be realised throughout 2015.
“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. We are also in sole source negotiations for two major UK MoD contracts while awards are expected by the end of 2015. In recent months we have continued to win a number of key contracts that reflect our strategy, including a new engineering JV with the SOCAR to establish a new engineering and support services company in Azerbaijan, the Black Sea LNG Feed award, a major US construction award and pre FEED work for two world scale ammonia facilities."
Edited from press release by Claira Lloyd
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