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KBR, Inc.’s KBR innovation initiatives in its ammonia technology are attracting demand from across the globe. The trend is substantiated by the company’s recent win in Kazakhstan.
The company’s ammonia technology has been selected by KazAzot for its 2,000 metric tons per day ammonia plant, which is to be built in Aktau, Kazakhstan. By implementing this project, KazAzot will be addressing the food security requirements of Kazakhstan and other neighboring countries.
For the development of Kazakhstan’s first global-scale fertilizer facility, KBR’s work scope will include the offering of a technology license, proprietary engineering design, equipment and catalyst solutions.
Per Jay Ibrahim, the president of KBR Sustainable Technology Solutions, “KBR's leading Purifier ammonia technology seeks to deliver enhanced operational efficiency and a lower carbon footprint compared to conventional technologies.”
KBR’s Diversified Services Enhance Backlog Growth
The company offers diversified solutions across various end markets through two of its reportable segments, Government Solutions (GS) and Sustainable Technology Solutions (STS). Furthermore, the rising global importance of national security, energy security, energy transition and climate change has been acting as a major tailwind. This advantage, coupled with KBR’s focus on a resilient business model, and efficiency-boosting initiatives have sparked its project-winning momentum.
At the end of the fiscal third quarter of 2024, the company’s total backlog (including award options of $4.215 billion) was $22.12 billion compared with $21.73 billion at 2023-end. Of the total backlog, GS contributed $18.4 billion and the STS segment contributed $3.8 billion.
The increased activity in energy transition projects, especially in the Middle East, focuses on market share expansion in areas such as ammonia, gas and green hydrogen. This trend supports confidence in the company’s STS targets. Going forward, KBR expects broad-based growth in its STS segment, backed by the demand for its technologies across ammonia for food productions, olefins for non-single-use plastics and refining for product diversification and more green solutions to meet tighter environmental standards.
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KBR’s shares have lost 7.9% in the past three months compared with the Zacks Engineering - R and D Services industry’s 11% decline. Although the company's significant dependency on government spending is posing concerns, the increased demand for sustainable services and technology is likely to be beneficial in the upcoming period.