KBR, Inc. KBR has landed a significant contract to provide engineering and procurement services for the onshore portion of Shell's Manatee gas field project. This marks another milestone in KBR’s extensive track record in the liquefied natural gas (LNG) sector and strengthens its position in the global energy transition.

Expanding LNG Expertise

The Manatee project, located in the East Coast Marine Area of Trinidad and Tobago, is an important asset for supporting global energy security. The natural gas extracted from this field will be used to supply the country's Atlantic LNG facility, a crucial player in global natural gas exports.
KBR's involvement in the project is not new. The company previously contributed to the front-end engineering design as an integrated member of Shell’s development team. This latest contract represents the next phase of KBR’s involvement and positions the company as a pivotal partner in the project’s execution.

Strategic Win in Energy Transition

Jay Ibrahim, president of Sustainable Technology Solutions at KBR, emphasized the importance of the win, highlighting the company's ongoing commitment to providing reliable natural resources in line with the global energy transition. “This win highlights KBR's strong energy security capabilities that support our clients' goals of providing reliable and accessible natural resources that meet the world's long-term energy needs,” Ibrahim said.

KBR’s expertise in designing and delivering LNG projects around the world has made it a trusted partner for major energy companies. As the world navigates the shift to more sustainable energy sources, natural gas remains a key element of this transition, offering a cleaner alternative to other fossil fuels.

Boosting KBR’s Prospects

This contract further solidifies KBR’s standing in the LNG market and enhances its growth prospects. With its proven experience and a commitment to supporting clients in the energy transition, KBR is well-positioned to capture additional opportunities in the evolving global energy landscape.
 

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Shares of KBR have underperformed the Zacks Engineering - R and D Services industry in the past six months. Although shares have underperformed, earnings estimates for 2024 have increased to $3.25 per share from $3.24 over the past 60 days. This depicts analysts’ optimism over the company’s prospects.

Also, new and on-contract growth across its businesses and increased demand for sustainable services and technology are likely to be beneficial in the upcoming period (read more: KBR Wins $113M Contract for Air Force's Future Tankers Program).

KBR’s Zacks Rank & Other Key Picks

Currently, KBR sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the same space are:

M-tron Industries, Inc. MPTI currently sports a Zacks Rank #1. It has topped earnings estimates in three of the trailing four quarters and missed once, with an average surprise of 9.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MPTI’s 2024 earnings per share (EPS) indicates a rise of 76.6% from prior-year levels. MPTI shares have gained 91% over the past six months.

Knife River Corporation KNF presently flaunts a Zacks Rank #1. KNF has a trailing four-quarter earnings surprise of 33%, on average.

The Zacks Consensus Estimate for KNF’s 2024 sales and EPS indicates a rise of 3.2% and 15.2%, respectively, from the prior-year levels. KNF shares have gained 15.1% over the past six months.

Quanta Services, Inc. PWR presently carries a Zacks Rank #2 (Buy). Quanta has a trailing four-quarter earnings surprise of 4.6%, on average.

The Zacks Consensus Estimate for PWR’s 2024 sales and EPS indicates a rise of 14.1% and 20.1%, respectively, from the prior-year levels. PWR shares have gained 25.1% over the past six months.

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