KBR, a U.S. engineering and construction firm, on Monday reported a rise in its 3Q net income. Net income for the quarter stood at $55 million, compared to net income of $30 million in the third quarter of 2014.
Consolidated revenue for the period was $1.2 billion compared to $1.7 billion in the third quarter of 2014.
Stuart Bradie, President and Chief Executive Officer of KBR, Inc. said: “Our third quarter consolidated results reflect continued strength in our operational performance and progress towards achieving the strategic objectives we previously outlined.”
Bradie said that the non-strategic power projects performed better than projected and provided incremental earnings. He said that KBR’s transformation was well underway and the company was on track to achieve the 2016 targets for segment profit margin percentages and $200 million in annual cost savings.
Savings on track
“To-date the company has identified and actioned more than $150 million of the $200 million savings target with the identified savings being realized throughout 2015 and 2016. During the quarter we also closed on two strategic partnerships to accelerate growth and earnings in our Industrial Services and pipe fabrication businesses and made continued progress towards closing non-strategic businesses and completing loss-making projects,” Bradie said.
The company’s CEO further said that low oil prices continued to impact client capital expenditures, however, KBR’s technology and project delivery capability focused primarily on natural gas derivative products and associated downstream facilities positions us well for this market.
Looking forward, the company, which last week won another contract on Maersk Oil’s Culzean project in the North Sea, says it continues to see opportunities for LNG, FLNG, oil & gas, ammonia and chemicals projects.